Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1507 
Introduced by REPRESENTATIVE JEYZEL VICTORIA C. YU 
2nd District, Zamboanga del Sur 
EXPLANATORY NOTE 
The Philippines, renowned for its long history of cacao cultivation, faces 
challenges in achieving local yields and quality standards comparable to 
major producing countries. In the Province of Zamboanga del Sur, cacao 
production contributes to local livelihoods, but it is hindered by various 
agronomic, logistical, and economic constraints.  
Smallholder farmers encounter difficulties in accessing high-quality 
planting materials, modern farming technologies, market linkages, and 
affordable financing. Simultaneously, the global demand for fine-flavor cacao 
and ethically sourced chocolate is on the rise. 
To address these production bottlenecks, strengthen research and 
innovation, promote value-adding activities, and foster public-private 
collaboration, this Bill aims to strategically intervene. By doing so, it seeks to 
capitalize on market opportunities, enhance farmer incomes, generate rural 
employment, and contribute to poverty alleviation and peacebuilding in 
cacao-growing regions. 
This bill proposes the establishment of a national program dedicated to 
the education and training of stakeholders across the cacao industry. It aims 
to consolidate and utilize relevant research, scientific studies, and strategic 
market data to accelerate the development of the local cacao sector. 
The measure envisions a coordinated effort among various government 
agencies, with the Department of Agriculture (DA) designated as the lead 
agency, to position the Philippines as a formidable competitor in the global 
cacao market. By harnessing the growing potential of the cacao industry, this 
initiative also seeks to generate increased livelihood opportunities for 
Filipinos, particularly in agriculture-rich regions throughout the country. 
In light of the foregoing, the approval of this bill is earnestly sought. 
JEYZEL VICTORIA C. YU 
July 7, 2025
5:00 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1507 
Introduced by REPRESENTATIVE JEYZEL VICTORIA C. YU 
2nd District, Zamboanga del Sur 
AN ACT 
INSTITUTIONALIZING A PHILIPPINE CACAO DEVELOPMENT PROGRAM, 
CREATING FOR THE PURPOSE THE PHILIPPINE CACAO INDUSTRY COUNCIL, 
AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Short Title. This Act shall be known as the “Philippine Cacao Industry 
Development Act”. 
Sec. 2. Declaration of Policy.  It is hereby declared the policy of the State to develop a 
sustainable and competitive cacao industry that is environmentally sound, economically viable, 
socially responsive and aimed to spur development through livelihood creation, job generation, 
and income augmentation thereby contributing to poverty alleviation, inclusive growth, and 
peace and order attainment particularly in the rural areas. 
Towards this end, the State shall promote and support the sustained production of 
Philippine cacao and increase value adding activities by allocating adequate financial resources 
to the cacao industry towards the attainment of its full potential in the domestic and 
international markets, and making cacao as one of the leading agricultural exports of the 
country. 
Sec. 3. Objectives.  This Act aims to achieve the following objectives: 
a.
To enhance and increase the production of cacao through expansion and/or
rehabilitation of cacao production areas;
b.
To formulate strategies and craft action plans, anchored on the value chain
approach that will provide development interventions from farm to market and
bean to bar for an enhanced and sustainable growth of the Philippine cacao
industry;
c.
To improve the country’s cacao seed system and production of quality planting
materials to ensure traceability and reliability of cacao plantations;
d.
To institutionalize adaptive sustainable land management system with the
participation of smallholders and private sector in nursery establishments and
commercial-scale plantations for inclusive agribusiness;


