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October 2015
Kennemer FoodsI N T E R N A T I O N A L
Introduction
Kennemer Foods International,
Incorporated (KFI) is a producer and
marketer of food and agricultural
products.
We specialize in growing and trading
of high-quality agricultural crops,
especially fermented cacao beans.
We are committed to rural
development by promoting market
transparency, providing fair value
pricing for produce and the
implementation of sustainable
farming practices.
Our products and programs
encompass complete agricultural
value-chain from planting materials,
training, agri-technology to market
Wet Cacao
Beans
Mars Chocolate Brands
• 40 tropical countries
• World production of 4 million tons per year
• 90% of production comes from 5.5 mln small holders
• Current price of US$ 2,900/ton
Product Overview
5.2
5.0
4.8
4.6
4.4
4.2
4.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Projected Shortfall of Supply
Over next 10 years the world will need additional 1 mln mt’s of Cocoa
• Annual production estimated 6,000 – 8,000 tons
• Net importer of 30,000 tons bean-equivalent
• Existing trees old and low yielding
• Local cocoa farmers sun-dry their beans only
• 90% comes from Region 11 – Davao Norte, City, Sur
Philippine Cocoa Industry
Business Model
Sourcing financing for farmers
Grower clusters and technology as enablers for scale-up
Global best practices to increase yield and quality
Planting Material and Other Inputs
Farmer Training and Supervision
Monitoringand Evaluation
Post Harvest Assistance
Guaranteed Buy Back
Inputs, Financing, Tech. Assist. Beans
Financing Assistance
Cacao Doctor Network
Kennemer Cacao Growership Program
© 2014 Kennemer Foods International, Inc. All rights reserved.
(KCC)
(KCC)
(Cocoa Doctors)
(KCC)
(Cocoa Doctors)
(KCC)
(Cocoa Doctors)
(KCC)
(COCOA DOCTOR)
(COCOA DOCTOR)
(COCOA DOCTOR)
(COCOA
DOCTOR)
Creating the New Normal
0.5 t/ Ha
2 t/ Ha
FertilizerCurrentKnowledge
& Pest Control
Planting
Materials
4X
Government Partnerships
DAR-KFI National Cacao
Planting Initiative
National Greening Program
Philippine Rural Development
Program
Pablo Rehabilitation
Program
Cacao
100
Program
PCA-KFI Cacao
Program
Brookes Nursery
Irawan Nursery
Philippine Potential
New Cocoa Farm, UF 18’s – 2 years and 2 months after plantingNew Cacao Farm, UF18’s – 2 years and 2 months after planting.
Palawan Growership Program
• Government/LGU
–Provincial Cacao Program
–NGP
• Private Growers– Cooperatives
– Associations
– Individuals
Financing Program
• PEEDO (Palawan Provincial Gov)– 1 hectare per family
– loan of P66thousand
– 7 years loan term
• Land Bank
– Cacao 100 program
• Other financial institutions
• Self-financed ( growers)
Growership Status September 2015
• PGP Program - Planted 1,000 hectares ; 800,000 trees
• Private Growers – Planted 150 hectares ; 110,000 trees
• NGP - Planting of 500,000 seedlings on going
• Training - 150 Cacao Doctors;
• - 1,100 farmers
Next Five Years total Planting
• Palawan PGP Program - 12,000 ha ; 9.6M Trees
• Private Growers - 1,000 ha ; 0.8M trees
• NGP/PPC LGU/ Others - 2,000 ha ; 1.6.M Trees
• Total Palawan 15,000 ha; 12,000 million trees
• Estimated production of Dried/Fermented - 20 – 25 MT
30
Bohol
Davao del Sur
Davao City
Compostela Valley
Davao del Norte
Palawan
Zamboanga Sibugay
Zamboanga del Sur
Zamboanga del Norte
Southern Leyte
Davao Oriental
Agusan del Sur
Cebu
Cam Sur
Sorsogon
Misamis Occ
Leyte
Negros Oriental
1M trees
25M trees
15 M trees
4.7M trees
3.5M trees
49Mtrees 2014-2020
5Strategic
Zones
Expansion
Areas
Cacao Growership Agreement
Kennemer Grower
Supply Seedlings Provide land
Provide Training-Good Agricultural Practices
Provide labor and capital for plantation establishment
Assist Growers in securing financing Loan documentation
Regular Monitoring of Cacao farm conditions
Follow standard practices in cacao growership
Post Harvest Facilities Provide labor to harvest
Guaranty Purchase of cacao beans Sell beans to Kennemer
