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THE 15 MEETING OF THE NATIONAL FOCAL POINT FOR THE ASEAN COCOA CLUB (ACC) ON ASEAN COOPERATION AND JOINT APPROACHES IN AGRICULTURE AND FOREST PRODUCTS PROMOTION SCHEME 30 31 May 2012 Imperial Palace Suites, Quezon City, Philippines

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INTRODUCTION 1. The 15 Meeting of the National Focal Point for the ASEAN Cocoa Club (ACC) on ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion Scheme was held on 3031 May 2012 at the Imperial Palace Suites, Quezon City, Philippines. The Meeting was attended by 48 delegates from the government and private sectors of Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam. The list of delegates is in Annex 1.
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OPENING CEREMONY Opening Remarks from the Chairman of the ASEAN Cocoa Club (ACC) 3. The Chairman of the ACC, Dr. Lee Choon Hui, Director General of the Malaysian Cocoa Board (MCB) welcomed and thanked all delegates from Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam th for attending the 15 ACC Meeting. He expressed his appreciation to the Department of Agriculture and Cocoa th Foundation of the Philippines for hosting the 15 ACC Meeting. He also thanked and congratulated the ACC Secretariat and the Organizing Committee comprising of Department of Agriculture and Cocoa Foundation of the Philippines for their hard work, support and team cooperation rendered in ensuring the success of this Meeting. He also congratulated the Technical Working Group on Food Safety (ACC TWGFS) and Technical Working Group on Good Agricultural Practices (ACC TWGGAP) for successfully organizing their meetings. In his welcoming remarks, the Chairman highlighted that ASEAN has become a large and growing market and has been expanding and progressing tremendously well in developing intra and extraregional economic relationships. ASEAN has developed some free trade areas outside the region. Similarly, the cocoa industry in ASEAN has also expanded rapidly and attained significant recognition in the international market. ASEAN is among the worlds foremost supplier of cocoa and cocoa products. As a whole, the ASEAN countries ranked as the third largest producer of cocoa beans in the world and the largest in the Asia and Oceania region accounted for about 13.1% of the total world cocoa production in 2011/12. In terms of cocoa grindings, ASEAN is the largest cocoa processor in Asia and Oceania region contributing about 77.2% of the total cocoa grindings in this region and about 15.7% of the total world cocoa grinding in 2011/12. He emphasized that although ASEAN has attained significant recognition in the world as an important source of cocoa beans and semiprocessed cocoa products, the cocoa industries in ASEAN is still facing many challenges posed by the global economic situation. Therefore, it is important to have a common stand on policies and strategies that commands far greater influence and power to enable ASEAN to sustain further the cocoa industry. He also emphasized that active involvement both from the private and government sectors should be nourished and strengthened and to have continuous cooperation and networking from all of the ASEAN countries as these will strengthen ASEAN position in the global market and enhance the intraASEAN trade on cocoa and cocoa products. He also highlighted that the ACC is one of the platforms for the ASEAN member countries to act collectively in formulating policies and strategies that
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can be used to overcome issues and challenges facing the cocoa industries as well as to strengthen and enhance further the IntraASEAN trade on cocoa and cocoa products. The activities carried out by this regional cooperation will achieve results beneficial to ASEAN member countries as a whole. Therefore, in order to ensure the establishment of a powerful regional cooperation, every member of the ASEAN has to give their strong participation, commitment and cooperation in implementing the formulated strategies and activities. The full text of his opening remarks is in Annex 2. The Message from the Secretary of the Department of Agriculture, Philippines 10. The message from the Honourable Secretary Proceso J. Alcala, was delivered by Ms. Jennifer Remoquillo, OfficerinCharge, National Program Director, High Value Crops Development Program, Department of Agriculture, Philippines. He sent his apologies for not being able to attend and officiate the Meeting. However, he sent his warmest greetings and thanked the ACC for giving the opportunity to the Department to participate in the Meeting. 11. In his message, he expressed special tribute to the ACC for once again th choosing Philippines as the venue for the 15 ACC Meeting. He also welcomed the delegates from Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam to Quezon City, Philippines. 12. He highlighted the situation of the cocoa industry in the Philippines where cocoa is indeed a viable and profitable crop that could be another potential export winner for Philippines if the farmers are provided with proper postharvest technologies. The lack of postharvest knowledge and proper equipment among cocoa farmers, however, had hinder the Philippines at present from exporting larger quantities of cocoa. 13. He also mentioned that the global world production in 2011 reached about 4.25 million tonnes of which 74.8% of the production came from Africa. Asias contribution was around 12.5%. 14. He also mentioned the intervention implemented by the Department of Agriculture (DA) in ensuring the quality of the cocoa products. The DA would be involved in the establishment of fermentation and drying centers in the Philippines such as the project on `Cacao Agribusiness Zones (AbZs) Development Project that had been established in Davao City, Compostela Valley, Zamboanga Norte, Palawan and Camarines Sur. The objective of the project is to catalyze new behaviours in agribusiness strategies and expand the adoption of innovations in delivering direct assistance to farmers. 15. He further highlighted the initiatives to be implemented through the High Value Crops Development programme carried out by the DA as one of the possible areas of cooperation among the ASEAN member countries. He reiterated the DAs commitment to develop the cocoa industry in terms of providing the necessary infrastructure, training and technical assistance.
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16. He highlighted that the local and international demand for cocoa and chocolate had been established. Therefore, the farmers associations, traders, government policy makers and programme implementers and counterparts should work together in strengthening the cocoa industry as well as assisting the cocoa farmers to have greater productivity and income. The full text of his speech is in Annex 3. AGENDA ITEM 1: OPENING REMARKS 17. The Chairman of the ACC, Dr. Lee Choon Hui, the Director General of the MCB expressed his sincere gratitude and appreciation to the Organizing Committee of the Philippines and the ACC Secretariat for their hard work, th undivided assistance and support for successfully organizing the 15 ACC Meeting. 18. He also expressed his congratulation to the ACC TWGFS and ACC TWGGAP for successfully organizing their respective meetings. 19. In his opening remarks, he mentioned that the Meeting focused on getting progress report from all the appointed coordinated countries on the implementation of the programmes and areas of cooperation based on the formulated ACC Strategic Plan of Action covering the period of 20112015, namely to enhance intra and extraASEAN trade and longterm competitiveness of ASEANs cocoa and to promote cooperation, joint approaches and technology transfer among ASEAN member countries and international, regional organizations and private sector. AGENDA ITEM 2: ELECTION OF CHAIRMAN AND VICECHAIRMAN 20. Dr. Lee Choon Hui, Director General of the MCB was unanimously elected as th the Chairman of the 15 ACC Meeting and Mr. Edward F. David, the President of the Cocoa Foundation Philippines (CocoaPhil) as the ViceChairman. AGENDA ITEM 3: ADOPTION OF AGENDA 21. The Agenda of the 15 ACC Meeting was adopted with the inclusion of two (2) additional items requested by the distinguished delegates of Viet Nam and Philippines respectively as follows: i. Under Agenda 5: Country Presentation on the Latest Development of the Cocoa Industry 5.2: The Cocoa Production in Viet Nam.
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ii. Under Agenda 9.1: Trials on Selected Cocoa Progeny in Selected ASEAN Region 9.1.3: Trials in Selected Cocoa Progeny in Selected ASEAN Region by Philippines.
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The revised Agenda is in Annex 4.