 
e. 
To optimize local production capacity by providing improved and climate resilient 
technologies for cacao production and modern technologies for processing cacao 
beans and the application of sustainable agricultural practices towards meeting 
world standards for competitiveness; 
f. 
To integrate and harmonize programs, projects, and activities of government 
agencies and the private sector supportive of the short, medium, and long-term 
agenda of the cacao industry; 
g. 
To encourage private sector investment in agribusiness through policy reforms and 
advocacy, investment promotion, access to financing, and cost-effective 
incentives; 
h. 
To promote Philippine cacao in the local market and in the international market 
by providing the needed marketing support through a proactive product and market 
development program that will position Philippine cacao in the local and global 
markets; 
i. 
To uplift the welfare and increase the income opportunities of the country’s 
smallholder cacao farmers, producers, processors, and retailers, including their 
dependent families, by improving their productive capacities and enhancing 
production quality towards attaining inclusive growth; 
j. 
To provide technology upgrading and continuous innovation in the design, 
manufacturing, and/or assembly of locally-produced farm equipment and post-
harvest tools for cacao production and processing to improve productivity and 
efficiencies; 
k. 
To create a proactive and responsive national implementing office that will review, 
approve, implement, monitor and evaluate cacao-related programs, projects, and 
activities to ensure the focused development of the cacao industry that is aligned 
with the Philippine Cacao Industry Roadmap and subsequent program extension 
and cacao industry development plans;  
l. 
To strengthen research for development of the cacao industry; and 
m. To harness, strengthen, and enhance existing participatory mechanisms to ensure 
full engagement and active participation of various stakeholders in the 
development of the cacao industry. 
Sec. 4. The Philippine Cacao Industry Development Program. To ensure  a 
harmonized and collaborative implementation of policies, programs and projects for the 
advancement, industry-wide development, and inclusive growth of the cacao industry through 
a value chain approach,  as well as increased and sustained yield and income; improved farm 
productivity and quality; enhancement of farmers’ capabilities and skills; and to achieve the 
objectives set forth in this Act, the Philippine Cacao Industry Roadmap crafted in consultation 
with the cacao industry stakeholders including any updates thereon, is hereby adopted.     
The Philippine Cacao Industry Roadmap shall serve as a vital document to provide 
direction to the cacao industry stakeholders for the optimal realization of the targets towards a 
sustainable and globally competitive Philippine Cacao Industry that will likewise contribute to 
attaining food security and poverty alleviation. The strategic interventions, programs and other 
activities from the national down to the local levels shall be anchored on the Roadmap.  It shall 
be regularly reviewed and evaluated to determine the accomplishment of its targets. It shall 
likewise be continually and regularly updated in consultation with industry stakeholders to 
make it consistent with, and adaptive to, the current industry situation.   


 
Sec. 
5 
The 
Philippine 
Cacao 
Industry 
Council. 
For 
a 
focused and 
harmonized implementation of the Philippine Cacao Industry Roadmap and of the provisions 
of this Act, and to catalyze, provide leadership, and proactively engage stakeholders in 
the promotion and development of a champion cacao industry, there is hereby created a 
Philippine Cacao Industry Council, otherwise known as the Council.  The Council, which shall 
be constituted within sixty (60) days from the approval of this Act, shall be attached 
administratively to the Department of Agriculture (DA) and shall have the following 
composition:  
a. 
Secretary of the Department of Agriculture (DA), as Chairperson; 
b. 
Secretary of the Department of Trade and Industry (DTI), as Vice-Chairperson; 
c. 
A private sector representative, as Co-Vice-Chairperson; 
Members: 
d. 
Secretary of the Department of Science and Technology (DOST); 
e. 
Secretary of Department of the Interior and Local Government (DILG);   
f. 
Secretary of the Department of Agrarian Reform; 
g. 
Secretary of the Department of Environment and Natural Resources: 
h. 
Secretary of the Department of Education; 
i. 
Commissioner of the Commission on Higher Education; 
j. 
Director General of the Technical Education and Skills Development Authority; 
k. 
Administrator of the Philippine Coconut Authority; 
l. 
President, Union of Local Authorities of the Philippines; 
m. Two (2) representatives from civil society organizations from Luzon; 
n. 
Two (2) representatives from civil society organizations from Visayas; and 
o. 
Two (2) representatives from civil society organizations from Mindanao. 
 
