REPORT OF THE 21ST MEETING OF THE NATIONAL FOCAL POINT

FOR THE ASEAN COCOA CLUB (ACC) ON ASEAN COOPERATION

AND JOINT APPROACHES IN AGRICULTURE AND FOREST PRODUCTS
PROMOTION SCHEME

25–26 April 2018

Hotel Continental Saigon, Ho Chi Minh City, Viet Nam

INTRODUCTION

1. The 21st Meeting of the National Focal Point for the ASEAN Cocoa Club (ACC) on
ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion
Scheme was held on 25-26 April 2018 at Hotel Continental Saigon, Ho Chi Minh City,
Viet Nam.

2. The Meeting was attended by 19 delegates and 16 observers from the government and
private sectors of six ASEAN Member States (AMS) namely Indonesia, Malaysia,
Myanmar, Philippines, Thailand and Viet Nam. The list of delegates is in Annex 1.

OPENING CEREMONY

Opening Remarks from the Chairman of the ASEAN Cocoa Club (ACC)

3. The Chairperson of the ACC, Datin Norhaini Udin, the Director General of the Malaysian
Cocoa Board (MCB) welcomed and thanked all delegates from Indonesia, Malaysia,
Myanmar, Philippines, Thailand and Viet Nam for attending the 21st ACC Meeting.

4. She expressed her sincere gratitude to the Government of Viet Nam for hosting the Meeting
especially to the National Agriculture Extension Center, Ministry of Agriculture and Rural
Development and Viet Nam Cocoa Committee (VCC) for their commitment and support to
jointly organize the Meeting. She also congratulated the ACC Secretariat as well as the
Local Organizing Committee for their hard work and support in ensuring the preparation of
the Meeting successfully undertaken.

5. In her welcoming remarks she emphasized on the issues and challenges faced by the cocoa
industry particularly on the continuous downward trend of the cocoa beans prices in 2017
until the first quarter of 2018, even though there is a strong demand of chocolate around the
world. Therefore, she urged the AMS to strengthen cooperation in addressing and solving
issues and challenges in assisting the cocoa growers who are badly affected from the bearish
market sentiment.

1 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
6. She also highlighted the new Strategic Plan of Action (SPA) for the period of 2016-2020
that was endorsed in the 24th Meeting of the Joint Committee on ASEAN Cooperation and
Joint Approaches in Agriculture and Forest Products Promotion Scheme (JCM) on 18-20
July 2017 in Siem Reap, Cambodia. Therefore, she urged for the full support and
commitment from the AMS to focus on implementing the existing and new activities and
programmes formulated under the new SPA that will be meaningful and beneficial to all
the AMS. The full text of her opening remarks is in Annex 2.

Opening Speech from the Director General of National Agriculture Extension Center
(NAEC), Ministry of Agriculture and Rural Development of Viet Nam cum Chairman of
the VCC

7. Dr. Tran Van Khoi, the Director General of NAEC, Ministry of Agriculture and Rural
Development of Viet Nam cum Chairman of the VCC expressed his gratitude and warmest
welcome to all delegates from the AMS. He expressed his appreciation to the ACC for
choosing Viet Nam as the venue for the 21st ACC Meeting.

8. He highlighted that the world cocoa production is facing the issue of low quality cocoa
beans due to high cost of production, pest and diseases infestation, aging farmers, lack of
technologies in cultivation, fertilizer application and planting material and uncertainty of
world cocoa prices.

9. He also emphasized on the importance of ACC toward strengthening and enhancing Intra-
ASEAN trade on cocoa and cocoa products, among other crops and commodities. The
objectives of the ACC are to strengthen the bargaining position of ASEAN in the world
market on matters affecting agriculture and forest products as well as to upgrade and
expand the exports of these sectors’ produce through product diversification. The full text
of his speech is in Annex 3.

AGENDA ITEM 1: OPENING REMARKS

10. The Chairperson of the ACC, Datin Norhaini Udin conveyed her appreciation and
welcomed the delegates from the AMS to the 21st ACC Meeting.

11. She highlighted that the new SPA covering the period of 2016-2020 has been formulated,
agreed and endorsed in the 24th Meeting of the JCM. The SPA consists all major activities
namely production, transfer of technology, development of cocoa community, Research
and Development, increasing consumption as well as marketing and promotion. She
relates the aim of the SPA with the on-going efforts to sustain the cocoa industry in the
ASEAN region and ensuring its competitiveness as par as other producing and processing
region around the world.

12. Therefore, she urged the AMS to work collectively and closely together in implementing
the outline programmes and activities and making ACC as an effective forum to enhance

2 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 the cocoa community from cocoa growers to traders, grinders and manufacturers and to
expand the growth of the cocoa industry in the ASEAN region.

