Part 3

Lands very rich in humus, as some of our forest valleys are, undoubtedly carry ample nitrogenous elements of fertility to maintain the trees at a high standard of growth for many years, but provision is indispensable for a regular supply of potash and phosphoric acid as soon as the trees come into heavy bearing. It is to them and not to the nitrogen that we look for the formation of strong, stocky, well-ripened wood capable of fruit bearing and for fruit that shall be sound, highly flavored, and well matured.

The bearing life of such a tree will surely be healthfully prolonged for many years beyond one constantly driven with highly stimulating foods, and in the end amply repay the grower for the vigilance, toil, and original expenditure of money necessary to maintaining a well-grown and well-appointed cacao plantation.

SUPPLEMENTAL NOTES.

New Varieties.--Cacao is exclusively grown from seed, and it is only by careful selection of the most valuable trees that the planter can hope to make the most profitable renewals or additions to his plantations. It is by this means that many excellent sorts are now in cultivation in different regions that have continued to vary from the three original, common forms of Theobroma cacao, until now it is a matter of some difficulty to differentiate them.

Residence.--The conditions for living in the Philippines offer peculiar, it may be said unexampled, advantages to the planter of cacao. The climate as a whole is remarkably salubrious, and sites are to be found nearly everywhere for the estate buildings, sufficiently elevated to obviate the necessity of living near stagnant waters.

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.

Expendable the first year.

Capital account:

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 2 cents each 200.00 Seed purchase, rearing and planting 12,000 cacao, at 3 cents each 360.00 Contingent and incidental 174.00 ------- Total $2,000.00

Second year.

Interest on investment $200.00 Depreciation on tools, buildings, and animals (20 per cent of cost) 150.00 ------- 350.00

Third year.

Interest on investment $200.00 Depreciation as above 150.00 ------- 350.00

Fourth year.

Interest on investment $200.00 Depreciation as above 150.00 Building of drying house and sweat boxes, capacity 20,000 kilos 450.00 ------- 800.00 -------- Total capital investment 3,500.00

Fifth year.

Income account:

From 11,680 cacao trees, 300 grams cacao each, equals 3,500 kilos, at 48 cents 1,680.00

Expense account:

Fixed interest and depreciation charges on investment of $3,500.00 $350.00 Taxes 1 1/2 per cent on a one-third valuation basis 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 10 cents per kilo 350.00 Contingent 86.00 ------- 1,030.00 -------- Credit balance 650.00

Sixth year.

Income account:

From 11,680 cacao trees, at 500 grams cacao each, equals 5,840 kilos, at 48 cents 2,803.20

Expense account:

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 per kilo 584.00 Contingent 93.20 ------- 1,303.20 -------- Credit balance 1,500.00

Seventh year.

Income account:

From 11,680 cacao trees, at 750 grams cacao each, equals 8,760 kilos, at 48 cents 4,204.80

Expense account:

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 cents per kilo 876.00 Contingent 170.80 ------- 1,704.80 -------- Credit balance 2,500.00

Eighth year.

Income account:

From 11,680 cacao trees, at 1 kilo cacao each, equals 11,680 kilos, at 48 cents 5,606.40

Expense account:

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 per kilo 1,168.00 Contingent 240.40 -------- 2,106.40 -------- Credit balance 3,500.00

Ninth year.

Income account:

From 11,680 trees, at 2 "catties" or 1.25 kilos cacao each, equals 14,600 kilos, at 48 cents 7,008.00

Expense account:

Fixed interest charges as above $350.00 Taxes at 1 1/2 per cent on a one-third valuation of $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 10 cents 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."

In Camerouns, Dr. Preuss, a close and well-trained observer, gives the mean annual yield of trees of full-bearing age at 4.4 pounds.

Mr. Rousselot places the yield on the French Congo at the same figure. In the Caroline Islands it reaches 5 pounds and in Surinam, according to M. Nichols, the average at maturity is 6 1/2 pounds. In Mindanao, I have been told, but do not vouch for the report, of more than ten "catties" taken in one year from a single tree; and, as there are well-authenticated instances of record, of single trees having yielded as much as 30 pounds, I am not prepared to altogether discredit the Mindanao story.

The difference, however, between good returns and enormous profits arising from cacao growing in the Philippines will be determined by the amount of knowledge, experience, and energy that the planter is capable of bringing to bear upon the culture in question.

NOTES

[1] A short introduction to cacao and its cultivation in the Philippines.

[2] Le Cacaoyer, par Henri Jumelle. Culture de Cacaoyer dans Guadaloupe par Dr Paul Guerin.

[3] Cacao, by J. H. Hart, F. L. S. Trinidad.

[4] "Shade in Coffee Culture." U. S. Dept. Ag., Washington, 1901.

[5] According to "Historia de Filipinas," by P. Fr. Gaspar de S. Augustin, cacao plants were first brought here in the year 1670 by a pilot named Pedro Brabo, of Laguna Province, who gave them to a priest of the Camarines named Bartoleme Brabo.

[6] "Cacao," p. 16.