The Philippines could reclaim its position as one of Asia’s top cocoa producers if farmers would receive adequate funding and proper training to prop up their output, according to the founder of a newly launched homegrown chocolate brand.
Raul Matias, owner and founder of Bayani Chocolate, said in an interview with BusinessMirror during the brand’s launch on Saturday at Opus Mall in Quezon City that while the Philippines was once a promising player in the global cocoa market due to its favorable geographic and climatic conditions, limited government support and inconsistent farming practices have long stifled the industry’s growth.
‘I hope they [government] give us attention, especially the farmers, to give them money where they can allocate money,’ Matias said. ‘I know we have so many problems, but I think we have a potential to be one of the significant suppliers of cocoa.’
He added that due to the current shortage of local cacao, the brand is now ‘forced to source ingredients from other countries, such as Indonesia and Malaysia, instead of sourcing primarily from the Philippines.’
Historical data from the Department of Agriculture (DA) showed that cacao was first planted in the Philippines in 1670, with production peaking at 35,000 metric tons (MT) by 1990. Output later declined due to weather disturbances, pest and disease infestations, aging trees, and competition from other crops such as banana and palm oil.
Between 2020 and 2022, the Philippines experienced a supply-demand gap in cocoa production, as local output of around 10,000 to 15,000 MT per year could not meet the estimated annual consumption of about 50,000 MT. The gap continues to persist as demand grows faster than production. Average yields remain low at around 0.5 to 1 kilogram per tree annually-well below the industry target of 2 kilograms per tree.
Recent data from the Philippine Statistics Authority (PSA) showed some improvement, with cacao production reaching 2,980 MT from January to March 2025, up 23.6 percent from 2,410 MT in the same period last year. The Davao Region remained the top producer, accounting for 64.2 percent of national output, or 1,910 MT.
Despite the increase, productivity challenges remain, particularly due to high seedling mortality rates and limited technical knowledge among growers.
‘The problem with the Philippine cocoa is the fermentation,’ Matias said.
He said some farmers shorten the fermentation process to three or four days instead of the standard period, which affects the flavor once the beans are roasted and ground.
‘Some say it takes seven to eight days, but many only ferment for three or four days. When that happens, the bitterness comes out when you roast and grind the beans.’
He added that the practice is often driven by economic necessity. ‘You can’t blame them-they just want to make a living,’ Matias said, noting that many locally made chocolate tablets in the market come from improperly fermented beans.
Meanwhile, Matias also urged fellow local entrepreneurs to produce better-quality products to strengthen Filipino brands in the market.
‘I hope to the Filipinos, to the businessmen, make your brands marketable, don’t make mediocre brands,’ Matias said. ‘If we give consumers better options, they’ll choose local brands.’