Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Dubbed as the "food of the gods," cacao or cocoa as it is more commonly 
known, is described as more than a food, and less than a drug. Originating from the 
Americas, cacao is a small evergreen plant introduced to the Philippines by the 
Spanish in 1674 to 1680. Its beans are used to make cocoa and chocolate – two 
products loved the world over. The plant became a cash crop in the Philippines in the 
days of the Spanish Empire along with tobacco, sugar, and coffee because the tropical 
climate is ideal for the plant's growth. Since its discovery, its products are enjoyed 
globally. Worldwide consumption of chocolate has gradually increased since the 
1970s. 1 Global demand annually grows by 2% to 3% with particular increases in 
Central Asia and Eastern Europe.2 
According to the Department of Agriculture, the increasing global demand for 
cacao is spurred by various factors: a rising awareness of its health benefits, 
expanding applications in food beverage, cosmetics, and medicine, and an increasing 
disposable income of the middle class. The climate and fertile soil in the Philippines 
is well suited for growing cacao. Yet, the current state of cocoa business is a 
disappointment to the crop's historic roots. The homegrown cacao industry has 
deteriorated into small to medium scale enterprises. As a result, local production is 
declining. 3 
The Philippines now makes up for the dwindling supply by importing large 
amounts annually. The country currently produces 10,000 to 12,000 metric tons (MT) 
of dried cacao beans, enough to make the country the 18th largest cacao-producer 
worldwide, but not enough to secure the local demand of 30,000 MT annually.4 With 
production unable to keep up with demand, international prices for cacao beans are 
1 http://www.cidami.org/philippine-2020-challenge/ 
2 http://www.pcaarrd.dost.gov.ph/home/portal/index.php/quick-information-dispatch/2176-
tastierfuture-for-the-philippine-cacao-industry 3 Ibid. 
3 http://www.pcaarrd.dost.gov.ph/home/portal/index.php/quick-information-dispatch/2176-
tastierfuture-for-the-philippine-cacao-industry 3 Ibid. 
4 http://www.cidami.org/philippine-2020-challenge/ 
July 6, 2022
8:23 pm
1370


 
2
steadily rising. This makes importing cacao products costlier unless we can supply 
our own. 
Capitalizing on the growth of the cacao industry would increase livelihood for 
Filipinos especially in agriculture-rich areas. For instance, Southern Mindanao is the 
country's largest cacao-producing region with nearly 4,000 hectares dedicated to the 
crop. Although the country's contribution at present to the global market is relatively 
small, we already supply cacao to the Ignite States, Singapore, New Zealand and 
Europe. Chocolate from Philippine cacao beans is used by international brands such 
as Mars, M&M's, and Barry Callebaut. 
The Department of Agriculture (DA) recognizes the potential market for cacao 
and is already conducting banner programs. One of them, the High Value Crops 
Development Program, was created to help address food security, poverty, alleviation 
and sustainable growth. 5 It promotes the production, processing, marketing, and 
distribution of high value crops. HTVCDP intends to increase income, livelihood 
opportunities and contribute to the national agricultural development of the country. 
For cacao, the DA aims to raise local production to 100,000 MT come 2020, an 
amount that would make the country a key player on the global market. 
To achieve this vision, Mindanao is considered for the planting of 1,000,000 
cacao trees. The DA chose Cacao as a priority commodity for the Davao region 
because of its •large tracts of fertile land. Mindanao currently devotes 2 million 
hectares of land to coconut trees. Coconut trees are ideal for intercropping with cacao 
trees since they provide shade cacao seeds need to grow. Using a mere 100,000 
hectares for intercropping would potentially create 1,000 jobs for Mindanao residents 
and more options for coconut farmers. 
According to DA data, cacao is also grown in some parts of Luzon (Ilocos, 
Bulacan, Laguna, Camarines Sur, Camarines Norte, etc.) and Visayas (Iloilo, Bohol, 
Negros Occidental). The department plans to improve cacao farmer's access to 
fertilizer and cacao seeds in Mindanao and pre-existing regions. DA also promised to 
improve the flow and quality of extension service to cacao farmers to hasten the 
process and produce high quality products. 
This bill seeks to implement a national program for the education and training 
of stakeholders in the cacao industry, collect relevant research, scientific studies and 
market strategies for the proliferation of the local cacao industry. It envisions the 
various government agencies together with the Department of Agriculture (DA), as 
lead agency, in this endeavor of making the Philippines a competitor in the world 
cacao market. 
In view of the foregoing, immediate passage of this bill is earnestly sought. 
 
