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

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO._ 4982

Introduced by HON. JUMEL ANTHONY I. ESPINO

EXPLANATORY NOTE

This bill seeks to revitalize and stimulate the Philippine cacao industry in order
to penetrate the international chocolate market and increase the income of our
farmers.

With the increase of the worldwide consumption of chocolate at 3% annually,
and with emerging market demand growing steadily in Eastern Europe, China,
Russia, India and Central Asia, there is an increase in cacao demand.
mainly on the discovery of the diversified use of cacao and chocolate be
their health benefits and its use in wellness, beverage, food and even in
cosmetics and pharmaceuticals.

‘The Philippines is an ideal place to plant and produce cacao because our country
has a tropical climate, and yet we have been importing large amounts annually

In fact the Philippines is only ranked 18th world-wide amongst cacao-producing
nations. The country is currently producing from 10,000 to 12,000 MT of dried
cacao beans which is not even enough to satisfy the local demand of 30,000 MT

International prices for cacao beans have been steadily rising. With increased
production, it would certainly boost our cacao exports and generate dollar
earnings for our farmers and local exporters which would help in the livelihood
and generation of jobs for Filipinos

‘The Department of Agriculture created the High Value Crops Development
Program (HVCDP) to address food security, poverty alleviation and sustainable


growth. It helps to promote the production, processing, marketing and
distribution of high value crops. It is envisioned to help increase income, create
livelihood opportunity and contribute to national agricultural development of the
Philippines. Through the HVCDP, the DA aims to raise local production of
cacao to 100,000 MT by 2020, an amount that will enabie the Philippines to
make an impression in the global market. The DA also plans to improve cacao
farmers’ access to fertilizer and high-yielding varieties of cacao seeds. The
agency promised to improve the flow and quality of extension services to cacao
farmers to help them adopt good practices and produce high-quality beans

According to the DA data, cacao is mostly grown in Mindanao as well as in
Luzon ( Ilocos, Bulacan, Laguna, the Camarines provinces among others) and
Visayas ( Iloilo, Bohol, Negros Occidental, among others).

‘This iegisiation envisions the creation of a national program which will have
gather government agencies together with the DA as lead agency to do
education and training of all stakeholders in the cacao industry, encourage more
cacao growers, collecting relevant researches, scientific studies and market
strategies. extending technologies and creating international linkages for
development, promotion and be a major competitor in the world cacao market.

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



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

EIGHTEENTH CONGRESS
First Regular Session

4
HOUSE BILL oe

Introduced by HON. JUMEL ANTHONY I. ESPINO

AN ACT
ESTABLISHING A NATIONAL PROGRAM FOR THE CACAO.
INDUSTRY PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES.

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

SECTION 1. This Act shall be known as the "Cacao Industry Development Act of 2019.”

SEC. 2. Declaration of Pot It ts 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.

SEC. 3. National Cacao Development Council. [he National Cacao Development Council
shall be composed of the:

1. Department of Agriculture (DA) Undersecretary in Charge of Crops,
2. High Value Crops Development Program Head,

3. DA- Bureau of Agricultural Research

4. Department of Science and Technology (DOST),

5. Department of Trade and Industry (DTI)

6. National Economic and Development Authority (NEDA);

7. One (1) representative from the group of cacao traders;

8. One (1) representative from the group of cacao processors; and



9. One (1) representative from the group of cacao growers.

SEC. 4. Objectives of the Program. — Are as follows ~
a) 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

SEC. 5. Powers and Functions. The Council shall have the following general powers and
functions

Formulate the cacao development plan

Educate and train all stakeholders of the cacao industry;

Conduct relevant research, scientific study and feasible marketing strategies;

Establish and develop effective production systems for cacao varieties,
tablish and maintain productive, high yielding and good quality

cacao varieties.

Zstablish and maintain germplasm collection and gene bank for cacao;

Update cacao processing technologies; and

Develop effective and efficient marketing system for cacao;

Establish linkages with national and international organizations and

development centers of the cacao industry.

10. Coordinate with other government and Non-government agencies

involved in the development of the cacao industry

wewne

ee

SEC. 6. Meetings — The Council shall meet once every quarter or may call on a special
meeting as needed upon a week's notice in writ

SEC. 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 shal! preside

SEC. 8. Appropriation. - The amount of Fifty Million Pesos (Php50,000.000,00) 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.

SEC. 9. 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
Republic Act No. 7900 or An Act to Promote the Production, Processing, Marketing and
Distribution of High-Valued Crops.


SEC. 10. 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 to
be in full force and effect

SEC. 11. 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