senseneres: HOW CAN WE SUPPORT CACAO COTTAGE INDUSTRIES DEVELOPMENT?

HOW CAN WE SUPPORT CACAO COTTAGE INDUSTRIES DEVELOPMENT?

Whatever happened to NACIDA—the National Cottage Industries Development Authority? Filipinos of a certain age will remember the NACIDA label as a seal of quality and a symbol of livelihood for small artisans. But like many good institutions that faded into history without much explanation, NACIDA was abolished in the early 1980s, its functions absorbed by the Ministry of Industry and later by the Department of Trade and Industry (DTI). In its place, we now have the Bureau of Small and Medium Enterprise Development (BSMED), which serves as the national driver for MSME growth.

But why bring this up? Because I believe BSMED must now take a more active role in helping our cacao cottage industries, one of the most promising but still underdeveloped sectors in our agricultural economy.

Why Cacao? Why Now?

The Philippines has the climate, soil, and heritage for cacao. In fact, we were once known for producing “criollo,” one of the rarest and most flavorful cacao varieties in the world. Today, global chocolate demand continues to rise while cacao-producing regions in West Africa face aging trees and climate pressures. This is an opportunity—and we are not fully seizing it.

The problem is that most Filipino cacao farmers sell raw beans, the lowest-value form. Without equipment, they cannot process beans into semi-processed products that factories actually prefer: cocoa mass (or chocolate liquor), cocoa butter, cocoa powder, and nibs.

And this is where cottage industries—and BSMED—come in.

Let’s Talk About Standards

Not every cacao farmer can afford roasters, grinders, melangers, or food-grade drying facilities. Yet factories and exporters prefer standardized semi-processed forms like cocoa mass, usually sold in 25–50 kg blocks.

This is similar to copra in the coconut industry or “rubber clumps” used in rubber processing.

My suggestion:
BSMED should help establish a national standard product for small producers—similar to “chocolate mass”—that any chocolate factory will buy.

This solves several problems:

Farmers gain immediate, predictable income.
Small producers don’t need full processing lines to survive.
Factories receive consistent raw materials for butter, nibs, and powder.
Local supply chains strengthen, reducing dependence on imports.

This is not a theory. Around the world, cottage-level cacao processors already produce chocolate mass for bean-to-bar makers, bakeries, and small exporters.

But Can Cottage Industries Really Produce Chocolate Mass?

Yes. With modest equipment—a roaster, winnower, and grinder—small communities can produce chocolate mass in block form. Quality may vary, but through cooperatives and shared service facilities, consistency can be achieved.

This is exactly where BSMED excels:

Shared service facilities (SSFs)
Training programs
Market linkages
Certification support
Technology upgrading
Financing facilitation

If NACIDA once helped basket weavers and embroiderers, why can’t BSMED help small cacao processors?

We Need Cooperatives and LGUs on Board

A single farmer cannot meet industrial volume. But organized groups can.

Imagine cacao cooperatives across Davao, Bicol, Northern Mindanao, and CARAGA producing standardized chocolate mass using BSMED-supported equipment and training. LGUs can integrate cacao into their agroforestry plans. DA’s High Value Crops Development Program can help with seedlings and fermentation training. TESDA can certify workers in cacao processing skills.

Even better: local processors will no longer need to import cocoa mass—reducing dependence on Ghana, Ivory Coast, or Indonesia.

My Questions Moving Forward

Can BSMED designate cacao as a priority cottage industry and standardize chocolate mass as an MSME product?
Can LGUs help establish barangay-level cacao processing hubs?
Can cooperatives adopt semi-processing models, just as rubber and coconut industries do?
Can we revive the spirit of NACIDA—not the bureaucracy—but the mission?

The truth is simple:
If we want our cacao farmers to rise above raw bean prices, we must help them move up the value chain.

Supporting cacao cottage industries is not just about chocolate. It is about giving rural communities a fighting chance in a global market. It is about bringing back the spirit of NACIDA, updated for the 21st century.

It is about transforming opportunity into prosperity—one block of chocolate mass at a time.

RAMON IKE V. SENERES

www.facebook.com/ike.seneres iseneres@yahoo.com senseneres.blogspot.com 09088877282/08-11-2026