with different cacao varie-ties. Majority of Indonesias average annual production of 800,000 metric tons come from small holder farms. Ac-cording to the Indonesian Cocoa Board (ICB), their co-coa export in 2012 reached close to 440,000MT valued at USD 1.4 Billion. This makes cacao their third big-gest revenue earner after palm oil and rubber.

It was in 1778 when cacao production began in Indone-sia. The Dutch brought cacao from the Philippines to Ja-karta and Sumatra where they established a propaga-tion facility that led to the major production in the Dutch East Indies, now Indonesia and Malaysia. This unfamil-iar piece of history along with the many similarities in topography and climate con-ditions between the Philip-p ines and Indones ia prompted the organizers to proceed with the study tour.

The global demand for ca-cao beans and its by-products has been steadily increasing over the past years. On the other hand, the world supply has been experiencing a

farming and understand the roles played by each sector in the value chain. Indonesia is currently the third largest cacao producing country in the world. Almost 65% of Indonesias cacao is grown in the island of Sulawesi.

Representatives from private cacao farms, nursery opera-tors, officials from the local government units of Davao City and Davao Oriental, Federation of Cooperatives (FEDCO) officers and De-partment of Trade and Indus-try XI composed the delega-tion. Cocoa farming is the principal income earner for South Sulawesi with over 1.7 million total area planted

B uilding on the principle of knowledge sharing and international co-operation, the Cacao

Industry Development Associa-tion of Mindanao, Inc. (CIDAMi) in partnership with ACDI/VOCA and funding support from USDA initiated a study tour in Sulawesi, Indonesia last March 31-April 7, 2013. This activity aims to learn the best practices and experiences of the Indonesian cacao value chain players and replicate these in the Philippine setting.

Twenty stakeholders from the Mindanao cacao industry took part in the one-week study tour to learn from the experiences and best practices on cacao

Cacao Watch T H E O F F I C I A L N E W S L E T T E R O F T H E C A C A O I N D U S T R Y D E V E L O P M E N T

A S S O C I A T I O N O F M I N D A N A O ( C I D A M I )

Special Issue

Indonesias cocoa gap: Philippines gain?

The participants during their visit to one of the model farms visited in Luwu Timur, Sulawesi. Farms like these were among the highlights of the study tour.

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T he cocoa industry in Indone-sia has experienced phe-nomenal growth over the past few decades, but its

continued competitiveness is threat-ened by inconsistent and poor qual-ity production.

With over 475,000 metric tons pro-duction forecast of cocoa beans by the end of 2013, Indonesia is the most significant cocoa bean sup-plier in East Asia. In addition to raw cocoa beans, Indo-nesia also pro-duces and exports a small volume of processed cocoa products including powder, paste/liquor, cake and butter.

Indonesias biggest competitive advan-tages include its low cost, high pro-duction capacity (availability of supply), efficient infrastructure and open t rading/marketing system (business environ-ment). As the largest producer of unfermented bulk beans, Indonesia currently occupies a strong position with few competitors in this segment of the global market.

The United States imports over 136,000 MT of Indonesian cocoa and is one of the most important market for cocoa beans from Indo-nesia. (The U.S. is the second largest buyer of cocoa beans in the world.) Other major buyers of Indonesian cocoa beans include China, Malaysia and Brazil. U.S. chocolate manufac-turers are the largest international buyers of processed cocoa products from Sulawesi, purchasing about 40 percent of total cocoa butter ex-ports, followed by European and Southeast Asian buyers (US Agency for International Development).

Sulawesi cocoa is traded on the

global market as an unfermented, fat, bulk bean. Processors and manufacturers use Sulawesi bean as filler, due to its sufficient fat content and lower cost, and blend it with other fermented beans mostly from Africa and Latin America that add flavour. Global demand for these unfermented bulk beans has be-come relatively resilient and is not

significantly af-f e c t e d b y changes in price.

PRODUCTION There are ap-p r o x i m a t e l y 500,000 small-holder farmers in Sulawesi produc-ing bulk, unfermented cocoa beans.

