Davao ARBOs venture in Cacao Production

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SEVEN (7) agrarian reform beneficiaries’ organizations (ARBOs) in Davao City embarked on Cacao Production when they signed a deal with Kennemer Foods International, Inc. (KFII) for a period of 10 years.

The ARBOs include ARB Cooperative (BARBCO), Carmen Agricultural Multi-Purpose Cooperative (CAMPC), Balacan Development Multi-Purpose Cooperative, Suawan Proper Multi-Purpose Cooperative, Fatima Multi-Purpose Cooperative (FMC), Callawa Bonggan Employees ARB Cooperative (CABEARBCO) and Latungan Farmers Multi-Purpose Cooperative.


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

“The ARBs shall be provided with high quality cacao seedlings and they will be trained and coached on the proper care, cultivation and harvesting of the crop. However, the ARBOs shall exclusively sell their produce to our company,” Bakker said.

Provincial Agrarian Reform Program Officer II Ernesto Tan said more than two hundred fifty hectares will be planted to cacao in selected Agrarian Reform Communities (ARCs) as 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.
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“The KFII shall purchase all cacao beans produced by the 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,” Tan said.

The Department of Agrarian Reform (DAR) official added that cacao production is expected to boost ARBs’ net income of P90,000 per hectare (with 1,100 trees/ha.) in the next five years.