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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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'13 JUl -1 P5:07 
SENATE 
238 
S.No. ---,.;...;c._ 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
This bill seeks to revive the dwindling cacao industry of the country. 
lW:t-
Cacao is a small evergreen plant introduced by the Spaniards to the Philippines 
in 1674 to 1680. Its seeds or beans are used to make cocoa and chocolate, which has 
medicinal uses as well as culinary purposes. 
Worldwide consumption of chocolate has been gradually increasing by 3% 
annually with new market demand growing steadily in regions like Central Asia and 
Eastern Europe. 
Particular increases in demand have been observed in mainland 
China, India, and various states of the Russian Federation. 
Major cocoa bean 
processors include Hershey's, Nestle, and Mars, all of which purchase cocoa beans via 
various sources. 
The very rich and fertile Philippine soil is well suited for the production of cacao 
yet the country has been observed to import large amounts annually. As of 2008, the 
country reported 1.5 million cacao trees with production at 6,000 metric tons annually. 
This placed the country as 18th ranked world-wide amongst cacao-producing nations. 
Southern Mindanao is the country's largest cacao-producing region with Davao Oriental 
registering nearly 4,000 hectares of cacao trees. 
International prices for cacao beans have been steadily rising. A boost in exports 
would generate dollar earnings for local exporters. 
Moreover, growth in the cacao 
industry would increase livelihood and jobs for Filipinos. 
The legislation envisions the creation of a center that will have general powers 
and functions in line with the research and development of the Department of 
Agriculture-Bureau of Agricultural Research (OA-BAR), Department of Science and 
Technology (DOST), Department of Trade and Industry (DTI), and the National 
Economic and Development Authority (NEDA). The Center will be in the forefront of 
educating and training all stakeholders in the cacao industry; conducting relevant 
researches, scientific study and feasible marketing strategies; extending technologies; 
and creating linkages with international organizations and other cacao development 
centers in other countries. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
c:ra-C) 
MANUEL "LITO" M. LAPID 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
.it'l1ntl' 
IlIfh;, .1 til< Jtrrr,tDf¥ : 
First Regular Session 
) 
) 
) 
"13 
JtJL -1 P5:07 
SENATE 
S. No. 
238 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
CREATING A CACAO RESEARCH AND DEVELOPMENT CENTER, 
AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SEC. 1. Establishment of a Cacao Research and Development Center. - The 
Cacao Research and Development Center is hereby established. 
SEC., 2. Powers and Functions • • The Center shall have the following general powers 
and functions in line with the research and development programs of the Department of 
Agriculture - Bureau of Agricultural, Research (DA-BAR), Department of Science 
and Technology (DOST), Department of Trade and Industry (DTI), and National 
Economic and Development Authority (NEDA): 
a. 
Educate and train all stakeholders of the cacao industry; 
b. 
Conduct relevant research, 
scientific study, and feasible marketing 
strategies; 
c. 
Extend technologies; and 
d. 
Establish linkages with international organizations and other cacao 
development centers in other countries. 
SEC. 3. The Center shall have the specific powers and functions: 
a. 
Develop productive, high yielding, good quality varieties of cacao; 
b. 
Develop 
efficient, 
economic 
and 
productive 
cacao 
production 
technologies; 
c. 
Develop effective and sound cacao processing technologies for varieties 
"Forastero", "Criollo" and other outstanding varieties of cacao; 
d. 
Develop effective production systems for all cacao varieties; 
e. 
Establish and maintain germplasm collection and gene bank for cacao; 
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f. 
Develop effective and efficient marketing systems for cacao; 
g. 
Evolve productive cacao-based farming systems; 
h. 
Develop and implement appropriate and suitable technology packages 
and effective technology transfer schemes, especially the conduct of 
training programs; 
i. 
Upgrade the skills 
of development facilitators, extensionists 
and 
farmers through trainings, seminars, and workshops on cacao production 
and postharvest handling and processing; 
j. 
Establish national and international linkages for cacao research, 
development, extension and production activities; and 
k. 
Coordinate with other governmenUnon-government agencies involved in 
the development of the cacao industry. 
SEC. 4. Qualifications of the Executive Director. - The Center shall be headed by an 
Executive Director who shall be responsible for the planning, implementation, and 
supervision of the Center's program of activities. The Executive Director shall possess 
the following qualifications: 
a. 
Must not be more than fifty (50) years of age; 
b. 
Must have completed substantial and relevant education and must 
have experience in cacao research and development; and 
c. 
Must be of good moral character and must not have been involved in a 
legal case involving moral turpitude. 
All other officers and employees of the Center shall be appointed by the 
Executive Director consistent with the provisions of the Civil Service laws, rules and 
regulations. 
SEC. 5. Advisory Board. - The plans and programs of the Center shall be reviewed 
annually by the Advisory Board composed of: 
a. 
The Secretary of the Department of Agriculture as Chairman; 
b. 
The Secretary of the Department of Trade and Industry, as Vice 
Chairman; 
c. 
One (1) representative from a non-governmental organization (NGO) 
working on cacao production, research and development and processing; 
d. 
One (1) representative from the group of cacao traders; 
e. 
One (1) representative from the group of cacao processors; and 
f. 
One (1) representative from the group of cacao growers. 
SEC. 6. 
Quorum. - The presence of at least four (4) 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. 
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SEC. 7. The Center is hereby authorized to plan, 
construct, 
develop, 
improve, 
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acquire, or lease buildings, 
farms, 
fields 
and 
other facilities, 
to 
purchase 
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machineries, equipment, materials and supplies locally or abroad as may be 
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necessary to carry out its functions and objectives. Moreover, the Center shall enjoy 
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exemption from taxes and other duties in the importation of such machineries, 
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development and extension programs, subject to the provisions' of the Tariff and 
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Customs Code, the National Internal Revenue Code and the provisions on 
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Automatic Appropriations under the General Appropriations Act. 
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SEC. 8. Appropriation. - The amount of Fifty Million Pesos (Php50,000,000,00) 
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is hereby authorized to be appropriated from the Special Activities Fund of the 
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President of the Republic of the Philippines, or from any other sources that may be 
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identified for the 
purpose. 
Thereafter, such sum required for its operation, 
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maintenance, research, and development shall be included in the annual General 
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Appropriations Act. 
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SEC. 9. Revolving Fund. - Any and all savings and income of the Center shall 
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constitute a revolving fund which shall not be reverted to the General Fund but shall 
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be used by the Center in the furtherance of its goals and objectives. 
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SEC. 10. Repealing Clause. - All laws, presidential decrees, executive orders, rules 
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and regulations, or parts thereof which are inconsistent with the provisions of this Act 
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are hereby repealed, superseded or modified accordingly: Provided, however, That 
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nothing in this Act shall amend, modify or repeal the provisions of Republic Act No. 
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7160, otherwise known as the Local Government Code. 
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SEC. 11. Separability Clause. - If any part or provision of this Act shall be held 
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unconstitutional or invalid, other provisions hereof which are not affected shall continue 
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to be in full force and effect. 
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SEC. 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in at least two (2) newspapers of general 
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circulation. 
Approved, 
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