Agriculture research in Philippines
J
I'm looking at agricultural businesses in Davao, Philippines.
CG
Agriculture in Davao could offer a different kind of stability compared to tech or manufacturing, especially if global trade tensions affect those sectors. Davao is known for its fertile land, particularly for growing crops like bananas, pineapples, and coconuts, and it has been developing as an agricultural hub. Have you been looking into specific types of agricultural ventures, or are you exploring the broader market?
J
The piece of land that a friend of ours who lives down there has said is available has mango trees on it, but she has said that growing cacao is an interesting business to explore.
CG
Mango trees are a great start, especially in Davao, where the climate is ideal for fruit production. If you’re considering expanding into cacao, that could be a smart move. Cacao is in demand globally, especially with the growing popularity of artisanal and organic chocolate. Davao has been recognized as a top cacao-producing region in the Philippines, and there’s increasing support for the cacao industry, from local and international markets.
Cacao farming does require some upfront investment in terms of land preparation and care, but it can yield good returns in the long term. It’s also worth considering the potential for value-added products, like cacao-based goods (chocolate, beverages, etc.), which could help diversify your business.
Do you see yourself focusing primarily on cacao, or would you be incorporating other crops or products as well?
J
Possibly other crops, but what kind of land preparation were you referring to in terms of growing cacao?
CG
Cacao requires specific land preparation to thrive. The soil should be well-draining, fertile, and rich in organic matter. If the soil is acidic, it may need some lime to balance it.
Clearing the land: This involves removing any existing vegetation, weeds, or debris that might compete with the cacao plants.
Soil testing and amendment: Testing the soil for pH and nutrient levels is important. If necessary, you'll need to add organic compost, manure, or specific fertilizers to boost soil quality.
Shading: Cacao trees need partial shade, so you'll need to plant shade trees or have natural shade on the land. These trees protect cacao from strong sunlight and help maintain moisture levels in the soil.
Planting layout: Cacao trees are usually planted in rows with enough space between them to allow for proper growth. A common spacing is around 3 meters between trees.
Irrigation setup: Cacao requires a lot of water, so setting up an irrigation system is important, especially during the dry season.
Pest and disease management: The land will need regular monitoring for pests and diseases, such as the cacao pod borer and black pod disease, which can damage crops.
If you’re looking to grow other crops alongside cacao, you could consider companion planting with crops that benefit from the same conditions, like bananas, coconuts, or even pineapples. This can help diversify your farm and reduce risks.
Do you think the land you’re considering has these factors, or would it need a lot of adjustments?
J
I think it has those factors, but I don't know how much cacao I would need to plant in order to turn even a modest profit.
CG
To turn a modest profit from cacao, the scale of planting will depend on a few factors, like how much land you have, the yield per tree, and the current market price of cacao. On average, a mature cacao tree can produce around 500 grams to 1 kilogram of dry cacao beans per year. Some high-quality farms might yield more, but that’s a reasonable baseline.
For a rough estimate, here’s what you might need to consider:
Tree Density: As I mentioned, cacao trees are often spaced about 3 meters apart, which means you could fit about 1,100 to 1,300 trees per hectare, depending on the land’s exact shape and layout.
Yield: With about 1 kilogram of dry beans per tree annually, you might expect around 1,100 to 1,300 kilograms (1.1 to 1.3 tons) of cacao per hectare per year.
Market Prices: Prices for cacao beans fluctuate, but for the sake of estimation, let’s say the price is around $2 to $3 per kilogram of dried cacao beans. That would give you a potential revenue of $2,200 to $3,900 per hectare, depending on the yield and market conditions.
Costs: There are upfront costs for land preparation, planting, and irrigation, plus ongoing maintenance costs, such as labor, fertilizers, and pest control. These costs can vary significantly based on local conditions, but it’s good to have a buffer in your budget for these operational expenses.
If you're aiming for a modest profit, you might want to start small with a couple of hectares and scale up once you see how things go. Diversifying your farm with other crops, as you mentioned, could help stabilize your income while you grow the cacao trees to full production, which can take 3-4 years.
Do you think you'd start with a couple of hectares, or are you thinking of going bigger from the start?
J
No, a couple of hectares would be probably the most, but you're saying that I could probably guesstimate maybe $3,900 per hectare on a good year. That's only, with two hectares, that's only around $8,000 a year from all of that work and from that land. That doesn't seem like very much.
CG
You’re absolutely right to think that $8,000 a year from two hectares of cacao might not feel like a lot, especially when you consider the work involved and the upfront costs. While cacao farming can be profitable in the long term, it’s often a gradual process, especially in the early years.
Here’s a couple of things to keep in mind:
Time to Maturity: Cacao trees take 3-4 years to start producing significant yields, and the highest yields often don’t come until the trees are 5-7 years old. During those early years, you'd still be investing time, resources, and labor without much return.
Value-Added Products: The price of raw cacao beans can be relatively low, but if you process the cacao yourself—turning it into cocoa powder, chocolate, or cacao nibs—you can significantly increase the value of your product. This requires additional investment in equipment and knowledge, but it could boost your profit margin.
Diversification: If you're planting cacao alongside other crops like mango, bananas, or coconuts, you could generate income from those sooner. These crops can provide cash flow while your cacao trees mature.
Export Opportunities: If you're able to tap into the premium markets for organic or specialty cacao, you could fetch higher prices than the general market rate. The Philippines has a growing reputation for producing high-quality cacao, which could give you an edge if you're able to produce a standout product.
It’s true that cacao farming can take some patience, but if you build a diverse, value-added operation, it could gradually become a more significant income source.
