THE 13 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 23 24 June 2010 Department of Agriculture, Quezon City, Philippines

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INTRODUCTION 1. The 13 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 23-24 June 2010 at the Department of Agriculture, Quezon City, Philippines. The Meeting was attended by 48 delegates from the government and private sectors of Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam. The list of the delegates appears in Annex 1.
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OPENING CEREMONY Welcoming Address from the President of the Cocoa Foundation of the Philippines (CocoaPhil) 3. The President of the Cocoa Foundation of the Philippines (CocoaPhil), Mr. Edward F. David, welcomed all the delegates from Indonesia, Malaysia, Lao PDR, Philippines, Singapore, Thailand and Viet Nam to Quezon City, th Philippines and to the 13 ACC Meeting. This is the second time the Philippines is hosting the ACC meeting after 1999. th He also informed the Meeting that on the 25 June 2010, the members of the Meeting were invited to the Agraryo Trade Fair (ATF) at the SM Megamall organized by the Department of Agrarian Reform. This annual trade fair serves as a venue to gather and convene local micro, small and medium enterprise owners as well as experienced and established institutional and private buyers and services providers. Apart from food and nonfood products, the ATF will feature development programs and projects that promote and support the capacity building and entrepreneurial orientation. The full text of his welcoming address appears in Annex 2.

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Opening Remarks from the Chairman of the ASEAN Cocoa Club (ACC) 5. The Chairman of the ACC, Dato' Dr. Azhar Ismail, Director General of the Malaysian Cocoa Board (MCB) welcomed and thanked all the delegates from Indonesia, Malaysia, Lao PDR, Philippines, Singapore, Thailand and Viet Nam th for attending the 13 ACC Meeting. He mentioned that this Meeting is the most attended ACC meeting since the ACC was launched 14 years ago on July 1996 in Sabah, Malaysia, with the participation of the seven (7) member countries. In his opening remarks, the Chairman highlighted the contribution of ASEAN region in the global cocoa production and grindings. He also highlighted that in the past two years, the cocoa processing industries in the world including the ASEAN member countries had been badly affected from the economic downturn. The falling demand for ingredients for chocolate has temporarily affected the grinding activities. The cocoa processing activities in the Asia and Oceania region declined by over 4% to about 676,000 tonnes in 2009/2010. Currently, most of the cocoa players had started to revive their businesses and moving forward to be in tandem with the ever changing world cocoa economic scenario as the global economy slowly moving out from the recession. Being part of the Asian community which had advanced and made remarkable recovery from the economic crisis, the ASEAN should be grateful and take the opportunities to further strengthen its position in the global trade. Therefore, the ACC is one of the platforms for ASEAN countries to work closely together at all time especially during the difficult time of economic crisis in coming up with policies and strategies not only to overcome issues and problems facing the cocoa industries, but also to provide greater power in facing challenges to further strengthen and enhance the IntraASEAN trade on cocoa and cocoa products. He further mentioned that the activities carried out by this regional cooperation had and will benefit the ASEAN member countries as a whole. In the competitive trade landscape, networking such as the ACC, could be an effective way and a crucial element in enhancing communication and trade. However, to ensure its effectiveness, he urged every member of the ASEAN countries to give their full participation, commitment and cooperation. To be in line with the ASEAN spirit, the member countries should avoid imposing any trade barriers and restrictions that will affect the competitiveness of the ASEAN as a whole. The cocoa private sectors should also play important roles in ensuring that ASEAN member countries are able to supply and meet the required standard of quality cocoa products. The full text of his opening remarks appears in Annex 3.

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The Message from the Secretary of the Department of Agriculture, Philippines 8. The message from the Honourable Secretary Bernie Fondevilla, was delivered by Dr. Clarito Barron, Assistant Director of the Bureau of Plant Industry, Department of Agriculture, Philippines. In his message, he expressed special tribute to the ACC for once again th choosing the Philippines as the venue for the 13 ACC Meeting. As in the past, he expected this event to give the movers and shakers in Southeast Asias cocoa trade with a good venue to discuss strategies and strengthen alliances to build a more robust and sustainable regional cocoa industry. He also welcomed all participants from Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam to Metro Manila, Philippines.

