April 25, 2011

Philippine Cocoa Exports Up Sixfold

Smallholder Cocoa Farmers, Traders Capitalize on Global Market

Cocoa exports increased sixfold from 151 MT in 2008 to 1,113 MT in 2009, according to the Philippines Bureau of Customs in Southern Mindanao. The trend is consistent with organized efforts to develop the country’s cocoa industry, including those implemented by ACDI/VOCA, as well as steady world market demand and overall price increases over the last decade.

“The increase in the export volume of cocoa-based products from the region as compared to the previous years has been very impressive,” says Mary Ann P. De Guzman, acting chief of the bureau’s export division.

In 2008, China and the United States were the main importers of Philippines’s cocoa products. However, in 2009 the market expanded to Europe, with the Netherlands as the main buyer, and to neighboring countries Thailand and Malaysia.

“Years back, we rarely handled transactions related to cocoa exports,” Guzman adds. “Surprisingly, in 2009, the number of transactions increased, and we at the bureau are glad to see developments like this for we know it translates into a number of opportunities, which is good for the country’s economy.”

Strong Cocoa Value Chain is Key

Cocoa exporter Charita Puentespina, owner and manager of Puentespina Farms, is among those happy with this development.

“A few years back, in cooperation with other industry stakeholders, including Mars, Inc., and ACDI/VOCA, we encouraged massive cocoa production to farmers through trainings, technology upgrading and marketing efforts,” Puentespina says.

ACDI/VOCA is a founding member of the Sustainable Cocoa Enterprise Solutions for Smallholders (SUCCESS) Alliance, which improves the livelihoods of smallholder farmers by promoting cocoa production and marketing in a way that is economically, environmentally, socially and culturally sustainable. The alliance includes private sector partners, such as Mars, as part of a market-driven approach connecting farmers to buyers.

“To produce products which are of good quality and right quantity is one of the keys to advance the industry’s position,” Puentespina adds. “This strongly requires chain-wide observation and implementation of good practices, which warrants the cooperation of everybody.”

ACDI/VOCA staff in the Philippines report that farmers are more willing to adopt recommended cultural practices and even undertake cocoa farm rehabilitation because of growing market opportunities.

Learn more about ACDI/VOCA’s work in the Philippines.