CacaoWatch

Newsletter - Special Issue

DECEMBER

2012

Featuring Kakao Konek:

International Cocoa Conference and more...

The Road to Konek : Bridging the gap

Year 2011 has left a very significant mark in the development of Mindanao s cocoa industry. It was during this year that several cocoa industry players from various parts of the country were gathered in an event dubbed as the Philippines Cocoa Investment and Development Workshop (PCIDW). The event provided a platform for cocoa industry players to talk about issues, challenges and opportunities affecting the country s cocoa industry. The workshop has allowed the cocoa value chain representatives to see how vast the opportunities that awaits the industry. However to be able to fully take advantage of the opportunities presented, cocoa stakeholders have seen a vacuum that hinders the industry to swiftly move forward. That is, the lack of industry leadership that will orchestrate all efforts and steer it towards achieving the Philippines 2020 Cocoa Challenge which seeks to produce a total of 100,000 MT of quality and fermented dried cocoa beans by year 2020. The most significant impact of the PCIDW was the birth of a new and vibrant industry leader, the Cacao Industry Development Association on Mindanao, Inc. (CIDAMi). An industry association composed of various cocoa value chain players, CIDAMI has now become a reputable cocoa industry association and has continued to gain recognition and support both from the government and the private sector. With its one year of operation CIDAMi has conducted several meetings, promotional campaigns and coordination/collaboration efforts with various cocoa industry stakeholders including the government to promote cocoa industry development and investment. CIDAMi has also collaborated with ACDI/VOCA through the latter s USDA funded CoCoPal Program to support cocoa industry development. Among the ACDI/VOCA and CIDAMi s collaborative efforts is the conduct of the Kakao Konek 2012: International Cocoa Conference. Kakao Konek 2012 was organized by CIDAMI with support from ACDI/VOCA. The event has recently became the talk of the town especially among agriculture players as it did achieved greater heights and was able to get a quantum leap by putting the industry s best foot forward.
Vision Mindanao, a world-renowned quality cocoa

Producer

Mission Bring positive environmental and

socio-economic benefits to farmers, families and communities from sustainably-produced cocoa

Values Commitment, Service, Respect, Integrity

Kakao Konek 2012 : A taste of a sweeter future

Davao City, Philippines Over a thousand individuals representing various players of the cocoa value chain from different parts of the country and international stakeholders flocked to Davao City to join the first ever International Cocoa Conference dubbed as Kakao Konek 2012. The event successfully brought together under one roof key individuals and groups from input suppliers, farmers, cooperatives, nursery operators, traders and consolidators, processors and exporters and service providers including financial institutions, academe, various development organizations and the government from municipal, provincial, regional and national levels. Moreover, international participation highlighted buyers and development oriented institutions from five continents. Among them were representatives from Mars Inc., Armajaro Malaysia, INGENIC Group from Indonesia, Malaysia, Vietnam, Papua New Guinea and India. Other development organization and private company representatives present during event came from France, Canada, Singapore, Guatemala, United Kingdom, USA, Australia and the Netherlands. Kakao Konek 2012 which was held for three days, successfully staged a mix of activities which catered to the needs of the increasing number of cocoa industry players especially the farmers. The Kakao Konek conference was a mix of plenary and breakout sessions which seek to address the challenges and optimize opportunities to enable Mindanao to meet the Philippines 2020 Cocoa Challenge. Pool of industry experts and resource persons has joined forces to help the country achieve its target. Among the topics delivered by individual and organization representatives during the plenary were the following:
TOPIC Day 1 - Plenary CIDAMis goals and objectives. Its role in leading the Philippine Cocoa 2020 challenge and how the KakaoKonek event objectives will bring about convergence of cocoa value chain actors. Keynote Address: Transforming the Philippines Cocoa Industry for Global Competitiveness - How do policies and projects on HVCDP promote opportunities for the Cocoa stakeholders? What are some ways forward the government is taking, to support Mindanao in meeting the 2020 challenge? United States Department of Agriculture Food for Progress How can CoCoPal Program help smallholder farmers improve food production and incomes / USDA Capacity Building Programs in the Philippines Charita Puentespina Chairperson of CIDAMi Ms. Jenny Remoquillo, National Coordinator High Value Crops Development Program (HVCDP) - Department of Agriculture William Verzani US Embassy Agricultural Attach Foreign Agricultural Service U.S. Department of Agriculture RESOURCE PERSON