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10. He highlighted the situation of the cocoa industry in the Philippines where over the years the cocoa industry has been a steady source of income and export earnings for more than 100,000 of the Filipinos. He is convinced that cocoa is indeed a viable and profitable intercrop that could provide Filipino farmers additional incomes and livelihood opportunities. For Southern Philippines, cocoa farming is seen as one of the most effective tools to achieve lasting peace and economic prosperity that have long eluded its people. Guided by a roadmap formulated together with the industry, the cocoa development program in the Philippines is comprehensive, employing technology, integrated crop management, various product diversification systems, areas expansion and trade and market development initiatives to expand trade and boost production. 11. He also mentioned that domestically, the current production in the Philippines could only satisfy one-fifth of the average annual requirement of about 30,000 tons. On the regional front, the Asias large and growing cocoa grinding industry is currently sourcing majority of the fermented bean requirements from West Africa. The growing world demand for cocoa beans particularly from Southeast Asia provides opportunity to the farmers and other shareholders from the Philippines and other parts of Southeast Asia to take advantage of. The full text of his speech appears in Annex 4. AGENDA ITEM 1: OPENING REMARKS 12. The Chairman of the ACC, Dato' Dr. Azhar Ismail, Director General of the Malaysian Cocoa Board expressed his gratitude and appreciation to the th Government of the Philippines and CocoaPhil for hosting the 13 ACC Meeting. He welcomed and thanked all delegates from seven (7) of the ASEAN members countries namely Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam to Quezon City, Philippines th and for attending the 13 Meeting of the ACC. 13. He also conveyed his congratulation to the ASEAN Cocoa Club Secretariat and the Organizing Committee of the Philippines for their hard working,
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undivided assistance, support and team cooperation rendered in ensuring a successful meeting. 14. In his opening remarks, he elaborated that the ACC was established to enhance collaborative efforts among ASEAN member countries in strengthening and enhancing the IntraASEAN trade on cocoa and cocoa products in the international market as well as to collectively overcome tariff and nontariff barriers (NTBs) and unfair trade practices imposed by the importing countries. The existing MoU on ASEAN Cooperation in Agriculture th and Forest Products Promotion Scheme expired on the 27 October 2009 and with the view to continue to promote trade facilitation in agricultural and forestry products in ASEAN, the ASEAN Head of Governments endorsed and th signed a new MoU for another five year term (20092014) on the 11 November 2009. With the introduction of this new MoU with revised products and scheme, the ASEAN Economic Community (20092015) is also being formulated to replace the Vientiane Action Programme (VAP) 20042010. Therefore, the ACC member countries need to work closely together to review the current activities carried out by the ACC to be in accordance with the new ASEAN Economic Community (AEC) Blueprint and Scorecard. 15. He further stressed that a new strategic area of cooperation needs to be formulated that would benefit and could address issues and problems facing the cocoa industries in the ASEAN member countries. Therefore, the ACC members need to be actively and fully committed in the activities being carried out so that it could be successfully implemented and benefited the ACC members. The full text of his speech appears in Annex 5. AGENDA ITEM 2: ELECTION OF CHAIRMAN AND VICE-CHAIRMAN 16. Dato Dr. Azhar Ismail, Director General of the MCB was unanimously elected th as the Chairman of the 13 ACC Meeting and Mr. Francisco A. Ramos III, the Director, Agribusiness and Marketing Assistance Service, Department of Agriculture, Philippines was elected as the ViceChairman. AGENDA ITEM 3: ADOPTION OF AGENDA 17. The Meeting adopted the Agenda of the 13 ACC Meeting with the deletion of agenda 11.2 Indonesia Cocoa Board (ICB) as requested by the distinguished delegates of Indonesia. The updated Agenda appears in Annex 6. AGENDA ITEM 4: BUSINESS ARRANGEMENTS 18. The Meeting was held in plenary. AGENDA ITEM 5: DEVELOPMENT OF THE COCOA INDUSTRY IN PHILIPPINES 19. A Recent Development on Sustainable Cocoa Farming in the Philippines was presented by Ms. Josephine Ramos of the Cocoa Foundation of the Philippines (CocoaPhil).