AGENDA ITEM 4: BUSINESS ARRANGEMENTS 22. The Meeting was held in plenary.

AGENDA ITEM 5: COUNTRY PRESENTATION ON THE LATEST DEVELOPMENT OF THE COCOA INDUSTRY 5.1 Latest Development on Philippines Cocoa Industry 23. The latest development on Philippines cocoa industry was presented by Dr. Divina M. Amalin of the CocoaPhil. 24. In her presentation, she mentioned that there is a growing interest for Filipino farmers going cocoa farming nationwide. This is driven by the market demand both domestic and international. Domestically, cocoa grinders are still importing 70% of the raw materials. The Philippine government acknowledges the potential of cocoa as a stable livelihood particularly for smallholder farmers. 25. She highlighted that to date, majority of the countrys national institutions and local government units are supporting the resurrection of the cocoa industry in the Philippines by promoting cocoa planting expansion and setting up Research and Development programme from production to processing. 26. She further highlighted the Research and Development Programme for cocoa for 20112016. The framework was set by Department of Agriculture (DA) Bureau of Agricultural Research (BAR) and the CocoaPhil. The R&D programme is undertaken to address problems on low yield and poor quality of cocoa beans. 27. She also informed the Meeting that Philippines had included cocoa as one of the insurable crops that cover damage caused by natural disasters. The full report is in Annex 5. 28. The Meeting noted that apart from Mindanao, Philippines has also developed Luzon in the Northern as well as Visayas and Palawan in the Central as the new growing areas of cocoa. The targeted hectarages by the year 2020 is 100,000 ha. 5.2 Cocoa Production In Viet Nam 29. Dr. Nguyen Viet Khoa, the Head of Forestry Extension Unit from the National Agricultural Extension Center (NAEC), Ministry of Agriculture and Rural Development (MARD),

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Viet Nam presented the status of cocoa production in Viet Nam and his recommendation on enhancing cooperation among ASEAN countries. 30. In the Viet Nam Cocoa Development Action Plan covering the period from 20152020, Viet Nam has targeted to increase cocoa area to 35,000 ha, 40,000 tonnes of dry cocoa bean production and export turnover of USD 5060 million by 2015. The targets for 2020 are 50,000 ha of cocoa, 70,000 tonnes of dry cocoa bean production and export turnover of USD 6065 million. 31. He highlighted the strategies to be implemented as follows: i. To increase production area through formulating technical norms and procedures for cocoa sustainable development, variety technological procedures, cocoa variety standard, suitable technical procedures for extensive cocoa cultivation on different types of land; Carrying out research, selection and creation as well as multiplication of cocoa seedlings; Agriculture extension, science and technology transferring for cocoa production and preliminary processing; and Investing in infrastructural development in key cocoa growing areas on the basis of possibility to expand cocoa plantation area.

