Assessing the economic impact of the enhancement of cacao value adding program on local cacao growers and farmers in the municipality of Lasam, Cagayan valley, Philippines

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Research Paper 03/12/2025
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Assessing the economic impact of the enhancement of cacao value adding program on local cacao growers and farmers in the municipality of Lasam, Cagayan valley, Philippines

Wilfredo M. Perciano, Angelito B. Salas
J. Biodiv. & Environ. Sci. 27(6), 1-8, December 2025.
Copyright Statement: Copyright 2025; The Author(s).
License: CC BY-NC 4.0

Abstract

This study assesses the economic impact of the enhanced cacao value-adding program on local cacao growers in the Municipality of Lasam, Cagayan Valley, Philippines. The program, which focuses on processing cacao into value-added products such as chocolate and cacao powder, aims to improve the economic standing of smallholder farmers by increasing income, generating employment, and enhancing agricultural productivity. Using descriptive and explanatory methods, the study analyzes income changes, employment generation, yield and quality improvements, and market access before and after the program’s implementation. Findings indicate an 80% increase in farmer income, a 25% improvement in cacao yield, and a 20% enhancement in bean quality. The program also resulted in an 80% rise in local employment. However, challenges such as limited access to capital, technical knowledge, and infrastructure remain. The study concludes that the cacao value-adding program has significantly contributed to local economic development but requires further support to ensure sustainability.

Balderama JE, de Guzman MD, Alcaraz FM. 2019. Sustainable cacao farming practices in the Philippines: approaches and strategies for climate resilience. Philippine Agricultural Journal 34(2), 78–91.

Cacao Growers of Lasam. 2022. Enhancing the cacao value chain in Lasam: a community-driven initiative. https://www.lasamcacao.org

Cagayan Valley Agricultural Extension Services. 2017. Cacao industry development plan for Cagayan Valley. Department of Agriculture, Cagayan Valley Region.

Dizon LA. 2017. Access to finance and its role in improving agricultural productivity: a case study of cacao farmers in the Cagayan Valley. Journal of Rural Development Studies 14(3), 102–118. https://doi.org/10.1016/j.jrds.2017.05.005

Food and Agriculture Organization. 2018. Cacao value chains and their contribution to rural economies. FAO Agricultural Development Policy Brief No. 3. Rome, Italy.

Gonzalez EG. 2016. Public–private partnerships in agricultural development: a case study of cacao production in the Philippines. Asian Economic Policy Review 11(4), 200–214.

Peñalosa MA, Tan MD, Reyes MV. 2020. Building capacities in agriculture: training programs for cacao farmers in the Philippines. Philippine Development Review 42(1), 123–137.

Saguiguit ME. 2018. Cooperatives and collective action: empowering cacao farmers for better market access. Philippine Agricultural Economics Journal 30(2), 45–59.

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