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20. In her presentation, she mentioned that the agriculture accounts for onefifth of the Philippines economy, while onethird of the population is employed in agriculture or agriculturerelated industries. The economy capped the year 2007 with a GDP growth of 7.3%, the highest in 31 years. Agriculture and fishery contribution to this growth from 3.9% to 5.0% is largely due to the robust expansion of the farm sector. The agriculture primary production sector in the Philippines is generally composed of smallholders of 0.50 to 5.0 hectare per farm family. They are usually constrained with financial resources to establish, maintain and sustain productivity levels of their primary resource, their land and own labor. While credit for farm production activities are being offered by some government and private financing institutions, the farmers access to this support is challenged with being less credit worthy. This is a reality when the farmer is dependent on a crop alone. 21. Her presentation also highlighted on the smallholder cocoa farming to promote campaign to plant 500 to 600 trees per hectare for these basic considerations in which the minimum investment needs are own labor and skills, both during preproduction stage up to postproduction and postharvest, the opportunity to cultivate other crops that would give additional source of family income and the environmental/ecological advantages. 22. She mentioned that 49% of the Philippines import was on cocoa powder and 57% of export was on cocoa butter for the period of 20002009. In 2009, the cocoa production in the Philippines was 6,263 tonnes and export of cocoa beans was only 296 tonnes. The annual average cocoa consumption in beans equivalent in the Philippines was 36,652 tonnes. 23. She further highlighted the Philippines Cocoa Roadmap and strategies drawn to jumpstart the Philippines cocoa industry developmental process namely through creation of upstream and downstream linkages on post harvest and access to markets, technology and extension services through the execution of capability building, skills enhancement/handson training activities, use of farm wastes, promoting bio-diversity and continuous Research and Development. The Roadmap targeted 50 million cocoa trees planted, at least 100,000 tonne exportable quality cocoa beans by the year 2020 and P60,000 P80,000 additional income per hectare farm. The full report appears as Annex 7. AGENDA ITEM 6: MATTERS ARISING FROM THE PREPSOM31 AMAF, 78 TH TH ST NOVEMBER 2009; SOM9 AMAF PLUS THREE, 9 NOVEMBER 2009; 31 TH TH TH AMAF, 10 NOVEMBER 2009 AND 9 AMAF PLUS THREE, 11 NOVEMBER 2009 IN BANDAR SERI BEGAWAN, BRUNEI DARUSSALAM 24. In the absence of the ASEAN Secretariat, the ACC Secretariat presented the report of these meetings provided by the ASEAN Secretariat. There was no ACC related matters and no followup needed by the ACC from the st th PREPSOM31 AMAF, 78 November 2009, SOM9 AMAF PLUS THREE,
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9 November 2009 and 9 AMAF PLUS THREE, 11 Bandar Seri Begawan, Brunei Darussalam.
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25. As for the 31 Meeting of the ASEAN Ministers on Agriculture and Forestry th (AMAF) held on the 10 November 2009 in Bandar Seri Begawan, Brunei Darussalam, the Meeting noted good progress made in trade in agricultural and forestry products. With the view to continue to promote trade facilitation in agricultural and forestry products, the Meeting endorsed the document entitled MOU on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme for a five year term from 2009 to 2014. In line with the above endorsement, the Ministers signed the MOU on 11 November 2009. The copy st of signed MOU and the report of the 31 AMAF are attached as Annex 8 and Annex 9. AGENDA ITEM 7: MATTERS ARISING FROM THE 16 MEETING OF THE JOINT COMMITTEE ON ASEAN COOPERATION AND JOINT APPROACHES IN AGRICULTURE AND FOREST PRODUCTS PROMOTION SCHEME, 1416 JULY 2009 IN SIEM REAP, CAMBODIA 26. In the absence of the ASEAN Secretariat, the ACC Secretariat presented the th report of the 16 Meeting of the Joint Committee on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme held on 1416 July 2009 in Siem Reap, Cambodia as provided by the ASEAN Secretariat. The report appears as Annex 10. 27. The outcomes of the 12 ACC Meeting were presented by Malaysia and updated on the issues and activities implemented by ACC. It was noted that Cocoa Association of Asia (CAA), based in Singapore, will cover more trade related activities in the future. 28. As for the proposed logo of ACC to be used for communication purpose, the ASEAN logo can be used as proposed and it has been confirmed by the respective division of the ASEAN Secretariat. 29. This Meeting also agreed to finalize draft MOU on ASEAN Cooperation in Agriculture and Forest Products Promotion Scheme (20092014) submit for th consideration of the Special SOM30 AMAF Meeting to be held on 1113 st August 2009 in Ho Chi Minh City, Viet Nam and signing by AMAF at their 31 Meeting in Brunei Darussalam. Due to the conclusion of the VAP (2004 2010) and the introduction of the ASEAN Economic Community (AEC) Blueprint and Scorecard as well as the introduction of new MOU with revised products and scheme, the Strategic Plan of Action (SPA) reporting will be concluded and a new plan of action could be considered after the signing of the new MOU by the AMAF. 30. In line with the new formulated AEC Blueprint and Scorecard, the 13 ACC Meeting had formulated the new SPA for the ACC covering period from 2011 2015 as appears in Annex 11.
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AGENDA ITEM 8: ENHANCEMENT OF INTERNATIONAL COMPETITIVENESS OF ASEAN COCOA 8.1 Products Tariff and NonTariff Barriers on Cocoa Beans and Cocoa

