Despite being a net exporter of cacao beans, gaps in domestic value-adding continue to make the Philippines a net importer of processed cocoa products, according to a unit of the University of Asia and the Pacific (UAandP).
UAandP Center for Food and Agribusiness (CFA) research assistant Cy P. Reyes said local cacao production generally trended upward over the past five years, reaching a record 11,870 metric tons (MT) last year.
In 2025, Reyes said cocoa bean exports fetched $46.3 million, with imports reaching $2.14 million, resulting in a trade surplus of $44.16 million.
‘The increase in exports in 2025 coincided with higher cacao production, which may have supported the availability of beans for export,’ he said.
Data points to the Philippines being a net exporter of cocoa beans, but Reyes noted that it remains a ‘substantial net importer’ of processed cocoa products.
‘While the Philippines is a net exporter of raw cacao beans, it remains a net importer of processed products such as cocoa powder and chocolate, indicating gaps in domestic value-adding and processing capacity.’
According to Reyes, limited access to post-harvest facilities, particularly dryers and fermentary facilities, persists as a challenge for cacao farmers.
‘A cacao value chain assessment in Davao del Norte found that inadequate facilities limited farmers’ ability to produce high-quality fermented cacao beans, with some farmers continuing to sell wet beans or dried beans without adequate post-harvest processing.’
Reyes noted that limited farmer knowledge and technical skills affect cacao productivity and farm efficiency.
As with other crops, he said the domestic cacao industry is also beset with bottlenecks that constrain production, such as high input costs, climate-related shocks, and pests and diseases.
Despite this, Reyes said the sector has opportunities to improve productivity, value-addition, and develop higher-value cacao and chocolate products.
‘Cacao can be processed into tablea, cocoa powder, nibs, cocoa butter, paste or liquor, and chocolate confectionery, enabling diversification beyond raw bean production.’
He noted that the domestic industry can access higher-value international markets as Philippine cacao gains recognition abroad, including its recent entry into the New Zealand market.
Reyes added that improving bean quality, developing a distinct Philippine cacao identity, and expanding value-added processing can boost competitiveness and allow producers to capture greater value from growing local and global demand.
‘With rising farmgate prices and a growing international profile, the cacao industry has strong potential for continued growth and greater competitiveness.’