AGENDA ITEM 2: ELECTION OF CHAIRMAN AND VICE–CHAIRMAN

13. Datin Norhaini Udin was unanimously elected as the Chairperson of the 21st ACC Meeting
and Dr. Tran Van Cong, the Deputy Director General of the Agro Processing and
Marketing Development Authority, Ministry of Agriculture and Rural Development of
Viet Nam as the Vice–Chairperson.

AGENDA ITEM 3: ADOPTION OF AGENDA

14. The Meeting adopted the Agenda of the 21st ACC Meeting as in Annex 4.

AGENDA ITEM 4: BUSINESS ARRANGEMENTS

15. The Meeting was held in plenary.

AGENDA ITEM 5: COUNTRY PRESENTATION ON THE LATEST DEVELOPMENT

OF THE COCOA INDUSTRY IN VIET NAM

16. The Meeting took note on the presentation on the latest development of the cocoa industry
in Viet Nam covered the following:–

i. Cocoa Area and Production

ii. Economical Effectiveness of Cocoa Production
iii. Science and Technology for Cocoa Production
iv. Government Management
v. Cocoa Production Issues in Viet Nam
vi. Solution for Sustainable Cocoa Production

The full presentation appears in Annex 5.

17. It was highlighted in the presentation the cocoa intercropping model with other crops such as
cashew nut is an economically effective approach to provide better economic returns to the
cocoa farmers. However, in relation to this matter, Dr. Divina M. Amalin of the Philippines
commented that cocoa and cashew nut are not suitable combination of intercrop as these crops
share the similar insect pests (i.e Helopeltis spp.,). She also suggested that Viet Nam should
identify the specific insects affecting the cocoa yield to come up with the correct control
measures.

3 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
AGENDA 6: MATTERS ARISING FROM THE PREPSOM–39TH AMAF, 25-26
SEPTEMBER 2017; PREPSOM–17TH AMAF PLUS THREE, 27 SEPTEMBER 2017; 39TH
AMAF, 28 SEPTEMBER 2017 AND 17TH AMAF PLUS THREE, 29 SEPTEMBER 2017
CHIANG MAI, THAILAND

18. The ACC Secretariat reported that there is no ACC related matters arisen from these
Meetings and no follow-up action need to be carried out by the AMS.

AGENDA ITEM 7: MATTERS ARISING FROM THE 24TH MEETING OF THE JOINT
COMMITTEE ON ASEAN COOPERATION AND JOINT APPROACHES IN
AGRICULTURE AND FOREST PRODUCTS PROMOTION SCHEME (ASEAN JC
AFPPS), 18–20 JULY 2017, SIEM REAP, CAMBODIA

19. The ACC Secretariat presented the report of the 24th Meeting of the Joint Committee on
ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme (JCM) held on
18-20 July 2018 in Siem Reap, Viet Nam as provided by the ASEAN Secretariat.

20. She reported the status of the follow up action should be undertaken by the AMS as
follows:

i. The AMS is requested to review the new Strategic Plan of Action (SPA) 2016-2020
achievement in the next 25th Joint Committee Meeting.
ii. The Meeting noted that the final draft of the ASEAN GAP for Cocoa Production will be
refined and submitted for approval in the 21st ACC Meeting in 2018. After receiving
approval from ACC members, the ASEAN GAP for Cocoa Production will be submitted
to the 25th ASEAN JC AFPPS tentatively schedule in July 2018 in Indonesia for
endorsement.

STRATEGIC THRUST 1: JOINT PRODUCT PROMOTION IN INTERNATIONAL

MARKETS

AGENDA ITEM 8: JOINT EFFORTS TO OVERCOME DISCRIMINATORY TARIFFS

AND NON-TARIFF BARRIERS AND UNFAIR TRADE PRACTICES IMPOSED BY
THE IMPORTING COUNTRIES

8.1 ENHANCE INTRA– AND EXTRA–ASEAN TRADE AND LONG–TERM

COMPETITIVENESS OF ASEAN’S FOOD, AGRICULTURE AND FORESTRY
PRODUCTS/COMMODITIES

8.1.1 Tariff and Non–Tariff Barriers on Cocoa Beans and Cocoa Products

i. ASEAN Trade in Goods Agreement (ATIGA)

4 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
21. Indonesia updated the Meeting on the progress of the ATIGA. The ATIGA was entered
into force on May 2010 involving all ten (10) AMS to promote intra-ASEAN trade through
the elimination of import tariffs by 2018. The elimination process is now completed.

22. The ten (10) member countries namely Brunei, Cambodia, Indonesia, Lao PDR, Malaysia,
Myanmar, Philippines, Singapore, Thailand and Viet Nam had reduced their import tariffs
on cocoa and cocoa products to 0%.

