Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7625

Introduced by Representative Sharon S, Garin

EXPLANATORY NOTE

This bill seeks to institutionalize a national program for the sustainable
developmentand promotion of the cacao industry.

The cacao industry in the Philippines started in late 1930's when Jose Maria
Antonio built a chocolate factory in Intramuros. In mid-1950’s, special projects were
organized under the Department of Agriculture with the support from the United
States Agency for International Development. Since then, the industry progressed
and rapidly grew commercially in the late 1970's to 1980's. However, it experienced
a rapid decline in production in 1990's. In 2006, the Philippine cacao industry made
a comeback with production volumes progressing again.

Republic Act No. 7900, otherwise knownas the "High-Value Crops Development
Act of 1995, “identifies the intensification of cocoa production as one of its priorities.
The law secures the industry's progress as well as the local farmers’ increased
interests in the cultivation of cacao due to the growing demand from local and
international markets. Currently, the Philippines has a Cacao Industry Roadmap 2017-
2022. The following are the programs that were designed to support the industry:
(a) High Value Crops Development Program of the Department of Agriculture (DA);
(b) Philippine Rural Development Program of the DA; (c) National Greening Program
of the Department of Environment and Natural Resources; (d) Coconut-Cacao
Enterprise Development Project of the Philippine Coconut Authority; (e) Industry
Clustering, Market Assistance, Trade Promotion and Shared Service Facility Programs
of the Department of Trade and Industry (DTI); (f) Market Resurgence Program (MRP)
of DTI; (g) Agrarian Production Credit Program of the Department of Agrarian Reform;
(h) Mindanao Sustainable Agrarian and Agriculture Development (MinSAAD) Project;
(i) Credit Program of the DA-Agricultural Credit Policy Council; (j) Small Enterprise


Technology Upgrading Program, Manufacturing Productivity Extension Program, and
Consultancy for Agricultural Productivity Enhancement Program of the Department of
Science and Technology; and (k) Research and Development Projects of the DA-
Bureau of Plant Industry and academe.

The proposed bill institutionalizes a national program which will gather the
government agencies and the private sector together, with the DA as the lead agency
to educate and train all stakeholders in the cacao industry. The program aims to
collect relevant researches, scientific studies and marketing strategies for cacao
production. The bill also envisions to extend technologies and create international
linkages for development, promotion and competitiveness of the cacao industry in the
world market.

The proposed measure establishes the National Cacao Development Council to
ensure a harmonized and synchronized industry development. The national council
strengthens structural capability and control mechanism in the development and
promotion of the cacao industry at the national level.

In view of the foregoing, the immediate passage of this bill is earnestly sought.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSEBILLNO, 7625

Introduced by Representative Sharon S. Garin

AN ACT
INSTITUTIONALIZING A NATIONAL PROGRAM FOR THE SUSTAINABLE
DEVELOPMENT AND PROMOTION OF THE CACAO INDUSTRY AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Titfe. - This Act shall be knownas the "Cacao Industry
Development Act.”

SEC. 2. Declaration of Policy. — \t is the policy of the State to develop a
sustainable and competitive cacao industry that optimizes local production capacity,
applies sustainable agriculture practices that are environmentally sound, economically
viable and socially desirable, and allows industry stakeholders to participate in the
international cacao trade for the economic relief of smallholder farmers.

The State recognizes that establishing a sustainable and competitive cacao

industry can spur development and create livelihood, generate jobs, and augment


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income thereby contributing to poverty alleviation, inclusive growth, and peace and

order attainment particularly in the rural areas.

SEC. 3.

National Cacao Development Council; Composition. — The

National Cacao Development Council, hereinafter referred to as the Council, is

established to implement the provisions of this Act and shall exercise its powers and

functions in accordance with Section 4 of this Act.