31. The Meeting took note on the progress report on the implementation of the CEPT scheme among the ASEAN member countries presented by the ACC Secretariat. The CEPT was introduced in 1993 involving all 10 ASEAN member countries to promote intra-ASEAN trade through the elimination of import tariffs. The reduction process has been completed by all the ASEAN member countries. By 2010, all ASEAN member countries except for Cambodia, Myanmar and Viet Nam had zero import tariffs on cocoa and cocoa products including chocolate. Cambodia and Myanmar are still imposing 5% import duty on all cocoa and cocoa products, while Viet Nam still imposes 5% import duty on cocoa powder and chocolate products. The latest matrix CEPT reduction schedule for 2010 and ASEAN member countries general tariff on cocoa and cocoa products appears in Annex 12 and Annex 13. 32. The ACC Secretariat also informed the Meeting on the progress of the Free Trade Area (FTA) between ASEAN and other countries. The FTA between ASEANChina, ASEANKorea and ASEANAustralia/New Zealand had been concluded. Under these FTAs no tariffs imposed on cocoa and cocoa products in 2010. The latest ASEANChina, ASEANKorea and ASEAN Australia/New Zealand tariffs schedules on cocoa and cocoa products appear in Annex 14, Annex 15 and Annex 16. 33. The ACC Secretariat also informed that the ASEANJapan Comprehensive Economic Partnership (AJCEP) has been concluded and the tariff reduction st under AJCEP came into force on the 1 April 2009. By 2010, except for cocoa beans, cocoa shell and cocoa butter, Japan is still imposing 3.1% and 6.3%, import tariff on cocoa paste not defatted and defatted, respectively. The tariff on cocoa powder is 9.4% and 1029.8% for chocolate and other food preparations containing cocoa. The latest JapanASEAN import tariff schedule on cocoa and cocoa products is as Annex 17. 34. The FTA ASEANIndia negotiation was concluded in August 2008 and came st into force on the 1 January 2010. In 2010, the tariffs for cocoa and cocoa products are between 2530%. The latest ASEANIndia import tariff schedule on cocoa and cocoa products is as Annex 18. 35. The ASEANEU Joint Committee had met three times and currently is still in the discussion process to develop further the details of the modalities, work programme and time schedule for negotiating the AEUFTA. The latest EU import tariff schedule on cocoa and cocoa products is as Annex 19. 36. The Meeting took note on the request by the private sector for Indonesia to brief the Meeting on the rationale of the imposition of the export tax on cocoa

