High Value Crops: Coffee Industry in the Philippines

Philippine Coffee Industry Roadmap 2017-2022

EXECUTIVE SUMMARY

After four centuries of coffee production in the Philippines, all of the stakeholders unified to

develop this long-awaited Philippine Coffee Industry Roadmap 2017-2022. This brings into

account the current condition of the country‟s coffee industry in the light of bridging the

various gaps in the supply chain towards a more responsive and globally competitive industry

favorable to its particular customers and beneficiaries.

The roadmap is composed of three sections; Where are we? Where do we want to go?, and

How do we get there? It provides both internal and external assessments of the industry. The

roadmap outlines the vision, mission, goals, strategies and action plans to enhance the growth

of the coffee industry from 2017 to 2022. Both primary and secondary data presented were

gathered from several meetings and consultations among the coffee stakeholders in the

government and private sectors.

The Philippine Coffee Industry Roadmap looked back at its current production volumes of

37,000 metric tons (MT), with an area of 117,454 hectares (ha), and an average yield of 300

kilograms (kg) per hectare. The following were taken into account: the issues and concerns;

cost and return confronting the coffee growers, traders and processors; the market vis-a-vis its

benefits to the coffee drinker-customers e.g. low productivity, senile trees, low soil fertility,

limited control of pests and diseases; limited skills and technical know-how; lack of post-

harvest facilities; and access to credit and markets.

These challenges will be considered in setting the directions and action plans, following the

supply chain analysis from farm inputs, production, primary processing, secondary

processing (manufacturing), and distribution.

The various stakeholders in the government, civil society groups and the private sector laid

down several strategies and approaches to address the increasing demand and limited supply

of quality green coffee beans; to wit: the use of improved/registered coffee planting

materials; adoption of the good agricultural practices (GAP) of coffee; initial

provision/subsidy of farm inputs and appropriate post-harvest facilities; access to credit and

market outlets of coffee growers and conduct continuing education programs among coffee

growers through the support services from government and private sector stakeholders.

At the end of the target term in 2022, it is expected that the coffee growers have increased

their average yield of 1 ton per hectare, supplied the needed volume of 214,626 MT with self-

sufficiency level from 41.60% to 160.16% and have increased farmers‟ income and farm

productivity.

To help enable the roadmap to be effectively utilized, the Philippine Coffee Council, a private

sector led body with government support up to the provincial level, will be created to guide

and monitor its implementation.

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PHILIPPINE COFFEE INDUSTRY ROADMAP 2017-2022

1. OVERVIEW

1.1 Rationale

Why invest in coffee? A sizeable portion of the population love coffee as a beverage and as a

health drink with antioxidants that fight free radicals. For a farmer, coffee is a lucrative

business and provides livelihood to many. Luckily, the Philippines is an ideal place to grow

quality coffee. However, local coffee‟s production is decreasing by 3.5% per year over the

past 10 years,

1

while the Philippines‟ coffee consumption from 2014 to 2015 increased by

8.8%. 2

Republic Act (RA) No. 7900, An Act to Promote the Production, Processing, Marketing and

Distribution of High-Value Crops, Providing Funds, therefore, and for Other Purposes or

known as the High-Value Crops Development Act of 1995 defines high-value crops (HVC)

as crops other than traditional ones which include coffee.

Also, in RA 7900, Declaration of Policy, it states the declared the policy of the State to

accelerate the growth and development of agriculture in general, enhance productivity and

incomes of farmers and the rural population, improve the investment climate, competencies

and efficiency of agribusiness and develop high-value crops as export crops that will

significantly augment the foreign exchange earnings of the country, through an all-out

promotion of the production, processing, marketing, and distribution of high-value crops in

suitable areas of the country.

The roadmap is the detailed plan to guide key players and government agencies in the

progress of coffee industry toward their goal. It is crafted based on the coffee industry

stakeholders‟ pursuit of inclusive growth models thru value chain approach and to sustain

increases in yields, incomes, improved farm productivity and to enhance farmers‟ technical

capability and skills, and also to create avenues for food security and poverty alleviation.

The roadmap is divided into three main sections and attempts to answer key strategic

questions -- Where are we? Where do we want to go?, and How do we get there? Through

the road map, it assesses the Philippine coffee industry and outlines the vision, mission,

goals, strategies and action plans to grow the coffee industry from 2017 to 2022.

The document is a product of numerous meetings, consultations and workshops among key

stakeholders in the coffee industry from both the government and the private sectors. It

includes data on production, area, yield, prices and trade.

https://drive.google.com/file/d/1B-fWisVLmHIaGS7uftFa9JDksScruj1a/view