The Council is composed of representatives from the government and the

private sector, as follows:

(a) _ Representatives from the government:

(1)

Undersecretary of Agriculture for High Value Crops and Rural Credit,

as chairperson;

(2)
(3)
(4)

Undersecretary of Trade and Industry, as vice chairperson;
Undersecretary from the Department of Science and Technology;

Undersecretary from the Department of Environment and Natural

Resources;

(5)
(6)
(7)
(8)
(9)

Undersecretary from the Department of Agrarian Reform;
Undersecretary from the Mindanao Development Authority;
Director of the Bureau of Agricultural Research;

One (1) representative from the Land Bank of the Philippines;

One (1) representative from the Philippine Coconut Authority; and

(10) One (1) representative from the Small Business Corporation.

(b) _ Representatives from the private sector who shall be appointed by the

Secretary of Agriculture:


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(1) Six (6) representatives from among the Regional Cacao Industry
Development Councils with two (2) representatives each from Luzon, Visayas,
and Mindanao;

(2) One (1) representative from the group of cacao traders, exporters,
and importers;

(3) One (1) representative from the group of cacao processors; and

(4) Two (2) representatives from the academe.

The representatives from the private sector shall elect from among them a co-
chairperson and a co-vice chairperson. All members of the Council from the private
sector shall hold office for a period of two (2) years.

The members of the Council shall serve without any compensation but shall be
reimbursed for actual and necessary expenses incurred by them in carrying out their
duties under this Act.

The Council shall meet at least four (4) times a year and hold such other
meetings at the call of the chairperson or a majority of the members.

SEC. 4. Powers and Functions. —The Council shall exercise the following
powers and functions:

(a) Formulate the cacao development plan and other industry-related

policies;
(b) Educate and train all stakeholders of the cacao industry;

(c) Conduct relevant research, scientific study and feasible marketing

strategies;


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(d) _ Establish and develop effective production systems for cacao varieties;

(¢) _ Establish and maintain productive, high yielding and good quality cacao

varieties;
(f) Update cacao processing technologies;
(g) Develop effective and efficient marketing system for cacao;

(h) Integrate and harmonize development efforts, programs, and projects

of the private sector and the government;

(0) Establish linkages with national and international organizations and

development centers of the cacao industry; and

() Coordinate with other government and non-government agencies

involved in the development of the cacao industry.

SEC.5.  Secretariat.— A Secretariat composed of existing personnel from
the Department of Trade and Industry, supported by personnel from the Bureau of
Plant Industry of the Department of Agriculture, shall assist the Council in executing
its policies and programs, and in providing the necessary technical and administrative
support.

SEC. 6. Consultative Mechanism for Industry Governance. - The
Council shall consult and coordinate with the Regional Cacao Industry Development
Councils from the private sector in the development of the cacao industry in their
respective regions to attain the following organizational objectives:

(a) Provide leadership in the cacao industry development;


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(b) Strengthen structural capability and control mechanism in the

development and promotion of the cacao industry at the national level;

(c) Forge or strengthen public and private sector partnership for better

coordination of development initiatives; and

(d) _ Represent the industry to international cacao governing bodies.

SEC. 7. Appropriations. - The amount necessary for the initial
implementation of this Act shall be charged to the current year’s appropriations of the
Department of Agriculture. Thereafter, such sum as may be necessary for the
continued implementation of this Act shall be included in the annual General
Appropriations Act.

SEC. 8. Implementing Rules and Regulations. - The National Cacao
Development Council shall be constituted within ninety (90) days from the approval
of this Act. Within sixty (60) days after the National Cacao Development Council is
organized, it shall promulgate the necessary rules and regulations for the effective
implementation of this Act.

SEC.9.  Separability Clause. — If any provision or part of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not affected
shall remain in full force and effect.

SEC. 10. Repealing Clause. — All laws, executive orders, presidential
decrees, rules and regulations, issuances, and parts thereof inconsistent with or

contrary to the provisions of this Act, are repealed, amended or modified accordingly.


103 SEC. 11. Effectivity. — This Act shall take effect fifteen (15) days after its
104 publication in the Officia/ Gazette or in a newspaper of general circulation.

105 Approved,