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All these activities would be coordinated by Viet Nam Cocoa Committee (VCC). 32. He also highlighted the potential and opportunities for cocoa development in Viet Nam including climate and land conditions in 8 selected provinces that are suitable for planting high quality cocoa to meet the world market demands. 33. He also mentioned the challenges faced by the Viet Nam cocoa industry among others include the poor sources of cocoa seedling, lack of qualified technical staff, small cocoa farm size, unstable cocoa market as compared to other products, nonexistence of institution to intervene in sustainable cocoa development, complicated cocoa postharvest technique which requires certain skill and knowledge and inconsistent involvement as well as poor coordination of some local and foreign organizations in supporting the cocoa development programme. 34. He further highlighted the recommendations for cooperation including capacity building for farmers, exchanging expertise on seedling research and post harvesting, building ASEAN cocoa website to share information and data on cocoa production and trade as well as establishing ASEAN GAP for cocoa. The slide presentation is in Annex 6. AGENDA ITEM 6: MATTERS ARISING FROM THE PREPSOM33 AMAF, 34 TH TH RD OCTOBER 2011; SOM11 AMAF PLUS THREE, 5 OCTOBER 2011; 33 TH TH TH AMAF, 6 OCTOBER 2011 AND 11 AMAF PLUS THREE, 7 OCTOBER 2011 IN JAKARTA, INDONESIA
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35. In the absence of the ASEAN Secretariat, the ACC Secretariat presented the report of these meetings provided by the ASEAN Secretariat. There was no ACC related matter and no followup needed by the ACC from the rd th PREPSOM33 AMAF, 34 October 2011; SOM11 AMAF PLUS THREE, th rd th th 5 October 2011; 33 AMAF, 6 October 2011; and 11 AMAF PLUS THREE, th 7 October 2011 in Jakarta, Indonesia. 36. As for the 33 Meeting of the ASEAN Ministers on Agriculture and Forestry (AMAF) held on 6 October 2011 in Jakarta, Indonesia, the Meeting noted good progress made in trade in agricultural and forestry products. Following the endorsement of the new MOU on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme (20102014), the new SPA to implement the MOU has been agreed for implementation in 20112015 by respective rd working groups and industry clubs. The report of the 33 AMAF is in Annex 7. 37. The Meeting took note on the crisis of food security which was driven by the challenges of high food prices, climate change and bioenergy as reported in rd the 33 AMAF Meeting. AGENDA ITEM 7: MATTERS ARISING FROM THE 18 MEETING OF THE JOINT COMMITTEE ON ASEAN COOPERATION AND JOINT APPROACHES IN AGRICULTURE AND FOREST PRODUCTS PROMOTION SCHEME, 2122 JULY 2011 IN VIENTIANE, LAO PDR 38. In the absence of the ASEAN Secretariat, the ACC Secretariat presented the th report of the 18 Meeting of the Joint Committee on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme held on 2122 July 2011 in Vientiane, Lao PDR as provided by the ASEAN Secretariat. 39. The Meeting reported the progress of the activities for eleven (11) commodities covered by the MOU, including the emerging issues identified by the Industry Clubs and the Working Groups. 40. The Meeting also reported the progress status of the Strategic Plan of Actions (SPA) 20112015 implemented under the new MOU on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme (20102014). The progress status of the SPA was updated with the inputs from national focal points of the lead countries for the products or commodities. The Lead Countries were requested to forward the consolidated SPA of each product to th the ASEAN Secretariat for compilation and presentation at the 19 Meeting of the Joint Committee to be held in 2012. The full report of this Meeting is in Annex 8. AGENDA ITEM 8: ENHANCE INTRA AND EXTRAASEAN TRADE AND LONG TERM COMPETITIVENESS OF ASEANS FOOD, AGRICULTURE AND FORESTRY PRODUCTS/COMMODITIES 8.1 Tariff and NonTariff Barriers on Cocoa Beans and Cocoa Products
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8.1.1 ASEAN Common Effective Preferential Tariffs (CEPT) Scheme 41. The Meeting noted the progress report on the implementation of the CEPT scheme among the ASEAN member countries presented by Indonesia. As of 2012, seven (7) ASEAN member countries had zero import tariffs on cocoa beans and products with the exception of Cambodia, Myanmar and Viet Nam. Cambodia is still imposing 5% import duty on cocoa beans and cocoa products. Myanmar imposes 5% import duty on chocolate. Viet Nam also still imposes 5% import duty on cocoa powder and chocolate products. The CEPT reduction schedule for 2012 is in Annex 9. 8.1.1 ASEAN Free Trade Area (FTA) between ASEAN and other countries 42. Indonesia reported that the tariff imposition on cocoa beans and cocoa products is zero percent for ASEANChina and ASEANKorea. Under ASEANAustralia/New Zealand, New Zealand is still imposing 6.5% on chocolate confectionary. Under ASEANJapan, Japan is still imposing import tariffs of 3.1% for cocoa beans, shell and butter and 6.3% for cocoa paste not defatted and defatted for 2010. Under ASEANIndia FTA the import tariffs for 2010 for cocoa beans and cocoa products is between 2530%. 8.1.2 Most Favoured Nation (MFN) Tariffs 43. Indonesia reported that the Indonesian MFN tariff rates in 2012 are 5% for cocoa beans and chocolate (HS1806.90.30, HS 1806.90.40 and HS 1806.90.90) and 10% for other cocoa products. 44. In the absence of information from the other ASEAN member countries, the ACC Secretariat presented the import tariffs on ASEAN member countries compiled by the ACC Secretariat as in Annex 10. 8.1.4 NonTariff Barriers (NTBs) 45. There was no NonTariff Barriers reported by the ASEAN member countries. 8.2 Technical Working Group on Good Agriculture Practices (TWGGAP) 46. Philippines as the Chairman of the ACC TWGGAP reported the progress st report of the 1 Meeting of the ACC TWGGAP as in Annex 11. 47. The Meeting was informed that the 1 ACC TWGGAP Meeting was held on th 29 May 2012 at Imperial Palace Suites, Quezon City, Philippines and attended by 13 ACC TWGGAP members with observers from Indonesia, Malaysia, Philippines and Thailand. 48. Dr. Divina Amalin of the CocoaPhil was designated as the Chairperson and Ms. Subiyanti Marwoto from Indonesia was elected as the Vicechairperson.
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49. The Chairperson cited that the proposed formation and action plans for the th ACC TWGGAP was discussed at the 14 ACC Meeting held on May 1011, 2011 at Chatuchak, Bangkok, Thailand, where Philippines was designated to be the Secretariat and assumed the Chairmanship. 50. She briefed the Meeting on the objectives of the Terms of Reference (TOR) of the ACC TWGGAP as follows: i. Share the information on the current status of the ASEAN member countrys standards and compliance to GAP; ii. Update the information and benchmark with GAP standards of key importing countries; iii. Harmonize the GAP among ASEAN members and develop the ASEAN GAP for cocoa; iv. Share knowledge and experience to strengthen implementation of GAP; and v. Address issues related to GAP standards. 51. She also mentioned that the organizational structure of ACC TWGGAP and term of office are as follows: Appointed Chairperson is the Philippines. Vicechairperson will be appointed during the meeting. All ASEAN member countries shall be member in the ACC TWGGAP. Each country will nominate 4 representatives (2 technical and 2 non technical representatives). The membership should comprise of experts in agriculture.