23. The latest matrix ATIGA reduction schedule for 2018 on cocoa and cocoa products for
each of the ASEAN member countries is as Annex 6.

ii. ASEAN Free Trade Area (FTA) between ASEAN and other countries

24. On Free Trade Agreement (FTA) between ASEAN and other countries, the Framework
Agreement on Comprehensive Economic Cooperation for the following countries had been
concluded as follows:

a. ASEAN – China FTA

The ASEAN – China FTA was signed at the ASEAN – China Summit on 4th
November 2002 in Phnom Penh, Cambodia and entered into force on 1st July 2003.
The ASEAN - China FTA import tariff schedule on cocoa and cocoa products for
2018 is as Annex 7.

b. ASEAN – Korea FTA

The ASEAN – Korea FTA was signed at the ASEAN – Korea Summit on 13th
December 2005 in Kuala Lumpur, Malaysia and came into force on 1st July 2006.
The ASEAN – Korea FTA import tariff schedule on cocoa and cocoa products for
2018 is as Annex 8.

c. ASEAN – Japan FTA

The ASEAN - Japan FTA was signed when the ASEAN Leaders and Japan completed
the process of signing the agreement by circulation on 14th April 2008 and came into
force on 1st April 2009. The ASEAN – Japan FTA import tariff schedule on cocoa
and cocoa products for 2018 is as Annex 9.

d. ASEAN – India FTA

The ASEAN – India FTA was signed at the ASEAN – India Summit on 13th August
2009 in Bangkok, Thailand and came into force on 1st January 2010. The ASEAN –
India FTA import tariff schedule on cocoa and cocoa products for 2018 is as Annex
10.

5 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 e. ASEAN – Australia New Zealand FTA

The ASEAN – Australia New Zealand FTA was signed at the ASEAN – Australia
New Zealand Summit on 27th February 2009 in Cha-am, Thailand and came into force
on 1st January 2010. The ASEAN – Australia New Zealand FTA import tariff
schedule on cocoa and cocoa products for 2018 is as Annex 11.

iii. Most Favoured Nation (MFN) Tariffs

25. There is no update report on the MFN tariff rates in the AMS.

iv. Non–Tariff Barriers (NTBs) and Non-Tariff Measures (NTMs)

26. Indonesia updated the current development of the NTBs and NTMs. The works on NTBs
and NTMs in ASEAN are coordinated between the Coordinating Committee on the
Implementation of the ATIGA (CCA) and the ASEAN Trade Facilitation Joint
Consultative Committee (ATF-JCC). The on-going initiatives are as follows:

 Guidelines on Non-Tariff Measures (NTMs)

ATF-JCC together with the CCA are still in the process of drafting the NTMs
Guidelines. The guidelines will include the objectives, scope, focus and structure as
well as consideration to enhance the existing approach to resolve NTMs issues. Other
sectoral bodies will also provide inputs for the presentation of the draft NTMs
Guidelines at the NTMs Workshop to be held back-to-back with the 27th CCA
Meeting, tentatively on 28 May – 2 June 2018.

 NTMs database in the ASEAN Trade Repository (ATR)/National Trade Repositories

(NTRs)

The CCA is also prioritizing efforts to update and classify the existing ASEAN NTMs
databases in the ATR based on the 2018 UNCTAD classification with the appropriate
technical support from European Union–ASEAN Regional Integration Support (EU-
ARISE Plus) and/or Economic Research Institute for ASEAN and East Asia (ERIA).
The NTMs database will be updated by AMS and is expected to underpin the full
operationalization of the ASEAN Trade Repository (ATR). The NTMs database will
enhance the transparency of the trade regimes and the use of NTMs by AMS.

 Matrix of actual cases on NTMs and the ASEAN Solution for Service, Investment
and Trade (ASSIST)

The CCA continues to play a key role in reviewing and addressing NTMs cases under
the regular agenda of its meeting. There are 80 cases that have been submitted by the
AMS to CCA in the matrix of actual cases on NTMs/trade barriers for consultations.
Among those cases, CCA has successfully resolved 60 cases while 20 cases are being

6 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 discussed by relevant AMS. CCA is also exploring new initiatives to enhance the
effective utilization of the ASSIST by ASEAN enterprises.

 Notification and counter-notification procedures

The ATF-JCC is also working on enhancing the notification and counter-notification

mechanisms as stipulated in Article 11 of the ATIGA.

AGENDA ITEM 9: JOINT PROMOTION OF THE PRODUCTS THROUGH

PARTICIPATION IN PROMOTIONAL ACTIVITIES

9.1 Promote Awareness Programmes and Campaign

27. Indonesia updated the Meeting on the latest programmes on promotion activities as
follows:

i. National Cocoa Day Expo

ii. Indonesia Trade Expo

28. The Meeting agreed to use the ACC website to disseminate information on their upcoming
awareness programmes and campaign by submitting the related programmes and activities
to the ACC secretariat to be uploaded in the ACC website.

