JanuaryApril 2013

Volume 2, Issue 1

Cacao Watch
THE OFFICIAL NEWSLETTER OF THE CACAO INDUSTRY DEVELOPMENT ASSOCIATION OF MINDANAO, INC.(CIDAMi)

Mindanao Cacao and its growing potential

he voice and interests of the Mindanao cacao industry players were heard by the international community during the Asia Choco Congress on March 26-28, 2013 held at the Grand Hyatt Hotel, Jakarta, Indonesia. CIDAMi President and a cacao farmer herself, Mrs. Charita P. Puentespina represented the association and the industry during the said event. With this years theme Engendering the Choco Market Evolution, the Asia Choco Congress discussed in depth the cocoa industrys rapid movement and factors that influence its activities. It also looked for new tools that will bring positive change and industry improvement. The power-packed conference featured a line-up of world-renowned leaders and representatives from policy-makers and the top cocoa and chocolate businesses around the world. The Asia Choco Congress brought together international and Asias cocoa growers, traders, millers, processors, chocolate manufacturers, investors, technology bests and other crucial stakeholders to explore the growing business opportunities. The conference focused on the most important issues affecting the industry today through panel discussions and enlightening sessions which focused on sustainability, cacao industry growth and enabling policies and frameworks. We need to be informed and aware of the current challenges of the global market and take advantage of the opportunities presented in order for Mindanao cacao to be globally competitive. My attendance to the Choco Congress is in support of the vision of the Philippine 2020 Cacao Challenge, Mrs. Puentespina explained.

CIDAMi President Charita Puentespina updates Indonesia Cocoa Boards Dr. Soetanto Abdoellah and Peter Sprang of Rainforest Alliance on the Mindanao cacao industry

Inside this issue

Mindanao Cacao and its growing... Multi-stakeholder group learns... DTI Chief samples Mindanao... ACDI/VOCA launches Kakaw Eskwela Up close and personal with... Renewed hope, brighter... Chocolateyour new... 1 2 3 3 4 5 6

During the three-day conference it was constantly highlighted that demand for chocolate and other cocoa-derived products is expected to continue increasing in developed countries in the face of enduring recession. With chocolate consumption increasing such as in China and India, there is an alarming serious supply shortage of at least 1 Million tons by the year 2020. In the Philippines, manufacturers still have to import at least 20,000 metric tons of cacao beans for its production. The decline, not only in production but on quality as well, is attributed to environmental concerns, pests and diseases, farmers limited knowledge of good agricultural practices and competition with other high-priority crops. Mindanao cacao and its potential Southern Mindanao, which accounts

to 80% of cacao production in the country, only produces 7,000 MT annually. Given the favourable climate and soil conditions and its history of growing cacao back in the 60s and 70s, the region has very strong potential to increase this figure. The Philippine 2020 Cacao Challenge aims to produce 100,000 MT of good quality cacao by the year 2020 in order for the industry to benefit from the high global demand. In support of this vision, ACDI/ VOCA through the USDAfunded CoCoPal project has been working to develop the cocoa sector in the Philippines, particularly in Mindanao. CoCoPal has partnered with industry stakeholders to create the Cacao Industry Development Association of Mindanao, Inc. or CIDAMi, to coordinate and To page 5

