Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10017 
Introduced by HON. RUWEL PETER S. GONZAGA 
EXPLANATORY NOTE 
The cacao industry in the country, has a vast economic contribution as one of 
our produce products locally. Over the century cacao farmers has faces many 
challenges because of the consumer belief that foreign country has a good quality of 
cacao, imported cacao is most used in the country. But with the new development of 
trend, and demand of cacao usage in the form of ingredient in cooking, main course, 
desserts, chocolate bar, cakes, ice cream and cold drink or hot drink was now popular. 
The exceptional cacao beans in Davao  Region, made the Davao City  as 
country’s cacao capital. Region XI was responsible for about 80 percent of the 
country’s cacao production. With the high-quality cacao beans that our local farmers 
produce is competitive in the international market now’s a day.   During the 
international Filipino trade fair, showing our own product, one of the product entries 
was Malagos chocolate, The Malagos’s Chocolate was then awarded as winner of new 
chocolate brand, that put the Philippines in the road map as new cacao industry 
internationally.   Not to mention our local brand, Goya Chocolate, a heritage brand 
since 1956. Thus, with the composition of cacao council in the country, our farmers 
are assured of the strategic framework for the development cacao in the country.    
Thus, the passage of this measure is earnestly sought. 
RUWEL PETER S. GONZAGA 
March 4, 2024
1:00 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10017 
INTRODUCED HON. RUWEL PETER S. GONZAGA 
AN ACT 
INSTITUTIONALIZING A PHILIPPINE CACAO INDUSTRY DEVELOPMENT 
PROGRAM, CREATING FOR THE PURPOSE THE PHILIPPINE CACAO INDUSTRY 
COUNCIL, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and 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 
postharvest 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,