The government sector representatives in the Council may appoint an official alternate 
with a rank of an Undersecretary or its equivalent.  The official alternate shall possess the same 
powers as the Heads of the above-named government agencies and whose acts shall be 
considered as acts of the heads of office being represented.  
Representatives from the civil society organizations shall be appointed by the DA 
Secretary from among the officers and members of existing national/regional cacao councils 
and associations of cacao farmers and other private stakeholders of each island. The six (6) 
private sector representatives shall be chosen based on the following minimum qualifications: 
a. 
Must be a resident and citizen of the Philippines; 
b. 
Must be an active member of a non-government cacao organization, association 
or cooperative, or known and recognized in the cacao industry as an expert in 
cacao; 
c. 
Must be engaged in cacao production, research and development, processing, 
promotion, or in any activity in the cacao value chain from production to local 
and/or international marketing; and 
d. 
Must be a person of integrity, respected by the industry, and willing to serve with 
utmost responsibility and efficiency. 
The private sector representative who shall act as co-vice-chairperson shall likewise be 
appointed by the DA Secretary from among the six (6) appointed representatives of the civil 
society organizations as provided in this Section.  


 
Representatives from the civil society organizations shall serve for a period of two (2) 
years. When a vacancy arises due to the resignation, removal for cause, death or incapacity of 
a member, a replacement shall be appointed who shall serve for the remainder of the 
representative’s term of office.  
Government sector representatives shall not be entitled to compensation in the 
discharge of their functions in the Council but they shall be entitled to reimbursement of any 
reasonable expenses incurred in the performance of their functions.  Private sector 
representatives shall be entitled to honoraria or allowances for the expenses incurred in the 
discharge of their functions as members of the Council.  
 
Sec. 6. Powers and Functions. The Council shall have the following general powers 
and functions:  
a. 
Formulate, adopt and implement sustainable and industry-wide development 
policies and programs to steer the growth of the cacao industry towards increased 
production of fine quality Philippine cacao and its intensive marketing and 
promotions for domestic and export markets;   
b. 
Through the Cacao Program Management Office, oversee the implementation of 
the Philippine Cacao Industry Roadmap; 
c. 
Ensure the availability of adequate funding for the accomplishment of the targets 
in the roadmap, and compliance with the declared policies and attainment of the 
objectives of this Act; 
d. 
Formulate the criteria and guidelines for the establishment of Cacao Centers of 
Excellence in major cacao producing regions or in areas suitable for cacao 
production, and ensure the conduct of relevant research, scientific study and 
feasible marketing strategies; 
e. 
In collaboration with the Information and Communications Technology Services 
of the implementing agencies, establish, maintain and integrate a web-based Cacao 
Production and Farmers Information System which shall be linked to the Farmers 
and Fisherfolk Enterprise Development Information System of the DA, 
established pursuant to Section 10 of Republic Act (R.A.) No. 11321 or the Sagip 
Saka Act and its implementing rules and regulations.   
f. 
Ensure the establishment of cacao production and post-production/ value-adding 
facilities; adoption and use of modern and advanced technologies for a more 
profitable, efficient, safe, and environmentally friendly cacao production;  
g. 
Establish a system for the conduct of capacity building, education, and training of 
cacao farmers and their organizations; 
h. 
Serve as the official platform/venue for convergence on policy-making and 
operations relative to the cacao industry, and to call upon, coordinate and/or 
collaborate with other agencies of the government, including bureaus, or 
government-owned and -controlled corporation, local government units, other 
concerned agencies, the private sector, and other stakeholders; 
i. 
Formulate policies and programs to promote agribusiness ventures on cacao 
industry; 
j. 
Establish linkages and collaborate with national and international organizations, 
development institutions and funding networks of the cacao industry; 
k. 
In coordination with the Agricultural Credit Policy Council and other credit 
facilities and the Philippine Crop Insurance Corporation, formulate and 