TOPIC Day 1 - Plenary Exploring regional & global markets for Mindanaos 2020 cocoa economy Emerging global trends in cocoa supply & demand Positioning Mindanao Cocoa Brand for High Value and High Quality Cocoa Production Mindanao, leading the Phil 2020 Cocoa Challenge: The Chocolate de San Isidro Experience Constraints & Opportunities for Increasing Competitiveness for 2020 Cocoa Economy Price Risk Management for Producers and Exporters Engaging Cocoa Value Chain Actors to Meet the 2020 Challenge : Lending Programs for Cocoa Stake holders Engaging Cocoa Value Chain Actors to Meet the 2020 Challenge : Small Enterprise Technology Upgrade Program (SETUP) Engaging Cocoa Value Chain Actors to Meet the 2020 Challenge : Investment & Financing Day 2 Plenary Development of Improved Cocoa Clones for Farmers Case of Phil Cocoa Clones Case of Malaysia Cocoa Clones Case of Vietnam Cocoa Clones Current Status of Cocoa Planting Materials in Indonesia Case of Papua New Guinea Cocoa Clones Developing Sustainable and Effective Nutrient Management Packages for Cocoa Production Day 2 Breakout Sessions Peer2Peer Discussion on Pest &Disease Management Best Practice : Effective Pest Control for Cocoa Conserving Biodiversity in Cocoa Certification Bio-intensive Cacao Farming System Harnessing the Potential for Farm Diversification : The National Greening Project / National Convergence Initiative Intercropping Cacao & Banana : The Cacao Banana Agrienterprise Development Project Davao: Cacao & Sustainable Agroforestry Developing Next Generation Cocoa Farmers : Commission on Higher Education-GK Village universities Developing Next Generation Cocoa Farmers: The Farmer Entrepreneurship Program Experiences Developing Next Generation Cocoa Farmers : The CoCoPal Programs Farmer Field School Developing Next Generation Cocoa Nursery Operators

RESOURCE PERSON Nicholas Richards, ACDI/VOCA Chief of Party Daniel Liew, Trading Manager - Armajaro Dr. Chow Boi Honorary secretary of the Cacao Association of Asia / Resident Consultant & Origin Expert - Mars, Inc Dr. Gil Yarra, Chairman, Chokolate de San Isidro, Inc. Colin Taylor - Senior Agribusiness Specialist & Country Sector Lead, International Finance Corporation Senen Perlada - Director, Bureau of Trade & Export Promotion, Department of Trade & Industry Charlotte Conde Landbank of the Philippines Dr. Tony Sales, Regional Director, DOSTX1 Gondelina Amata, President National Livelihood Development Corporation Dr. Smilja Lambert, Cocoa Sustainability Research Manager Asia Pacific, Mars Inc. Dr. Romulo Cena, Dr. Haya Ramba Dr. Pham Hong Duc Phuoc Dr.Agung Susilo Indonesian Coffee and Cocoa Research Institute Dr. Jeffrei Marfu Soetanto Abdoellah Indonesian Coffee and Cocoa Research Institute Peter Cruz, Mars Cocoa Development Center with Representatives from INGENIC Group Annabelle Calicdan, Certifications Manager Rain Forest Alliance Dr. Divina M. Amalin DOST / DA-BAR Project Manager Ms. Remedios Evangelista, Chief Reforestation Division Forest Management Bureau Department of Environment and Natural Resources Rene Dalayon, CEO Federation of Cooperatives In Mindanao Leonardo Avila, City Agriculturist Davao City Tony Meloto, Founder Gawad Kalinga (GK) PEDRO TERRY R. TUASON III Agri/NRM Program Manager CRS Philippines Janoz Laquihon, Training and Extension Coordinator ACDI/VOCA CoCoPal Program Alfredo Corpuz, Manager/Owner ACS Plant Nursery and Services

