EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
)
SENATE
S. No. 899
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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
EXPLANATORY NOTE
This bill seeks to revive the dwindling cacao industry of the country.
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.
EL "LITO " M. LAPID
Senator


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 899
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AUG 13 PI :10
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Introduced by Senator Manuel Tito" M. Lapid
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 o f Representatives o f the 
Philippines in Congress assembled:
Section 1. Establishment o f 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 ail 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;


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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 germ plasm collection and gene bank for cacao;
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 government/non-government agencies involved in the 
development of the cacao industry.
Sec. 4. Qualifications o f 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 be at least forty (40) years old;
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:


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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.
Sec. 7. The Center is hereby authorized to plan, construct, develop, improve, 
acquire, or lease buildings, farms, fields and other facilities, to purchase 
m achineries, equipm ent, materials and supplies locally or abroad as may be 
necessary to carry out its functions and objectives. Moreover, the Center shall enjoy 
exemption from taxes and other duties in the importation of such machineries, 
development and extension programs, subject to the provisions of the Tariff and 
Customs Code, the National Internal Revenue Code and the provisions on Automatic 
Appropriations under the General Appropriations Act.
Sec. 8. Appropriation. -The amount of Fifty Million Pesos (PhpSO,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.
Sec. 9. Revolving Fund. — Any and all savings and income of the Center shall 
constitute a revolving fund which shall not be reverted to the General Fund but shall 
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 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. 7160, otherwise known as the Local Government Code.
Sec. 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 to be in full force and effect.
Sec. 12. Effectivity Clause. -This Act shall take effect fifteen (15) days after its 
publication in the O fficial Gazette or in at least tw o (2) newspapers of 
general circulation.
Approved,