STRATEGIC THRUST 2: JOINT ASEAN POSITION AT INTERNATIONAL FORA

AGENDA ITEM 10: CONSULTATION AND COOPERATION TO FORMULATE A

JOINT ASEAN POSITION AT INTERNATIONAL FORA ON ISSUES RELATING TO
THE PRODUCTS

10.1 Public-Private Partnership

29. The Meeting was informed that there was no update on this matter.

10.2 Technical Working Group on Good Agricultural Practices (TWGGAP)

30. The Meeting took note on the report of the 7th Meeting of the ACC TWGGAP presented by
Dr. Divina M. Amalin, the Chairperson of the ACC TWGGAP consists of the following:

i. Presentation on the Update on the Sustainable Pest Management Program for Cacao
Production in the Philippines. The highlights of the accomplishments of the different
projects are:

7 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
  Project 1: Extraction and Evaluation of Pheromone and Kairomones as Potential
Monitoring and Managing Tool Against Cacao Insect Pests: Pod Borer And Mirid
Bug

 Project 2: Exploration, Identification, Mass Rearing, and Field Release of the

Biological Control Agents Against Cacao Pod Borer and Cacao Mirid Bug

 Project 3: Biological Control And Development Of Nano-biosensor For Fungal

Diseases of Cacao: Vascular Streak Disease (VSD) and Black Pod Rot (BPR)

 Project 4: Particle Film Technology as Coating Agent and Carrier of

Mycoparasites for the Control of Insect Pests and Diseases Attacking Cacao Pods

ii. The progress report on Implementation of GAP by the Philippines, Viet Nam,
Malaysia, Thailand, Myanmar and Indonesia; and

iii. Presentation on the draft of the ASEAN GAP for cacao production for endorsement.

The full report of the 7th ACC TWGGAP Meeting appears as Annex 12.

31. The Meeting agreed to endorse the document of ASEAN GAP as proposed by the ACC
TWGGAP for further adoption by the Joint Committee on ASEAN Cooperation and Joint
Approaches in Agriculture and Forest Products Promotion Scheme (ASEAN JC AFPPS).
The Chairperson of ACC TWGGAP will submit the final draft of the document to the ACC
Secretariat by mid of May 2018.

10.3 Technical Working Group on Food Safety (TWGFS)

32. The Meeting took note on the report of the 10th Meeting of the ACC TWGFS presented by
Dr. Sabariah Samsudin, Chairperson of the ACC TWGFS consist of the following:

i. The completion of the Cocoa Safe Project that involved International Cocoa Organization
(ICCO), Centre for Agriculture and Bioscience International (CABI), Malaysia,
Indonesia and Papua New Guinea on capacity building and knowledge sharing in
Sanitary and Phytosanitary (SPS) for cocoa in Southeast Asia by Indonesia;

ii. Report on the development on analysis protocol on safety and quality for cocoa based
products by Malaysia as follow:
 Analysis of heavy metal in cocoa beans and cocoa products using inductively coupled
plasma-tandem mass spectroscopy (ICP-MS/MS) microwave assisted digestion
technique
 Analysis of new protocol for Total Plate Count, E. Coli and Yeast and Mold

iii. Report on the UTZ certification for Cocoa in Viet Nam.

8 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 iv. Report by Indonesia on the European Union (EU) Commission Regulation (EU) No.
488/2014 amending the Regulation (EC) No. 1881/2006 pertaining to the maximum
levels (MLs) of cadmium in foodstuffs including cocoa and chocolate products which
will be taken effectively on 1st January 2019 as follow:
 Milk chocolate with < 30 % total dry cocoa solids: 0.10 mg/kg wet weight
 Chocolate with < 50 % total dry cocoa solids; milk chocolate with ≥ 30 % total dry
cocoa solids: 0.30 mg/kg wet weight
 Chocolate with ≥ 50 % total dry cocoa solids: 0.80 mg/kg wet weight
 Cocoa powder sold to the final consumer or as an ingredient unsweetened cocoa
powder sold to the final consumer (drinking chocolate): 0.60 mg/kg wet weight

v. Report by Indonesia on the progress of the proposed draft MLs for cadmium in chocolate
and cocoa-derived products in the 12th Codex Committee on Contaminants in Foods
(CCCF) which was held in Utrecht, the Netherlands from 12-16 March 2018. The CCCF
agreed to advance the ML of 0.8 mg/kg for chocolate containing or declaring ≥ 50% to <
70% total cocoa solids on a dry matter basis, and the ML of 0.9 mg/kg for chocolate
containing or declaring ≥ 70% total cocoa solids on a dry matter basis for final adoption
at Step 5/8 by the 41st Session of the Codex Alimentarius Commission.

vi. Report on the Monitoring of Cadmium in Cocoa and Cocoa Products by Indonesia and
Malaysia

vii. Collaboration on Expertise, Knowledge and Resources (Laboratory, Testing Equipment

and Facilities). Malaysia as the lead country for this agenda had proposed to conduct a
sensory evaluation training in Malaysia in year 2018 and the details of the training will be
uploaded into the ACC TWGFS website.