Average yield on these farms ranges from 400 to 800 kilograms per hectare. Farmers sell to local collectors at farm gate or directly to local traders. There are few ex-amples of cooperative-type hori-zontal linkages or group marketing among smallholder farmers in Su-lawesi; most smallholder farmers prefer to deal independently with private collectors and traders. Dur-ing the study tour, the group found out that local traders allow cash

advances to regular clients.

Local collectors are usually cocoa farmers themselves or rural entre-preneurs who purchase cocoa beans directly from farmers. The scale of these purchases is small and turnover is fast. Local traders purchase cocoa beans from local collectors or, to a lesser extent, directly from farmers, and are usu-

ally engaged in a variety of other businesses (e.g., general mer-chants, vehicle hire, etc.). These traders sell most of their cocoa beans to local exporters al-though a smaller amount flows to local processors. T h i s t r ad i ng scheme does not require permits so competition is stiff according to the traders interviewed by the study tour participants.

PROCESSING Cocoa process-ing, or grinding, en ta i l s t he transformation of dried cocoa beans into a variety of proc-essed products including cocoa

paste or liquor, cake, powder and butter. Processors have strict quality standards and expect their suppli-ers to meet these standards.

Only 10 percent of Sulawesi cocoa bean production is processed lo-cally, the rest is exported as raw beans. In Sulawesi, one of the larg-est processors is Mars International. PT Mars sells processed cocoa products to other Mars manufactur-ing plants in the U.S., Brazil and other parts of Southeast Asia.

Nobody can do it alone

The Indonesian Cocoa Industry dossier

Cacao Watch Special Issue

The heart of chocolate: Smallholder farmers like these individuals in Sulawesi remain to be the core of the global cocoa industry.

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Understanding the Cocoa Value Chain beans causes the beans to ferment. Fermentation is an important step, lasting three to seven days, that produces the chocolate flavor we know when the beans are roasted. The beans are then dried, which in the sun, usually takes several days.

BUYERS, CONSOLIDATORS, TRADERS and EXPORTERS

After the beans are dried, the farmer sells to a buying station or

local agent. What is most common in the Philippine setting is for farm-ers to sell their beans to local trad-ers. The trader pays the farmer in cash, for the most part without any information on international market prices or any written record of the sale. Some of the international traders like Armajaro and Olam set up buying stations in cocoa-producing communities so the prices are a little higher for good quality beans.

Another way of buying is to have a third-party consolidator who will gather the beans from different farmers then sell it to the interna-tional traders. This is often done for single origin cacao beans, similar to that in Davao Region. Once the required volume is reached, the buyer/consolidator then transports the sacks to an ex-porting company who inspects the beans and places them into burlap, sisal or plastic bags.

Sometimes the beans are stored in the large trucks that transport them to the ports. The journey from vil-lage to city to domestic port can vary from one day to several days. Depending on the circumstances, exporters dry the cocoa beans further using artificial dryers. The exporter collects and then sends the cacao beans to its local and inter-national clients.

PROCESSORS

Two-thirds (66%) of the cocoa bean production in the world, is exported as raw

A value chain is a sequence of steps involved in the process of production to market delivery of a

product. The value chain methodol-ogy involves the coordination of all activities involved in the production of a good or service. The cocoa value chain is long. It passes through a complex trading network compris-ing a large number of intermediar-ies like collectors, traders, exporters, processors and manufacturers, be-fore it reaches us consumer as the chocolates we love. To understand the various steps in the value chain will enlighten us consumers on the value and hard work that goes into turning the cacao bean into a choco-late bar.

GROWERS

More than 90% of the global cocoa p r o d u c t i o n comes from about 3 million small holder farms (farms which are around 2-3 hectares). Cocoa is a delicate and sensitive crop, and farmers must protect trees from the wind and sun. They must also fertilize the soil, regularly prune and watch for signs of distress including attack from pests and dis-ease.

With careful care, most cocoa trees begin to yield pods at peak produc-tion levels by the fifth year, which can continue for another 10-20 years. However, some of the new clonal varieties can begin bearing fruits as early as 18 months. Ripe pods may be found on cocoa trees at any time, however, most countries have 2 periods of time per year of peak production. A farmer can ex-pect 20-50 beans per pod, de-pending on the variety.

