REPUBLIC OF THE PHILIPPINES

PROVINCE OF MISAMIS ORIENTAL

OFFICE OF THE PROVINCIAL GOVERNOR

December 18, 2014

RAYMUNDO G. AGRAVANTE
Regional Director
Department of Labor and Employment
Region X
Dear Director Agravante,
The Provincial Government of Misamis Oriental is pleased to present this
livelihood project proposal for your review. We look forward to partner with
you through the DOLE Integrated Livelihood Program as this would
essentially be a measurable success in improving the socio-economic wellbeing of our farmers in the Province of Misamis Oriental.
It is our vision to empower the farmers of Misamis Oriental to succeed in
the global economy. One of the directions toward this goal is to make
Misamis Oriental as one of the Philippines chocolate capital.
Misamis Oriental has more than one thousand five hundred (1,500)
potential farmers for cacao production with more than two thousand
hectares suitable for cacao plantation. Moreover, the VIRTUES of
producing cocoa in the Philippines includes : 1. Cocoa is SMALLHOLDER
friendly, 2. It is great in diversified farming systems, 3. It has a proven
record successes in the Province of Davao and the Province of Palawan,
4. It is agro-forestry compatible, and 5. It offers good income from
domestic and export markets.
Given such feasibility, we have engaged ties with an international
producer -Kennemer Foods International (KFI) of cacao beans to put up
hectares of cacao plantation in Misamis Oriental . KFI signified to provide
the farmers with an efficient technology in producing cacao, while the
Provincial Government shall purchase for the farmers the necessary
seedlings for plantation.

REPUBLIC OF THE PHILIPPINES

PROVINCE OF MISAMIS ORIENTAL
OFFICE OF THE PROVINCIAL GOVERNOR

What is needed is the assistance for the farmers to procure the

agricultural inputs for cacao production, hence, this proposal.
May this initial application be considered and we would appreciate
guidance on how to comply with the essential requirements for the
approval of our proposed livelihood project through your Intergrated
Livelihood Program.
Thank you very much for your continued support for the advancement of
the Province of Misamis Oriental and hoping for a positive response.
Sincerely yours,

YEVGENY VINCENTE B. EMANO

GOVERNOR

A Project Proposal on

REPUBLIC OF THE PHILIPPINES

PROVINCE OF MISAMIS ORIENTAL
OFFICE OF THE PROVINCIAL GOVERNOR
Cacao Production in Misamis Oriental
I.

Basic Information

1. Title

: Cacao Production in Misamis Oriental

2. Proponent

: PLGU-Misamis Oriental
Provincial Capitol Building, Velez St.
9000 Cagayan de Oro City

1. Contact Person

: Ms. Jonafe G. Tapulgo - Rodas

PESO Manager
Contact Nos. : Telefax 745-719
Email-pesomisamisoriental@gmail.com
2. Contact Person
: Ms. Conception C. Salcedo
Acting Provincial Agriculturist
Contact Nos.
: Telefax-(08822) 727293 / 727234
Email-mor_r10@yahoo.com
3. Project Duration

: 12 Months (CY 2015)

4. Project Location

: Province-wide

5. Total Project Cost

Budget Requested
Proponent Counterpart
PLGU
Farmer-clients
DOLE
II.

: PHP 3,292,125.00
: PHP 1,000,000.00
: PHP 1,000,000.00
: PHP
371,250.00
: PHP 1,920,875.00

Project Description

1. Rationale
Cacao, commonly called cocoa, is economically significant to the Philippine
agriculture sector; with the rising demand for cocoa and cocoa-based products in both
domestic and global markets. There are cacao products worldwide and the market for the
demand sets its eyes on the Philippines. Cacao beans are used in manufacturing chocolate
and could be intercropped with other agricultural plants like coconut trees. A cacao tree can
bear beans all-year-round one and a half years after planting but it becomes more
productive after three years. Accordingly, a hectare of cacao plants could generate as much
as PHP 200,000 annually compared to PHP 40,000 estimated annual income derived from

