A new source of Cocoa Beans:

Mindanao.

Over last 2000 years Philippines important in SE Asian trading along the ancient Nan Hai Trade Route Source: Ayala Found Inc

From Mindanao many natural resources were highly sought …

Source: Ayala Found Inc

National Geo photos

Forest products

Now…we can add Cocao Products to future shopping lists of Asian neighbours.

MARS INC

Our last Cacao Industry Conference April 2011 resulted in:• Agreement on Cacao 2020

Challenge• Formation of CIDAMi• Great increase in investment

and interest in cacao production and processing, especially in Mindanao

Timeline of Cacao Production, in Philippines, in tonnes since 1950

500

2,000

20,000

10,000

6,000

100,000

195019601980199020092020

2020 Cacao Challenge: From 7000 to 100,000 t by 2020

Look at 2020 Challenge in terms of:

• GREEN paper: future growth and needs in 2020

• WHITE paper: our industry situation today

AND.•Domestic, Regional and Global Markets for Cocoa

EXPLORING REGIONAL AND GLOBAL MARKETS FOR

MINDANAO’S 2020 CACAO ECONOMY

Panel Session #1

Our Speakers and Topics

Panelist 1: Daniel Liew Armajaro, KL Sdn BhdTrends in supply and demand.Panelist 2: Dr Chow Bee Yee, MARS Inc,

Malaysia.Mindanao cacao brand positioningPanelist 3: Dr Gil Yarra, Chocolate de San

Isidro Inc , DDN MindanaoMindanao as a leader for Cocoa in Philippines

• 18 % of national GDP• 11% of ODA• 24% of population• Poverty incidence >40%• high population growth rate of 2% annually• Continuing conflict and issues: Muslims,

Christians and Indigenous peoples• A history of land and natural resources abuse

The Development Landscape for Cacao in Mindanao

But so many good things happening..

• Gradual restoration of peace and order in many conflicted parts of Mindanao

• Development booms around the major cities and urban areas

• Diverse and proven natural resources still exist

• Strategic location for SE Asia with several large ports

• A food and fisheries basket, that grows in size each year

Mindanao 2020: Peace and Development Framework Plan 2011-2030‘Agriculture and agriculture-based industries will continue to be the most prominent driver

of the Mindanao economy well into the future, for inherent reasons. The optimum balance

between large plantation agriculture and smallholder farming needs to be sought, for

reasons of both social inclusiveness and environmental sustainability.’

PAGASA

MINDANAO is mostly:• no typhoons• Well distributed rainfall

• High to medium levels of rainfall

Region X – 216,310 has.

CARAGA – 227,480 has.

Region XII – 98,350 has.

Region XI - 460,700 has.

Total Coconuts land Area – 1,595,120 ha.

ARMM - 223,150 has.

Region IX – 369,130 has.

050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

Has.

XI IX CARAGA ARMM X XII

Region

PCA: Coconut Areas by Region (in Ha.)

Message 1: The Virtues of producing cocoa in Mindanao

It’s great in diversified farming systems

Cocoa is SMALLHOLDER friendly

It offers good income from rapidly expanding domestic and export markets

It’s agro-forestry compatible

Slide-2

Davao Oriental

Davao Norte

Davao del Sur

Compostela Valley

Davao City

Mindanao 1,911,360 ha

Southern Mindanao - 379,865 ha

Large areas of land suitable for intercropping ie coconut farms source PCA region XI

The market is ready and willing(PT Olam Ltd slide)

The status of cocoa in the Philippines• About 6000 tonnes produced annually, 80%

from Mindanao• Is a smallholder farmer industry• Mostly organic by neglect• Represents about 0.16% of world production• An area of about 12,000 hectares and about

20,000 farmers• Domestic market deficit is about 30,000

tonnes per year of cocoa bean equivalents

Specific opportunities in Mindanao• Large areas of idle coconut lands ready for inter-

planting >1,000,000 hectares• Significant areas of old cocoa plantings for

rehabilitation, can show fast return on investment• Possible certified organic cocoa production based

on the long period of low or no inputs• Large scale nurseries and bud wood garden

operations needed now• The domestic market is vastly undersupplied from

local producers• Cocoa production and export is competitive with

other major crops

Village Technology & Extension Farm

Farmers Field School & extension services

Plant Material Supply Facilities

Organic Inputs Facilities

Agri-Enterprise Development

Post Harvest Facilties

Daghang salamat