The chocolate industry in the Philippines developed after the introduction of the cocoa tree to Philippine agriculture. The growing of cacao or cocoa boasts a long history stretching from the colonial times. Originating from Mesoamerican forests, cacao was first introduced by the Spanish colonizers four centuries ago.Peace and Equity Foundation. A primer on PEF’s Priority Commodities: an Industry Study on Cacao . Philippines, 2016. 2. Accessed June 26, 2017. Since then the Philippine cocoa industry has been the primary producer of cocoa beans in Southeast Asia. There are many areas of production of cacao in the Philippines, owing to soil and climate. The chocolate industry is currently on a small to medium scale.
Etymology and history
Local terms
In the Filipino language, chocolate translates as tsokolate, which is also a hot chocolate drink made from tablea, cacao tablets made from roasted and ground cacao nibs molded into rounds or tablets traditionally used in the Philippines for making hot chocolate. A batirol, the Filipino adaptation of the Mexican molinillo, is used to thoroughly mix hot water with the tablet in a chocolatera to make it frothy. The result is tsokolate de batirol, a thick, creamy, hot chocolate drink, otherwise referred to as sikawate in the Visayas region.
Tablea is also used in the production of champorado, among many other cacao dishes and drinks. Written tsamporado in Filipino, it is a sweet, rice porridge dish in the Philippines enjoyed by many hot or cold, usually partnered with dried fish, called tuyo or daing.
Introduction of cacao to the Philippines
The cacao plant was primarily brought to the Philippines in the 1700s when a Spanish galleon from MexicoBlanco, Manuel, and Andrés Naves. Flora De Filipinas. Manila: Plana, 1877. Print. transported pure Criollo, considered to be one of the best kinds of cacao, from Mesoamerica to the Pacific. Although cacao trees were originally grown in Mexico and Central America, the Philippines became an ideal cultivation grounds for cacao because of its geography as a tropical rainforest located 10-15 degrees from the Earth's Equator, with the cacao belt located within 20 degrees of the Equator. Today, cacao trees are cultivated throughout equatorial region including the Caribbean, Africa, Southeast Asia, and the Pacific Islands of Samoa and New Guinea."History of Chocolate". The World Atlas of Chocolate. N.p., n.d. Web. July 8, 2017.
Key areas for production of cacao
Batangas
Although the province of Batangas only accounts for 0.47 metric tons of cacao production , it is well known for its tsokolate tablea or chocolate tablets which are considered one of its delicacies and is often used to make traditional Filipino hot chocolate.
Cebu
Cebu along with other Central Visayas provinces contribute only around 1% of cacao production in the country, however, Cebu is known for producing quality cacao. Although there are currently less than a hundred farmer associations, cooperatives, and individual growers planting on an estimated 2,000 hectares in Cebu, the province aims to have a greater share in cacao production. The province is home to criollo or the "cacao bisaya", which is a superior quality cacao that has a strong, aromatic bittersweet taste and rich texture. It is also home to Ralfe Gourmet, The Chocolate Chamber, and Casa de Cacao headed by Raquel Choa who is known for elevating Philippine cacao-based products.
Davao Region
According to the Philippines Statistic Authority's CountrySTAT, 81% of annual production of cacao in the Philippines comes from the Davao region. Davao del Sur, Davao City, Davao del Norte, Davao Oriental, and Davao de Oro are the top 5 producers in terms of volume of production in 2016. There are also more than 20,000 hectares of cacao farms in the region, and Davao City, amongst the 5 provinces, has the largest area of 6,060 hectares. The region is also home to one of the well-known cacao agri-ventures in the country, Malagos chocolate.
Agencies and cooperatives on the chocolate industry Department of Agriculture
A government agency, the Department of Agriculture (DA) oversees the advancement of agricultural development of the Philippines through the provisions of policies, public investments, and support services. The department provides a range from technical to financial support for cacao farmers since it considers cacao as a high-value crop based on Republic Act No. 7900 which seeks to "promote the production, processing, marketing and distribution of high-valued crops".
Department of Trade and Industry
The Department of Trade and Industry (DTI) is a Philippine government department in charge of attaining the country's goal of having a globally competitive and innovative industry and services sector which would lead to the creation of jobs and inclusive growth. They have created programs and policies in support of the growth of the cacao industry.
Department of Science and Technology - Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development
The Department of Science and Technology - Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (DOST-PCAARRD) is the apex organization for R&D in the agriculture, aquatic and natural resources sectors (AANR) in the Philippines. It is mandated to formulate policies, plans, programs, projects, and strategies for S&T development in AANR; program and allocate R&D funds; monitor and evaluate R&D programs and projects and other S&T activities; and generate external funds for R&D. DOST-PCAARRD, together with its partners, crafted the Industry Strategic Science and Technology Programs for Cacao, which contains all the science and technology initiatives towards the development of the industry.
CocoaPhil
Cocoa Foundation of the Philippines (CocoaPhil) is a non-profit, umbrella organization which represents the interests of the local cocoa industry. Their aim is to increase the number of hectares growing cocoa with the goal of achieving the Philippines Cacao Roadmap made by the Department of Agriculture and the Department of Trade and Industry. The specific objective of the organization is to develop at least 100,000 hectares into cacao farms as an intercrop under coconut trees.