www.cacaomindanao.com

Multi-stakeholder group learns from Indonesian cacao industry

sions on Indonesias experiences and challenges as Asias leading cacao producer. Despite the language barrier, Indonesian cacao farmers enthusiastically shared their knowledge on how to successfully grow cacao using sustainable agricultural practices. In Indonesia, farmers doubled or tripled their yields by rehabilitation, replacing old trees with high-yielding varieties, pest/disease management and using both chemical and organic fertilizers. Chocolate confectioner giant Mars International gave the Philippine team access to their Mars Cocoa De(Top): Participants pose with Mars Symbioscience Indonesias Country Manager Ruud Engbers and velopment Center (MCDC) where Sitti Asmayanti, Mars Sustainaibility Coordinator after the tour at the plants premises. (Bottom): training of cacao farmers and reThe group with a farmers group and their cacao farm in Luwu. Sulawesi search of new cacao varieties are wenty stakeholders from the with this, the rising trend in farm gate being done. Mindanao cacao industry took prices. However, due to unfavourable The wealth of information is priceless! part in a one-week study tour to conditions such as extreme weather The Indonesian cacao stakeholders Sulawesi, Indonesia early April patterns and prevalence of pests and were accommodating and answered to learn the best practices on cacao plant diseases to name a few, cacao all our questions during the forums, farming and understand the roles supply has been diminishing. The gap shares Peter Cruz who manages the played by each sector in the value in this equation provides the Min- Mars Cocoa Development Center chain. Indonesia is currently the third danao cacao farmers and growers (MCDC) in Malagos. largest cacao producing country in the with a steady market all over the We are honoured to have such a big world, next to Ivory Coast and Ghana. world. Almost 65% of Indonesias cacao is In partnership with ACDI/VOCA and group visit us all the way from the Philippines to learn about what we are grown in the island of Sulawesi. funding support from the US Depart- doing to support our cocoa industry! I Representatives from private cacao ment of Agriculture, the study tour can sense your keen interest and comfarms, nursery operators, official local provided the participants with first- mitment to make Mindanao a major government units of Davao City and hand experience on the innovations cacao producer in the coming years. Davao Oriental, Federation of Coop- and interventions their Indonesian We look forward to buying more eratives (FEDCO) officers and Depart- counterparts are doing to sustain their beans from you in the future, David ment of Trade and Industry XI com- robust cacao industry. The group had Lim, branch manager of PT Armajaro posed the delegation. The group was the opportunity to visit model farms, Indonesia enthused. headed by Charita P. Puentespina, community-based Cacao Developboard president of the Cacao Industry ment Centers (CDC), government insti- The study tour participants will put Development Association of Mindanao, tutions, NGOs and the warehouses of together a re-entry action plan based Inc. (CIDAMi). international traders Armajaro and on the learning from this study tour. Subsequent events will also be The global demand for cacao beans Olam among others. launched within the next few months. has been steadily increasing and along At each site visited, there were discus-

Cacao Watch JanuaryApril 2013

Page 2

Kakao Eskwela TV: Raising the Bar in Agri-focused Multimedia Education

akao Eskwela, a School-on-the-Air radio program that gives useful information about cocoa farming, crop establishment, crop maintenance and harvest and post harvest operations, had its successful run with around 180 students who enrolled via text through the CoCoPal Text Information Center (CTIC). This radio program is aired over DXGM SuperRadyo 1125 every 4:30-5:00AM from Mondays to Fridays. This project is one of the multimedia efforts of CoCoPal Integrated farming systems implemented by ACDI/VOCA and funded by the USDA.

As the second quarter of this year progresses, Kakao Eskwela gains higher ground by launching Kakao Eskwela TV+ on cable TV. This show, a televised version of the school-on-the-air programs, may be viewed at SouthSpot Channel 32 on Skycable and Channel 2, Bansalan Cable TV. Kakao Eskwela TV will be targeting investors, distributors, buyers, growers and farmers as their main audience. Along with print, SMS and other on-site multi media programs, ACDI/VOCA believes that a huge component of the worldwide shortage of quality cocoa beans is also a shortage of proper education and information. That is why the organization, along with Visual Insights Multi Media Consultancy, develop streamlined mass media informational drives that encourage, train and empower our cacao farmers and would-be cacao farmers and growers. This way, skill transfer is faster, easier, and available on a larger scale. You may also get more information through CTIC Numbers: 0917-609-3536(Globe), 0908-390-3536(Smart) or 0943526-1536(Sun).

