A split cacao pod with a bright red exterior and yellow interior reveals large, white seeds, surrounded by dry, dark brown cacao beans. © Kennemer Foods International, Inc.

Optimising cacao farming in the Philippines

Improving Smallholder Livelihoods Through Inclusive Business Models (Cacao+)

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  • Client

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country
  • Political sponsors

    More

  • Runtime

    2019 to 2024

  • Involved

    Kennemer Foods International, Inc.

  • Products and expertise

    Rural development

Context

Cacao farming heavily relies on smallholder farmers globally, with more than 90 per cent of production coming from those who own less than five hectares of land. Asia contributes around eight per cent to global cacao output, with Indonesia as the leading exporter.

Introduced by the Spanish in the eighteenth century, most cacao is grown in Mindanao – the southern part of the country, where agronomic conditions are ideal. Cacao serves as a suited intercrop in agroforestry, especially within coconut farming systems. Having over 1.7 million hectares of coconut land, cacao intercropping presents a significant opportunity for coconut farmers to earn additional income.

Despite the importance of the industry, Mindanao, often described as the ‘agricultural basket’ of the Philippines, has yet to realise its full production potential, especially among smallholder farmers.

Objective

Cacao farming systems in the Philippines have been diversified, production scale increased, financial access improved, and digital tools for farmers developed.

Approach

To address the challenges and achieve its objectives, the project adopts the following supporting measures, in strategic partnership with Kennemer Foods International, Inc.:

  • Develops diversified cacao-centric farming systems and training concepts. This initiative promotes biodiversity and improves crop resilience, reducing dependency on a single crop and increasing income stability for farmers.
  • Enhances skills for farmers and local buyers while establishing value-chain and market connections. By providing training and support, farmers can produce higher quality products, and local buyers are better integrated into profitable market systems, ensuring stable business growth.
  • Improves access to agricultural financial services. Facilitating easier access to credit and insurance enables farmers to invest in better technologies and practices, thereby increasing their productivity and reducing risk.
  • Creates a digital monitoring and information-sharing system for farmers. This technology allows for real-time data collection and analysis, helping farmers make informed decisions that enhance their crop yield and operational efficiency.

Last update: May 2024