Presentation during the Bureau of Agricultural Research (BAR) Seminar Series on January 26, 2017 at RDMIC Bldg., cor. Visayas Ave., Elliptical Rd., Diliman, Quezon City

1. STATUS OF THE
PHILIPPINE COFFEE
INDUSTRY
Presented by:
ROMEO P. AYOS
Supervising Agriculturist
Crop Research and Production Support Division
Bureau of Plant Industry
Malate, Manila

2. 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

3. WHY invest in coffee?
 Love for coffee as a beverage
 Livelihood- production/processing
 Environmental protection
 Suitability of Philippines for growing
quality coffee.

4.  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.

5. WHERE ARE WE?
THE PHILIPPINE
COFFEE INDUSTRY

6. 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 INDUSTRYTHE PHILIPPINE COFFEE INDUSTRY

7. 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 INDUSTRYTHE PHILIPPINE COFFEE INDUSTRY
Source: Philippine Statistics Authority-Bureau of Agricultural Statistics

8. 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%)

9. SHARE IN PRODUCTION AREA BY
COFFEE VARIETIES, 2015
Robusta is the main variety planted at
75% of all areas

10. SWOT ANALYSIS

11. WHERE DO WE WANT TO GO?

12. 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

13. 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

14. 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

15. 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

16. HOW DO WE GET THERE?

17. Provision of quality planting materials and establishment, maintenance
and rehabilitation of coffee nurseries
AREA EXPANSION PROGRAM

18. Establishment and maintenance of clonal garden
AREA EXPANSION PROGRAM

19. 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

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

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

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

23. POSTHARVEST/VALUE ADDING AND PRODUCT
DEVELOPMENT
Processing equipment (e.g. depulper, dehuller, roaster)
Postharvest equipment (coffee dryer)

24. POSTHARVEST/VALUE ADDING AND PRODUCT
DEVELOPMENT
Establishment of community-based processing facility (coffee roasting)

25. 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

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

27. Thank You
and
Have a Blessed Day!
Thank You
and
Have a Blessed Day!