DTI Chief samples Mindanao cacao

o less than the Department of Trade and Industry Secretary Gregory L. Domingo sampled one of the up-and-coming products from the food basket of Mindanao during his visit to Davao City last month. Secretary Domingo together with the team from DTI Region XI was treated to an afternoon sampling Davaos finest offerings of world class cheeses and hot chocolate drink, locally known as sikwate. The visit was an offshoot activity of the secretary while in the city. Sikwate is made by dissolving pure raw dark chocolate liqueur (tableya) in boiling water then sweetener and milk are added. Since it is unprocessed and at its purest form, sikwate is healthy and full of antioxidants. The DTI delegation was welcomed by CIDAMi Board of Directors Charita Puentespina and Dante Muyco of Chocolate de San Isidro (CSI) and Executive Officer Alimudin Mala. During the informal meeting, the CIDAMi gave an update to the secretary on the developments and activities of the Mindanao cacao stakeholders as well as current international market trends for cocoa. Secretary Domingo was pleased to know how the cacao industry players in the region came together and formed a functioning association like CIDAMi to push for more cohesive actions and stronger support to small and medium enterprises (SME).
Cacao Watch JanuaryApril 2013

The Department on the other hand has been a major government partner of CIDAMi especially in providing avenues for showcasing its cacao byproducts under DTIs National Industry Cluster Capacity Enhancement Project (NICCEP). The industry clustering ap-

DTI Chief Domingo drinks his cup of steaming rich Mindanao sikwate. (Inset) Checking the packaging of the dark chocolate liqueur made and produced by Davao processors Cacao de San Isidro and Malagos Farms, both members of CIDAMi.

proach involves developing linkages and networks for a particular commodity or industry in a geographic area to boost its local and international competitiveness. Recognizing the importance of cacao as a high value crop for the Philippines, DTI included cacao in its industry clusters under Davao Region, where it has been providing support and assistance to the different sectors or players involved in cacao to improve production.

Secretary Domingo encouraged cacao stakeholders to come up with a geographic branding of Mindanao cacao, similar to DTIs pilot for the coffee industry in Kalinga, Mountain Province. Geographic branding will make it easy to market products and create identity and recall among its consumers. For its part, CIDAMi assured the secretary that it will continue its collaboration with DTI XI and NICCEP for various programs and approaches that will bring about tangible success results at all levels. Page 3

Up close and personal with GoNegosyos Female Agri Entrepreneur 2013

t the mention of her name, one would instantly think of the stunning purplish blooms of the famous Walingwaling (now named as the countrys second national flower) that she helped save from extinction in the 1980s. Her passion to bring home Vanda Sanderiana back to the Philippines after seeing it in one of her trips in Bangkok made her a household name to orchid lovers here and abroad. Last February, she was named one of the twelve Filipina Entrepreneurs of 2013. Unknown to many, Mrs. Puentespina or Chari to her family and close associates did not have academic training in agriculture. She worked as a telephone operator for the Philippine Long Distance and Telephone Company in the late 50s while taking up secretarial course in Ateneo de Davao. She furthered her education with a degree in Commerce also from Ateneo after giving birth to her fourth child in the late 60s and very hands-on with the familys flourishing drilling and irrigation business Hydrock Wells in the 60s and 70s, that she would often times drive their CIDAMi board president and Woman Entrepreneur 2013 for AgricultureCharita P. jeep and deliver huge metal pipes and tubes to the site. Their
Puentespina and her newest passion, cacao

biggest clients then were the banana plantations around Davao region. While her husband, Roberto Sr. was busy with the marketing and technical side of the business, Chari was handling the books and finances while raising their five children. Despite her busy schedule as president of her company, chairperson of the CIDAMi board and council president of the Girl Scouts of the Philippines Davao City, Mrs. Puentespina took time to sit for this interview and share the lessons she learned as a business leader. Q: You have become very successful in growing
orchids and developing Malagos Garden Resort to become one of Davao Citys landmarks, how did you get into cacao?

process to get the financial help that a farmer needs or is very limited. I hope that the government can continue to improve its services and programs so that we can encourage competitiveness of our produce and see ideas translate into Q: You were recently awarded one of the inspir- reality. and USDA to meet this challenge by encouraging more people to venture into cacao farming and look at programs that can benefit Mindanao cacao stakeholders.

ing Filipina Entrepreneurs for 2013. Why do you Q: The government is encouraging young think you are successful in your field? people to become entrepreneurs, any business A: If there is an opportunity and I see that it will lessons you want to impart?

