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Positioning the Mindanao Cocoa
 Brand for High Value and High
       Quality Production

                Kakao Konek
      Davao, Philippines Nov 21-23 2012
Agenda

• Global Cocoa Update

• Asia Opportunity

• Philippines: The Vision

• Value Focus: Productivity, Quality, Certification

• Sustainable Cocoa: Farmers First
West Africa is nearly 70% of the world supply




                       v
Cocoa is in crisis
5.0

4.75

 4.5

4.25

 4.0

3.75

 3.5
       2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020
Cycle of Decline


                ECONOMIC
                ISSUES




                 DECLINING
                COCOA YIELDS
                AND QUALITY
ENVIRONMENTAL
                               SOCIAL ISSUES
ISSUES
Asia: Double Digit Growth in
Chocolate Consumption

But still depend on Africa for
fermented quality cocoa beans
Philippines is strategic to meet Asia’s need
for quality, certified cocoa




                           Vision:
                  By 2020, 100,000 mt of
                quality certified cocoa from
                         Philippines
As we scale up, focus on 3 key areas:


    Productivity                       Quality                         Certification

         2kg/tree                 Meet National                             UTZ/RA
                                   Standard




 Research Capability         Value chain                    Social compliant

 Transfer of Technology      Policy                         Environment compliant
      Fertiliser                  Export standard
      Pest & Disease Mgt          Post harvest processing
      Good Agri Practices

Policy: Nursery
9
Win for         Win for The
   Win for The
    Farmer         +   Producing
                       Countries
                                   +    Chocolate
                                         Industry
                                                      +   Win for The
                                                          Consumer




Improved Quality
     of Life
                         Reinvestment




 Farmer Income
                                           Productivity    3x
                                                          is proven
3x
is proven
• Sulawesi farmer Haji Hassan
• Training, grafting and fertilizer
• From 0.7 to 2.7 tons/ha in 2 years
• Tripled his annual profit to US $5000.
Cocoa Development Center + Cocoa Village Center:
Deliver “Productivity & Quality” Package to Farmers

                           CDC


                        X 20 CVCs

          CVC     CVC       CVC         CVC   CVC



                        X 100 Farmers




                Will reach 2,000 farmers
First CDC
in
Philippines
…….More
to come
No One Can do
 this alone!!
COLLABORATION
          – the New Competition

                Central Government
                    & Agencies



                  Thriving Cocoa
Private          Sector Driven By
                   Productivity,        Development
Sectors                                   Partners
                   Quality and
                  Collaboration



                Provincial Government
                  & District Leaders
Let’s accelerate our commitment to a 100,000t
        sustainable cocoa sector by 2020

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05 3rd speaker yee chow b kakao konek nov2012

  • 1. Positioning the Mindanao Cocoa Brand for High Value and High Quality Production Kakao Konek Davao, Philippines Nov 21-23 2012
  • 2. Agenda • Global Cocoa Update • Asia Opportunity • Philippines: The Vision • Value Focus: Productivity, Quality, Certification • Sustainable Cocoa: Farmers First
  • 3. West Africa is nearly 70% of the world supply v
  • 4. Cocoa is in crisis
  • 5. 5.0 4.75 4.5 4.25 4.0 3.75 3.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
  • 6. Cycle of Decline ECONOMIC ISSUES DECLINING COCOA YIELDS AND QUALITY ENVIRONMENTAL SOCIAL ISSUES ISSUES
  • 7. Asia: Double Digit Growth in Chocolate Consumption But still depend on Africa for fermented quality cocoa beans
  • 8. Philippines is strategic to meet Asia’s need for quality, certified cocoa Vision: By 2020, 100,000 mt of quality certified cocoa from Philippines
  • 9. As we scale up, focus on 3 key areas: Productivity Quality Certification 2kg/tree Meet National UTZ/RA Standard  Research Capability  Value chain Social compliant  Transfer of Technology  Policy Environment compliant Fertiliser Export standard Pest & Disease Mgt Post harvest processing Good Agri Practices Policy: Nursery 9
  • 10.
  • 11. Win for Win for The Win for The Farmer + Producing Countries + Chocolate Industry + Win for The Consumer Improved Quality of Life Reinvestment Farmer Income Productivity 3x is proven
  • 13. • Sulawesi farmer Haji Hassan • Training, grafting and fertilizer • From 0.7 to 2.7 tons/ha in 2 years • Tripled his annual profit to US $5000.
  • 14. Cocoa Development Center + Cocoa Village Center: Deliver “Productivity & Quality” Package to Farmers CDC X 20 CVCs CVC CVC CVC CVC CVC X 100 Farmers Will reach 2,000 farmers
  • 16. No One Can do this alone!!
  • 17. COLLABORATION – the New Competition Central Government & Agencies Thriving Cocoa Private Sector Driven By Productivity, Development Sectors Partners Quality and Collaboration Provincial Government & District Leaders
  • 18. Let’s accelerate our commitment to a 100,000t sustainable cocoa sector by 2020