STATUS OF THE PHILIPPINE COFFEE

INDUSTRY

Presented by:

ROMEO P. AYOSSupervising Agriculturist

Crop Research and Production Support Division

Bureau of Plant Industry

Malate, Manila

Did you know?

• That coffee is the second most traded commodity in the whole world, second to crude oil.

• It is produced in Latin America, South East Asia and Africa and the main consumers are US and Europe.

• “ It is estimated that 1.6 billion cups of coffee are

consumed worldwide “ PER DAY”

http:/bit.ly/1695k8n

WHY invest in coffee?

Love for coffee as a beverage Livelihood- production/processing Environmental protection Suitability of Philippines for growing

quality coffee.

In 1880, the Philippines was the fourth largest exporter of coffee beans, supplying America and Europe, until coffee rust hit the country `s coffee crop in 1889, reducing coffee production to only one-sixth of the peak in just two years.

WHERE ARE WE?

THE PHILIPPINE COFFEE INDUSTRY

Occupies an important place in the world economy, being widely consumed as the most prestigious beverage Instant coffee is still more accessible, the ground and brew sector is still growing

Coffee farmers generally dry their coffee beans and have them milled through local millers

In the Philippines, coffee farming is dominated by small farmers with an average farm size of 1-2 hectares

The most common variety is Robusta which accounted to over 75% production followed by Arabica, Liberica and Excelsa

THE PHILIPPINE COFFEE INDUSTRY

The coffee supply of the country is not enough. In 2015, coffee production was only 72,342 mt (dried berries) or 36,171 MT of green coffee beans (gcb). This was attributed to the cutting and pruning of old trees and the effects of heavy rains and strong winds during fruit development in Sultan Kudarat. There was crop shifting to banana in Davao City and to pineapple in Cavite. Lower production in Batangas was explained by the long dry season during the flowering stage as some coffee trees were also affected by scale insects.

Area planted accounted to 113,738 hectares with SOCCSKSARGEN as the highest with 26,731 hectares.

THE PHILIPPINE COFFEE INDUSTRY

Source: Philippine Statistics Authority-Bureau of Agricultural Statistics

COFFEE PRODUCTION BY VARIETY, 2006-2015

Source: Philippine Statistics Authority

Total production volume decreasing by an average of 3.9%/year by variety decrease is Arabica (1.68%), Excelsa (6.4%), Liberica (4.41%), and Robusta (4.25%)

SHARE IN PRODUCTION AREA BY COFFEE VARIETIES, 2015

Robusta is the main variety planted at 75% of all areas

SWOT ANALYSIS

WHERE DO WE WANT TO GO?

INDUSTRY VISION...

An industry that is cost-competitive, aligned with global quality standards, reliable and environment-friendly; and provides sustainable benefits to farmers, processors, traders and exporters

MISSION...

Development of a cost-competitive, quality-driven, supply-reliable, product-diversified value chain from farming to coffee products manufacturing under sustainable practices

GOALS...

Increasing productivity and production

Improving farmers’ standard of living through diversified high value agriculture

Increasing rural employment

Promoting environment-friendly technologies

Lessening coffee bean and coffee products importation

Improving income of farmers, processors and other stakeholders

PLAN TARGETS/FOCUS...

Improving smallholder coffee farmers’ productivity, profitability and product quality

Promoting new plantings and provide access to financing

Targeting value-addition in coffee products

Improve quality and availability of planting materials

Enhance farm efficiency and investments

Improve market price and coffee standards

Increase value-adding

Improve research and extension services

Access to long term funds

COFFEE CONVERGENT ROADMAP ACTION

PROGRAMS

Strengthening of industry organizations

HOW DO WE GET THERE?

Provision of quality planting materials and establishment, maintenance and rehabilitation of coffee nurseries

AREA EXPANSION PROGRAM

Establishment and maintenance of clonal garden

AREA EXPANSION PROGRAM

Access to network of buyers thru conduct of market studies/research activities ( market reconnaissance, benchmarking, value chain analysis market related events conducted and participated (local and international)

MARKET SUPPORT

EXTENSION SUPPORT Conduct of Trainings (Training of Trainers, Package of Technology, GAP), info and advocacy (IEC materials, radio and TV plugs, info caravan)

EXTENSION SUPPORT Conduct of technology demonstration to address the proper management of old coffee trees (rejuvenation and rehabilitation)

EXTENSION SUPPORT Conduct of technology demonstration to address the proper management of old coffee trees (rejuvenation and rehabilitation)

POSTHARVEST/VALUE ADDING AND PRODUCT DEVELOPMENT

Processing equipment (e.g. depulper, dehuller, roaster)

Postharvest equipment (coffee dryer)

POSTHARVEST/VALUE ADDING AND PRODUCT DEVELOPMENT

Establishment of community-based processing facility (coffee roasting)

RESEARCH AND DEVELOPMENT

Conduct of production and postharvest related researches for the development of the coffee industry

- Land Resources Evaluation and Suitability Assessment of Strategic Production Areas for Coffee and Cacao

- Effects of Pests, Diseases and Biocontrol and Weather on the Phytochemical Production of Coffee and Cacao in Mindanao

- Utilization and Promotion of Developed Postharvest Technologies for Sustainable Community Based Coffee Processing Enterprise

- Production and Processing of Premium Quality Coffee Liquor and Packaging Development for the Niche High End Market

REGULATORY SUPPORT

Support to plant quarantine, accreditation of plant nurseries, plant material certification, support for pest and diseases monitoring, product standards/GAP development)

Thank You and

Have a Blessed Day!