 
recommend policies and programs on easy access credit programs and provision 
of crop insurance for the cacao industry stakeholders; 
l. 
Officially represent the industry in national and international cacao events and 
fora; 
m. Serve as the sole authorized body in the conduct of major cacao events and 
activities such as cacao congress, conference, cacao cupping/ sensory and other 
relevant activities for the promotion of the cacao industry;  
n. 
Promote and pursue Philippine cacao branding such as denomination of origin, 
Geographical Indications, bean grade branding, and unique flavor profiles; 
o. 
Develop efficient and effective marketing and promotions systems of cacao for 
domestic and export markets; 
p. 
Review, harmonize and update existing standards on cacao and direct or 
recommend the crafting of additional standards, as necessary; 
q. 
Review existing and recommend new legislation to develop the cacao industry and 
promote the welfare of cacao stakeholders; 
r. 
Formulate consultation mechanism to ensure that farmers, farm workers, 
processors, and other stakeholders of the cacao industry may actively participate 
in policy-making, strategic planning, implementation monitoring and feedback 
needs and concerns of the cacao industry; 
s. 
Mobilize existing nationwide network of consultative mechanisms to ensure 
participation of multi-stakeholders in policy development, strategic planning, and 
monitoring and feedback in the implementation of the Philippine Cacao Industry 
Development Program;  
t. 
Conduct an annual review and assessment of the implementation of the Roadmap 
in 
consultation 
with 
the  
Philippine Council for Agriculture and Fisheries and other relevant stakeholders 
to determine the accomplishment of the cacao industry as provided in the 
Roadmap, and to identify the gaps, issues and challenges in its implementation; 
and 
u. 
Perform other functions and duties as may be necessary. 
Sec. 7. Meetings. The Council shall regularly meet at least once every quarter, or as 
often as the Chairperson deems necessary.   The presence of the majority of all the members 
of the Council shall constitute a quorum.  The use of digital technology in the conduct of 
meetings and approval of Council Resolutions shall be allowed, subject to such security 
measures as the Council shall implement.  
Sec. 8. Cacao Program Management Office. To manage, oversee and ensure the 
implementation of the Philippine Cacao Industry Roadmap, the Cacao Program Management 
Office (Cacao PMO) is hereby created.  It shall be headed by an Executive Director to be 
designated by the Chairperson of the Council and shall be under the supervision of the DA 
Undersecretary in charge of High Value Crops.  
 The Executive Director shall identify the personnel of the Cacao PMO, subject to the 
approval of the Secretary of DA.  The salaries and positions of the personnel of the Cacao PMO 
shall be based on the Revised Compensation and Position Classification System and other civil 
service rules and regulations. 
Sec. 9. Functions of the Cacao Program Management Office. The Cacao PMO shall 
manage and ensure the implementation of the Philippine Cacao Industry Roadmap and shall 


 
identify and recommend to the Council the strategic programs, projects, and interventions to 
be prioritized for implementation.   It shall further: 
a. Provide support services for the coordination and monitoring of the implementation 
of the programs, policies and plans formulated pursuant to this Act; 
b. Ensure that the roadmaps and other programs are implemented and targets 
accomplished; 
c. Establish a monitoring and evaluation system by which the Cacao Development 
Programs shall be evaluated; 
d. Execute policy decision of the Council; 
e. Prepare quarterly report on the implementation of the roadmap to be submitted to 
the Council;  
f. Prepare annual work plan and operating budget of the Council and the Cacao PMO 
for approval of the Council; 
g. Recommend policies and procedures for Council approval;  
h. Function as the Secretariat of the Council and provide general administrative and 
technical support; 
i. Coordinate with the appropriate government agency and private institutions in the 
establishment of an accurate cacao industry data; and 
j. Perform other related functions as may be assigned by the Council.  
Sec. 10. Regional Cacao Councils (RCC). For an effective and efficient implementation 
of the provisions of this Act, the Council shall create Regional Cacao Councils in cacao-
producing regions which shall be composed of the following: 
a. Regional Director of DA, as Chairman; 
b. Regional Director of DTI, as Vice-Chairman; 
c. Regional Director of DOST, as member; 
d. Regional Director of the DILG, as member; 
e. Three (3) representatives from civil society organizations of the cacao industry in 
the region, who shall be chosen by the government representatives of the RCC from 
a list of at least three (3) nominees from the Regional Agriculture and Fisheries 
Council.  They shall have the same term and qualifications as the government 
representatives in the Council. 
The functions of the RCC shall include but not limited to the following: 
a. Localization and implementation of the Philippine Cacao Industry Roadmap, 
including any revisions and updates thereof in the region; 
b. Coordinate and collaborate with partner agencies in the region and with the local 
government units; 
c. Monitor and assess the implementation of the roadmap in their respective region; 
d. Prepare the Annual Work and Financial Plan of the RCC; 
e. Regularly submit a report to the Council on the status of the implementation of the 
roadmap to include the issues and challenges encountered; 
f. Upon consultation with the cacao industry stakeholders, make policy 
recommendations that will enhance existing practices;  
g. Subject to the provisions of Section 13 hereof, and in coordination and collaboration 
with agricultural extension workers of the concerned local government unit, assist 
in the conduct of survey, profiling, review, and evaluation of information/data for 
the regional cacao industry database; and   
h. Perform such other necessary functions that may be assigned by the Council.  


