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

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 41.79

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

Global demand for cacao has surged since the 1970s, with Asia serving as one of the fastest
growing consumers of cacao. This coincides with a decrease in the worldwide supply of cacao
based on a variety of factors, with a global shortage of cocoa (from the beans that are the seeds of
the cacao tree) projected to reach one million metric tons (MT) by the year 2020.!

According to the Department of Agriculture, the increasing global cacao demand is due to: the
1g public awareness of its health benefits, as well as a hunger for chocolate, as well as new uses
icao and its seeds that are not related to food. The very rich and fertile Philippine soil is well
suited for the production of cacao, and we only rank 18th world-wide amongst cacao-producing
nations. The country is currently producing from 10.000 to 12,000 MT of dried cacao beans not
even enough to satisfy the local demand of 30,000 MT.

for

This bill -- filed as a counterpart of Senate Bill No, 320 with the support of its author, Senator
Cynthia Villar -- seeks to establish a national program which will gather government agencies
together under the Department of Agriculture, in order to enhance education and training of all
stakeholders in the cacao industry, collecting relevant research, scientific studies and market
strategies, extending technologies and creating international linkages for development, and
promotion of the industry and its products, in order for the Philippines to become a competitor in
the world cacao market. :
A. Khas
EMMELINE Y. AGLIPAY ~ VILLAI
Representative, DIWA Party-list

* http://www.mb,com.ph/cacao-industry-starts-getting-more-attention/

Page 1 of 4


Republic of the Phil
HOUSE OF REPRE
Quezon City, Metro Manila

SE

'TEENTH CONGRESS
First Regular Session
19G
House Bill No,_ 4179

Introduced by DIWA Par

-list Representative Emmeline Y. Aglipay ~ Villar

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 Republic of the Philippines in Congress
assembled:

SECTION 1. This Act shall be known as the “Ci

‘ao industry Development Act of 2016."

SEC, 2, Declaration of Policy. It is hereby declared the policy of the state to develop a
inable 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. The National Cacao Development Council
shall composed of the Department of Agriculture (DA) Undersecretary in Charge of Crops.

High Value Crops Development Program Head,

DA-Bureau of Agricultural Research.

. Department of Science and Technology (DOS'

4, Department of Trade and Industry (DTI)

National Economic and Development Authority (NEDA);

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

~

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

x

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

Page 2 of 4


SEC. 4 Objectives of the Program - The National Cacao Development Council shall
develop programs with the following objectives:

a) To achieve food security, by enhancing the ability to produce or procure cacao:

b) To encourage private sector investment in agribusiness through policy reforms and

advocacy, access to financing and cost-effective incentives,

©) To expand income opportunities for producers and other entrepreneurs especially from
value-adding activities.

d) To 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:

1. To formulate the cacao development plan.

v

To educate and train all stakeholders of the cacao industry;

3. To conduct relevant research, scientific study and feasible marketing strategies:

4. To establish and develop effective production systems for cacao varieties;

5. To establish and maintain productive, high yielding and good quality cacao varieties;
6. To establish and maintain germplasm collection and gene bank for cacao;

7. To update cacao processing technologies: and

8. To develop effective and efficient marketing system for cacao;

9, To establish linkages with national and international organizations and development
centers of the cacao industry.

10. To coordinate with other government and non-government agencies involved in the
development of the cacao industry.

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 writing,

Page 3 of 4


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 shall 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, researeh, 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, Effeetivity 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,

Page 4 of 4