52. She also mentioned the ACC TWGGAP work plan comprised of 5 separate functions as indicated in the TOR as follows: Function 1: Share information on the current status of the ASEAN member countrys standards and compliance on GAP. It was agreed that sharing of information will be done electronically via email. Function 2. Update information and benchmark with GAP standards of key importing countries. There was a lengthy discussion on this particular item since Malaysia and Philippines have existing code of practice and GAP standards for farmers. The Chairperson suggested further discussion on this. Function 3. Harmonize the GAP among ASEAN members and develop ASEAN GAP for cocoa. This is the compilation of GAP standards from ASEAN members. Function 4. Share knowledge and experience to strengthen implementation of GAP. Function 5. Address issues related to GAP and other related quality assurance.

53. She also informed the Meeting that oral presentations were given by the different member countries on GAP during the Meeting as follows:

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GAP presentation by Indonesia stressed the importance of GAP in the pursuit of social, environment, and economic dimensions towards increase production of good quality beans. The Indonesian government had published two (2) guidance books that can be shared with other members once the English translated version becomes available. Malaysia presented the Cocoa GAP that was established in 2005. There are distinct similarities on the GAP components of Malaysia and the Philippines. The ACC TWGGAP recognized the importance of cocoa certification, however, the cost of certification is a major concern.

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Thailand reported that they have a small hectarage of cocoa with a number of clones developed. They have a publication on GAP in coffee that can be adopted for cocoa. 54. She also informed the Meeting that the ACC TWGGAP Meeting is set every year to be held back to back with the ACC Meeting. 55. The Meeting noted that there would be no difficulty to harmonize the GAP as all member countries have similarities in cocoa GAP. The Meeting agreed that a standard ASEAN GAP need to be formulated prior to the implementation of a certification scheme. 56. The Meeting agreed that the ASEAN cocoa certification scheme would create unity strength for ASEAN cocoa member countries. However, there are certain issues and criteria needed to be addressed in developing the cocoa certification scheme. 57. The Meeting agreed the initiative to develop the ASEAN cocoa certification scheme would be undertaken by the ACC TWGGAP. 8.2 Technical Working Group on Food Safety (TWGFS) 58. Dr. Sabariah Samsudin, the Chairperson of the ACC TWGFS reported the progress report of the Fourth Meeting of the ACC TWGFS as in Annex 12 and the updated ACC TWGFS work plan for the year 20122015 as in Annex 13. 59. She informed the Meeting that the Fourth Meeting of the ACC TWGFS was th held on 29 May 2012 in Imperial Palace Suites, Quezon City, Philippines and attended by 17 ACC TWGFS members with observers from Indonesia, Malaysia, Philippines, Singapore and Thailand. 60. The Chairperson reported the progress reports on the workplan of the ACC TWGFS as follows: i. ii. iii. iv. To provide information on the current status of the countrys initiatives relative to food safety on cocoa and cocoa products and related activities; To monitor and update information on food safety requirements imposed by importing countries; To address issues of importance related to food safety; To develop a database on food safety;
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To share knowledge and expertise on testing methodologies; and To harmonize the food safety requirements of ASEAN member countries.