The full report of the 10th ACC TWGFS Meeting appears as Annex 13.

33. The Meeting highlighted that the ACC TWGFS has successfully formulating the ASEAN
Code of Practice for the Prevention and Reduction of Ochratoxin A (OTA) Contamination in
Cocoa Beans which was endorsed in the 37th Meeting of the ASEAN Ministers on
Agriculture and Forestry (AMAF) held on 10th September 2015 in Makati City, Philippines.

34. In this regards, the Meeting acknowledged the continuous role of the ACC TWGFS to
establish ASEAN Standard related to cocoa and cocoa products. The establishment of
ASEAN Standard is one of the activities stipulated in Strategic Plan of Action (SPA) for the
ACC from 2016 until 2020. Indonesia as lead country will work on this initiative with
consultation at their national level.

9 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
STRATEGIC THRUST 3: ENGANCEMENT OF INTRA-ASEAN TRADE

AGENDA ITEM 11: CONSULTATION AND EXCHANGE OF EXPERIENCESS AND

INFORMATION ON TRADE AND INVESTMENT POLICIES AND STRATEGIES

11.1 Enhancement of Private Sector Involvement

11.1.1 Cocoa Association of Asia (CAA)

35. In the absence of the representative from CAA, the Meeting took note on the report
submitted by the CAA as in Annex 14.

11.1.2 Cocoa Manufacturer’s Group (CMG)

36. In the absence of the representative from the CMG, the Meeting took note on the report
submitted by the CAA as in Annex 15.

11.1.3 Indonesian Cocoa Board (ICB)

37. The Meeting noted the status development and the activities presented as follows:

1. Activities conducted in 2017:

i. Collaboration with other related agencies

a. Preparation of National Curriculum and Training Module of Sustainable
Cultivation and Postharvest of Cocoa
b. Discussion on Revision of Regulation of Ministry of Agriculture (Peraturan
Menteri Pertanian/Permentan) No. 67/2014 on Quality Requirements and
Marketing of Cocoa Beans.
c. Cocoa Productivity Measurement Survey.
d. Attend Indonesian International Cocoa Symposium (INCOSY) 2017

ii. Hosting a Meeting / Workshop / Seminar.

a. Coordination Meeting of Indonesian Cocoa Board Members.
b. Indonesian Cocoa Day Celebration (Hari Kakao Indonesia) in 2017.
c. Indonesian Cocoa Talk Show 2017
d. Award presentation for Cocoa Farmers and Cocoa Farmers Group and Institution

2. The Indonesian Cocoa Board’s activity plan (Dekaindo) in 2018 includes:

i. Coordination Meeting of Indonesian Cocoa Board Members
ii. Indonesian Cocoa Workshop 2018
iii. Indonesia Cocoa Day
iv. Competition of the best cocoa farmers group and cocoa farmers files competition
v. The Indonesian Cocoa Board National Congress

The full report of the status development and the activities of ICB appears as Annex 16.

10 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 11.1.4 Cocoa Foundation of the Philippines (CocoaPhil)

38. The Philippines reported the following ongoing activities on cacao research and training as
follows:

i. Cacao Farming Training.

ii. Training on Cocoa Product Development

39. CocoaPhil is also offering training on product development to encourage cacao

entrepreneurship. The training sessions include, Tablea Production Training (Bean to Bar).

i. Conference/Meeting/Consultations /Workshop

CocoaPhil attended the following programmes:

 ASEAN Economic Community Round Table Discussion (January 26, 2017)

 Writeshop for the Development of PNS for Various Agricultural Machinery (March
16, 2017)
 National Consultation PNS For The Development Of Cacao Processing Equipment
(March 29, 2017)
 Research and Development for Cacao Workshop (June 5, 2017)
 Capacity Building through Cocoa Farming - EARTH DAY NETWORK
(July 4, 2017)
 "Building Competitive Advantage Agricultural Products Through Branding-USDA
(September 25, 2017)
 Gendered Industry Study on Cacao Industry- BAYAN ACADEMY
(October 30, 2017)

ii. Research Engagement

CocoaPhil is engaged on the following research activities as a collaborating agency:

 NLEX Cacao Project–this is a joint project of Manila North Tollways Corporation

and CocoaPhil to plant and maintain cacao trees and harvest pods and seeds within
the specified areas of the NLEX. This project aims to support the production of
cocoa for the local market
 Cacao Pest Management Program: Biologically-Based Approaches – this program is
funded by the Department of Science and Technology being implemented by the
Biological Control Research Unit of the De La Salle University and CocoaPhil is the
industry partner.