Conference Highlights: A taste of a sweeter future

The Philippines cocoa industry is diverse such that each player/segment of the value chain would have different need and different solutions. As a reemerging industry however, a challenge that cuts across the value chain has made Philippines cocoa industry players come together to address the same issue that affects them. That is, Philippines 2020 Cocoa Challenge. Kakao Konek 2012 was a very significant event that has successfully encouraged all stakeholders to put what they ve got on the table that can contribute towards achieving the goal. The event succeeded in getting the commitment both from the private sector and the government to support Philippines cocoa industry development initiatives. Key representatives during the event have signified their support through a ceremonial signing of the Pledge of Support which was witnessed by the conference delegates. Aside from the pledge of support, actual undertakings geared towards cocoa industry development were launched during the event which signaled the how serious the industry is in hitting their target. Among them were the following: MOA Signing : Partnership Agreement between Mindanao Development Authority (MinDA) and the Cacao Industry Development Association on Mindanao (CIDAMi). The agreement focuses on collaboration of both parties in promoting the development and expansion of the cocoa industry in Mindanao. MinDA is a government agency created under Republic Act No. 9996 which seeks among other things, to establish an effective institutional mechanism to address the need for coordinated and integrated approach in the formulation and integration of inter-regional and Mindanao-wide programs, projects and activities. MinDA s role is to promote, coordinate and facilitate active and extensive participation of all sectors to effect the socio-economic development of Mindanao.

Photo: MinDA and CIDAMI inked MOA for cocoa industry development cooperation during the Kakao Konek 2012 Conference

The National Greening Program (NGP) The National Government on its part through its representative from the Department of Environment and Natural Resources (DENR) presented the National Greening Program. NGP was formed through the Executive Order No. 26 signed on February 24, 2011 and was formally launched last May 13, 2011. NGP s Declaration of Policy states that, It is the policy of the State to pursue sustainable development for poverty reduction, food security, biodiversity change mitigation and adaptation. The National Greening Program shall plant some 1.5 Billion trees covering about 1.5 Million hectares for a period of six (6) years from 2011 to 2016, in the following lands in the public domain. NGP s mission goes beyond reforestation; it seeks to address the following: - Food Security - Environmental Stability - Poverty Reduction - Biodiversity Conservation conservation, and climate

- Climate Change Mitigation & Adaptation In the NGP Commodity Roadmap 2013-2016, it targeted some 62,202 hectares of land to be planted with grafted cocoa seedlings. This would sum up to a total of 31,101,000 grafted cocoa seedlings. The shift to planting grafted cocoa seedlings by the project was made possible through the initiative of CIDAMI through its collaboration efforts with the DENR. NGP is a convergence program of the Department of Environment and Natural Resources, Department of Agriculture and the Department of Agrarian Reform.

Photo: DENR Representative Remedios Evangelista (with microphone) the Chief of Reforestation Division, Forest Management Bureao of DENR presented the National Greening Program during the Kakao Konek 2012 conference

Cacao Industry Profile Joining the battle in meeting the Philippines 2020 Cocoa Challenge is the Department of Trade and Industry (DTI). This transpired as the agency recognized the lack of industry statistics that can guide potential investors and other cocoa stakeholders in getting a better understanding of the country s cocoa industry. In collaboration with CIDAMI, ACDI/VOCA and other support agencies DTI compiled a comprehensive cacao industry profile, a book which was printed with a funding from the DTI. Initial copy was launched during the Kakao Kulinarya, a side activity of the Kakao Konek which was also a networking night held at the Abreeza Mall in Davao City. For the book to be able to reflect the actual picture of the industry possible, DTI Undersecretary Merly Cruz committed that the agency will lead in pooling all industry data together so that these will be reflected in the final version which will be funded by the agency. Cruz called the book a white paper that needs to be constantly updated to adjust to the changes of time. That according to her would ensure efficiency and usability of the industry profile publication. And further stressing its commitment, DTI continues to collaborate with CIDAMI on sustainable programs and projects through Industry Clustering Approach.