Have you considered adding value to the cacao or looking into other complementary crops that could bring in revenue sooner?
J
Well, first, what's the lifespan of a cacao tree?
CG
Cacao trees typically live for about 25 to 30 years, although their most productive years are usually between 10 and 20 years. After that, the yield tends to decrease, and the tree may require more care or even replacement. Regular maintenance, like pruning, can help extend the productive years of the tree, but most cacao farmers will start replanting after a couple of decades to keep their production consistent.
Does the lifespan of the tree affect your decision, or are you thinking about long-term planning for the farm?
J
No, I'm just gathering information right now. What about diseases and pests? Are they easy to control or can that wipe out an entire crop?
CG
It’s great that you're gathering all the details. Cacao trees are susceptible to several diseases and pests, and they can definitely impact yields if not managed properly.
Common cacao pests and diseases include:
Cacao Pod Borer (Conopomorpha cramerella): This pest bores into cacao pods, causing significant damage to the beans. It’s one of the most destructive pests and can lead to major crop loss if not controlled. Regular monitoring and pest control methods like pheromone traps or biological control can help manage it.
Black Pod Disease (Phytophthora palmivora): This is a fungal disease that affects the cacao pods, causing them to rot and fall off the tree. It can spread quickly in humid conditions. Preventative measures, such as pruning to improve air circulation, applying fungicides, and removing infected pods, can help, but it can still be a major threat if left unchecked.
Witches' Broom (Crinipellis perniciosa): This fungal disease causes the cacao tree to produce abnormal growths, or "brooms," which lead to reduced pod production and eventually kill the tree. It's harder to control and requires strict management practices, like removing affected branches and using fungicides.
Mealybugs and Whiteflies: These pests feed on cacao trees and can spread viruses. They can be controlled with insecticides or through natural predators like ladybugs.
Control measures typically include a mix of cultural practices (like pruning, spacing, and proper sanitation), organic treatments (such as neem oil), and, in some cases, chemical control (like fungicides or insecticides). Integrated pest management (IPM) is often the best approach, as it combines prevention, monitoring, and treatment with minimal environmental impact.
While these issues can be serious, with proper care, they can be managed. It’s crucial to regularly inspect the trees, especially during the rainy season, when diseases like black pod tend to thrive.
In the long run, maintaining healthy trees through good agricultural practices—like proper spacing, soil health, and pest management—can prevent these issues from wiping out an entire crop.
Are you planning on managing pest control yourself, or would you hire experts to help with that?
J
Probably a combination, but how prevalent are these diseases down in southern Philippines, Davao area?
CG
In the Davao region, which is known for being a cacao-producing area, diseases and pests do exist, but the level of prevalence can vary based on specific locations, climate, and farming practices. Some key factors for the region are:
Cacao Pod Borer: This pest is present in many cacao-growing regions worldwide, including Davao, but it's not as rampant if farmers practice good pest management. The warm, humid climate in Davao is ideal for its spread, but regular monitoring and the use of pheromone traps can help keep it in check.
Black Pod Disease: This fungal disease is a common issue in many cacao-growing areas, including Davao, particularly during the rainy season. It thrives in high humidity, which is typical of the region, but again, it can be managed with proper practices like pruning, removing infected pods, and applying fungicides.
Witches' Broom: While it is present in some cacao regions, this disease is less common in Davao compared to other areas in the Philippines. However, it's still a risk, especially if farms aren't following best practices for sanitation and tree care.
Other pests like mealybugs and whiteflies: These pests can be an issue in Davao as well, but they tend to be easier to control with natural predators and organic treatments.
The good news is that Davao’s cacao industry is well-established, and there are agricultural support systems in place to help farmers manage these threats. Many farmers in the region are experienced with pest and disease management, so the local knowledge and expertise can be a valuable resource.
If you're planning to start a cacao farm there, the prevalence of these issues shouldn’t be a dealbreaker as long as you're proactive with pest management. Given the right care and attention, it's possible to avoid major losses.
Would you be interested in connecting with local farmers or agricultural experts in Davao to get more specifics on the current pest and disease situation?
J
The pheromone traps are expensive in my experience.
CG
You’re right—pheromone traps can be costly, especially when you’re looking to cover a larger area. While they are effective, they might not be the most budget-friendly option for managing pests long-term.
Fortunately, there are some alternative methods that can help reduce costs:
Cultural Control: Simple practices like pruning and spacing trees properly can help reduce the spread of pests. Removing fallen pods and debris regularly can minimize the places where pests like the cacao pod borer might breed.
Biological Control: Introducing natural predators to control pests can be a low-cost alternative. For example, ladybugs and predatory beetles help control mealybugs and other small pests. Local agricultural extension services may offer guidance on which predators are effective for cacao farming in Davao.
Neem Oil: A more affordable, organic alternative to pesticides, neem oil is effective against many pests and diseases. It's also environmentally friendly and can be used as a preventive measure.
Intercropping: Growing companion plants that repel pests can also help. For example, planting certain herbs or flowers around cacao trees can act as a natural repellent for pests like whiteflies and mealybugs.
Manual Trapping: For pests like the cacao pod borer, you can set up manual traps (e.g., using baited containers or simple sticky traps) at a lower cost, though it requires more hands-on work.
Farm Hygiene: Keeping the farm clean by removing infected or diseased pods, leaves, and debris can drastically reduce the risk of pest outbreaks and disease spread.
Starting with a combination of these lower-cost strategies might allow you to manage pests effectively without the high cost of pheromone traps. Over time, you can adjust your approach based on what works best for your specific land and conditions.