61. The Chairperson reported that Indonesia would continue to monitor the pesticide residues in cocoa such as cypermethrin and deltamethrin in several cocoa bean production centers and Indonesia is concerned on the amendment of Maximum Limit (ML) for cadmium under the EU Regulation that would be applied for all cocoa and cocoa products as well as Indonesias report on ML for cadmium is 0.5 mg/kg for cocoa butter and 1 mg/kg in cocoa powder and cocoa beans as specified in Standard National Indonesia (SNI). 62. She also highlighted that Malaysia is in the process of drafting the Malaysian Standard (MS) for Chocolate and Chocolate ProductsSampling and Test Methods. 63. The Meeting was also informed on the report presented by Philippines on the five (5) major food safety initiatives of the Philippines on cocoa beans and cocoa products which is as follow: i. ii. iii. iv. v. The Code of Practice for Philippine Cacao Beans which was completed in 2011, The ongoing Pilot Testing of a Traceability System for Philippine Cacao Beans, The Code of Practice for Philippine Tablea, The Philippine National Standard for Philippine Tablea, and Additional recent activity on Monitoring of Ochratoxin A in Philippine cocoa beans and cocoa products.

64. She also mentioned the report from Singapore on her current regulation for cadmium is 0.2 mg/kg for all food articles. 65. The Chairperson also mentioned that Thailand had established the Code of Practice for Agricultural Products which include food safety, heavy metals and Good Manufacturing Practices (GMP) but not specific on cocoa. 66. She further highlighted on the information reported by Indonesia that Japans Ministry of Health, Labour and Welfare has released the Positive List for Agricultural Chemical Residues in Food in year 2006 and was updated on February 5, 2007 and the EC Regulation No. 396/2005 dated 23 February 2005 on the maximum residue limit of pesticides in food and feed of plant and animal origin. Currently, Indonesia is conducting analysis of cadmium in cocoa beans from various regions in Indonesia and has found that the cadmium levels are lower than the standard indicated in her SNI. 67. She also highlighted the report of the 85 Regular Session of the International th Cocoa Council Organization Meeting (ICCO) which was held last 2730 March 2012 in Ecuador noted the concerns of several producing countries regarding stringent EU legislation on cadmium content in cocoa. 68. She also informed the Meeting that the ACC TWGFS Meeting agreed to the proposal from Philippines to develop an ASEAN Code of Practice for the
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reduction of Ochratoxin A (OTA) in cocoa beans, taking into consideration the common production practices in the region. It was also agreed that the Code of Practice for the reduction of OTA in coffee developed by Indonesia and Thailand be used as the reference. 69. The Meeting took note on the information given by the Chairperson on the work progress done by ASEAN Consultative Committee on Standard and QualityPrepared Foodstuff Product Working Group (ACCSQPFPWG) on the following: i. Harmonization of food additives and food contaminants for category 5.2: Confectionery including hard and soft candy, nougats, etc. under the Taskforce on Harmonization of Prepared Foodstuff Standard; ASEAN Common Principles and Requirements for Food Hygiene; ASEAN Common Principles and Requirements for the Labeling of Prepackaged Food; The ASEAN Common Requirements for Food Control Systems; Guidance for Harmonised ImportExport Inspection and Certification Systems; and Guideline for ASEAN Audit and Certification of Food Hygiene and Hazard Analysis and Critical Control Point (HACCP).

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70. The Chairperson also informed the Meeting that the TWGFS agreed to establish an electronic Working Group (eWG) to develop the ASEAN Code of Practice for the reduction of Ochratoxin A (OTA) in cocoa beans which would be led by Philippines, with Indonesia and Thailand as members of the eWG. The Meeting would coordinate closely with the Technical Working Group on Good Agricultural Practices (TWG GAP) to avoid duplication of work. 71. With regard to the claimed by Japan on 2,4D Amine on cocoa, Malaysia reported that Malaysian Cocoa Board (MCB) and Cocoa and Chocolate Association of Japan (CCAJ) had agreed to have an interlaboratory cooperation to carry out analysis on cocoa powder samples spiked with 2,4D Amine. Malaysia is using QuEChERS method to analyze contamination in the samples. AGENDA ITEM 9: PROMOTE COOPERATION, JOINT APPROACHES AND TECHNOLOGY TRANSFER AMONG ASEAN MEMBER COUNTRIES AND INTERNATIONAL, REGIONAL, ORGANIZATION AND PRIVATE SECTOR 9.1 Trials on Selected Cocoa Progenies in Selected ASEAN Regions 72. The Meeting was informed that the Joint Progeny Trial Programme between Malaysia (MCB) and Indonesia (ICCRI) was started in 2005 under the ACC programme with the main objective to develop superior planting materials and resistance to cocoa pod borer (CPB) and other pest and diseases. New hybrids developed by each country were evaluated in different locations. Each progeny trial consisted of the ten (10) new progenies that were established in Malaysia and Indonesia, respectively.