Photo: CIDAMI Board Members headed by their Chair Mrs. Charita Puentespina (3rd from right) during the ceremonial turnover of the Cacao Industry Profile book handed by DTI Undersecretary Merly Cruz during the Kakao Konek 2012 Networking Night held at the Abreeza Mall in Davao City. The Networking Night Event of the Kakao Konek 2012 was sponsored by the City Government of Davao

INGENIC Asia-Pacific regional cocoa breeding group Showing its full support to the Philippines cocoa industry development initiatives, INGENIC Asia Pacific attended in full force during the Kakao Konek 2012 conference. The group was led by Dr. Smilja Lambert, the Cocoa Sustainability Research Manager for Asia Pacific of Mars Inc. INGENIC Asia-Pacific is a regional cocoa breeding group involving regional cocoa research institutions. INGENIC was established in June 2004 with members including the Philippines, Indonesia, Malaysia, Papua New Guinea, Vietnam and India. The group recently had their 9 th meeting held at the University of Southern Mindanao (USM) in Kabacan, Nort Cotabato, Philpiines. INGENIC Asia Pacific promotes regional collaboration in cocoa breeding selection for the following reasons:

The same pests/diseases in all countries in Asia Pacific CPB, Phytophtora pod rot and VSD Regional activities complementing the national-level approach Complementary gains that could not be achieved in a national level More opportunities for larger long term funding

The regional exchange has encouraged institutions to send/share three (3) BEST hybrids to other members for propagation. Each member of the group is required to send 200 seeds to the rest of the members. As a result, each institution received 15 different hybrids for field testing and selections of best high yielding clones adapted to local conditions. All institutions are receiving since 5 years funding from World Cocoa Foundation for field testing of these clones. Approximately 14,000 seeds have been exchanged in the project. This exchange has helped cocoa farmers in the Philippines and region in several ways. For one, the country has received hybrids made from the best clones (High yielding, Low CPB infestation, Resistant to Phytophthora pod rot, Resistant to VSD, Big beans, High fat). New generation superior clones are now being selected from these hybrid trees in USM, Kabacan.

Photo: ACDI/VOCA CoCoPal Project staffs with CIDAMI Chair, Charita Puentispina strike a pose with INGENIC Asia Pacific representatives during the Kakao Konek 2012 conference.

The Davao Oriental Village Cacao Plantation Model On her message of support for the cocoa industry development, Honorable Governor Corazon Malanyaon of the Province of Davao Oriental presented the Davao Oriental Village Cacao Plantation Model. A project which falls under the Pagkain at Kita (Food and Income) program pursued to accelerate the production of high value crops specifically cacao. The project is embodied under the six (6) years Sectoral Plan (2011 2016) otherwise known as the Agricultural Development Plan of Davao Oriental. The Davao Oriental Village Cacao Plantation as a model is an essential means to accelerate and enhance cacao production in a commercial level. The provincial government believes that the approach will work in a sense that it is well organized farming, it provides linkages to other value chain players and ensures smallholder farmers can benefit in a commercial manner. The approach will at the same time provide the investors with the assurance of a reliable supply and the right quality at the same time. The project has initially started covering some five (5) municipalities in the province with a total of thirty-one (31) Barangays. Number of farm households to benefit in this area reached 1,115 and covers a total of 2,020 hectares. Seedling distribution has already started, the provincial government will distribute a total of 1,212,000 grafted cocoa seedlings for the first phase. The Province of Davao Oriental is the country s leading coconut producer. Huge portion of these coconut plantation are nothing but bushes underneath. This is an opportunity that the provincial government recognized that can add potential income for our smallholder farmers once developed. We promote farm diversification and what more can go along well with coconut than cocoa? This has long been demonstrated in the province. We have started with over 2,000 hectares and the potential to expand this project is not remote. We can cover as much as 200,000 hectares, the Provincial Government of Davao Oriental is one with the industry in meeting the Philippines 2020 Cacao Challenge , Governor Corazon Malanyaon on her message of support to the cocoa industry delivered during Kakao Konek 2012 conference.

