Senate Office of the Seractary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) JAN 27 A10:13 SENATE RECEIVED BY: S. No. 1690 Introduced by Senator MANUEL "LITO" M. LAPID AN ACT CREATING A CACAO RESEARCH AND DEVELOPMENT CENTER, AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE The 1987 Constitution, Article XIII, Section 5 mandates that "[t]he State shall recognize the right of farmers, farmworkers, and landowners, as well as cooperatives and other independent farmers' organizations, to participate in the planning, organization, and management of agricultural programs, and shall provide support to agriculture through appropriate technology and research, and adequate financial, production, marketing, and other support services." Cacao is a small evergreen plant introduced to the Philippines during the Spanish colonial period between 1674 and 1680. Its seeds, commonly known as cacao beans, are processed into cocoa and chocolate, which have long been valued for both their culinary and medicinal uses. Global consumption of chocolate has been steadily increasing at an average annual rate of approximately three percent (3%), with emerging market demand particularly evident in Central Asia and Eastern Europe. Significant growth in demand has likewise been observed in mainland China, India, and several regions of the
Russian Federation. Major global processors such as Hershey's, Nestlé, and Mars source cacao beans through various international supply channels. Despite the country's rich and fertile soil, which is highly suitable for cacao production, the Philippines continues to import substantial quantities of cacao annually. In 2018, the country produced 7,983.20 metric tons of cacao and exported 2,732.60 metric tons of cacao beans, with the Davao Region accounting for approximately eighty-two percent (82%) of total national production. According to the Philippine Cacao Industry Roadmap 2021-2025 of the Department of Agriculture, the domestic cacao industry has exhibited a slow but positive growth trend, with an average annual area expansion of 2,743 hectares from 2013 to 2020. This growth has been attributed primarily to area expansion and seed and seedling dispersal programs implemented by the Department of Agriculture (DA), the Department of Environment and Natural Resources (DENR), and the Philippine Coconut Authority (PCA). Notwithstanding these gains, domestic supply remains insufficient to meet both local and international demand. Low productivity continues to persist due to high mortality rates of planting materials and limited technical knowledge among cacao growers. International prices of cacao beans have likewise shown a steady upward trend. Enhancing domestic production and export capacity would generate valuable foreign exchange earnings while simultaneously expanding livelihood opportunities and employment for Filipino farmers and workers. This measure seeks to establish a center vested with general powers and functions consistent with the research and development mandates of the Department of Agriculture-Bureau of Agricultural Research (DA-BAR), the Department of Science and Technology (DOST), the Department of Trade and Industry (DTI), and the Department of Economy, Planning and Development (DEPDev). The Center shall serve as a focal institution for the education and training of stakeholders in the cacao industry; the conduct of relevant research, scientific studies, and market development strategies; the extension of appropriate technologies; and the establishment of
linkages with international organizations and cacao development centers in other countries. In view of the foregoing, the early passage of this bill is earnestly sought. MANDEL "LITO" M. LAPID Senator
: Sitate Difice of the scrat TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session JAN 27 A10:13 SENATE RECEIVED BY: S. No. 1690 Introduced by Senator Manuel "Lito" M. Lapid AN ACT CREATING A CACAO RESEARCH AND DEVELOPMENT CENTER, AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Establishment of a Cacao Research and Development Center. -
6 The Cacao Research and Development Center is hereby established.
Sec. 2. General Powers and Functions. - The Center shall have the following
general powers and functions in line with the research and development programs of the Department of Agriculture - Bureau of Agricultural, Research (DA-BAR), Department of Science and Technology (DOST), Department of Trade and Industry (DTI), and Department of Economy, Planning and Development (DEPDev): a. Educate and train ail stakeholders of the cacao industry; b. Conduct relevant research, scientific study, and feasible marketing strategies; C. Extend technologies; and d. Establish linkages with international organizations and other cacao development centers in other countries.
Sec. 3. Specific Powers and Functions. - The Center shall have the following
specific powers and functions:
a. Develop productive, high yielding, good quality varieties of cacao; b. Develop efficient, economic and productive cacao production technologies; c. Develop effective and sound cacao processing technologies for varieties of cacao that the board may deem beneficial to our cacao industry; d. Develop effective production systems for all cacao varieties; e. Establish and maintain germ plasm collection and gene bank for cacao; f. Develop effective and efficient marketing systems for cacao; g. Evolve productive cacao-based farming systems; h. Develop and implement appropriate and suitable technology packages and effective technology transfer schemes, especially the conduct of training programs; i. Upgrade the skills of development facilitators, extensionists and farmers through trainings, seminars, and workshops on cacao production and postharvest handling and processing; j. Establish national and international linkages for cacao research, development, extension and production activities; and k. Coordinate with other government/non-government agencies involved in the development of the cacao industry.
Sec. 4. Qualifications of the Executive Director. - The Center shall be headed
by an Executive Director who shall be responsible for the planning, implementation, and supervision of the Center's program of activities. The Executive Director shall possess the following qualifications: a. Must have completed substantial and relevant education and must have experience in cacao research and development; and b. Must be of good moral character and must not have been involved in a legal case involving moral turpitude.
All other officers and employees of the Center shall be appointed by the Executive Director consistent with the provisions of the Civil Service laws, rules and regulations.
Sec. 5. Advisory Board. - The plans and programs of the Center shall be
reviewed annually by the Advisory Board composed of: a. The Secretary of the Department of Agriculture, or his designated representative, as Chairman; b. The Secretary of the Department of Trade and Industry, or his designated representative, as Vice Chairman; c. One (1) representative from a non-governmental organization (NGO) working on cacao production, research and development and processing; d. One (1) representative from the group of cacao traders; e. One (1) representative from the group of cacao processors; and f. One (1) representative from the group of cacao growers.
Sec. 6. Quorum. — The presence of at least four (4) members at the time of
the meeting shall constitute the quorum: Provided, that the Chairman, or the Vice Chairman in the former's absence, is present to preside.
Sec. 7. Appropriation. - The amount of Fifty Million Pesos (Php 50,000,000,00)
is hereby authorized to be appropriated from the Special Activities Fund of the President of the Republic of the Philippines, or from any other sources that may be identified for the purpose. Thereafter, such sum required for its operation, maintenance, research, and development shall be included in the annual General Appropriations Act.
Sec. 8. Repealing Clause. - All laws, presidential decrees, executive orders,
rules and regulations, or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, superseded or modified accordingly: Provided, however, That nothing in this Act shall amend, modify or repeal the provisions of Republic Act No. 7160, otherwise known as the Local Government Code.
Sec. 9. Separability Clause. - If any part or provision of this Act shall be held
2 unconstitutional or invalid, other provisions hereof which are not affected shall 3 continue to be in full force and effect.
Sec. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after
5 its publication in the Official Gazette or in at least two (2) newspapers of general 6 circulation. Approved,