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73. Indonesia reported the results of the progeny trials on the yield performance in 2011. The yield performance of the hybrids varied among the progenies. KKM 22 x QH 22 recorded the highest number of pods per tree and PBC 159 x NA 33 recorded a higher pod value per tree which is consistent with the previous years performance. 74. Indonesia also reported that the Vascular Streak Dieback (VSD) incidence was very serious at the location and the resistant response of the hybrids varied among the progenies. KKM 22 x QH 22 and C 1038 x BR 25 had the lowest score of the damage due to VSD incidence. In 2011, VSD incidence was higher as compared to 2010. Evaluation will be continued to confirm stability performance of the yield and resistance across the years. The full report by Indonesia is in Annex 14. 75. Malaysia reported that routine field maintenance for this project was undertaken on the trial plot continuously since 2006 until now. Data on girth size, pod yield for each tree and VSD assessment were recorded. 76. Data on stem girths were taken once a year, commencing from field planting and four (4) girth measurements had been taken since 2006. The mean of stem girth sizes in 2011 ranged between 19.23 cm to 28.35 cm of which KW 162 x KW 163 had the biggest stem girth size of 28.35 cm. Progenies with highest annual stem girth size increment was KW 162 x KEE 2 (3.87 cm). Three of the progenies viz. KW 162 x KW 163 , ICS 60 x KEE 2, and KW 162 x KEE 2 had higher annual girth increment than the control UIT 1 x NA 33 which is a vigorous hybrid. 77. Data on pod yield was recorded since January 2008. As most of the trees just came into production, the number of pods produced for each of the trees was low and inconsistent. KW 162 x KW 163 was the highest pod yielder with the mean number of pods per progeny is 132 and the mean number of pods per tree is 8.45. With the exception of KW 162 x KW 163 and KW 162 x KEE 2, the other progenies were relatively lower yielding than the control, UIT 1 x NA 33. 78. In conclusion, KW 162 x KW 163 appeared to be the more outstanding progeny than the others in terms of its vigour, highest pod yield and lower VSD score. KW 162 x KEE 2 was the second most superior progeny after KW 162 x KW 163. The full report is in Annex 15. 79. Dr. Romulo L. Cena, Plant Breeder, Member Regional INGENIC Cacao Group of Asia Pacific of the Philippines reported the progress of their cocoa breeding activities which include INGENIC AsiaPacific hybrid trial, local hybrid and clonal trials. 80. The results of his project indicated good hybrids which are PBC 123 x LAFI 7, BR 25 x K 2 and K 2 x K 1.

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81. The study also evaluated 15 clones and their reactions to major pests and diseases and he found a new insect pest in cocoa in the Philippines, identified as Distantiella theobroma. His slide presentation is in Annex 16. 9.1 Project on Pest and Diseases (P&D) Management 82. Malaysia presented a project proposal on pest and diseases management as in Annex 17. The research would focus on the common pest and diseases in ASEAN countries particularly the cocoa pod borer (CPB), VSD and black pod disease. 83. The Meeting agreed that each ASEAN member country would undertake research of the management of pest and diseases separately at the early stage and to report the progress at the ACC Meetings. Eventually the ASEAN member countries would conduct the collaborative projects on specific areas such as host plant resistance and integrated management of the common pest and diseases. 84. The Meeting agreed that Malaysia and Philippines will initiate a collaborative project on the control of common insect pest of cocoa using thin film particle (kaolinite) technique and approach particularly on CPB. 9.1 Training and Exchange of Technical Expertise and Research Materials 85. The Meeting took note on the ongoing training and exchange of technical expertise and research materials activities carried out by ASEAN member countries and is as follows: i. ii. iii. Training on the needs of the respective member countries from member countries having the expertise and facilities; Exchange of technical expertise through visit of scientist with the ASEAN member countries; and Exchange of research materials on a reciprocal basis.

86. The Meeting also took note on cocoa bean grading and basic chocolate making courses offered by Malaysia. 9.1 Enhancement of Private Sector Involvement 9.1.1 Cocoa Association of Asia (CAA) 87. The Meeting noted the activities conducted by the Cocoa Association of Asia (CAA) in 2010/11, presented by Ms. Mastura Mansor, the Secretary General of CAA as in Annex 18. 88. Ms. Mastura Mansor also explained briefly on the progress of the formulation of the CAA Cocoa Contract. The CAA contract is in the final stages of review.

