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Coffee and The Philippines

Coffee Planting in the Philippines: Challenges and Opportunities

Coffee is one of the most popular beverages in the world, and the Philippines is among the top coffee producers globally. However, the country’s coffee industry faces many challenges, such as low productivity, aging trees, climate change, and market competition. How can coffee farmers in the Philippines overcome these difficulties and seize the opportunities for growth and sustainability? This blog post will explore the current state, trends, and prospects of coffee planting in the Philippines, and provide some tips and recommendations for aspiring and existing coffee growers.

The Current State of Coffee Planting in the Philippines

According to the Philippine Statistics Authority1, the area planted for all types of coffee in the country was 111.19 thousand hectares in the first half of 2023, which indicates a decrease of -0.1 percent from the previous year’s same period. The total coffee production was 48.43 thousand metric tons, which also declined by -1.9 percent from the previous year. The average yield per hectare was 0.44 metric tons, which was slightly higher than the previous year’s 0.43 metric tons.

The Philippines produces four primary species of coffee: Arabica, Robusta, Excelsa, and Liberica. Robusta accounts for 69 percent of the total coffee production, followed by Arabica (24 percent), Excelsa (6 percent), and Liberica (1 percent)2. The major coffee-producing regions in the country are the Cordillera Administrative Region (CAR), Northern Mindanao, SOCCSKSARGEN, Davao Region, and CALABARZON2.

The country’s coffee industry is dominated by smallholder farmers, with 95 percent of farms measuring less than 5 hectares2. Most of these farmers have limited access to quality planting materials, technical assistance, credit, and market linkages. They also face various challenges, such as:

The Trends and Prospects of Coffee Planting in the Philippines

Despite the challenges, the coffee industry in the Philippines has a lot of potential and opportunities for growth and development. The country has a rich and diverse coffee culture, with a growing demand for specialty and premium coffee. The coffee consumption in the country was estimated at 3.4 million 60-kg bags in 2020, and is expected to grow at a compound annual growth rate (CAGR) of 3.5 percent from 2021 to 20252. The coffee shop sector is also booming, with a growth rate of 12.7 percent in 20214. The expansion of international coffee chains, such as Starbucks and The Coffee Bean & Tea Leaf, as well as the emergence of local coffee brands, such as Bo’s Coffee and Figaro, have increased the awareness and appreciation of coffee among Filipinos.

The Philippines government has also developed the Philippine Coffee Industry Roadmap 2021-20252, which aims to boost the sector’s growth and sustainability. The roadmap has the following vision, mission, and goals:

  • Vision: A globally competitive coffee industry that is sustainable, resilient, and inclusive
  • Mission: To increase the productivity, quality, and profitability of coffee farmers and other stakeholders through the provision of appropriate interventions and support services
  • Goals: To achieve self-sufficiency in coffee production, to increase the income of coffee farmers, and to enhance the quality and competitiveness of Philippine coffee

The roadmap has set the following targets for 2025:

  • Area planted: 213.4 thousand hectares
  • Production: 214.6 thousand metric tons
  • Yield: 1.01 metric tons per hectare
  • Sufficiency level: 161 percent

To achieve these targets, the roadmap has identified the following strategies and policies:

  • Enhance the production and supply of quality planting materials
  • Promote the adoption of good agricultural practices and climate-smart technologies
  • Provide access to credit, insurance, and other financial services
  • Strengthen the extension and training services and capacity building programs
  • Establish and upgrade the post-harvest facilities and infrastructure
  • Develop and implement the quality standards and certification systems
  • Facilitate the market access and linkages, both domestic and international
  • Support the research and development and innovation initiatives
  • Foster the collaboration and coordination among the public and private stakeholders
  • Implement the monitoring and evaluation mechanisms and feedback systems

Tips and Recommendations for Coffee Planters in the Philippines

If you are interested in starting or expanding your own coffee plantation in the Philippines, here are some tips and recommendations that you should consider:

  1. psa.gov.ph
  2. da.gov.ph
  3. link.springer.com
  4. hillsandvalley
  5. philcoffeeboard.com
  6. coffeesmiley.com
  7. mb.com.ph
  8. iisd.org