 
The RCC shall be assisted by a support staff to be determined and approved by the 
RCC. 
Sec. 11. Establishment of Cacao Centers of Excellence.  For the enhanced 
development of the Philippine Cacao Industry, the DA shall establish and maintain Cacao 
Centers of Excellence in major cacao-producing regions and in areas suitable for cacao 
production.  The establishment and operations of the Center shall be subject to such criteria 
and guidelines as may be formulated by the Council.  Relevant government agencies and State 
Universities and Colleges (SUCs), together with the DOST and the Food and Drug 
Administration (FDA), the Centers shall function as follows:  
a. Organize systematic programs to improve cacao production including the 
development of effective production and post-production systems to produce fine 
cacao; 
b. Serve as cacao farmer resource center for cacao production from farm to market 
and from bean to bar, to include best practices aligned with the world standards in 
the cacao value and supply chains; 
c. Serve as product development hub for value-added cacao and cacao by-products as 
results of continuous research and development; 
d. Serve as the central site for networking and training; 
e. Develop capacity building programs and initiatives for cacao farmers and other 
stakeholders in the cacao value chain; 
f. Assess, establish, and conduct collaborative research on emerging technology on 
cacao; 
g. Establish and maintain cacao bean grading laboratory to improve and maintain 
cacao quality;  
h. Develop pool of experts of certified cacao graders and promote culture of cacao 
bean profiling and grading using the globally accepted standards and protocols with 
the following core implementing functions: cacao research and development, 
technology transfer and capacity building, socio-economics evaluation, and policy 
research; 
i. Develop new clonal varieties which are high yielding, good quality, and pest and 
disease-resistant cacao varieties which can be easily mass propagated. 
j. Provide technical assistance on nursery establishment, planting systems and 
rehabilitation of farms; 
k. Develop efficient, sustainable, productive, modern and advanced post-harvest and 
processing technologies for cacao beans; 
l. Establish and conduct collaborative research and other scientific studies; 
m. Partner with accredited training centers and implement cacao farming schools as 
the major channels for technology transfer; 
n. Develop and implement programs on capacity-building activities for cacao farmers 
and other stakeholders in the cacao value chain; 
o. Establish and maintain a germplasm collection and gene bank for cacao; and  
p. Perform other functions as may be necessary. 
 
The Council shall prioritize the establishment of Centers in existing facilities of the DA, 
DTI, and the SUCs.  It may likewise collaborate and partner with the private sector in the 
establishment of Centers. 
 
Sec. 12. Whole of Government Approach. To further strengthen the convergence and 
the consultative and collaborative mechanism particularly in the regions, all departments, 


 
agencies, and instrumentalities of government, including government-owned or –controlled 
corporations, shall give their support, perform their functions and deliver the required services 
under this Act in accordance with their respective mandates as provided in their charters and 
under existing laws, provide assistance and cooperation to the Council in discharging its 
functions and more importantly, in implementing the Philippine Cacao Industry Roadmap, to 
include but not limited to the following:  
 
a. National Economic Development Authority (NEDA);  
b. Food and Drug Administration (FDA) 
c. State Universities and Colleges;  
d. Philippine Statistics Authority (PSA);  
e. Government financing institutions;  
f. Other agencies or institutions as may be deemed necessary.  
 
The Council shall ensure that an effective platform is established for the active 
participation of all stakeholders in the cacao industry for consultative and continuing 
discussions affecting the cacao industry from the national level to the regional, provincial, and 
municipal levels. 
 