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The CAA is also in the process of forming a panel of arbitrators for the contract. 89. She also informed the Meeting on the collaboration project between CAA and Nong Lam University, Ho Chi Minh City, Viet Nam. This is a three (3) year project to help farmers boost productivity of mature farms through training of best practices. 9.4.4 Cocoa Manufacturers Group (CMG) 90. The Meeting noted the activities conducted by the CMG for 2011 and 2012 presented by Mr. Erik Cheang as in Annex 19. 91. On the status development and outlook of the cocoa industry in Malaysia, Mr. Erik Cheang highlighted that there has been an adverse development in the cocoa processing industry in Malaysia since the implementation of the export tax for cocoa bean in Indonesia for the past year. The growth of grinding capacity has slowed down but the total volume of cocoa bean processed is maintained at around the level of the past 2 years of 300,000 tonnes. 92. He further highlighted that the main challenge to the processing industry was sourcing for sufficient supply of cocoa beans. Malaysian processors sourced their cocoa beans from Africa, a traditional supplier for the European grinders, and development has to a certain extent shifted the competitive market dynamics. Despite all that, the Malaysian cocoa processing industry, on the average, has managed to stay above profitable levels last year due to the existence of an unprecedented and abnormally high arbitrage in the futures prices between the London and New York terminal markets. The big difference in the two terminal market prices were partly due to the anticipated implementation of the new and stricter cocoa bean grading rules by the New York terminal market, and the interim problem of dealing with the old warehouse stock arising therefrom. With the new ruling already implemented this year, the huge arbitrage has subsided and Malaysian processors would have to continue to face the challenge of finding a long term solution to their supply needs. The full report is in Annex 20. 93. In response to the inquiry from Philippines, he informed the Meeting that the market analysts predicted bullish cocoa prices in the medium term as the global fundamental factors are pointing towards a shortage of cocoa beans supply. 9.1.1 Indonesia Cocoa Association (ASKINDO) 94. The Meeting was informed that one of the activities carried out by ASKINDO th was the organization of the 5 Indonesian International Cocoa Conference and Dinner (IICC). The IICC was jointly organized with Indonesian Cocoa Board (ICB) and was held on 78 July 2011 in Bali, Indonesia. The theme of the conference was `Working Together For A Better Cocoa Future. The purpose of the event was to encourage members of the world cocoa community to
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discuss issues, programmes and efforts that would lead to a better cocoa future. The event also provided opportunities for networking and possible business opportunities for those involved in the cocoa industry and cocoa related business. 9.1.1 Indonesia Cocoa Industry Association (AIKI) 95. The Meeting noted the report from AIKI on the update on the Indonesian cocoa industry and activities carried out by AIKI in 2010/11 as in Annex 21. 96. The Meeting was informed that AIKI was involved in the partnership programmes between cocoa industry and Farmer Groups especially in cocoa production in improving the bean quality and fermentation programme. AIKI had also been in cooperation with the ICB, Ministry of Industry and other cocoa and chocolate industries in the cocoa and chocolate promotion programmes in Indonesia to promote cocoa consumption. AIKI had also participated in several international cocoa exhibitions. 97. On the status development of the cocoa industry in Indonesia, the Meeting was informed that the Indonesian grinding capacity in 2011 was estimated at 240,000 tonnes or 44.3% from the installed capacity of 554,500 tonnes. In 2012, Indonesia estimated that the local grinding capacity would reach 380,000 tonnes or about 55% from total installed capacity of 660,000 tonnes. 98. The Meeting was further informed that the increased in the local grinding capacity was attributed to the expansion capacity by the existing local industry such as the PT. General Food Industries, BT Cocoa, PT. Asia Cocoa Indonesia and new investment expected to start operation in 2013, namely from JB Cocoa, Barry Callebaut Comextra Majora and Cargill. The full report presented by AIKI is in Annex 22. 99. The Meeting also took note on the information given by AIKI that the Indonesian Government is strictly monitoring the production and importation of cocoa powder under the Mandatory of Standard National Indonesia (SNI) to avoid the cocoa shell being used to produce cocoa powder as cocoa shell is not fit for human consumption. 100. All ASEAN member countries agreed with Indonesia to support the initiative to restrict the use of cocoa shell only for animal feed, fertilizer or shell boiler. 9.1.1 Cocoa Foundation of the Philippines (CocoaPhil) 101. The Meeting noted the report from the CocoaPhil on the programmes and activities for 2011/12 presented by Mr. Edward F. David, President of the CocoaPhil as in Annex 23. 102. The Meeting was informed that the Cocoa Foundation of the Philippines Incorporated (CocoaPhil Inc.) is continuously expanding its partnership with farmers groups, the local government units and agencies, as well as State universities and colleges (SUCs) and international agencies like World Cocoa
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Foundation, US Department of Agriculture through ACDIVOCA in pursuit of the Philippines cocoa roadmap, which is to develop 100,000 hectares of coconut farms to be intercropped with at least 50 million trees of cocoa with a goal of achieving annual production of 100,000 tonnes per annum by the year 2020. 103. CocoaPhil mentioned that to date, three Cocoa Agribusiness Zone (CABZ) centers all located in Mindanao are in operation. The CABZs aimed of catalyzing new behaviors in agribusiness strategies and expanding the adoption of innovations in delivering direct assistance to farmers. Each of CABZ areas exemplifies sustainable business models with dynamic marketing and buying centers that also serves sustainable cocoa farming technology resource and trade and markets information hubs. The support package is expected to lead towards cocoa industrys contribution in addressing rural poverty and unsustainability of traditional production systems by facilitating the farmers access to markets and sustainable production technologies and extension services. CocoaPhil is planning to develop similar center concept with the inclusion of research activities in Luzon and Visayas in collaboration with SUCs and local government units and agencies. 104. He further explained that currently, CocoaPhil is undertaking two projects; one is on Biointensive Cocoa Farming System Approaches supported by DA Bureau of Agricultural Research (BAR) and the other one is the Coconut and Cocoa Palayamanan (CocoPal) project supported by USDA/ACDIVOCA. The DABAR project focuses on biologically intensive mixed farming system, with intensive engagement of farmers to adopt organic recycling optimization through effective farming system, integrated soil nutrient management and integrated pest management. This project is being implemented in selected areas countrywide. 105. He also mentioned that the CocoaPhil joined the DABureau of Agriculture and Fisheries Product Standards in developing product standards for Philippines cocoa beans and traceability scheme at farmers level. The Philippine National Standard: Code of Practice for Philippine Cacao Beans was approved on 17 October 2011. The development of the Traceability Scheme at Farmers Level is currently ongoing. AGENDA ITEM 12: OTHER MATTERS ASEAN Cocoa Club National Focal Point 106. The ACC Secretariat updated the Meeting on the current National Focal Points submitted by the member countries as in Annex 24. 107. The Meeting was informed that the total number of memberships of the ASEAN Cocoa Club National Focal Points in 2012 is 25 members, remained the same as in 2011. However, changes were made on the representatives as follows: a. Mr. Mat Rusli bin Haji Abu Bakar of the Ministry of Industry and Primary Resources of Brunei is replacing Mr. Haji Rusali Haji Sapar.
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b. c. d. e. f.

