Cost and Return Analysis of Small-scale Cacao (Theobroma cacao) Production in Camarines Sur, Philippines

Abstract

The presence of cacao industry plays a critical role in the economic development of a country. A study was conducted to determine the cost, return and added value along the value chain stages of cacao in Camarines Sur, Philippines. Sixty-eight farmers served as respondents using purposive sampling technique and interviews/key informant surveys were conducted. Results of the study showed that cacao production has high return on investment of 77.89% and 160% for the farmer and processor, respectively but a low return on investment of 13% for traders. The value added from farmer to processor is Php 590.00/kilogram, and Php 125.00/kilogram from processor to trader. Various opportunities and prospects for cacao production had been identified such as increased technical and production support from the government, presence of R & D programs, increasing trend towards wellness & healthy lifestyle, and increasing businesses offering cocoa-based products. Recommendations include improvement in access and availability of processing facilities, improvement of market information for farmers, provision of trainings to enhance capability of farmers, strengthening of farmers’ groups to increase their access to technical and financial assistance from government and provision of infrastructure support and storage facilities.