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beans and the certification of cocoa powder under the Standard National Indonesia (SNI). 37. Indonesia informed the Meeting that the Indonesian policy to the Export Tax on Cocoa beans has been recently officially endorsed by the Government of Indonesia. The objectives of implementing the Export Tax policy according to the Government Decree No. 55/2008 are to ensure sufficient supply of beans for domestic need or demand, to protect the preservation of natural resources, to anticipate dramatic price fluctuation for a certain export commodity in the international market and to maintain the price stability of certain commodity in the domestic market. The Government policy to impose export tax on the cocoa beans is to promote the development of domestic cocoa industry, to accumulate cocoa value added in the country for the welfare of cocoa farmers and related industry as well as to invite foreign investment in downstream cocoa industry. The strong commitment of the Government to this policy has also been followed by high commitment on the implementation of GERNAS KAKAO (National Programme to Improve Cocoa Productivity and Quality), while mandatory implementation of SNI on cocoa bean is in the process to be endorsed. Indonesia believes that these policies will together bring the betterment to the development and sustainability of Indonesian cocoa. The full report on the export tax and certification of cocoa powder under the SNI appears in Annex 20. 38. The Meeting took note of the rationale of the imposition of the export tax on cocoa beans and certification of cocoa powder under SNI. However, some members raise concerns on these matters as it has tremendous implications to the other ASEAN member countries. The following reactions and implications have been expressed by some of the member countries. a. Serve as disincentive to the farmers for sustainable crops development and at the same time will affect the income of the farmers as the tax will be eventually been borne by the farmers. Encourage dumping activities on cocoa products into global market hence deteriorated cocoa product prices and income. Cocoa players are unable to engage in longer term contract/business as usual as the unfixed monthly export tax rate caused price uncertainty.

