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 ca-cao 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 USDA-funded CoCoPal project has been working to develop the cocoa sector in the Philippines, particu-larly in Mindanao. CoCoPal has partnered with industry stake-holders to create the Cacao In-dustry Development Association of Mindanao, Inc. or CIDAMi, to co-ordinate and

During the three-day conference it was constantly highlighted that de-mand for chocolate and other co-coa-derived products is expected to continue increasing in developed countries in the face of enduring recession. With chocolate consump-tion increasing such as in China and India, there is an alarming serious supply shortage of at least 1 Mil-lion tons by the year 2020. In the Philippines, manufacturers still have to import at least 20,000 metric tons of cacao beans for its produc-tion.

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

Mindanao Cacao and its growing potential

January—April 2013

Volume 2, Issue 1

Cacao Watch T H E O F F I C I A L N E W S L E T T E R O F T H E C A C A O I N D U S T R Y D E V E L O P M E N T A S S O C I A T I O N

O F M I N D A N A O , I N C . ( C I D A M i )

Mindanao Cacao and its growing... 1

Multi-stakeholder group learns... 2

DTI Chief samples Mindanao... 3

ACDI/VOCA launches Kakaw Eskwela 3

Up close and personal with... 4

Renewed hope, brighter... 5

Chocolate—your new... 6

Inside this issue

CIDAMi President Charita Puentespina updates Indonesia Cocoa Board’s Dr. Soetanto Ab-doellah and Peter Sprang of Rainforest Alliance on the Mindanao cacao industry

T 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 ca-cao farmer herself, Mrs. Charita P. Puentespina repre-sented the association and the industry during the said event.

With this year’s theme “Engendering the Choco Market Evolution”, the Asia Choco Congress discussed in depth the cocoa industry’s 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 pol-icy-makers and the top cocoa and chocolate businesses around the world. The Asia Choco Congress brought together international and Asia’s cocoa growers, trad-ers, millers, processors, chocolate manufacturers, inves-tors, technology bests and other crucial stakeholders to explore the growing business opportunities. The confer-ence focused on the most important issues affecting the industry today through panel discussions and enlighten-ing sessions which focused on sustainability, cacao indus-try 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 ca-cao to be globally competitive. My attendance to the Choco Congress is in support of the vision of the Philip-pine 2020 Cacao Challenge,” Mrs. Puentespina explained.

To page 5 www.cacaomindanao.com

T wenty stakeholders from the Mindanao cacao industry took part in a one-week study tour to Sulawesi, Indonesia early April

to learn the best practices on cacao farming and understand the roles played by each sector in the value chain. Indonesia is currently the third largest cacao producing country in the world, next to Ivory Coast and Ghana. Almost 65% of Indonesia’s cacao is grown in the island of Sulawesi.

Representatives from private cacao farms, nursery operators, official local government units of Davao City and Davao Oriental, Federation of Coop-eratives (FEDCO) officers and Depart-ment of Trade and Industry XI com-posed the delegation. The group was headed by Charita P. Puentespina, board president of the Cacao Industry Development Association of Mindanao, Inc. (CIDAMi).

The global demand for cacao beans has been steadily increasing and along

with this, the rising trend in farm gate prices. However, due to unfavourable conditions such as extreme weather patterns and prevalence of pests and plant diseases to name a few, cacao supply has been diminishing. The gap in this equation provides the Min-danao cacao farmers and growers with a steady market all over the world.

In partnership with ACDI/VOCA and funding support from the US Depart-ment of Agriculture, the study tour provided the participants with first-hand experience on the innovations and interventions their Indonesian counterparts are doing to sustain their robust cacao industry. The group had the opportunity to visit model farms, community-based Cacao Develop-ment Centers (CDC), government insti-tutions, NGOs and the warehouses of international traders Armajaro and Olam among others.

At each site visited, there were discus-

sions on Indonesia’s experiences and challenges as Asia’s leading cacao producer. Despite the language bar-rier, Indonesian cacao farmers enthu-siastically shared their knowledge on how to successfully grow cacao using sustainable agricultural practices. In Indonesia, farmers doubled or tripled their yields by rehabilitation, replac-ing old trees with high-yielding varie-ties, pest/disease management and using both chemical and organic fer-tilizers.

Chocolate confectioner giant Mars International gave the Philippine team access to their Mars Cocoa De-

velopment Center (MCDC) where training of cacao farmers and re-search of new cacao varieties are being done.

“The wealth of information is priceless! The Indonesian cacao stakeholders were accommodating and answered all our questions during the forums,” shares Peter Cruz who manages the Mars Cocoa Development Center (MCDC) in Malagos.

“We are honoured to have such a big group visit us all the way from the Philippines to learn about what we are doing to support our cocoa industry! I can sense your keen interest and com-mitment to make Mindanao a major cacao producer in the coming years. We look forward to buying more beans from you in the future,” David Lim, branch manager of PT Armajaro Indonesia enthused.