REPUBLIC OF THE PHILIPPINES

PROVINCE OF MISAMIS ORIENTAL
OFFICE OF THE PROVINCIAL GOVERNOR
coconuts. More cacao trees are now being planted in line with the 2020 goal of the industry
to supply 100,000 metric tons of dried cacao beans per year for the world market.
Misamis Oriental is beginning the first few steps to becoming the Philippines
chocolate capital as an international producer of cacao beans has tapped the province to put
up hectares of cacao plantation. Governor Yevgeny Vincente B. Emano, in his State of the
Province Address (SOPA), revealed that Kennemer Foods International (KFI) has entered
into an agreement with Misamis Oriental where 1,000 hectares of land have already been
made ready for the planting of cacao trees. Although the target is to have at least 30,000
hectares of cacao plantation to be able to have a chocolate plant, the provinces chief
executive is optimistic to realize the vision to make Misamis Oriental the chocolate capital of
the country.
2. Objectives
a. To integrate and scale-up cacao production in Misamis Orientals 23 municipal towns
and two component cities of El Salvador in the west district and Gingoog City in the
east district;
b. To help increase and sustain agricultural productivity and income thru the
development of the cacao industry being one of the top concerns of the current
administration and enable to alleviate the poverty of farmers in the province;
c. To provide an avenue for coordination and assistance among the different
implementers and stakeholders (i.e. PLGU, Kennemer Foods Inc., Funding
institutions [Department of Labor and Employment Region X], farmers association,
etc.) in the development of the cacao industry;
d. To harness and maximize the utilization of available, yet, limited local resources
especially agricultural lands for the realization of priority projects in the agriculture
and fisheries sector; and
e. To improve or sustain agricultural productivity by providing the appropriate
agricultural support services.

3. Expected Output
a. 50 hectares of cacao intercropped under coconut or banana;

REPUBLIC OF THE PHILIPPINES

PROVINCE OF MISAMIS ORIENTAL
OFFICE OF THE PROVINCIAL GOVERNOR
b. Interested coconut and banana farming families undertake technology training on
cacao and cacao-related activities; and
c. Income of PHP 200,000 annually for bearing cacao compared to PHP 40,000
estimated annual income derived from coconuts
4.
a.
b.
c.
d.

Activities
On-site inspection/evaluation by PLGU-Mis. Or./KFI
Technology training on cacao production and other cacao-related activities
Actual planting and maintenance
Monitoring and evaluation

5. Beneficiaries/Partners
50 coconut/banana farmers in Misamis Oriental (assumption: 1 farmer = 1 hectare)
6. Timetable of Activities
Activity

Implementation schedules (Months)

1

10

11

12

On-site inspection/
evaluation
Technology
training
Planting and
maintenance
Monitoring and
Evaluation
7. Economic Benefits/Impacts
a. Coconut farming families increased income from PHP 40,000 to PHP 200,000
annually (bearing cacao) as compared to coconut
b. Job generation
c. Establish strong/active/viable cooperatives/organizations

8. Sustainability Plan
a. Continued capability building of cooperatives/organizations in linking with institutions
to develop market opportunities.

REPUBLIC OF THE PHILIPPINES

PROVINCE OF MISAMIS ORIENTAL
OFFICE OF THE PROVINCIAL GOVERNOR
b. Strengthen cooperatives/ organization especially on project implementation/policies
on technical, financial and marketing aspects.
c. A Memorandum of Agreement should be executed between PLGU/KFI/Farmerclient/Farmer Organization/DOLE stipulating roles of each party, how to develop fund
for maintenance and how to sustain the project.
d. Periodic monitoring and evaluation.
9. Work and Financial Plan

Activity

Description

Total Amount

PLGU
Counterpart

DOLE
Counterpart

Farmer
Counterpart

Remarks

On-site inspection/
evaluation

55
hectares

PLGU/
MLGU/
KFI

Technology
training

55 farmers

KFI

Planting and
maintenance

55
hectares

Monitoring and
Evaluation

55
hectares/
farmers

Total

3,292,125

1,000,000

1,920,875

371,250

3,292,125

1,000,000

1,920,875

371,250

Note: Please see attached Production Cost per Hectare.

PLGU/
MLGU/
KFI/
Farmer
PLGU/
MLGU/
KFI