The full report of the status development and the activities of CocoaPhil appears as Annex
17.

11 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 11.1.5 Viet Nam Cocoa Committee (VCC)

40. The VCC reported on their remarkable achievement related to sustainable cocoa
development in Viet Nam as follows:

i. Promoting science and technology activities: Research and selection of cocoa varieties;
Constructing the cultivation technique; Pre-processing and preservation technologies, in
2017, three new cocoa varieties were improved by research Institutes;

ii. Production and processing activities: Planning for stable cocoa production; Expanding
the area of cocoa production under GAP and certification; Combining a number of
components to form cocoa production organizations with high productivity and quality
associated with consumption of products; Encouraging businesses to invest in cocoa
production and processing in Viet Nam; Constructing cocoa extension models. In 2017,
cocoa certified area downed to 40 % compared to area in 2014;

iii. Education and Training: Organizing TOT training to train national trainers on cocoa
technology; in the provinces where cocoa has been planted, and training courses have
been held for farmers on planting techniques, intensive farming, preliminary processing
and cocoa preservation. In 2017, VCC associated with NAEC conducted TOT training
courses on sustainable cocoa development.
iv. Communication: In 2017, VCC associated with NAEC ( National Agriculture Extension
Center for maintaining the cocoa development section on the Vietnam Agricultural
Extension website so that members of the VCC and other organizations and individuals
can share information about cocoa; Disseminating research results, and technical
advances in cocoa production.

v. International cooperation: Actively participating in collaborative activities with ACC

and international organizations; Promoting PPP investment.

The full report of the status development and the activities of VCC appears as Annex 18.

11.2 Strengthening Business Linkages and Networking

41. There is no sharing report from the AMS on this agenda.

12 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
STRATEGIC THRUST 4: ENHANCEMENT OF COMPETITIVENESS OF THE
PRODUCTS

AGENDA ITEM 12: STRENGTHENING COOPERATION IN HUMAN RESOURCES

DEVELOPMENT

12.1 Efficient and Effective Extension Services

The Meeting took note on the report from the AMS:

42. The Philippines reported that the government and private sectors particularly the
Agriculture Training Institute under the Department of Agriculture and CocoaPhil are
actively involved in training programme for cocoa farmers on monthly basis. The
Training Manual consisting five (5) modules on the sustainable cocoa farming has been
developed.

43. Malaysia reported on the Farmers Field School (FFS), which is a participatory training
approach to a group of 20 to 30 farmers coming from the same or nearby villages and
supervised by trained facilitators throughout one crop cycle. The aims of FFS are to
encourage the farmers to conduct the experiment in their own farms to increase their
understanding on the agro-ecosystem and knowledge in order to improve the cocoa
yields.

44. The co-curriculum of FFS program are designed in such a way to overcome the constraint
facing by the extension agents by training a group of cocoa farmers on GAP approach on
their own plot for 16 weeks. Among the topics covered are:

a. Ballot Box Test

b. Discussion on constraint faced by cocoa farmers (production, input, income, market
and others)
c. Discussion on pests and diseases problem in cocoa farmer’s plot and post-harvest
problem related to safety issues
d. Pest life-cycle such as cocoa pod borer and Agro-Ecosystem Analysis (AESA) in
cocoa
e. Pesticide application technology
f. Building the Dynamics group
g. Calibration and performance sprayers
h. Pruning and canopy/height control
i. Pod sleeving
j. Harvesting and isolating cocoa pods
k. Pods breaking
l. Alternative fermentation method
m. Storage of cocoa beans

13 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
45. Viet Nam reported on the cocoa capacity building focusing on Training of Trainers (ToT)
and Training of Farmers (ToF). Viet Nam is in the process of developing manuals for
both training.

AGENDA ITEM 13: ENHANCING COMPLEMENTARITY OF THE PRODUCTS

13.1 Promote Knowledge Exchange and Information Sharing

46. Viet Nam reported on the e-Training Program using social media such as Twitter and
Facebook to communicate with farmers. Apps appliance used to transfer technology and
disseminate information to cocoa farmers as an effective communication tools.

AGENDA ITEM 14: INTENSIFYING COOPERATION IN TECHNOLOGY

DEVELOPMENT AND TRANSFER

14.1 Research and Development (R&D) Project

14.1.1 (i) Trials on Selected Cocoa Progenies in Selected ASEAN Region - Progress
Report Hybrids Trial in Indonesia.

47. The Meeting was informed that the Joint Progeny Trial Programme in Indonesia started
in December 2005. The objectives of the trial are:

i. Clonal selection by testing some promising cocoa hybrids in Indonesia and Malaysia
using similar progenies.
ii. To select the superior genotype for clonal material resistance to main pests and
diseases such as cocoa pod borer (CPB) and vascular streak dieback (VSD).

