Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILLNo. 4337

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
PROMOTING THE DEVELOPMENT OF THE CACAO INDUSTRY, CREATING
THE CACAO INDUSTRY DEVELOPMENT PROGRAM, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Cacao has long been recognized as one of the world’s most valuable agricultural
commodities, with growing demand in the chocolate, confectionery, beverage, cosmetics, and
nutraceutical industries. The global cacao market is projected to reach a value of over USD 15
billion in the next decade, driven by increasing consumer preference for chocolate and cacao-
based products. The Philippines, with its favorable climate and fertile soils, is geographically
positioned to take advantage of this opportunity.

Despite its potential, the Philippine cacao industry remains underdeveloped. According
to the Philippine Statistics Authority (PSA), cacao production has fluctuated over the past
decade, averaging less than 10,000 metric tons annually. This falls significantly short of both
domestic demand and global market potential. While Mindanao accounts for more than 80%
of the country’s cacao production, major regions like Bicol, Davao, and parts of Visayas and
Luzon have untapped potential for cacao cultivation.

The challenges confronting the industry include the limited availability of high-yielding
and disease-resistant cacao varieties, inadequate post-harvest and processing facilities, lack of
access to credit and crop insurance, weak market linkages, and minimal investment in research
and development. Farmers are unable to scale production and improve quality without
institutional support. At the same time, the average age of Filipino farmers is rising, and few
young people are entering cacao farming and entrepreneurship due to low profitability and
insufficient infrastructure.

If addressed, cacao could become a driver of inclusive rural development. The industry
generates both farm-level employment and downstream processing opportunities, such as


chocolate manufacturing and value-added product development. In Bicol, for example, cacao
intercropped with coconut provides farmers with diversified income sources while promoting
climate-resilient farming systems. Internationally, Philippine cacao already enjoys recognition
for its fine flavor and unique varietal characteristics, which can position the country as a niche
exporter in premium markets.

This proposed measure, to be known as the Cacao Industry Development Act, seeks to
establish a comprehensive framework for cacao industry growth. It mandates the creation of a
Cacao Industry Development Program (CIDP) to provide farmer training, research and
development support, nursery and planting material distribution, crop insurance, credit
facilities, and post-harvest infrastructure, It also creates a Cacao Industry Development Council
(CIDC) composed of government agencies, farmer representatives, and private processors to
oversee program implementation and align it with a regularly updated Cacao Industry
Roadmap.

Funding support is likewise provided under this Act, including an initial appropriation
of P500 million and access to existing national financing programs such as the Sagip Saka Act,
Land Bank credit facilities, and Agricultural Credit Policy Council windows. The measure also
ensures collaboration with the Department of Trade and Industry (DTI) and the Philippine
Export Development Council to brand cacao as a globally competitive Philippine product.

By integrating farmer support, research, value chain development, and market
promotion, this measure ensures that cacao becomes a pillar of inclusive growth, food security,
and export competitiveness. The bill will empower farmers, attract young agripreneurs, and
secure the Philippines’ place in the global cacao and chocolate industry.

In view of the foregoing, the immediate passage of this measure is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILLNO. 4337

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
PROMOTING THE DEVELOPMENT OF THE CACAO INDUSTRY, CREATING
THE CACAO INDUSTRY DEVELOPMENT PROGRAM, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. This Act shall be known as the “Cacao Industry Development
Act.”

SEC. 2. Declaration of Policy. Itis the policy of the State to promote the inclusive and
sustainable development of the Philippine cacao industry. Recognizing the country’s
comparative advantage in cacao production, the State shall:

(a) Strengthen research, development, and extension services to increase cacao
productivity and quality;

(b) Support farmers and cooperatives through access to credit, crop insurance, post-
harvest facilities, and market linkages;

(c) Promote value-adding activities, including local chocolate and cacao-based
enterprises;

(@) Position Philippine cacao in domestic and global value chains through branding,
quality assurance, and compliance with international standards; and

(e) Ensure environmental sustainability and climate resilience in cacao farming
systems.

SEC. 3. Cacao Industry Development Program. There is hereby established a Cacao
Industry Development Program (CIDP) to be implemented by the Department of Agriculture
(DA), in coordination with the Department of Trade and Industry (DTI), Department of Science
and Technology (DOST), and other concemed agencies.


The CIDP shall cover:

(a) Research and Development on high-yielding, disease-resistant cacao varieties and
sustainable farming practices;

(b) Nursery and planting material support to cacao farmers;

(©) Training, extension, and capacity-building programs through DA-Agricultural
Training Institute (ATI) and TESD.

(@) Construction and upgrading of post-harvest and processing facilities such as
fermentation centers, drying facilities, and shared service facilities;

(c) Credit support through Land Bank of the Philippines and Agricultural Credit Policy
Council (ACPC) programs;

(f) Crop insurance schemes for cacao farmers through the Philippine Crop Insurance
Corporation (PCIC);

(g) Establishment of local cacao processing and chocolate-making enterprises,
particularly in rural communities; and

(h) Export promotion, product branding, and quality certification for global
competitiveness.

SEC. 4. Cacao Industry Development Council, There is hereby created a Cacao
Industry Development Council (CIDC) to oversee the planning, implementation, and
monitoring of the CIDP. The Council shall be chaired by the Secretary of Agriculture and co-
chaired by the Secretary of Trade and Industry, with the following members:

(a) Secretary of Science and Technology;

(b) Secretary of Finance;

(©) President of the Land Bank of the Philippines;

(4) Administrator of the Philippine Crop Insurance Corporation;

(c) Representative from the Cooperative Development Authority;

(f) Three representatives from cacao farmers’ federations or cooperatives, to be
appointed by the President; and

(g) Two representatives from cacao processors or chocolate manufacturers.

‘The Council shall prepare a Cacao Industry Roadmap updated every five (5) years,
aligned with the Philippine Development Plan.


SEC. 5. Funding. The initial amount of Five Hundred Million Pesos (P500,000,000.00)
shall be allocated for the first year of implementation, sourced from the unprogrammed funds
of the national government. Thereafter, the necessary funds shall be included in the annual
General Appropriations Act.

SEC. 6. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the Department of Agriculture, in consultation with DTI, DOST, farmer
cooperatives, and industry stakeholders, shall promulgate the necessary rules and regulations.

SEC. 7. Separability Clause. If any provision of this Act is declared invalid or
unconstitutional, the remaining provisions not affected thereby shall remain in full force and
effect.

SEC. 8. Repealing Clause. All laws, decrees, executive orders, rules and regulations
inconsistent with this Act are repealed or modified accordingly.

SEC. 9. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,