A: I was able to buy a farm in Malagos that already has cacao trees planted. In 2007, Mars International through the international trader Armajaro came to Davao to look for cacao beans. I was asked to consolidate my harvest and that of other small farmers in the Malagos-Calinan area, ferment them and ship it to Armajaro. That was in 2008. I was also part of ACDI/ VOCAs SuccessAlliance funded by the US Department of Agriculture that was teaching farmers how to be more productive. I also went into cooperation with Mars International to put up the Mars Cocoa Development Center (MCDC) in my farm where the technology in cacao is piloted and applied. It is a training center where farmers can learn the proper way of producing cacao from planting quality seedlings, to maintenance (pruning, fertilizing) down to harvest and fermentation.

not only be favourable to me but will also help other people, I am willing to take the challenge. I define success not only as an accomplishment for ones self but more imporI WANT TO LOOK BACK AND SEE tantly, for a PEOPLE SUCCEED BECAUSE OF THE greater numKNOWLEDGE I SHARED WITH ber of individuals. If I am THEM. IF I CAN, I WANT TO BE AN able to help INSPIRATION TO OTHERS TO GET others improve their lives then UP, DO THEIR WORK AND DO IT I become WELL. I WANT MY NAME TO BE successful. I ASSOCIATED WITH BUSINESS am not afraid to do the dirty INTEGRITY. job because I enjoy being a part of creating something that holds a lot of promise for the future.

A: I notice that a lot of young entrepreneurs want to make it big right away. Do not be afraid to start small because there is always room to grow and expand eventually. Getting into business is not easy, especially when you are starting - be ready for the challenge to do almost everything yourself. There may be times when you will be tempted to give up but if you work hard and give your best, you are up to a good start. Never procrastinate, strike while the iron is hot as they say.

Being in the agriculture sector, what have been Q: In closing, what do you want to be the some of your learnings? A: As I said during my interview for the GoNego- legacy of Charita Puentespina?

Continue to learn and develop a thirst for new knowledge. In fact, I took up a short course in strategic marketing just last year at AIM. I was the oldest in the class; most of my classmates were young professionals. But that experience taught me new things which helped me as a business person. Im actually contemplating on taking another short course this year! And I am in the process of learning to master the use of my Q: You always referred to yourself as a farmer. iPad! (laughs)

Q: So Davao really has very good potential in cacao syo book, there is always money in agriculture for as long as you are willing to give your time and production? A: Yes! We have a long history in cacao production. attention to it. We are fortunate that Mindanao has We have been educating the public that local and a vast area ideal for agriculture. We have good international demand is steadily increasing but on the water, fertile land and not so much affected by other hand, production is declining. The chocolate extreme heat or rain. As Mindanaoans we must industry is alarmed that unless actions are done now learn to use this to our advantage. Farming or to ensure sustainable production, the shortage may agriculture is a very rewarding industry. What reach to at least a million ton by the year 2020. That farmers need, is financing assistance especially the is why we formed CIDAMi with the help of ACDI/VOCA small ones. Unfortunately, it is a long and difficult
Cacao Watch JanuaryApril 2013

A. I want to look back and see people succeed because of the knowledge I shared with them. If I can, I want to be an inspiration for others to get up, do their work and do it well. I want my name to be associated with business integrity. Nowadays, competition is stiff. In my years as an agrientrepreneur, I learned that once you are true to your words you will gain respect and friends which will always be among your biggest assets. Page 4

Mindanao Cacao and its ...(from page

strengthen the cocoa industry as a whole using the value chain approach. This partnership resulted to training of farmers of cacao production, technology upgrading and provision of farm inputs to its beneficiaries.