The study tour participants will put together a re-entry action plan based on the learning from this study tour. Subsequent events will also be launched within the next few months.

Multi-stakeholder group learns from Indonesian cacao industry

Page 2 Cacao Watch January—April 2013

(Top): Participants pose with Mars Symbioscience Indonesia’s Country Manager Ruud Engbers and Sitti Asmayanti, Mars Sustainaibility Coordinator after the tour at the plant’s premises. (Bottom): The group with a farmers group and their cacao farm in Luwu. Sulawesi

Page 3

K akao Eskwela, a School-on-the-Air radio program that gives useful infor-mation 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 ef-forts 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 be-lieves 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 organiza-tion, 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 0943-526-1536(Sun).

DTI Chief samples Mindanao cacao

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.

The Department on the other hand has been a major government partner of CIDAMi especially in providing ave-nues for showcasing its cacao by-products under DTI’s National Industry Cluster Capacity Enhancement Project (NICCEP). The industry clustering ap-

proach involves developing link-ages and networks for a particular commodity or industry in a geo-graphic area to boost its local and international competitiveness.

Recognizing the importance of ca-cao as a high value crop for the Philippines, DTI included cacao in its industry clusters under Davao Re-gion, where it has been providing support and assistance to the dif-ferent sectors or players involved in cacao to improve production.

N 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 Min-danao during his visit to Davao City last month.

Secretary Domingo together with the team from DTI Region XI was treated to an afternoon sampling Davao’s finest offerings of world class cheeses and hot chocolate drink, locally known as “sikwate”. The visit was an offshoot activ-ity 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 Choco-late de San Isidro (CSI) and Executive Officer Alimudin Mala. During the infor-mal meeting, the CIDAMi gave an up-date to the secretary on the develop-ments 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 func-tioning association like CIDAMi to push for more cohesive actions and stronger support to small and medium enterprises (SME).

Secretary Domingo encouraged cacao stakeholders to come up

with a geographic branding of Min-danao cacao, similar to DTI’s pilot for the coffee industry in Kalinga, Moun-tain Province. Geographic branding will make it easy to market products and create identity and recall among its consumers. For its part, CIDAMi as-sured the secretary that it will continue its collaboration with DTI XI and NIC-CEP for various programs and ap-proaches that will bring about tangible success results at all levels.

Cacao Watch January—April 2013

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

A t the mention of her name, one would instantly think of the stunning purplish blooms of the famous Waling-waling (now named as the country’s 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 Entre-preneurs 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 educa-tion 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 family’s flourishing drilling and irrigation business Hydrock Wells in the 60s and 70s, that she would often times drive their jeep and deliver huge metal pipes and tubes to the site. Their

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 com-pany, 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 inter-view 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 City’s landmarks, how did you get into cacao? 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 consoli-date 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/VOCA’s 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 Develop-ment 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 mainte-nance (pruning, fertilizing) down to harvest and fer-mentation.

Q: So Davao really has very good potential in cacao production? A: Yes! We have a long history in cacao production. We have been educating the public that local and international demand is steadily increasing but on the other hand, production is declining. The chocolate industry is alarmed that unless actions are done now to ensure sustainable production, the shortage may reach to at least a million ton by the year 2020. That is why we formed CIDAMi with the help of ACDI/VOCA

Up close and personal with GoNegosyo’s Female Agri Entrepreneur 2013

Page 4

process to get the financial help that a farmer needs or is very limited. I hope that the govern-ment can continue to improve its services and programs so that we can encourage competitive-ness of our produce and see ideas translate into reality.

Q: The government is encouraging young people to become entrepreneurs, any business lessons you want to impart? 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 busi-ness is not easy, especially when you are start-ing - 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.

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. I’m actually contemplating on taking another short course this year! And I am in the process of learning to master the use of my iPad! (laughs)

Q: In closing, what do you want to be the legacy of Charita Puentespina? 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. Nowa-

days, competition is stiff. In my years as an agri-

entrepreneur, I learned that once you are true to

your words you will gain respect and friends

which will always be among your biggest assets.

CIDAMi board president and Woman Entrepreneur 2013 for Agriculture—Charita P. Puentespina and her newest passion, cacao

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.

Q: You were recently awarded one of the inspir-ing Filipina Entrepreneurs for 2013. Why do you think you are successful in your field?

A: If there is an opportunity and I see that it will 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

one’s self but more impor-tantly, for a

greater num-ber of individu-als. If I am able to help others improve their lives then I become successful. I am not afraid to do the dirty job because I enjoy being a

part of creating something that holds a lot of prom-ise for the future.