48. Indonesia reported on the progress of the activity as follows:

i. Recapitulation of the yield character based on pod number per tree showed that
hybrid combination namely TSH 858 X KW 163 and UIT 1 x Na 33 showed the
highest pod number per tree year of 2017.
ii. The hybrid combination of C 1038 x BR 25, C 1038 x QH 22, PBC 123 x QH 22 and
KW 162 x KEE 2 showed the good response to VSD disease. The hybrid combination
of PBC 123 x BR 25 and TSH 858 x KW 163 showed the good response to
Phytopthora palmivora disease. The hybrid combination of KKM 22 x NA 33 and
ICS 60 x KW 162 showed the good response to Helopeltis spp.,
iii. Selected genotype; 6M (Malaysian hybrid) and HKW 16/17 (Indonesian hybrid)
showed the good response to VSD at Kaliwining, Jember.

14 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 14.1.1 (ii) Trials on Selected Cocoa Progenies in Selected ASEAN Region - Progress
Report on ASEAN Cocoa Club Progeny Trial

49. Malaysia reported that the trial was established in April 2006 under the ASEAN Cocoa
Club Joint Project with an objective to produce hybrids population which possesses good
yield and flavor as well as acceptable bean characteristics. The two institutions involved in
the project are the MCB and Indonesian Coffee and Cocoa Research Institute (ICCRI).

50. Throughout 10 years of trial (2008 to 2017), top six progenies that produced higher pod
yield per tree are KW162 X KW163, KW162 X KEE2, ICS60 X KW162, KW162 X
KW165, UIT1 X NA33 (C) and TSH858 X KW162. KW162 X KW163 produced the
highest average pod yield per tree (7.16) followed by the KW162 X KEE2 (6.85), ICS60 X
KW162 (6.46), KW162 X KW165 (5.76), UIT1 X NA33 (5.64) and TSH858 X KW162
(4.49).

51. The ANOVA analysis on pod yield per tree showed the interaction between progeny and
year is not significant at 5% level which meant the progenies performances are consistent
throughout the years. Comparison among progenies for pods yield per tree showed
progenies KW162 X KW163, KW162 X KEE2, ICS60 X KW162, KW162 X KW165 and
TSH858 X KW162 and UIT1 X NA33 are significantly higher pod yield per tree compared
to ICS60 X KEE2, TSH858 X KEE2, TSH858 X KW165, ICS60 X KW163 and TSH858
X KW163 at confidence level of 95%.

52. Top six progenies that produced higher average dry bean yield are KW162 X KW163,
KW162 X KEE2, ICS60 X KW162, UIT1 X NA33 (C), TSH858 X KW165 and KW162 X
KW165. KW162 X KW163 produced the highest average dry bean yield (221.77kg/ha)
followed by the KW162 X KEE2 (216.04kg/ha), ICS60 X KW162 (179.41kg/ha), UIT1 X
NA33 (169.75kg/ha), TSH858 X KW165 (167.19kg/ha), KW162 X KW165 (158.84kg/ha).

53. The VSD assessment was conducted in April 2014, April 2015, October 2015, April 2016,
August 2016, April 2017 and September 2017. The statistical analysis on VSD scoring
showed consistent in their performance against VSD throughout five assessments with no
interaction observed between progenies and assessment meanwhile there are significant
differences at 5% level among the progenies in terms of level of tolerant towards VSD in
seven assessments done.

54. Comparison among progenies for VSD assessment showed progenies KW162 X KW163
and KW162 X KEE2 are significantly tolerant towards VSD compared to KW162 X
KW165, TSH858 X KEE2, UIT1 X NA33, TSH858 X KW165, TSH858 X KW162, ICS60
X KW162, ICS60 X KW163, TSH858 X KW163 and ICS60 X KEE2 at confidence level
of 95%.

55. First assessment on 11 progenies gave the range between 2.62 to 3.09, second assessment
has the range between 2.13 to 2.64 while third assessment has the range between 2.25 to
2.75, fourth assessment has the range between 2.37 to 2.84, fifth assessment has the range
between 1.76 to 2.34, sixth assessment has the range between 2.25 to 2.72 and seventh

15 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
 assessment has the range between 2.08 to 2.61 which were categorized as moderate
tolerant. Overall assessment from 2014 to 2017, three progenies with the lowest VSD
scores are TSH858 X KW162 (2.26) followed by KW162 X KEE2 (2.28) and KW162 X
KW165 (2.44).

56. Overall, the progenies KW162 X KW163 and KW162 X KEE2 were the most productive
among those tested in this trial. These progenies also possessed the lowest VSD scores
towards the VSD disease compared to other progenies. The next step of this breeding
programme is to select an individual tree focusing on high yield potential, good flavour,
and acceptable bean characteristics and tolerant to VSD disease.

