Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Brit wo, “46°

Introduced by REP. CONRADO M. ESTRELLA III

AN ACT TO
DECLARE THE CITY OF DAVAO AS THE CHOCOLATE AND CACAO
PRODUCTION CAPITAL OF THE PHILIPPINES
AND FOR OTHER PURPOSES

Explanatory Note

Davao City has gained international recognition not only for producing
world class cocoa beans which is the main ingredient in chocolate production
but also for producing world class chocolate products. Davao City-based
Malagos Chocolate won for the country the honor of winning second place for
its 100% unsweetened dark chocolate under drinking category, and third place
for its sweetened dark chocolates in the international chocolate competition
conducted in 2017 by the Academy of Chocolate in London. To date, Malagos
has won seven major international awards for its chocolate products thereby
earning for the country international recognition as a world class chocolate

producer,

‘The City of Davao and the provinces of Davao del Norte, Davao del Sur,
Davao Oriental and Compostela Valley produceat least 81% of the country’s


total cacao production. In 2016, data from the Philippine Statistics Authority
(PSA) show that of the 6,262.77 metric tons (M7) of cacao produced in the
Philippines, 5,073 metric tons (MT) were produced in the aforementioned
localities. Of the total cacao production in the area, Davao City produced
1,806.80 MT,while Davao del Sur produced 1,702.54 MT, Davao del Norte
produced 945.31 MT, Davao Oriental produced 507.26 MT and Compostela
Valley produced 311.92 MT.

Cacao is the main ingredient in chocolate production. There are six (6)
intermediate products that can be derived from cacao beans namely cocoa
nibs, cocoa liquor (tablea), cocoa cake, cocoa butter, cocoa powder and
chocolate confectionary blocs. Cacao is also used as health food since it is
packed with vitamins and anti-oxidants that make it a super health food and
even a natural multi-vitamin source.Cocoa-based products traded in the local
and international market include (1) wet cacao beans,(2) ready-to-sow cacao
seeds, (3) cocoa nibs (beans, whole/broken, raw/roast), (4) tablea (cocoa paste
or liquor, not defatted), (5) cocoa powder ( not containing added sugar or other
sweetening matter), (6) cocoa butter, fat/oil, (7) chocolate, and (8) chocolate
confectionery.

‘The diverse uses and products derived from cacao for both food and non-
food purposes indicate broad market opportunities for cacao products. The
success of Davao City-based Malagos Chocolates and the high cacao
production in Davao City and contiguous provinces gives the Philippines a
competitive advantage in high quality chocolate and cacao production in the
Asian region.

‘The U.S. Department of Agriculture expects that global demand to reach
between 4.7 Million MT to 5Million MT by the year 2020 with an estimated 1
Million MT deficit. This has propelled the “Philippine Cacao Challenge” which
commits the Philippines to producing 100,000 MTs by the year 2020.


Encouraging, supporting and recognizing the development of cacao
production and chocolate production in the country is in consonance with the
policy stated in Article XII , Section lof the Constitution which recognizes that
expanding productivity is key to raising the quality of life for all, especially the
underprivileged, and upholds the promotion of industrialization and full
employment based on sound agricultural development that make full and
efficient use of human and natural resources , and which are competitive in

both domestic and foreign markets to achieve this end.

‘This bill seeks to recognize the achievements of Davao City in attaining
high volumes of quality cacao production and in producing high quality
chocolate products that gained for the country international recognition, as
well as opened a new frontier forhigher trade and economic productivityin the
country that can generate more employment, provide higher incomes and
improve the quality of life of our people especially in the countryside.

Under the premises, approval of this bill is imperative.

co! . ESTRELLA II


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

7460
HOUSE BILL NO. ug

Introduced by DEPUTY SPEAKER CONRADO M. ESTRELLA III

AN ACT TO
DECLARE THE CITY OF DAVAO AS THE
CHOCOLATE AND CACAO PRODUCTION CAPITAL
OF THE PHILIPPINES AND FOR OTHER PURPOSES

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

Section 1. Declaration of Policy. - The State upholds as a goal of the
national economy the sustained increase in the amount of goods and services
produced by the nation for the benefit of the people, and recognizes that
expanding productivity is the key to raising the quality of life for all, especially
the underprivileged. The State shall promote industrialization and full
employment based on sound agricultural development through industries that
make full and efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets (Article XII, Section 1,

Constitution) .


‘Toward this end, the State recognizes the importance of cacao production
as a driver of agricultural development and economic progress because of the
tremendous potentials of cacao as a raw material for domestic production of
diverse products that can increase the country’s export earnings, generate
employment, increase incomes of farmers and improve the quality of life of

Filipinos in the countryside.

Section 2. Cacao and Chocolate Production Capital. -The City of Davao is
hereby declared as the cacao and chocolate production capital of the
Philippines in recognition of its sterling achievement as the country’s biggest
producer of high quality cacao and its vital contribution to making the
Philippines a world renowned producer of high quality chocolate products
sought after by chocolate makers in the USA, Europe and Asia.

Section 3. Incentives. - The Department of Agriculture (DA) and the
Department of Trade and Industry (DT!) shall provide sustained programs for
the grant of financial, technical, training, marketing and other necessary
assistance to cacao farmers and entrepreneurs engaged in the production of

chocolate products in Davao City and its contiguous localities.

Section 4. Effectivity. - This Act shall take effect fifteen (15) days afterits

publication in the Official Gazette or in a newspaper of general circulation.

Approved,