Q: You always referred to yourself as a farmer. Being in the agriculture sector, what have been some of your learnings? A: As I said during my interview for the GoNego-syo book, there is always money in agriculture for as long as you are willing to give your time and attention to it. We are fortunate that Mindanao has a vast area ideal for agriculture. We have good water, fertile land and not so much affected by extreme heat or rain. As Mindanaoans we must learn to use this to our advantage. Farming or agriculture is a very rewarding industry. What farmers need, is financing assistance especially the small ones. Unfortunately, it is a long and difficult

“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 TO OTHERS TO GET

UP, DO THEIR WORK AND DO IT

WELL. I WANT MY NAME TO BE

ASSOCIATED WITH BUSINESS

INTEGRITY.”

Cacao Watch January—April 2013

reason why this is impossible be-cause Mindanao has a lot of advan-tages to make it big,” he said.

Philippines, according to Dr. Abdoel-lah, boast of very skilled manpower that can easily understand and fol-low the trends in cacao farming. Existing Filipino cacao farmers are also adopting good practices such as “sleeving” or the wrapping of cacao pods to protect it from pests, which is not common in other countries. In addition, Mindanao cacao growers are known to do “fermentation”, a process responsible for developing the chocolate flavour of the beans. This process is also being done in

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

In an interview, Dr. Soetanto Abdoellah, chairperson of the Indonesian Cocoa Board and one of the speakers during last year’s Kakao Konek, encouraged Mindanao cacao stakeholders to strengthen the industry and harness its potential in the international market. “Demand is increasing but the supply is just not enough and quality is not that good. This is a very good opportunity for the Philippines to fill the gap and produce more beans. I don’t see any

Africa and Latin America which ranks highest in terms of flavour. Geographi-cally, the country also is in close prox-imity to China, India and Indonesia which require high volume of cocoa mass, liqueur and butter for making chocolates.

“It is expected that your production

will start small. But your leverage will

be on good quality cacao that can be

among one of the world’s best. The

industry is willing to pay very good

price for quality. That is the direction

I’m seeing for Mindanao.”

Mindanao Cacao and its...(from page 1)

Page 5 Cacao Watch January—April 2013

D ecember 2012 to March 2013 was characterized by numerous gradua-tion ceremonies for Farmer Field Schools (FFS). A total of 4,800 farm-ers 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 non-formal 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 opportu-nity 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. Provin-cial 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 city’s Commit-tee on Agriculture Hon. Orlando F. Rodriguez, Jr., he promised continuing sup-port 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.

Malabog, Davao City Two FFS classes adding up to fifty farmers cheerfully received their diplomas during their graduation at Sitio Cabonbon, Malabog, Davao City on January 4, 2012. The fulfilment in finishing the six-month training was evident on the

graduates’ faces that day. The graduation was supported by CIDAMi and facilitated by the respective CEFs and CFLs. Two of CIDAMi’s 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 produc-tion 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 Develop-ment 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 Agricul-turist Val Turtur also encouraged the farm-

ers to implement what they have learned from the FFS, to continue support-ing 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 gradua-tion. 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 CIDAMI’s 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 com-pleted the FFS program. CIDAMi EO Alimudin Mala attended the program and encouraged farmers to plant more cacao, strengthen their organization and use good agricultural practices in cacao production. Mr Val Turtur of the City Agriculture Office advised farmers to implement proper technology in farm-ing.

Renewed hope, brighter prospects for FFS graduates

OUR PARTNERS:

Chocolate—your new Super Food

vonols. These include cranberries, ap-ples, 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.

Antioxidants are believed to help the body's cells resist damage caused by free radicals that are formed by nor-mal bodily processes, such as breath-ing, and from environmental contami-nants, like cigarette smoke. If your body does not have enough antioxi-dants to combat the amount of oxida-

Y ou may be surprised to learn that chocolate isn’t 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 cardio-vascular 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 vari-ety of foods, such as fruits and vegeta-bles. When we eat foods rich in flavon-oids, it appears that we also benefit from this "antioxidant" power.

Flavanols are the main type of flavon-oid 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.

These plant chemicals aren’t only found in chocolate. In fact, a wide variety of foods and beverages are rich in fla-

tion that occurs, it can become dam-aged 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.

However, before you use this as an excuse to justify your chocolate crav-ings, be careful about the type of dark chocolate you choose. Watch out for those extra ingredients that can add lots of extra fat and calories.

So, for now, enjoy moderate portions of chocolate a few times per week, and don’t forget to eat other flavon-oid-rich foods like fruits and vegeta-bles.

The Cacao Industry Development Associa-

tion of Mindanao, Inc. (CIDAMi) is non-

stock, 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 comple-

ment development programs for the local cacao industry—moving Phil-

ippine Cocoa further as a global brand. It is a venue for the industry

players to share ideas and solutions to common problems and formu-

late 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 plant-

ers, growers, nursery operators, input providers, processors, traders,

service providers and those supporting the industry such as non-

government organizations and the academe.

We look forward to hear from you!

For your inquiries and other concerns on cacao growing, accredited nurseries, ca-pacity 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

Cacao Watch welcomes contributions

from its members and partners for its next issue!

Linking Cacao Industry Stakeholders for Sustainable Growth