The full report is in Annex 19.

57. The Meeting took note on suggestion from Viet Nam on sharing of planting materials
selected from the collaborative project between Malaysia and Indonesia under the ACC
project. On this regards, the ACC Secretariat will highlight the intention of the AMS to
share planting material derived from collaborative project under the ACC Framework to
JCM as each AMS have their own quarantine regulation.

14.1.2 Project on Pests and Diseases (P&D) Management

58. Malaysia informed the Meeting that the three areas of research collaboration are as
follows:–

i. Cocoa Pod Borer (CPB)

ii. Vascular Streak Dieback (VSD)
iii. Black Pod Rot (BPR)

59. Malaysia further informed that no progress on the pests and diseases research among the
AMS.

AGENDA ITEM 15: OTHER MATTERS

15.1 ASEAN Cocoa Club National Focal Point

60. The ACC Secretariat updated the Meeting on the current National Focal Points 2018
submitted by the member countries which is in Annex 20.

61. The Meeting was informed that the total number of memberships of the ASEAN Cocoa
Club National Focal Points in 2018 is 28 members. Changes were also made in the focal
points for Brunei Darussalam and Myanmar.

16 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
15.2 Report on the Update of the Strategic Plan of Action (SPA)

62. The ACC Secretariat informed the Meeting on the status of the pending sub-activity on
ASEAN Price Stabilization Mechanism which is subject to the consultation with the CAA
of Singapore as the proposed lead country. The Meeting was informed that the CAA
suggested that it is not necessary to have a price stabilization mechanism for ASEAN cocoa
beans due to the followings:

i. Cocoa is grown in several ASEAN countries and each region has its own grade and
specifications. Thus, it will be very complicated to work on any price stabilization
mechanism.

ii. The Asian industry is enjoying very good prices for cocoa beans and cocoa products.
Therefore, there is little need for price stabilization mechanism. The problem that Asian
processors currently face is the lack of Asian cocoa beans supply leading to increased
importation of cocoa beans from African and other regions.

iii. The participation in any price stabilization mechanism may contravene the anti-
competition rules that CAA is subject to comply to.

63. The Meeting took note on the suggestion of CAA from Singapore and agreed to remove the
sub-activity on ASEAN Price Stabilization Mechanism under the SPA.

64. The Meeting agreed with the suggestion from Viet Nam for the CAA of Singapore to
prepare a summary report on global cocoa economic and market particularly on supply and
demand, stock and price development.

65. The Meeting updated on the progress of the output indicators for the sub-activities of the
new Strategic Plan of Action (SPA) for ACC for the period of 2016-2020 based on the new
Strategic Thrusts and Action Programmes which was endorsed in the 24th JCM Meeting
held on 18-20 July 2017 in Siem Reap, Cambodia. The progress of the SPA is in Annex 21.

AGENDA 11: DATE AND VENUE OF THE NEXT MEETING

66. The Meeting unanimously agreed on the nomination for the CAA of Singapore to host the
22nd ACC Meeting on the ASEAN Cooperation and Joint Approaches in Agriculture and
Forest Products Promotion Scheme to be held tentatively in May 2019 as proposed by
Malaysia. The ACC Secretariat will communicate with the CAA on their agreement to host
the next Meeting. However, if CAA of Singapore is unable to be a host, Malaysia agreed to
host the next Meeting.

17 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam
AGENDA 12: ADOPTION OF THE REPORT

67. The Meeting unanimously adopted the Report of the 21st Meeting of the ASEAN Cocoa
Club on the ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products
Promotion Scheme held on 25-26 April 2018 at Hotel Continental Saigon, Ho Chi Minh
City, Viet Nam.

ACKNOWLEDGEMENT

68. In her closing remarks, the Chairperson expressed her gratitude and thanked to all delegates
for their active participation in the Meeting. It had been a fruitful two days meeting and
she was glad that progress has been made in the programmes and activities planned last
year.

69. She also thanked the ACC Secretariat and the Local Organizing Committee of Viet Nam
for their hard work and team cooperation rendered in ensuring the successful of the
Meeting.

70. The delegation of Indonesia, Malaysia, Myanmar, Philippines, Thailand and Viet Nam
expressed their sincere appreciation to the Viet Nam Government in particular the National
Agriculture Extension Center, Ministry of Agriculture and Rural Development and Viet
Nam Cocoa Committee (VCC) for the warm hospitality accorded to them and the excellent
arrangements made for the Meeting.

71. The Meeting was cordially held in the traditional spirit of ASEAN solidarity.

Ho Chi Minh City, Viet Nam

26 April 2018

18 Report of the 21st ACC Meeting, Hotel Continental Saigon, Ho Chi Minh City, Viet Nam