 
 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.             MIGUEL LUIS R. VILLAFUERTE   
 
 
 
TSUYOSHI ANTHONY G. HORIBATA  
 
 
NICOLAS ENCISO VIII 
 
                                                 
5 Republic Act No. 7900, High Value Crops Development Act of 1995 


3
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT  
ESTABLISHING A NATIONAL PROGRAM FOR THE CACAO INDUSTRY 
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". 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the state to 
develop a sustainable cacao industry optimizing local production capacity, the 
application of sustainable agriculture practices, securing quality raw materials and the 
processing, marketing of cacao beans in its raw or processed form and to be able to 
participate in the international cacao trade for the economic relief of smallholder 
farmers. 
SECTION 3. National Cacao Development Council. – The National Cacao 
Development Council shall be composed of the Department of Agriculture (DA) 
Undersecretary in Charges of Crops, 
1.
High Value Crops Development Program Head;
2.
DA – Bureau of Agricultural Research;
3.
Department of Science and Technology (DOST);
4.
Department of Trade and Industry (DTI);
5.
National Economic and Development Authority (NEDA);
1370


 
4
6. 
One (1) representative from the group of cacao traders; 
7. 
One (1) representative from the group of cacao processors; and 
8. 
One (1) representative from the group of cacao growers. 
 
SECTION 4. The Objectives of the Program are as follows –  
a)  
Impose Food Security by enhancing the ability to produce or procure cacao; 
b)  
Encourage Private Sector Investment in agribusiness through policy 
reforms and advocacy, access to financing and cost-effective incentives. 
c)  
Expand Income Opportunities for producers and other entrepreneurs 
especially from value-adding activities. 
d)  
Provide Improved Technologies for fresh and processed cacao beans 
towards meeting world standards for competitiveness. 
 
SECTION 5. Powers and Functions. – The Council shall have the following general 
powers and functions: 
1. 
Formulate the cacao development plan; 
2. 
Educate and train all stakeholders of the cacao industry; 
3. 
Conduct the relevant research, scientific study and feasible marketing 
strategies; 
4. 
Establish and develop effective production systems for cacao varieties; 
5. 
Establish and maintain productive, high yielding and good quality cacao 
varieties; 
6. 
Establish and maintain germplasm collection and gene bank for cacao; 
7. 
Update cacao processing technologies; 
8. 
Develop effective and efficient marketing system for cacao; 
9. 
Establish linkages with national and international organizations and 
development centers of the cacao industry; and 
10. Coordinate with other government and non-government agencies involved 
in the development of the cacao industry. 
 
SECTION 6. Meetings. – The Council shall meet once every quarter or may call on a 
special meeting, as needed, upon a week's notice in writing. 
 


 
5
SECTION 7. Quorum. – The presence of at least five (5) members at the time of the 
meeting shall constitute the quorum; Provided, however, that in the absence of the 
Chairman, the Vice Chairman shall preside. 
 
SECTION 8. Role of the Local Government Units (LGUs). – The full implementation 
of the objectives of this Act shall be with the partnership and cooperation of the 
concerned LGU, which may also be release counterpart funding or provide other 
services should it deem necessary or available. This role is pursuant to the enshrined 
principle in the Local Government Code that capabilities of local government units 
shall be enhanced by providing them with opportunities to participate actively in the 
implementation of national programs and projects. 
 
SECTION 9. Appropriation. – The amount of Fifty Million Pesos (PhP 50,000,000.00) 
is hereby authorized to be appropriated from the Special Activities Fund of the 
President of the Republic of the Philippines, or from any other sources that may be 
identified for the purpose. Thereafter, such sum required for its operation, 
maintenance, research, and development shall be included in the annual General 
Appropriations Act of the Agencies involved. 
 
SECTION 10. Repealing Clause. – All laws, presidential decrees, executive orders, 
rules and regulations, or parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed, superseded or modified accordingly: Provided, however, that 
nothing in this Act shall amend, modify or repeal the provisions of Republic Act No. 
7900, otherwise known as "An Act to Promote the Production Processing, Marketing, 
and Distribution of High-Valued Crops". 
 
SECTION 11. Separability Clause. – If any part or provision of this Act shall be held 
unconstitutional or invalid, other provisions hereof which are not affected shall 
continue in full force and effect. 
 
SECTION 12. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,