Once the beans are removed from the pods, the farmer lays them on racks to be solar-dried which takes about 4-5 days. Other farmers es-pecially in Africa and Latin America take it a notch higher by packing wet beans into boxes or heap them into piles. Covering the piles with mats or banana leaves heats the

beans, and the rest (34%) is locally processed. Before cocoa can be made into chocolate, it goes through several steps of processing. Cocoa processing includes converting the beans into nibs, cocoa liquor, but-ter, cake and powder.

The cocoa liqueur is sold to choco-late manufacturers because this con-tains the chocolate flavor; the rest is pressed to extract cocoa butter and cocoa powder. Cocoa butter is used in combination with other ingredients to make chocolate. It can also be used in soaps and cosmetic products. Cocoa powder is used on a large-scale by food industries for the pro-duction of drinks, desserts, ice creams, spreads, sauces, cakes and biscuits. The by-products of the co-coa beans the husks and shells are used as organic mulch, soil con-ditioners and poultry feed.

Once cocoa processing is done, the liqueur, butter, cake and powder are then shipped to the different confectioners and manufacturers around the world.

CONFECTIONERS and MANUFACTURERS

To make chocolate, cocoa liquor is mixed

with cocoa butter, milk and sugar. After the mix-

ing process, the blend is further refined and then

placed into large agitators that stir and smooth the mixture under heat. The popular chocolate manufactur-ers such as Cadbury, Ferrero, Her-shey, Kraft, Mars and Nestl have their own secret recipes for their famous brands and dominate the chocolate confectionary market.

The current and rising movement in product quality and traceability have attracted large companies and the retail sector. As cocoa produc-tion standards and certification be-come more widespread, companies are searching for ways to stand out from the competition. This is the rea-son why some of the giants in the cocoa value chain are pouring re-sources through their various Corpo-rate Social Responsibility (CSR) pro-grams to help assure sustainability and quality of the industry.

Cacao Watch Special Issue

(Top): Participants pose with Mars Symbioscience Indonesias Country Manager Ruud Engbers and Sitti Asmayanti, Mars Sustainaibility Coordinator after the tour at the plants premises. (Bottom):

Cacao Watch Special Issue

I joined the Sulawesi Cacao study tour upon the invitation to have representations from all sectors of the cacao growing

industry. Although the company I manage is mainly involved in the cut flower and plant business, our nursery facility also produces cacao seedlings. I joined the tour as a nursery operator.

The study tour had a full schedule, but interesting since it covered all aspects of cacao growing and pro-duction. The delegates were as-signed committees and tasks. We were also grouped according to sectors we represent. I was as-signed in the nursery and produc-tion sector. Our concerns were about their nursery operations and to determine how extensive is the application of good agricultural practices (GAP) among Sulawesi farmers. We also wanted to know how the farmers are addressing challenges in pest and disease management.

At the core of the Indonesian cacao industry are small holder farms of 1 to 2 hectares in size, of which 59% are in Sulawesi. Despite this huge number at the farmer level alone, they managed to collaborate where the role of each value chain player is defined. Even if each has its own business targets and inter-est, they are able to pool their re-sources and expertise and focus on concerns and areas that need the most attention. The presence of good governance, extension and organization can be observed.

The application of GAP by farmers has become extensive especially with the practice of certification of their farms in partnership with proc-essors and international traders. The set up of cacao village centers or CVC, as pioneered by Mars International, provided model farms that achieved significant in-crease in production of up to 300%. However, pest & diseases continue to be the biggest problem of the farmers especially during wet season. The primary means of control are through chemical appli-cations (pesticides and fungicides).

The trained cocoa doctors based in the CVC also play a significant role in the extension services to farmers. They teach farming concepts, proper agronomic activities as well as key practices to increase production and manage pest and disease concerns and not limited to chemical control. Among them are the intercrop sys-tem, organic fertilizers, compost mulching, good housekeeping, pod plastic sleeving and post harvest practices .

