Philippines exports cacao beans but remains reliant on processed cocoa imports
Philippine cacao production reached a record 11,870 metric tons, while cocoa bean trade generated a $44.16 million surplus in 2025. Yet limited post-harvest and processing capacity leaves the country a substantial net importer of cocoa powder, chocolate and other processed products.
Bean exports rise with record production
The Philippines has strengthened its position as a net exporter of cacao beans, but its domestic industry still captures only part of the crop’s potential value. BusinessMirror reported that local production generally increased over the past five years and reached a record 11,870 metric tons last year, according to Cy P. Reyes, a research assistant at the University of Asia and the Pacific’s Center for Food and Agribusiness.
The increase supported a positive trade balance in raw beans. In 2025, Philippine cocoa bean exports earned $46.3 million, compared with imports of $2.14 million. That produced a trade surplus of $44.16 million. Reyes said the rise in exports coincided with higher cacao production, which may have increased the availability of beans for overseas buyers.
The bean figures, however, present only one side of the industry. Despite exporting more raw material than it imports, the Philippines remains a substantial net importer of processed cocoa products, including cocoa powder and chocolate. The contrast points to a gap between agricultural output and the country’s ability to convert beans into higher-value ingredients and consumer goods.
Post-harvest constraints affect bean quality
Processing limitations begin before industrial grinding. Reyes identified restricted access to dryers and fermentation facilities as a continuing problem for cacao farmers. A value-chain assessment in Davao del Norte found that inadequate infrastructure prevented some growers from producing high-quality fermented beans. Some farmers continued to sell wet beans or beans dried without sufficient post-harvest treatment.
Fermentation and drying influence the quality and commercial use of cacao delivered to processors. Weak capacity at this stage can limit the amount of consistent material available for higher-value production. BusinessMirror also cited limited farmer knowledge and technical skills as factors affecting productivity and farm efficiency.
Other constraints are familiar across Philippine agriculture. High input costs weigh on producers, while climate-related shocks, pests and diseases restrict output. Together, these pressures affect both the volume of beans available and the reliability of supply needed by companies considering investment in domestic processing.
More products could be made locally
The range of possible products extends well beyond raw beans. Cacao can be converted into tablea, cocoa powder, nibs, cocoa butter, cocoa paste or liquor, and chocolate confectionery. Building capacity across these categories would give farmers and processors more ways to serve local demand and pursue higher-value international markets.
Philippine cacao is also gaining visibility abroad. Reyes pointed to its recent entry into the New Zealand market as evidence of an expanding international profile. Better bean quality and a distinct Philippine cacao identity could support that momentum, particularly for producers seeking markets that reward origin, fermentation and product differentiation.
The central industry challenge is therefore not simply to grow more cacao. The record harvest and the $44.16 million bean trade surplus show that the Philippines can produce exportable supply. Capturing more value domestically will also require post-harvest facilities, stronger technical skills and enough processing capacity to manufacture the cocoa powder, butter, liquor and chocolate that the country currently imports. Rising farmgate prices and wider international recognition create an opportunity, but processors and investors will need a dependable flow of quality beans before the gap can narrow.