Photo: Left - Governor Corazon Malanyaon delivers message of support to the cocoa industry during the Kakao Konek 2012. Right - The governor in a ceremonial signing of the Pledge of Support

Cocoa Gallery

People Events & Places

Through the lens...

Photo: Upper left, Kakao Konek 2012 opening ceremony cutting of the ribbon. Upper right, Resource Persons of topic: Exploring Regional and Global Markets for Mindanaos 2020 Cocoa Economy. Left, CIDAMI Board with representatives from Davao City Government, Department of Agriculture and USDA

Photo: Right, Kakao Konek delegates flocked at the Abreeza Mall for the KK2012 networking night. Lower left, Cacao Industry players enjoyed exchanges in a cocktail hosted by the City Government of Davao. Lower right, Mr. Puentispina with City Agriculturist Val Turtur, City Investment and Promotions Chief Jayson Magnaye and City DTI Director Lou Pasawa strike a pose during KK 2012 Networking Night

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Photo: Left, Colin Taylor of IFC, Wit Holganza of CIDAMI and Senen Perlada of BETP during the open forum of KK 2012. Right, Dr. Smilja Lambert explained the importance of cacao bean grading. Below, CoCoPal Farmer Leaders and Extension Facilitators were among the KK 2012 delegates

Photo: Below, Kakao Konek Exhibition booths and visitors

Photo: Various photos taken on the third day of KK 2012 where several delegates joined the Kakao farm tours held in in key cacao areas of Davao City.

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Kakao Konek 2012 Exhibit - List of Exhibitors

Department of Agriculture Davao Region Coconut Industry Cluster CIDAMI ACDI/VOCA Chocolattea Yara Fertilizers Phils. Control Union Phils. Rosit Cacao Farm Federation of Cooperatives in Mindanao (FEDCO) Allied Botanical Puentispina Farms Gran Verde Farms Chokolate de San Isidro, Inc. Farmtech Agri-Land Corp Department of Trade and Industry Metro Ace Innovplas Corp Plantasia Agro-Forestry Management Systems Inc. Board of Investments

In behalf of Indonesian cacao farmers I would like to say thank you Mindanao. If you must know, Indonesia is the worlds third largest cocoa producer. Cacao first landed in the Island of Sulawesi in Indonesia sometime in the 15th century. The cacao which were brought by the Spaniards to Sulawesi came from Mindanao. Today, the cacao industry in Indonesia is a very important economic driver and for that we have Mindanao to thank for. There could have been no cacao in Indonesia if not for Mindanao cacao. Again, thank you very much Mindanao, Dr. Soetanto Abdoellah of Indonesian Coffee and Cocoa Research Institute in his message during the Kakao Konek 2012 Conference.

I would like to personally congratulate CIDAMI for putting on such a wonderful Kakao Konek 2012 conference. With such a great turn out of people I think CIDAMi has taken a big step in positioning itself as the cacao industry leader. The wonderful cooperation among players and all development happening around the Philippines cocoa industry today are all good portents. Sulawesi, watch out for the growing brother!, Nic Richards, Chief of Party, ACDI/VOCA.

Cacao Watch Editorial Team

Newsletter

Mr. Nicholas K. Richards Emmanuel R. Quisol Janoz XN Yesu S. Laquihon Orlen Ocleasa

CacaoWatch Newsletter
ACDI/VOCA 87 East Street, DBP Village, Maa, Davao City 8000, Philippines Email: mincocoa@acdivoca.org.ph Contact Number: (06382) 2986250 to 51 / Cel. No. 0915-7843325