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  • Cocoa exports can bring in $300M–Mars
     
    By Jennifer A. Ng
    Reporter

    MALAGOS, Davao—The Philippines has the potential to earn $300 million in export revenues if existing monocropped lands in the country are intercropped with cocoa, an official of Mars Inc. said.

    Peter van Grinsven, cocoa sustainability field-research manager of Mars Inc., said the estimated export revenue is based on cocoa shipments totaling 200,000 metric tons (MT), at a conservative cost of $1,500 per MT. Cocoa beans’ current selling price average at $2,500 MT.

    “There is a huge market for cocoa. In Asia alone, there is a big demand for fermented cocoa beans, but there aren’t enough cocoa beans to supply the region’s needs,” said van Grinsven at the sidelines of the launch of Mars Cocoa Development Center (MCDC) here.

    The Mars official noted that China, Japan, Malaysia and Indonesia import about 220,000 MT of good-quality fermented beans from West Africa, where 70 percent of the world’s cocoa is currently produced.

    This, van Grinsven said, presents an opportunity for the Philippines.

    Worldwide, the demand for various cocoa products grows by 3 percent year-on-year. Despite the increase in world demand, van Grinsven noted that leading cocoa producers like West Africa could not produce enough to supply the world’s appetite for cocoa, which has steadily increased over the last decade.

    Besides new large markets for chocolate products like China and India, there has been a shift in consumption patterns in the established consumer markets to “dark chocolate,” which has a higher-cocoa bean content.

    This is because recent studies suggest that cocoa flavanols, the naturally occurring compounds in cocoa, have a beneficial effect on cardiovascular health.

    Mars itself is keen on looking at other suppliers for cocoa beans. Mars produces some of the world’s leading chocolate brands such as M&M’s and Snickers. The company is headquartered in McLean, Virginia, and operates in more than 65 countries. It has 100 manufacturing facilities globally, including one in China and one in Indonesia.

    “We have said this before; we are willing to buy the cocoa beans produced by the Philippines,” said van Grinsven.

    But before the Philippines can take advantage of the business opportunities presented by cocoa production, Mars officials said Filipino farmers need to improve productivity, control pest and diseases and produce good, quality beans through fermenting. 

    “While the Philippines currently produces 5,000 MT of cocoa, it has the potential to produce 100,000 MT by 2020, making it the second-biggest farm-export earner, next to coconut,” said Howard Shapiro, Mars’ global director of plant science and external research.

    “However, a systematic and organized approach is required to reach this level. Among other things, it is imperative to demonstrate to farmers, the government, donor institutions as well as the world market, that the Philippines can indeed produce good-quality cocoa in sustainable farming systems,” Shapiro stressed.

    To jump-start efforts to expand cocoa production, at least in Mindanao, the company set up the MCDC to demonstrate the positive aspects of cocoa cultivation and the suitability of cocoa for the Philippines.

    Mars launched the project in collaboration with Acdivoca, CocoPhil and the Puentespina Farm. The center will validate and implement, in a single location, local and international “best practices” in all aspects of cocoa farming, such as germ-plasm evaluation and breeding, farm-rehabilitation methods and good agricultural practices.

    Van Grinsven said the project is keen on encouraging farmers with 1 hectares of land or less to go into cocoa production.

    Cocoa is a shade-tolerant crop that can be grown successfully with other trees such as durian and lanzones, besides coconut.

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