A concept given priority by all the Indonesian value chain players are the use of good quality seedlings. There is an awareness that no amount of fertilizer or agronomic practice can compensate for poor quality seedlings. They believe in the phi-losophy of doing it right the first time. Extensive efforts are poured into research and development by the government, academe and the private sector to develop good clones and only after being tested and accepted can the seedlings be distributed to farmers. While most nurseries visited were small in capac-ity, they practice good nursery man-agement. They prefer quality over quantity as shown in the use of big seedling bags that allow better seedling growth but limit volume in the nursery.

I have personally ob-served the growth and development of cacao trees using good quality seedlings and appreci-ated their superior ad-vantage. Way back in 2008, my family consid-ered the proposal to provide an area for Mars Cacao Develop-ment Center to locate a cacao germplasm or mother plant grove. I had to make a cost and benefit comparison be-cause the only suitable area was a two hectare

section within the cut flower farm I manage. Part of the area already serves as production planting of our cut leaves. Among my questions were can the cacao start fruiting in short period of 2 to 3 years? What is its production capacity? The actual performance of the crops have confirmed the short fruiting time. Results of studies indi-cate high production harvests ex-perienced with the application of GAP.

The importance of good quality seedlings in any crop production should be emphasized. But some-times we forget the importance of this concept and settle on some-thing less to be able to save on costs or for some other reasons.

Quality seedlings: Foundations of good crop production Engr. Angel P. Puentespina

Engr. Puentespina at the MCDC nursery in Tarengge, Sulawesi

Only the good: Healthy cacao seedlings produced by Indo-nesian farmers to sustain the cocoa industry

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Page 5 Cacao Watch Special Issue

My foray into the agri-business venture called Gran Verde is by no means an accident. My father was a farmer at heart but a lawyer in practice. Our frequent weekend trips to the familys Calinan farm and camping adventures nurtured my affinity for natures flora and fauna.

Many years later when my Papa and Mama finally heeded our ad-vice for them to cash in on their properties and enjoy travel in their old age, I and my siblings invested in the acquisition of these proper-ties. Charly, my husband agreed that our best bet was an investment in the Calinan farm. At the time of acquisition, the contract-growing agreement for pineapple was close to termination. We decided we will not renew but instead embark on developing the farm ourselves.

Mangoes were Charlys top priority and he would buy seedlings at every opportunity until he had about 250 trees over a spread of 1.5 hectares. With barely enough time for close supervision, mango production was left to contract-growers and we had the misfortune of engaging contractors who didnt care about long term health and productivity of our trees. After 10 years, the prolonged application of

poor farming practices coupled with the changes in climate pat-terns had tremendously decreased our yields. And I was at my wits end trying to figure out how we can increase our revenue from the 5 hectare lot.

Charlys work assign-ments in Mindanao be-tween 2006-2010 as well as my decision to start an IT training and outsourcing business in the city, paved the way for renewing ties with family and friends. Periodically, we would visit and have long & interesting exchanges over lunches with

Charlys foster family - the Puentespinas. It was during one of these visits that I had my big, auda-cious moment triggered by a sam-pling of the wickedly delicious tablea cake matched with a fantastic Mala-gos dessert wine made from Bignay. With the familys matriarch, Tita Chari passionately talking about cacao and its potential, I started to check and search for information about the crop. I also started buying cacao seedlings from Malagos Gar-dens while Charly continued investing in other fruit trees such as durian, mangosteen and rambutan.

Following an attendance in the 2010 Phil Cacao Development Workshop, I decided that volunteering and serv-ing the newly formed association called CIDAMi- the Cacao Industry Development Association of Min-danao Inc. will present more oppor-tunities for learning over the long term. It has been close to three years now since I joined CIDAMi and the exciting ride has just begun. Concep-tualizing and managing the Kakao Konek - the 1st Cacao International Conference in 2012 made possible networking with local and global value chain actors. Participating in the Sulawesi Cacao Study Tour gave me a glimpse of Indonesias cacao industry, taught me to start things right and deepened my commitment

to quality. I learned about bench-marking and local successes by listening to the opinions and ex-periences of fellow cacao stake-holders.