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Indonesian delegates stated that the Policy on Export Tax is the Indonesian Government Policy based on deep study and intensive discussions involving all Indonesia cocoa stakeholders. The Policy was implemented after careful examination since 2002 with the objectives to encourage the development of domestic cocoa processing industries. 39. With regard to the certification of cocoa powder under the SNI, the Meeting believed that the imposition of such procedure will be interpreted as a non tariff barrier by other countries and they may follow by imposing similar non tariff measures to ASEAN member countries.

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40. The Meeting appealed to Indonesia to reconsider the imposition of the export tax on cocoa beans as well as the certification requirements for cocoa powder under the SNI in order to be in line with the ASEAN cooperation spirit. 41. The Meeting agreed to submit a position paper on these issues to the Joint Committee on ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion Scheme for further action. However, the Indonesian delegations stated that they do not agree on this as they were not given mandate to commit on these matters. 8.2 Technical Working Group on Food Safety (TWGFS) 42. The Meeting took note on the membership status presented by the ACC Secretariat and progress report of the Technical Working Group on Food Safety (ACC TWGFS) presented by Malaysia as appears in Annex 21. 43. Malaysia, as the Chairman of the TWFGS informed the Meeting that the ACC TWGFS had held two (2) meetings as follow: a. The 1 ACC TWGFS was held on 5 October 2009 in Selangor, Malaysia attended by three (3) members from Indonesia, Malaysia and Singapore as well as the ACC Secretariat. The report of the meeting appears in Annex 22. The 2 ACC TWGFS was held on 22 June 2010 in Quezon City, Philippines attended by 18 members and observers from Indonesia, Malaysia, Philippines, Singapore and Thailand as well as the ACC Secretariat. The report of the meeting appears in Annex 23.
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44. The 1 Meeting of the ACC TWGFS agreed to develop the Term of Reference (ToR) and database for the food safety in relation to cocoa and cocoa nd products. The 2 Meeting of the ACC TWGFS further strengthened the development of the ToR and database on food safety. The ToR of the ACC TWGFS consists of the background, objectives, roles, functions, structure and frequency of meeting. The data and information in the database will consist of the current and the historical data. 45. The 1 Meeting agreed to develop ACC TWGFS website which include background, ToR, list of national contact points of individual member countries, database on food safety, alert system, forum and hyperlink to the member countries related website. The developed structure of the database of nd the ACC TWGFS was presented at the 2 Meeting of the ACC TWGFS. 46. The members also agreed that only one (1) login (username and password) will be given to each member countries. However, the members could extend the login to their other appointed members (technical and nontechnical). The members were requested to provide the name of the person incharge or reference point to the ACC TWGFS Secretariat immediately. 47. The Meeting informed the members that hyperlink to other relevant food safety
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website can be accessed. However, the members are requested to provide the URL address of the website to the ACC TWGFS Secretariat. 8.3 ASEAN Cocoa Club SubCommittee on Bean Quality

48. Indonesia informed the Meeting that the main characteristics occurred in Indonesian cocoa beans are the uneven quality due to Cocoa Pod Borer (CPB) attack, high waste content under fermented beans and high bean count. In line with the effort to improve cocoa bean production, the Government of Indonesia (GoI) has launched a national effort Gerakan Nasional Peningkatan Produksi dan Mutu Biji Kakao to improve production and quality of cocoa beans starting in 2009 for the next three years and extendable. 49. Indonesia further informed that around IDR 13,749,239,000 (US$ 1,374,924) had been allocated to improve Good Agriculture Practices (GAP) by providing programs of replanting (70,000 ha), rehabilitation (235,000 ha) and intensification (145,000 ha). The quality improvement programme is expected to start in 2010 through the implementation of sufficient fermentation and drying involving local government and private sectors in accordance with SNI 2323 enforcement into mandatory. 50. The Meeting took note on the final report on the Cocoa Beans Supply and Quality in South East Asia as appears in Annex 24. The Meeting extended gratitude and appreciation to Mr. Yee Chow Boi for leading the Sub committee On Bean Quality in carrying out this study. AGENDA ITEM 9: ENHANCEMENT OF ASEAN COOPERATION AND JOINT APPROACHES IN INTERNATIONAL AND REGIONAL ISSUES 9.1 Codex Committee on Cocoa Products and Chocolate
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51. Malaysia informed the Meeting that the reports on the 42 Session of The Codex Committee on Pesticide Residues held in Xian, China from 1924 April th 2010 and the 4 Session of The Codex Committee on Contaminants in Foods held in Izmir, Turkey from 2630 April 2010 were not available during the preparation of the ACC report. The update on these two meetings can be reached at the Codex official website at http://www.codexalimentarius.net. 52. Malaysia also briefed the Meeting on the outcome of the 42 Session of The Codex Committee on Food Additives held in Beijing, China from 1519 March 2010. The Committee agreed to forward the draft and proposed draft food rd additive provisions for cocoa and chocolate products to the coming 33 Session of The Codex Alimentarius Commission (CAC) for adoption at Step 8 and Step 5/8. The Committee also agreed to forward the draft and proposed rd draft food additive provisions for cocoa and chocolate products to 33 Session of The CAC for discontinuation. The full report of this meeting appears in Annex 25. 53. The Meeting took note on the different level of MRL of 2,4D Amine on cocoa
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beans set by Japan on declared or undeclared usage of 2,4D Amine. 54. The Meeting expressed dissatisfaction on the same MRL of 2,4D Amine set on cocoa beans and rice by Japan even though rice is a staple food for Asian. The issues are challenges for the ACC to work together in proposing a better and fairness marketing for cocoa beans and products of ASEAN to enter Japanese market. 55. The Chairman of the ACC advised the ASEAN member countries to avoid using the unpermitted chemical and look for other alternatives herbicide. 56. The Chairman of the ACC Meeting also informed that several producing members of the ICCO also expressed their concerns on the inconsistency of the MRLs and methodologies to analyze pesticide residue in cocoa beans. The workshop on Safe Use of Pesticide and Harmonization of Analytical Method for Pesticide Residue in cocoa beans will be organized by the ICCO and to be held in Kuala Lumpur in January 2011. AGENDA ITEM 10: DEVELOPMENT, ACCELERATION OF TRANSFER AND ADOPTION OF NEW TECHNOLOGIES 10.1 Proposed Trials on Selected Cocoa Progenies in Selected ASEAN Regions