CIDAMi
An active cacao value-chain organization in the agri-enterprise section, Cacao Industry Development Association of Mindanao Inc. (CIDAMi) is composed of members ranging from farmers to academe with the vision of world quality cacao-producing Mindanao. CIDAMi has several projects, services and training partnered with professional organizations to accomplish its vision like CaCao Feast and Cacao Doctors Training.
FedCo
The Federation of Cooperatives in Mindanao (FedCo) is a secondary cooperative based in Mindanao with the aim to improve the socio-economic condition of its members through the export of the best quality agricultural products like cacao and bananas in the international stage. Their operation is centered around the empowerment of small farmers by directly connecting them to international buyers.
CACAO
Center for Advanced Community Agriculture Operations (CACAO) is a group of agriculture enthusiasts who aim to provide solutions in the production and marketing issues in agriculture. Specifically will try to come up with programs that will provide sustainable livelihood to small farmers and produce enough if not more supply in the market.
Chocolate industry in the Philippines
Industry background Cacao, which originated from South American forests, is the source material of chocolate products. However, modern cacao is mostly produced by African and European countries such as the Ivory Coast, Germany and Belgium.Peace and Equity Foundation. A primer on PEF’s Priority Commodities: an Industry Study on Cacao . Philippines, 2016. 1. Accessed June 26, 2017. As a minor player in the global industry, the Philippines also engages in cacao cultivation nearly everywhere around the archipelago, even during the early 1900s.
Cacao industry The Philippine cacao industry consists mostly of smallholder farmers who supply medium-scale manufacturers. However, local cacao demand outweighs the cacao supply both locally and globally. One major factor that affects cacao production in the country is "the lack of post-harvest knowledge, equipment, and facilities to ensure bean quality for chocolate manufacturing."Peace and Equity Foundation. A primer on PEF’s Priority Commodities: an Industry Study on Cacao . Philippines, 2016. 3. Accessed June 26, 2017. Since that is the case, cacao exports are far less than country's imports. The Department of Trade and Industry Reports that in 2012, cacao imports amounted to 3,662 tons, while cacao exports amounted to only 512 tons.
Imports of Cocoa and Cocoa Preparations (million kg.) 2009 2010 2011 2012 2013 Cocoa beans, whole or broken, raw or roasted 123 738 307 150 223 Cocoa shells, husks, skins and waste 2,151 2,032 1,753 1,969 2,633 Cocoa paste 6,080 5,434 4,522 640 579 Cocoa powder, unsweetened 13,284 15,024 13,872 11,120 13,340 Chocolate and other foods containing cocoa 11,645 12,453 12,711 13,939 16,655 Exports of Cocoa and Cocoa Preparations (million kg.) 2009 2010 2011 2012 2013 Cocoa beans, whole or broken, raw or roasted 299 196 127 440 554 Cocoa shells, husks, skins and waste 20 - - - - Cocoa paste 121 41 265 245 138 Cocoa powder, unsweetened 313 663 812 21 15 Chocolate and other foods containing cocoa 784 863 786 1,028 3,002
Growing market opportunity for tablea Recent increase in the number of cafes and restaurants offering chocolate or chocolate-based drinks provided for the relative rise of tablea market opportunities. In addition to that, healthy lifestyle trends in the past years contributed to this gradual increase of demand. This is seen as a good sign of possible profit translation for cacao farmers and manufacturers.
Industry size Philippine market The four largest companies in the Philippines processing cocoa are Universal Robina, Comfoods, Delfi and Rebisco—all of which are located within Metro Manila. Also contributing to the chocolate market in the country are several commercial brands such as Nestlé, Hershey's, and Cadbury.
Local and Foreign Cocoa-processing CompaniesPeace and Equity Foundation. A primer on PEF’s Priority Commodities: an Industry Study on Cacao . Philippines, 2016. 4. Accessed June 26, 2017.
Local Foreign Republic Biscuit Corporation Nestlé Philippines Inc. Columbia International Food Products Inc. Hershey's Philippines Inc. Monde Nissin Cadbury Adams (Philippines) Inc. Twin Oaks Foods Corporation Mars Philippines Inc. Stateline Snack Food Corporation Gandour Philippines Inc. New Unity Sweets Manufacturing Delfi Philippines Inc. Annie Candy Manufacturing (Annie's) Rustan's Marketing Specialists, Inc. Gracepoint Enterprises (Lala) Commonwealth Foods, Inc. Mayora Philippines Malagos Chocolate
Other local brands
Mama Earth Cacao Has farms in Monkayo and produces in Samal Island. Maker of tableas, chocolate, Nibs and cocao power.
CACAO Davao CACAO Davao by Calinan Cacao Products supplies raw cacao products like cacao beans, cacao nibs, and cacao liquor. CACAO is an acronym for Center for Advanced Community Agriculture Operations. The processing is based in Calinan, Davao City. CACAO Davao works in close partnership with existing local processors and producers.
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