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Archives (2001)
Prospects in cocoa
by Maria Rowena Briones |
July-September
2001
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 Philippines
is not one of the main cocoa producers in the world but we
have families that derive income from cocoa farming and manufacturers
that process the raw cocoa beans for use in other industries.
Although cocoa in the past experienced a slowdown in the global
market, the industry is starting to pick up again, as there
is an increase in demand for cocoa. A revitalized cocoa industry
would mean grabbing this opportunity. We maybe a small player
in the global market for cocoa but we can optimize what our
cocoa industry could offer. Cocoa in the Philippines is grown
in less than three hectares of land by small holder farmers.
Aside from a source of additional income for farmers as this
can be planted along with other crops, cocoa farming also
provide employment in the rural areas. Cocoa beans, once fermented
and dried, can be stored for several months. Thus, storage
is not a problem.
Cocoa beans are processed into cocoa butter
or cocoa liquor. These are used in the manufacture of chocolate
products, cosmetics, pharmaceutical products and other industrial
applications. The husks and skins, by-products during the
grinding process, are used as soil enhancer and mulching material
for gardening.
 Despite
the many uses of cocoa, the prospects in cocoa production
are not as sweet unless we do something to improve it. As
the whole cocoa industry in the country attest, it is not
as promising as before. World prices for cocoa have plummeted
from US$ 4000 per metric tons in 1979 to just US$ 880 per
metric tons in 2000 along with increase in prices and limited
availability of production inputs. Furthermore, loan facilities
and support structure for cocoa farmers and R&D efforts
to address problems caused by pests and diseases are very
few.
The unprecedented decrease in cocoa prices made
cocoa farmers shift to other more profitable commodities.
This resulted to less domestic supply of cocoa beans. Trade
liberalization even exacerbated this problem through lower
tariffs for imported cocoa powder. Under Executive Order No.
254 signed in June 2000, tariff was placed at three percent
making imported cocoa powder cheaper than the local ones thus
capturing a larger market share. We lose at least $14 million
annually because of this. There is less cocoa grinding and
manufacturing operations taking place. As if this is not enough,
starting late 1990s, our export of cocoa butter decreased
by 11 percent annually and we have exported only a small volume
of cocoa beans from 1997 to 2000. This calls attention to
our dire need for sound, consistent implementation of economic
policies to uphold and protect our local industries and promote
the production of our own raw materials.
But as a famous adage would say, we should never
lose hope. According to the International Cocoa and Chocolate
Organization (ICCO), the global demand for chocolate has started
to increase. In the world market, the daily average prices
have increased by more than 50% between December 2000 and
February 2001. ICCO had also projected a two- percent increase
in consumption in the coming year. This offers a tremendous
opportunity for our cocoa industry as ICCO had also projected
a gap of 205,000 tons in terms of supply.
Presently, we have 13 cocoa and chocolate enterprises
in the country. Three of them are large companies. Most of
these enterprises are located in Manila with an aggregate
capacity ranging from 20,000 to 36,000 metric tons of processed
cocoa. With just a comprehensive development program for the
industry and assistance to cocoa farmers in accessing loans,
we can bring the sweetness back in our local cocoa production.
Source: Cocoa Industry Situationer. National
Agriculture and Fisheries Council. http//www.icco.org
For more information contact Ms. Josephine
Ramos of the Industry Research Division, National Agriculture
and Fisheries Council located at 4th flr. DA Building Elliptical
Rd. Diliman Quezon City. Tel no. 926-2246 More Articles:
Vol. 3 No. 3 July-September 2001
»»
USM recommends high-yielding rubber clones
»» GMA okays
P2B R&D Fund
»» New
sciences to produce more food
»» Five
cacao clones now ready for farmer use
»» NIRDEAP
for rubber: stretching opportunities for rubber industry
»» Rubber:
the oozing tree
»» Village
processing technologies: approach to solve low production of rubber
»» Smallholder
rubber farming system "no break" in farmers' income
»»
NIRDEAP for coffee: perking up the coffee sector
»» Clonal
propagation in coffee: a promising technology
»» How
to raise healthy cacao seedlings
»» Earning
more from canes
»» Coping
with acidic soils
»» Muscovado:
the promise of the 'other sugar'
»» Rock
candy: a 'tasteful' example of a profitable home business
»» Propagating
cacao by nodal grafting
»»
Making vinegar a business venture
»» The
Philippine coffee industry: a profile
»» Prospects
in cocoa
[More
2001 Articles]
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