Dr. Lee Choon Hui, the new Director General of the Malaysian Cocoa Board is replacing Dato Dr. Azhar Ismail. Cocoa Foundation of the Philippines has replaced Ms. Josephine Ramos with Dr. Divina M. Amalin. Mr. Marcus Ong Chun Chuan of the AgriFood & Veterinary Authority of Singapore is taking over from Mr. Koay Sim Huat. Dr. Rangsit Poosiripinyo of the Ministry of Agriculture and Cooperatives of Thailand is replacing Mrs. Dounghatai Danvivathana. Ms. Sri Dyah Kusumawardhani of the ASEAN Economic Community Department (AECD) is replacing Mr. Htain Lin as the ASEAN Secretariat.

108. The Meeting took note on the information given by the Philippines that Mr. Dominador Calvez of the CocoaPhil is replacing Mr. Dante Sy of the TP Food Processing Corporation as one of the national focal point for Philippines.

109. The Meeting also noted the inclusion of Dr. Phan Huy Thong, the Chairman of Viet Nam Cocoa Committee, the Ministry of Agriculture and Rural Development (MARD) and Dr. Nguyen Viet Khoa of the National Agricultural Extension Center, MARD as the additional national focal points of Viet Nam. 110. The Meeting also took note on the request by Thailand for the ACC Secretariat to coordinate all invitations for meetings in relation to the ACC including the two ACC Technical Working Groups in order to facilitate all attendance to the meetings. 111. The Meeting took note on the information given by Malaysia on the Malaysian International Cocoa Fair (MICF) 2013 to be held from 49 October 2013 at Sunway Pyramid, Kuala Lumpur, Malaysia. All ACC members are invited to participate in the event. 112. The Meeting took note on the agreement by Malaysia to allocate one booth for the ACC to participate in the MICF 2013. AGENDA 13: DATE AND VENUE OF THE NEXT MEETING 113. The Meeting unanimously agreed to the offer by Viet Nam to host the 16 Meeting of the ACC on the ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion Scheme.
th

114. The Meeting took note on the request by Viet Nam that all correspondence pertaining to the organization of the ACC Meeting be addressed to Ministry of Agriculture and Rural Development and copied to the National Agriculture Extension Center of Viet Nam and the Viet Nam national focal points. AGENDA 14: ADOPTION OF THE REPORT 115. The Meeting unanimously adopted the Report of the 15 Meeting of the ACC on the ASEAN Cooperation and Joint Approaches in Agriculture and Forest
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Products Promotion Scheme held on 3031 May 2012 in the Imperial Palace Suites, Quezon City, Philippines. ACKNOWLEDGEMENT 116. The Chairman of the ACC expressed his gratitude and thanks to all delegates for their active participation in the meeting. 117. The delegation of Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam expressed their sincere appreciation to the Chairman for his excellence leadership, knowledge and experiences that made the Meeting lively and productive, the Philippines Government in particular the Department of Agriculture, Ministry of Agriculture, Philippines and the Cocoa Foundation of the Philippines (CocoaPhil) for their warm hospitality accorded to them and the excellent arrangements made for the Meeting as well as the ACC Secretariat and Organizing Committee for their hard work and team cooperation rendered in ensuring the successful of the Meeting. 118. The Meeting was held in the traditional spirit of ASEAN cordially and solidarity.

Quezon City, Philippines st 31 May 2012

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