 Sec. 13. The Role of Local Government Units (LGUs). Recognizing the role, 
participation and support of the LGUs in the delivery and implementation of agricultural 
projects and programs, the Council and the RCC shall coordinate and establish partnerships 
with the LGUs for the implementation of this Act.  
 
This shall include coordination and collaboration works of the LGUs’ AEWs and the 
relevant agencies’ personnel to ensure the collection of accurate production and post-harvest 
or processing data, conduct of survey and profiling of cacao farmers, geo-tagging of farms and 
other relevant sites, and review and evaluation of the gathered cacao farmers’ data and related 
production data and other information. 
 
For this purpose, Congress shall ensure appropriate funding for the efficient discharge 
of the critical functions of the AEWs under this Act. 
 
The LGUs with areas suitable for cacao production are mandated to align their cacao 
production projects with the Roadmap.  They are likewise mandated to provide counterpart 
funding and services to boost the production of cacao in their jurisdiction. 
 
Sec. 14. Local Chocolate Shops. All shops serving cocoa or chocolate drink, including 
local and foreign franchises, restaurants and hotels are encouraged to serve and include in their 
menus cacao/chocolate that are grown, produced, sourced and manufactured locally.  
 
For purposes of this Section, the DTI, shall conduct a separate consultation with relevant 
stakeholders, including cacao shop owners and franchisees, for the formulation of the 
guidelines to implement this section.  The guidelines shall be incorporated in the Implementing 
Rules and Regulations of this Act.   
 
The DTI shall be the lead agency in the implementation of this Section.  
 
Sec. 15. Tax Incentives. Any donation, contribution, grant, in cash or in kind, whether 
local or foreign, which may be made by individuals and organizations, including private 


 
entities, which shall provide the appropriate services, technology, facilities, materials and 
other inputs, and delivery support services for the promotion and development of the 
Philippine cacao industry, shall be exempt from the donor's tax and the cost of which shall be 
considered as an allowable deduction from the gross income of the donor in accordance with 
the provisions of the National Internal Revenue Code of 1997, as amended. 
 
Sec. 16. Review of the Roadmap. The Council, in coordination with the Philippine 
Council for Agriculture and Fisheries (PCAF) and other relevant stakeholders, shall update the 
Philippine Cacao Industry Roadmap every five (5) years, or sooner as may be deemed 
necessary.   
 
Sec. 17. Mandatory Review and Impact Assessment. The Council, in partnership with 
the PCAF and other concerned government agencies, the private sector and other stakeholders, 
shall conduct a mandatory review of the implementation of this Act, and submit such report to 
Congress to assess its impact and measure its effectiveness. The mandatory review and impact 
assessment shall be conducted not later than five (5) years from the effectivity of this Act, and 
every five (5) years thereafter.  
 
Sec. 18. Appropriations. The funds necessary to carry out the initial implementation of 
this Act shall be charged against the respective budget of concerned agencies for the current 
year. Thereafter, such sums as may be necessary for the continued implementation of this Act 
shall be included in the annual General Appropriations Act. 
 
Sec. 19. Implementing Rules and Regulations. Within one hundred twenty (120) days 
from the effectivity of this Act, the Secretary of the DA, in collaboration with the DTI, DOST, 
DILG, ULAP, and CHED, and in consultation the DAR, DENR, PCA, FDA, cacao farmers’ 
organization and association, and other relevant stakeholders shall   promulgate and   issue the 
necessary implementing rules and regulations for the effective implementation of this Act. The 
implementing rules and regulations issued pursuant to this section shall take effect fifteen (15) 
days after its publication in the Official Gazette or in a newspaper of general circulation. 
 
Sec. 20. Separability Clause. If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected by such declaration shall remain in full force 
and effect. 
 
Sec. 21. Repealing Clause. All laws, executive orders, administrative orders, and rules and 
regulations inconsistent with this act are hereby repealed or amended accordingly. 
 
Nothing in this Act shall amend, modify or repeal the provisions of Republic Act 7900, 
otherwise known as High-Value Crops Development Act of 1995. 
 
Sec. 22. Effectivity. This Act shall take effect fifteen (15) days after the completion of its 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
 
Approved,