57. The Meeting was informed that the Joint Progeny Trial Program was carried out by Malaysia (MCB) and Indonesia (ICCRI) which was initiated in 2004 with an objective to develop superior planting materials tolerance to Cocoa Pod Borer (CPB) and other pest and diseases. One progeny trial consisted of 10 (ten) new progenies have been established in Malaysia and Indonesia, respectively. 58. Indonesia reported the progress of the project. The plant materials tested consisted of 14 hybrids showed consistence performance. The evaluation on the VSD infection on the progenies showed that HKW15 which is hybrid of ICS 60 x KW 162 was a tolerance hybrid. Some progenies showed good performance in terms of dried beans and number of pod per tree which are hybrid of C 1038 x BR 25, C 1038 x QH 22, KKM 22 x NA 33 and TSH 858 x KW 162. The full report by Indonesia appears in Annex 26. 59. In Malaysia, the progeny trial had been established in MCB Cocoa Research and Development Centre (CRDC) in Madai, Tawau. The trial was laid in Randomised Complete Block Design (RCBD) with 4 replications and 20 trees in each replicate. There are 11 progenies including a local control (UIT 1 x NA 33) in the trial. The result on girth measurement showed that six of the hybrids had higher girth increment than the control and TSH 858 x KW 165 recorded highest girth measurement. ICS 60 x KEE 2, ICS 60 x KW 163 and TSH 858 x KW 163 had lower girth increment than the control. ICS 60 x KW165 appeared to be the more vigorous progeny with girth increment of 16.60cm. 60. As for yield, all of the progenies came into production three years after field
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planting. However, the pod yields were inconsistent within the progeny trees. KW 162 x KW 163 and KW 162 x KEE 2 produced 118% and 58% more pods than the control while ICS 60 x KEE2, ICS 60 x KW 162 and TSH 858 x KW 163 were the laggard yielding hybrids. 61. On the pest and disease assessment, Malaysia reported that the assessment of CPB and VSD disease are being carried out in the current year and updates will be reported in the next meeting. The full report by Malaysia appears in Annex 27. 62. The Meeting agreed that Indonesia and Malaysia to discuss and come up with a standard parameter of evaluation for comparison of results of the study. 63. The Meeting agreed to extend the participation of other ASEAN member countries including the Philippines, Thailand and Viet Nam to participate in the study. 10.2 ASEAN Cocoa Club Database

64. The ACC Secretariat informed the Meeting on the progress of the development of the ACC Database. Except for Malaysia and Singapore, the other member countries have yet to submit their information to the ACC Secretariat. The summary report of the submission for the ACC Database appears in Annex 28. 65. The Meeting agreed to remove the ACC Database from the ACC Webpage immediately. AGENDA ITEM 11: ENHANCEMENT OF PRIVATE SECTOR INVOLVEMENT 11.1 Cocoa Association of Asia (CAA)

66. The Meeting took note on the activities conducted by the Cocoa Association of Asia (CAA) in 2009 presented by Mr. Yeong Chye, the Chairman of the CAA as follow:i. ii. iii. 11.2 Meeting with ASKINDO to discuss Cocoa Sustainable Roadmap. Organized the Cocoa Contract and Arbitration Workshop. Organized Cocoa Quality Workshop. Cocoa Manufacturers Group Malaysia (CMG)