Cruising the cacao trail, I see end-less and exciting possibilities for a small farm operator such as myself. Gran Verde has just over 3000 cacao trees, about 1000 of these are now fruit bearing and I am convinced that small farm opera-tors can dare to dream big. Gran Verdes dedicated team of earth-lovers working the land and aspir-ing to become a model farm under the ACDI/VOCA-MARS-CIDAMi program will allow us to develop a consistent focus on good quality cacao beans.

Gran Verde is gearing up to ac-quire the necessary technology to undertake value processing while developing the Gran Verde brand image. Who knows, the bean to bar vision may not be too far away? Then my Mama and Papa (bless their souls) can finally be assured that I have put to good use their investment in my nutrition and dietetics university education.

Wit Holganza is the general man-ager of Gran Verde Farms and the President of MTC Academy. She also sits on the CIDAMI Board.

Cruising the Cacao Trail Wit Holganza

The author promotes members products and pitching advoca-cies for cacao as a frontliner at CIDAMis booth in the IFEX 2013

Cacao vs Cocoa:

Whats the difference?

The tree from which chocolate is derived is the cacaocacaocacaocacao tree, otherwise known by its species name Theobroma cacao. After the cacao seeds are dried and fermented, they are known as cocoa.cocoa.cocoa.cocoa. From this point, the beans can be processed into cocoa powder, cocoa butter, or chocolate.

So the tree is cacao, and cocoa is the substance made from the cacao tree.

Cacao Watch Special Issue

30,000 MT. This is the reason why Philippines still imports from other countries. At present, the Philippine cacao industry is undergoing resurgence. In 2008, cacao was given a prior-ity and officially regarded as a High-Value Crop by the Depart-ment of Agriculture. Local farmers have increased their interest in the cultivation of cacao due to the huge demand in the local and international markets. Farm gate prices have also been steadily increasing. The opportunity presented by the cacao industry is an advantage for local farmers and will contrib-ute in improving their quality of living. In addition, the increase in cacao production will bring about

decline in production due to problems encountered by major cacao-producing countries especially in West Africa. Chocolate industry play-ers are concerned that by the year 2020, the world will require more than one million metric tons to meet the increasing global demand. The significant gap between the de-mand and supply of quality cacao beans holds a vast opportunity for the Philippines to strengthen and expand its cacao industry. The country, de-spite its favorable agricultural condi-tions for growing cacao, only cur-rently contributes 0.16% of the world supply. Of this small percentage, 90% are from Mindanao; 95% of the national production is used by local confectioners. Currently, Philippine cacao production is a meagre 8,000 MT while the domestic demand is at

vast livelihood opportunities and create agricultural value. With the support of the stakeholders in-volved in the cacao industry, cou-pled with appropriate strategic action planning and implementa-tion, cacao produced by Min-danao farmers will become glob-ally competitive. Although there are continuous and on-going projects to promote ca-cao farming since 2008 to present, there are still a number of factors that hamper the local cacao indus-try from achieving its fullest poten-tial and be a formidable player in the market. Cacao production in the country has been adversely affected by pests, the steep rise in input costs especially fertilizers, varying weather conditions.

The 2013 Sulawesi Cacao from page 1)

My company also experienced this and had to pay dearly for such mistakes. I share the experience of my company on the importance of the quality of our planting materi-als. Foremost are on our cut flower crops that have a short growing time. As long as the qual-ity of our nursery production is good or the qual-ity of refrigerated bulbs are maintained our problems on the field are minimized and so pro-duction recoveries are high.

Even with our crops that have longer production time such as Gerbera and Orchids, good quality planting materials have shown better results. All cloned or tissue cultured planting materials, with good growth in the nurseries resulted to faster and vigorous growth on the field and shorter growing time before flowering.

The members of the Sulawesi tour group were one in the observation that cacao in Mindanao have great prospects in becoming a huge in-come earning industry. It has the potentials of generating dollar earnings from export market sales. But whether it will be local or export, pro-duction should be geared toward producing good quality beans. As such, the use of good quality seedlings becomes even more important. It is the foundation of a good cacao crop pro-duction. Engr. Angel P. Puentespina is an Agricultural Engi-neer and is the managing director of Puentespina Orchids & Tropical Plants Inc.

