Cacao Culture in the Philippines

by William Scrugham Lyon

Malarial fevers are relatively few, predacious animals unknown, and insects and reptiles prejudicial to human life or health extraordinarily few in number. In contrast to this we need only call attention to the entire Caribbean coast of South America, where the climate and soil conditions are such that the cacao comes to a superlative degree of perfection, and yet the limits of its further extension have probably been reached by the insuperable barrier of a climate so insalubrious that the Caucasian’s life is one endless conflict with disease, and when not engaged in active combat with some form of malarial poisoning his energies are concentrated upon battle with the various insect or animal pests that make life a burden in such regions.

Nonresidence upon a cacao plantation is an equivalent term for ultimate failure. Every operation demands the exercise of the observant eye and the directing hand of a master, but there is no field of horticultural effort that offers more assured reward, or that will more richly repay close study and the application of methods wrought out as the sequence of those studies.

Estimated Cost and Revenues Derived from a Cacao Plantation.

Estimates of expenses in establishing a cacao farm in the Visayas and profits after the fifth year. The size of the farm selected is 16 hectares, the amount of land prescribed by Congress of a single public land entry. The cost of procuring such a tract of land is as yet undetermined and can not be reckoned in the following tables. The prices of the crop are estimated at 48 cents per kilo, which is the current price for the best grades of cacao in the world’s markets. The yield per tree is given as 2 catties, or 1.25 kilos, a fair and conservative estimate for a good tree, with little or no cultivation. The prices for unskilled labor are 25 per cent in advance of the farm hand in the Visayan islands. No provision is made for management or supervision, as the owner will, it is assumed, act as manager.

Charges to capital account are given for the second, third, and fourth year, but no current expenses are given, for other crops are to defray operating expenses until the cacao trees begin to bear. No estimate of residence is given. All accounts are in United States currency.

Expendablethe first year.
Capitalaccount:
	Clearing of average brush and timber land, at$15 per hectare	$340.00
	Four carabaos, plows, harrows, cultivators, carts,etc.	550.00
	Breaking and preparing land, at $5 per hectare	80.00
	Opening main drainage canals, at $6 per hectare	96.00
	Tool house and storeroom	200.00
	Purchase and planting 10,000 abacá stools, at 2cents each	200.00
	Seed purchase, rearing and planting 12,000 cacao, at 3cents each	360.00
	Contingent and incidental	174.00
	Total		$2,000.00
Secondyear.
	Interest on investment	$200.00
	Depreciation on tools, buildings, and animals (20 percent of cost)	150.00
			350.00
Thirdyear.
	Interest on investment	$200.00
	Depreciation as above	150.00
			350.00
Fourthyear.
	Interest on investment	$200.00
	Depreciation as above	150.00
	Building of drying house and sweat boxes, capacity20,000 kilos	450.00
			$800.00
	Total capital investment		3,500.00
Fifthyear.
Incomeaccount:
	From 11,680 cacao trees, 300 grams cacao each, equals3,500 kilos, at 48 cents		1,680.00
Expenseaccount:
	Fixed interest and depreciation charges on investmentof $3,500.00	$350.00
	Taxes 1½ per cent on a one-third valuationbasis of $250 per hectare	60.00
	Cultivating, pruning, etc., at $5.50 per hectare	88.00
	Fertilizing, at $6 per hectare	96.00
	Harvesting, curing, packing 3,500 kilos cacao, at 10cents per kilo	350.00
	Contingent	86.00
			1,030.00
	Credit balance		650.00
Sixthyear.
Incomeaccount:
	From 11,680 cacao trees, at 500 grams cacao each,equals 5,840 kilos, at 48 cents		2,803.20
Expenseaccount:
	Fixed interest and depreciation charges as above	$350.00
	Taxes as above	60.00
	Cultivating, etc., as above	88.00
	Fertilizing, at $8 per hectare	128.00
	Harvesting, etc., 5,840 kilos cacao, at 10 cents perkilo	584.00
	Contingent	93.20
			1,303.20
	Credit balance		1,500.00
Seventhyear.
Incomeaccount:
	From 11,680 cacao trees, at 750 grams cacao each,equals 8,760 kilos, at 48 cents		4,204.80
Expenseaccount:
	Fixed interest charges as above	$350.00
	Taxes as above	60.00
	Cultivating, etc., as above	88.00
	Fertilizing, at $10 per hectare	160.00
	Harvest, etc., of 8,760 kilos of cacao, at 10 centsper kilo	876.00
	Contingent	170.80
			1,704.80
	Credit balance		2,500.00
Eighthyear.
Incomeaccount:
	From 11,680 cacao trees, at 1 kilo cacao each, equals11,680 kilos, at 48 cents		$5,606.40
Expenseaccount:
	Fixed interest charges as above	$350.00
	Taxes as above	60.00
	Cultivating, etc., as above	88.00
	Fertilizing, at $12.50 per hectare	200.00
	Harvest, etc., 11,680 kilos of cacao, at 10 cents perkilo	1,168.00
	Contingent	240.40
			2,106.40
	Credit balance		3,500.00
Ninthyear.
Incomeaccount:
	From 11,680 trees, at 2 “catties” or 1.25kilos cacao each, equals 14,600 kilos, at 48 cents		7,008.00
Expenseaccount:
	Fixed interest charges as above	$350.00
	Taxes at 1½ per cent on a one-third valuationof $500 per hectare	120.00
	Cultivation and pruning as above	88.00
	Fertilizing, at $15 per hectare	240.00
	Harvesting, etc., of 14,600 kilos of cacao, at 10cents per kilo	1,460.00
	Contingent	250.00
			2,508.00
	Credit balance		4,500.00

In the tenth year there should be no increase in taxes or fertilizers, and a slight increase in yield, sufficient to bring the net profits of the estate to the approximate amount of $5,000. This would amount to a dividend of rather more than $312 per hectare, or its equivalent of about $126 per acre.

These tables further show original capitalization cost of nearly $90 per acre, and from the ninth year annual operating expenses of rather more than $60 per acre.

It should be stated, however, that the operating expenses are based upon a systematic and scientific management of the estate; while the returns or income are based upon revenue from trees that are at the disadvantage of being without culture of any kind, and, while I am of the opinion that the original cost per acre of the plantation, nor its current operating expenses may be much reduced below the figures given, I feel that there is a reasonable certainty that the crop product may be materially increased beyond the limit of two “catties.”