67. The Meeting took note on the report by Mr. Ng Boon Yeap, the Chairman of the CMG on the activities carried out by the CMG as appears in Annex 29. In 2009, the CMG had quarterly meetings with the Malaysian Cocoa Board. The various meetings were focus on the activities to promote and enhance the cocoa industry including sourcing of cocoa beans, commercial promotion of cocoa products, tariff issues and nontariff barriers, food safety and chemical residue, development of quality assurance as well as revisit the present
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Malaysian Standard for cocoa and cocoa related products. CMG also th attended the 7 Meeting of the SubWorking Group on Cocoa under the Bilateral Cooperation on Commodities between IndonesiaMalaysia. 68. He highlighted the phenomena of LIFFEs invert structure which are getting more frequent now. This development posed tremendous threat and a great concern to many, especially when market is purposely squeezed mainly by the fund and speculators which is bad for the cocoa industry. 69. The prices for cocoa are very attractive. CMG urged all ASEAN countries to plant and produce well fermented cocoa beans which could provide reasonable economic value to all stakeholders. AGENDA ITEM 12: OTHER MATTERS 12.1 ASEAN Cocoa Club National Focal Point

70. The ACC Secretariat updated the Meeting on the current National Focal Points submitted by the member countries as appear in Annex 30. The member countries were requested to update and notify the ACC Secretariat in case of any changes in their National Focal Points. 71. The Philippines and Thailand informed the Meeting that they would submit the additional focal points from the private sectors to the ACC Secretariat. 72. Indonesia informed that a representative from Indonesian Cocoa Board will replace ASKINDO as the focal point. Indonesia will submit the name of the representative to the ACC Secretariat. 73. The CAA informed the Meeting that Ms. Mastura Mansor is the new Secretary General of CAA replacing Ms. Cherie Tan. 12.2 Malaysian Cocoa and Chocolate Day

74. The Chairman informed the Meeting that in conjunction with the World Cocoa Day, Malaysia will be organizing the Cocoa and Chocolate Day from 1517 October 2010 at the Mid Valley Exhibition Center, Mid Valley Megamall, Kuala Lumpur and extended the invitation for all the ACC members to participate in st the fair. The Cocoa Producer Alliance (COPAL) had declared October 1 every year as the World Cocoa Day. 12.3 First Philippines International Cocoa Conference and Exhibition

75. The Meeting was informed that the Philippines is going to organize the First Philippines International Cocoa Conference and Exhibition in November 2011 at the World Trade Center in Manila and invited all ACC members to participate in the event.

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AGENDA 13: DATE AND VENUE OF THE NEXT MEETING 76. The Meeting offered Thailand to organize the 14 Meeting of the ACC on the ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion Scheme. Thailand will confirm agreement to host the Meeting with the ACC Secretariat after consultation with her government. 77. In the event of unavailability of Thailand to host the 14 Indonesia has agreed to host the Meeting. AGENDA 14: ADOPTION OF THE REPORT 78. The Meeting unanimously adopted the Report of the 13 Meeting of the ACC on the ASEAN Cooperation and Joint Approaches in Agriculture and Forest Products Promotion Scheme held on 2324 June 2010 in the Department of Agriculture, Quezon City, Philippines. ACKNOWLEDGEMENT 79. The Chairman of the ACC expressed his gratitude and thanks to all delegates for their active participation in the meeting. 80. The delegation of Indonesia, Lao PDR, Malaysia, Philippines, Singapore, Thailand and Viet Nam expressed their sincere appreciation to the Government of Philippines in particular the Cocoa Foundation of the Philippines and Department of Agriculture, Philippines for their warm hospitality accorded to them and the excellent arrangements made for the meeting. 81. The meeting was held in the traditional spirit of ASEAN cordiality and solidarity.
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