Quality seedlings: Foundations (from page 4)

Terima KasihTerima KasihTerima KasihTerima Kasih

CIDAMi and the participants are grateful to the following for their support and contribution to the success of the

2013 Sulawesi Cacao Study Tour.

US Department of Agriculture

ACDI/VOCA Mr. Nick Richards

The Local Governments of Davao

City and Province of Davao Oriental

The Indonesian ConsulateDavao

City

Department of Trade and IndustryRegion XI

Kementerian Pertanian Republik Indonesia (Ministry of Agriculture)

PT Mars Symbioscience Indonesia

Mr. Ruud Engbers Ms Yanti Asmayanti Ms FayeFaye Choo Mr. Saiful Alam

Mars Cocoa Development Center Mr. Hussin Bin Purung

PT Armajaro Indonesia

PT Olam Indonesia

VECO Indonesia

Cocoa Sustainability Partnership (CSP)

SwissContact

SMKN Tomoni

CV Saprotan UtamaSulawesi

CVC Awo Siwa

CVC Hassan Farm

Desa Salu Paremang Selatan

KecamanreLuwu

Port of Makassar, Indonesia

Toko Barana

ACDI/VOCA Staff

CIDAMi Staff Alimudin Mala Lovely Alfafara Katrina Surban Glory Jane Torres Darlen Miano

Page 6

For your inquiries and other concerns on cacao growing, accredited nurseries, capacity building trainings and membership to CIDAMi, you may get in touch with us at:

Office: AMYA Bldg., Tulip Drive corner Quimpo Blvd., Ecoland Davao City 8000 Philippines

Phone: (63) 082 321 5589 Email: info@cacaomindanao.com Website: www.cacaomindanao.com

Page 7 Cacao Watch Special Issue

cacao industry communication and collaboration and increased its membership from five to 25.

CSP facilitates horizontal linkages among cocoa traders in the indus-try and provides a variety of tech-nical and advocacy support ser-vices including: collaborations and information dissemination. Because of the size and complexity of the Indonesian cocoa industry, a num-ber of NGOs have set up offices in Indonesia, particularly in Sulawesi. These NGOs are advised by CSP which areas need more interven-tion then refer them to the con-cerned stakeholder group for fur-ther discussion and planning.

The NGOs working in the cocoa industry implement projects and programs under four main priority areas namely: Technology trans-fer/Capacity building, Farmer empowerment, Certification and Research and Development.

INDONESIAN COCOA CHAL-LENGES Indonesias biggest competitive gap is the inconsistency of cocoa bean quality. According to one multinational manufacturer, even a lower quality cocoa bean can be used as long as its specifications are known and consistent.

A new trend rising in the cocoa industry is traceability and certifi-cation. Value chain players are working hand in hand with interna-tional certification bodies Rainfor-est Alliance and UTZ to ensure that farms adhere to a set of quality standards of the global market thus making their harvest more competitive.

Widespread pest infestation, es-

With its commitment to quality and sustainability, Mars International has been a leader in research and exten-sion programs to small holder farms. One of its notable achievements is the establishment of the Mars Cocoa De-velopment Center (MCDC), a facility that develops new cocoa clones, pro-vides trainings to farmers and works with other value chain players to de-velop the industry in Indonesia.

Once cocoa beans are exported from Indonesia they become part of the global trade in cocoa which includes multinational traders, processors and manufacturers. Multinational traders sell cocoa beans to processors and manufacturers around the world. Mul-tinational processors are major pro-ducers of processed cocoa products (cocoa liquor, butter and cake).

Multinational manufacturers are dedi-cated chocolate producers and are generally located close to their final consumer markets. There are also integrated multinational processors and manufacturers who are involved in multiple functions of processing and manufacturing of final products. One of the largest, Mars, has significant presence in Indonesia.

