by D. Alibutud

THE Philippines is on the road paved with brown gold: cocoa

Although a minor player at the moment, the potential for the Philippines is attractive: as much as $150 million a year from cocoa exports.

Because local production is a meager 6,000 metric tons, foreign-sourced cocoa fill confectionary vats to produce local chocolates and other products about 30,000 MT of coca beans imported yearly.

But with the support of the United States Department of Agriculture (usda), 10,000 hectares of cocoa farms are about to be planted in Apayao and Kalinga, Cagayan, Quirino and Isabela.

Under the same program of the Cocoa Foundation of the Philippines (CFP), 20,000 has of coca will sprout in Cavite, Laguna, Batangas, Rizal, Quezon, and Bicol; 10,000 has in Palawan, eastern and western Visayas; and 20,000 has in Zamboanga, Basilan, Davao Sur, Norte and Oriental.

About P141 million of farm employment will be generated.

All these are expected to boost cocoa bean production worth $8.7 million in 10 years; cocoa bean exports worth $3.1 million; and foreign exchange of about $5 million from the export of coca products.

According to the CFP, the cocoa development program’s goal is to raise cocoa production to 70,000 MT by 2014.

With a $600,000 grant from the USDA, some 17,000 farmers will be trained in coca production; 30 fermentation plants and dryers will be established nationwide; 100 nurseries will be raised; cocoa farms will increase by 80,000 hectares.

The USDA has provided the three-year grant believing in cocoa’s attractive potential for the country.

The Philippines could also be a major source of cocoa for the US. The worldwide cocoa market is expected to expand at 2.6 percent yearly - much of it in African countries, the world’s largest coca exporters.

Cocoa earns significant foreign exchange earnings in Africa. In Ghana, for example, cocoa makes up about 30% of total export revenue. In the Ivory Coast, it is up to 35%.

But there is room for an already large market.

M&M, one of the world’s biggest cocoa importer, buys most of its beans right now from Indonesia and Malaysia.

Each year, M& M gobbles up about 10% - some 350,000 MT - of the 3.5 million MT of cocoa beans produced worldwide. Now it is eyeing the Philippines as a major source.

It believes cocoa can easily become one of Philippines’ top foreign exchange earners if farmers raise production fast enough; the government put up the infrastructures for better shipment; and exporters ensure quality beans.

One way to do this is to intercrop cocoa with coconuts. The Philippines has 3 million hectares of coconut land and cocoa brings more income to some 75,000 families.

If the Philippines will produce 100,000 tons which can use only 10 percent of mono-cropped coconut farms, it is believed it can very easily make cocoa its second largest foreign exchange earner. (InterNews&Features)