Luzon coffee industry
September 22, 2017
MAKATI CITY –
Following President Rodrigo Duterte’s directive to bridge various
gaps in the supply chain to make the local coffee industry more
competitive, the Department of Trade and Industry recently gathered
coffee farmers, processors, manufacturers, Regional Council Chairs,
national government agencies, and members of the academe from the
Island of Luzon for the Luzon Island Coffee Cluster Assembly.
The assembly aimed to
present the national and localized version roadmap of each region,
establish an institutional mechanism of roadmap localization and
implementation, and learn about coffee quality standards and market
Coordinator and DTI Cordillera Administrative Region Regional
Director Myrna Pablo explained the current situation of the
industry, especially the gap between demand and production.
“The Philippine coffee
production is far from serving coffee consumption of the country.
Currently, 90% of the demand is imported for about P12 billion. The
demand is still increasing with expanding consumption based among
younger generation and night shift workers. Likewise, coffee shops
are increasing, and specialty coffee market is expanding,” Pablo
said, adding that while coffee production is almost all over the
country, the country’s production is very far from sufficiency.
In March, DTI Secretary
Ramon Lopez and Department of Agriculture Secretary Emmanuel Piñol
signed the Philippine Coffee Industry Roadmap 2017-2022 to bridge
the gap between the steady high demand for coffee and the slow
decline in production, and to provide aid to coffee farmers.
Pablo said that the Coffee
Roadmap is focused on optimizing income for Filipino farmers and the
micro, small, and medium enterprises (MSMEs) in the industry.
The activity also
discussed the Philippine Coffee Market vs. World Market Behaviors,
Consumer Demand Innovation, Coffee Science Researches, Coffee
Development Programs of the Department of Environment and Natural
Resources and the Department of Science and Technology, and the High
Value Crops Development Program of the Department of Agriculture.
Coffee is among the
priority industry clusters that DTI is targeting to develop in the
next five years, given its high potential to accelerate the region’s
economic growth. While the sector has so much to offer, development
In 2016, DTI has assisted
2,695 coffee MSMEs while providing 19,232 jobs to Filipinos.
The Philippines envisions
a coffee industry that is cost-competitive, aligned with global
quality standards, reliable and environment-friendly, and provides
sustainable benefits to farmers, processors, traders, and exporters.
Some of the proposed
strategies to achieve the target are to improve quality and
availability of planting material, enhance farm efficiency and
investments, and improve competitiveness, market price, and coffee