MARKET AND INDUSTRY SUPPORT In 2006, the Cocoa Sustainability Partnership (CSP) was established in response to the need to organize the cacao industry players and bridge them to understand the emerging production and quality problems, communicate and develop mechanisms to enable the value chain to move towards the same direction. The forum was established by five organizations namely IFC, Mars International, ASKINDO, Dinas Perkebunan and Hasanuddin University. Since then, it has been the leading forum for all

pecially Vascular Streak Dieback (VSD) and Cocoa Pod Borer (CPB) are the primary causes of poor cocoa bean quality. Over the past few years, increased VSD and CPB infestation and poor produc-tion practices of smallholder farm-ers in Sulawesi have led to de-creased cocoa bean yields and reduced quality. In order to ad-dress the problems of CPB infesta-tion, various public and private sector initiatives have been launched to conduct research, train and improve the traditional prac-tices of smallholder cocoa farmers in Indonesia.

Based on extensive research and field trials, a basic system of im-proved techniques in crop hus-bandry and integrated pest man-agement was developed that can effectively mitigate and/or control the negative impacts of VSD and CPB infestations.

The overall structure of the cocoa value chain in Indonesia continues to be rationally driven by volume and price-based transactions. Con-formance to quality standards is beginning to take root in the con-sciousness of many cacao farmers due to the premium price for qual-ity and certified cocoa beans.

A l t h o u g h g l o b a l b u y e r s (multinational traders, processors and manufacturers) have ex-pressed concerns with the inconsis-tent quality of Sulawesi beans, most of them continue to source from Indonesia because of its low price and ability to produce the required volume.

The Indonesian Cocoa Industry (from page 2)

Charita Puentespina, Lizabel Hol-ganza, Evelyn Lavina, Dante Muyco and the new CIDAMi presi-

dent Rene Dalayon who were present to show their support and commitment to the industry. The number of visits to the booth and the inquiries about cacao and its potential indicated serious in-terest from potential clients from both here and abroad. The amount of potential sales for the products featured from CIDAMi members such as Chocolate de San Isidro and Malagos Farms indicate the same reveals Ms Holganza. The CIDAMi booth gave the IFEX guests and visitors a glimpse of the growing cacao industry in the Davao Region and many facets involved in cultivating and proc-

T rue to the purpose for its creation to move Philippine cacao as a global brand, the Ca-

cao Industry De-velopment Asso-ciation of Min-danao, Inc. (CIDAMi) success-fully participated in the Interna-tional Food Expo (IFEX) 2013 held at the SMX Con-vention Center, Pasay City last May 16-19, 2013. Now a biennial event, IFEX Phil-ippines is the premier and most-respected international sourcing hub for the finest ethnic Asian food, in-gredients and raw materials. Since 2004, the show has pro-vided food and beverage com-panies the key venue to promote their products globally and estab-lish and strengthen links with inter-national buyers, importers, and retailers. On its ninth year, IFEX featured Asias best ethnic and specialty food like tropical fruits and vegetables, fresh sea foods and various natural and organic products. This year, the show wel-comed exhibitors from other Asian countries like Brunei, Cambodia, Laos, Myanmar, Indonesia, Korea, Malaysia, Singapore and Taiwan. During the four-day event, the CIDAMi booth received a big num-ber of local and international visi-tors interested to know more about Mindanao cacao and its merits. They were welcomed by members of the CIDAMi board of directors

essing cacao. Incidentally, Min-danao cacao is fast becoming the buzzword for quality and flavour

based on the reviews of popular names in the food and chocolate business. Ms Holganza added that there were exchanges about how Mindanao is supplying its ca-cao beans to tablea makers of Visayas and Luzon. This is pointing to the potential for harnessing the distinct flavour of Mindanao-grown ca-

cao. ASec Jopine Romero of DTI and CITEM's Rose Kwan ex-pressed delight about Min-danaos growing cacao sector and restaurateurs expressed in-terest in using our cacao beans and tablea for their chocolate drink preparations and other recipes. IFEX was organized by the Cen-ter for International Trade Expo-sitions and Missions (CITEM), the export promotions arm of the Department of Trade and Indus-try (DTI) committed to creating and nurturing a pool of globally competitive exporters and manu-facturers. CITEMs programs are geared towards small and me-dium scale manufacturers who need marketing and promotional assistance to make them product- and market-ready.

Mindanao Cacao joins roster of Philippines finest

The CIDAMi Board promotes the Mindanao cacao industry and products to local and international visitors at this years IFEX.