Agrarian reform coops ink cacao production agreement with private firm

DAVAO CITY, July 24 – More than 250 hectares will be planted to cacao in selected Agrarian Reform Communities (ARCs) in Davao City after seven agrarian reform beneficiary organizations inked a ten-year Cacao Production and Purchase Agreement with Kennemer Foods International, Inc.

Among the involved ARBOs include the Biao ARB Cooperative (BARBCO) in Tugbok District; Carmen Agricultural Multi-Purpose Cooperative (CAMPC) and Balacan Development Multi-Purpose Cooperative, both in Baguio District; and Suawan Proper Multi-Purpose Cooperative in Marilog District.

The other organizations that signed the agreement were the Fatima Multi-Purpose Cooperative (FMC) and Latungan Farmers Multi-Purpose Cooperative in Paquibato District; and Callawa Bonggan Employees ARB Cooperative (CABEARBCO) in Buhangin.

The CPPA was recently signed during the yearly gathering of ARBs and stakeholders of the Comprehensive Agrarian Reform Program (CARP) in Davao City, dubbed as “Pakiglambigit” 2014.

Provincial Agrarian Reform Program Officer Ernesto B. Tan said that with this venture it is expected that at least 300 agrarian reform beneficiaries who are into cacao production shall have an increased net income of P90,000 per hectare with 1,100 trees per hectare in the next five years.

KFII President Simon Bakker said their company is engaged in the commercial farming of cacao, and has the technology, technical and management expertise, and marketing capability required to plant, cultivate, harvest, market and export cacao.

The ARBs, who will be provided with high quality cacao seedlings, will be trained and coached on the proper care, cultivation and harvesting of cacaos which shall be exclusively sold to the company.

Tan said the ARBOs may establish a cacao nursery upon the recommendation of KFII for its cacao production with the close supervision and technical assistance of the company.

KFII shall purchase all cacao beans produced by the seven ARBOs at a competitive price guaranteed to be no less than seventy percent (70%) of the world price of cocoa on the day when the beans are sold.

A total of PhP24 million loan from the Land Bank of the Philippines under the Agrarian Production Credit Program (APCP) of the Department of Agrarian Reform will finance the cacao production.

Ruel D. Larosa, chief of DAR Davao City’s Program Beneficiaries Development (PBD), said that DAR is assisting these cooperatives in the submission of loan requirements with LBP. (DARPO-Davao City/Fraulein G. Montañez)