1)

reason why this is impossible be- Africa and Latin America which ranks cause Mindanao has a lot of advan- highest in terms of flavour. Geographitages to make it big, he said. cally, the country also is in close proxPhilippines, according to Dr. Abdoel- imity to China, India and Indonesia lah, boast of very skilled manpower which require high volume of cocoa that can easily understand and fol- mass, liqueur and butter for making In an interview, Dr. Soetanto Abdoellah, low the trends in cacao farming. chocolates. chairperson of the Indonesian Cocoa Existing Filipino cacao farmers are It is expected that your production Board and one of the speakers during also adopting good practices such as will start small. But your leverage will last years Kakao Konek, encouraged sleeving or the wrapping of cacao be on good quality cacao that can be Mindanao cacao stakeholders to pods to protect it from pests, which is among one of the worlds best. The strengthen the industry and harness its not common in other countries. In potential in the international market. addition, Mindanao cacao growers industry is willing to pay very good Demand is increasing but the supply is are known to do fermentation, a price for quality. That is the direction just not enough and quality is not that process responsible for developing Im seeing for Mindanao. good. This is a very good opportunity the chocolate flavour of the beans. for the Philippines to fill the gap and This process is also being done in produce more beans. I dont see any

Renewed hope, brighter prospects for FFS graduates

ecember 2012 to March 2013 was characterized by numerous graduation ceremonies for Farmer Field Schools (FFS). A total of 4,800 farmers successfully completed the 6 months FFS program, an integrated farming system under the CoCoPal project, implemented by CIDAMi in partnership with ACDI/VOCA with funding support from US Department of Agriculture. FFS or Farmer Field School is a nonformal education for farmers. It is learning process where farmers are gathered to learn about their crops using the Cocoa Coconut and Palamayanan (CoCoPAL) Farming System Curriculum of ACDI/VOCA. The farmers will have the opportunity to learn how to improve their farming system by observing, analyzing, and participating in practical learning by doing field exercises and trying out new ideas on their own farms. CIDAMI, as partner implementer of the program, organized and trained the CoCoPAL Extension Facilitator (CEFs) and CoCoPAL Farmer Leaders (CFLs) to facilitate the FFS classes, guiding and teaching the participants of the best practices in crop production and helping them decide the specific approaches for crop management. FFS Graduation culminates the 6 months to 1 year of sessions in cacao integrated Farming. Barangays Danao and Dawan, Mati City, Davao Oriental 41 Farmers graduated under the joint CoCoPAL FFS last December 2012. Provincial and barangay officials were present to show their support to the farmer graduates. In the speech given by Mati City councilor and chairperson of the citys Committee on Agriculture Hon. Orlando F. Rodriguez, Jr., he promised continuing support to similar projects that will benefit Mati farmers. Kagawad Artileta Arpon of Brgy. Dawan paid tribute to the farmers by saying Kung walay mang-uuma, walay pagkaon (if there are no farmers, there shall be no food). This was met by a thunderous applause from the graduates and their families.

graduates faces that day. The graduation was supported by CIDAMi and facilitated by the respective CEFs and CFLs. Two of CIDAMis board members of Dante Muyco and Peter Cruz were in attendance as well as Davao City Agriculturist Val Turtur and Councilor Marissa Abella. Dante Muyco told the farmers that there is nothing to worry about their cacao production because CIDAMi will always be there to help and guide them. He confirmed and accepted the farmers as FFS graduates in behalf of CIDAMi. On the other hand, Peter Cruz who manages the Mars Cocoa Development Center gave a short but inspiring message and even quizzed the farmers on cacao nursery, production and management during his speech to review what they learned Councilor Abella expressed support and promised to distribute 10 cacao seedlings to each of the 50 FFS graduates. City Agriculturist Val Turtur also encouraged the farmers to implement what they have learned from the FFS, to continue supporting their FFS classmates and strengthen the organized farmers association. Mintal Davao City A total of 700 farmers completed the FFS training in Mintal, Davao City . The graduates gave their speeches and expressed their gratitude to the CoCoPal program for providing them the technology and the hope to improve their living conditions. CIDAMi treasurer Evelyn Lavina and other staff attended the mass graduation. Ms Lavina congratulated them all for a job well done and thanked those who were responsible for the success of FFS program. She also introduced CIDAMIs new Executive Officer Alimudin Mala and other members of the team. In her speech, Ms Lavina encouraged everyone to adhere to quality standards and contribute to the Philippine 2020 Cocoa Challenge.

Barangay Lamanan, Davao City The most recent mass graduation was in Barangay Lamanan, Davao City on February 27, 2013 where 300 farmers and students have successfully completed the FFS program. CIDAMi EO Alimudin Mala attended the program and encouraged farmers to plant more cacao, strengthen their organization and Malabog, Davao City Two FFS classes adding up to fifty farmers cheerfully received their diplomas use good agricultural practices in cacao production. Mr Val Turtur of the City during their graduation at Sitio Cabonbon, Malabog, Davao City on January 4, Agriculture Office advised farmers to implement proper technology in farm2012. The fulfilment in finishing the six-month training was evident on the ing. Page 5

Cacao Watch JanuaryApril 2013

ou may be surprised to learn that chocolate isnt as bad for you as once believed. Every day more and more health benefits are being associated with chocolate. Chocolate has gotten a lot of media coverage in recent years because it was scientifically proven that it contains nutrients that help protect your cardiovascular system. The reasoning being that the cacao bean is rich in a class of plant nutrients called flavonoids. Flavonoids help protect plants from environmental toxins and help repair damage. They can be found in a variety of foods, such as fruits and vegetables. When we eat foods rich in flavonoids, it appears that we also benefit from this "antioxidant" power. Flavanols are the main type of flavonoid found in cocoa and chocolate. In addition to having antioxidant qualities, research shows that flavanols have other potential influences on vascular health, such as lowering blood pressure, improving blood flow to the brain and heart, and making blood platelets less sticky and able to clot.

Chocolateyour new Super Food

However, before you use this as an excuse to justify your chocolate cravings, be careful about the type of dark chocolate you choose. Watch out Antioxidants are believed to help the for those extra ingredients that can body's cells resist damage caused by add lots of extra fat and calories. free radicals that are formed by normal bodily processes, such as breath- So, for now, enjoy moderate portions ing, and from environmental contami- of chocolate a few times per week, These plant chemicals arent only found nants, like cigarette smoke. If your and dont forget to eat other flavonin chocolate. In fact, a wide variety of body does not have enough antioxi- oid-rich foods like fruits and vegetafoods and beverages are rich in fla- dants to combat the amount of oxida- bles.

vonols. These include cranberries, apples, peanuts, onions, tea and red wine. Due to its health benefits, some of the big chocolate confectioners came up with special product lines of cocoa extract supplements that contain high level of extracted flavanols to help support cardiovascular health by helping support healthy circulation and blood flow.

tion that occurs, it can become damaged by free radicals. For example, an increase in oxidation can cause low -density lipoprotein (LDL), also known as "bad" cholesterol, to form plaque on the artery walls.

Linking Cacao Industry Stakeholders for Sustainable Growth

The Cacao Industry Development Association of Mindanao, Inc. (CIDAMi) is nonstock, non-profit organization composed of farmers, cooperatives, marketers, traders, individual-entrepreneurs and nursery operators. We aim to be the voice of Mindanao cacao stakeholders and to complement development programs for the local cacao industrymoving Philippine Cocoa further as a global brand. It is a venue for the industry players to share ideas and solutions to common problems and formulate policies and strategies to achieve a sustainable cocoa industry. Membership to CIDAMi is open to individuals and/or institutions directly or indirectly involved in the cacao industry development such as planters, growers, nursery operators, input providers, processors, traders, service providers and those supporting the industry such as nongovernment organizations and the academe.

We look forward to hear from you! For your inquiries and other concerns on cacao growing, accredited nurseries, capacity building trainings and membership to CIDAMi, you may get in touch with us at:
Office: AMYA Bldg., Tulip Drive corner Quimpo Blvd., Ecoland Davao City 8000 Philippines

Phone: (63) 082 321 5589 Email: info@cacaomindanao.com Website: www.cacaomindanao.com

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