A Commodity Profile

For more information, please contact or visit:

Agribusiness and Marketing Assistance Division

Department of Agriculture - Regional Field Unit No. 8
2nd Floor, Soils Laboratory Building
Magsaysay Boulevard, Tacloban City
Tel./Fax No.(053) 325-5363

Coffee A Commodity Profile 10 Agribusiness and Marketing Assistance Division 1

 Coffee

M illions of people around the world love to start

their day with a cup of strong coffee, be it
plain, espresso, latte, mocha, cappuccino,
soluble decaffeinated or any of the other varieties
available today. The smell, the taste, the caffeine and the
shared experience of coffee have been a staple of our
modern life and culture.

Derived from the berries of coffee trees, it was first in-

troduced in the Philippines by the Spanish friars in 1740.
Since then Filipinos became fond of drinking coffee.

Benefits and Uses

Coffee brings to mind the aroma, distinct taste, warmth

and the energizing caffeine, but it is more than a drink
coffee has become a form of expression.

Coffee also contains tannin and anti-oxidants which act as

mild stimulant good for the heart and arteries and also
relieve headache at some drinkers. Caffeine in
coffee can reduce the risk of asthma attack. Some
researchers also found out that coffee protects the liver
against some pathogens, and can even reduce the
occurrence of some kind of tumors.

Some manufacturing industries use coffee powder as

flavoring in ice cream, candies and other food.

Coffee A Commodity Profile 2 Agribusiness and Marketing Assistance Division 9

 Coffee Green Beans Buyers
Name of Establishment Contact Person
NESTLE Philippines, Inc. Mr. Mabini L. Antonio
Sr. VP for Corporate Affairs
Tel. # 8986140/ 898-0001
Fax 8999833
Mr. Rozalino Tavita Jr.
Purchasing Specialist
NESTLE Tacloban Buying Station
Tel. No. 053-323-6819
Commonwealth Foods Mr. Luke Huang
Vice President
Tel. # 844-5661
Fax 8674276/ 8178845
Figaro Coffee Co., Inc. Ms. Pacita A. Juan
Director
Tel No. 818-5839
Fax– 819-0007/ 812-5202
Starbucks Coffee, Inc. Mr. Noel Lopez
Chief, Executive Officer
TF– 896-2755/ 895-2747
Serg’s Products, Inc. Ms. Nadine Goquiolay
Director
Negros Coffee and Grains Mr. Nicholas Matti
Manager
Tel. 888-0043/ 831-6190
Fax. 8434670
(Source: AMAD Directories 2005)
Coffee A Commodity Profile
Production
Address More than half of the country’s production was accounted in
Mindanao where large areas are coffee plantations. Luzon
31 Plaza Drive, Rockwell
ranked second with its high yielding trees mostly found in
Center, Makati City
Cavite and Batangas while in the Visayas, certain provinces
are also producing coffee.
Fast Cargo Compound
Marasbaras, Tacloban City In Eastern Visayas, BAS-R8 (2004) recorded 408 hectares
planted with coffee. Leyte devoted 199 hectares, Southern
Leyte is next with 180 hectares and in some areas in the
COMFOODS Bldg. Samar Provinces. Recently more areas are planted with
Sen. Gil Puyat Avenue
Makati City coffee (Robusta and Liberica varieties) in support to the
agency’s goal to open new agribusiness lands. As of 2006, the
QUAD III, Ayala Center HVCC Program established 165 hectares coffee orchards
Makati City regionwide.
Trading and Prices
3F Urban II Bldg.
405 Gil Puyat Ave.
Makati City The country’s exportation of instant coffee, roasted or
17 Ortigas Ave. Extension ground coffee and green beans drastically increase from 740
Cainta, Rizal metric tons in 2003 to 1,703 metric tons in 2004. These were
8A Manhattan Square shipped to Japan, Saudi Arabia, Kuwait, Malaysia, Thailand,
Condo Palau, Greece and Papua New Guinea.
Velero Street
Makati City
Supply of green beans comes from the major producing areas
in the country. However, local production is far below the
demand which prompted some processors to import green
beans from Vietnam.
Local coffee trading experienced gloom for the past years
due to the absence of local processors in the region.
8 Agribusiness and Marketing Assistance Division 3
 P22.13/kg
Cost to produce
Assemblers/traders transported their green beans to a kilo of coffee
processors located in Laguna or in Cagayan de Oro City.
Depreciation Bolos, baskets,

Early this year, in time for the coffee commercialization plan, Buying price: P60kg cost and P3.00/kg interest
Miscellaneous
Net Income: P84,042/ha
Nestle Philippines, one of the leading coffee beans
Robusta
processors expressed willingness to buy unlimited volume of 5-15 year-old @ 1t/ha Farm to Buying
coffee beans in the region. At present, coffee farmers in 1000 trees/ha P1.50/kg Station
Transport
the region are trading directly to them, although other local
coffee blend processors surrounds.
Communal
From 2001-2005, price of Robusta dried coffee beans is Dehulling P1.00/kg dehullers

highly volatile at P58.00 in April 2005 and P72.00 in July of

same year. Robusta
Cost P0.50/kg @ P500/ha
Demand and Supply Projections Drying
Structure
• Domestic demand stands at 64,000mt Analysis
• Domestic production is around 27,000mt in 2004, the @ P7550/ha
Harvesting P7.55/kg
shortfall has been imported from other countries
• Local demand is growing at 3% per annum
• Expansion of coffee areas has been encouraged and
prioritized under Goal 1 Pest Control P0.00/kg
Optional

• Increasing demand of organically grown local coffee such

as Philippine Barako Coffee, Halal Coffee, Philippine
15 bags organic,
Excelsa and Kapi Alamid. Fertilization P3.88/kg 2 bags 14-14-14,
2 bags Urea,
3 packs Bio-N
Problems and Issues
Maintenance P4.70/kg @ P4700/ha/yr
• Inadequate technical know-how
• Low volume of production from existing coffee orchards
• Poor quality green beans
• Unstable market prices Infrastructure Power & Water R&D Warehousing Communication Financing
• Individual marketing system
Coffee A Commodity Profile 4 Agribusiness and Marketing Assistance Division 7
 Assemblers/traders transported their green beans to
Investment Entry Points/Opportunities
Coffee Growers/ Planters in Region VIII
• Establishment of nurseries and sale of good quality
Contact Person/ seedlings
Nestle Name of Association
Philippines, one of the Contact
leading coffee
Number
Address
beans
• Coffee orchard expansion for Robusta, Liberica, and
LEYTE
Arabica
1. Tolosahay Upland Farmers' Cooperative Marcela Abrera/ Brgy. Tolosahay ,Julita
• Coffee green beans trading
0916-432-1520
2. Tingib Farmers' Association (TIFA) Florida Cinco Brgy. Tingib ,Tolosa • Financial assistance
3. Association of Coffee Growers of Abuyog Severo Delgado Abuyog • Processing of exportable coffee products
4. Leyte, Leyte Charles Mortuegui Brgy. Wague • Post harvest facilities

SOUTHERN LEYTE Cost and Returns

5. Sogod Necitas Dotollo Sogod

Estimated cost to establish and maintain a hectare of coffee

WESTERN SAMAR
6. Mr. Charlie Durano Charlie Durano Brgy. Balaste, Basey orchard ranged from P30,000.00 to P50,000. The amount of
7. Laygayon MPCI Ricardo Mendaño Laygayon, Pinabacdao investment can be recovered on the third year of operation.
Return of investment after five years is 38%.
EASTERN SAMAR
8. Gen. Macarthur Farmers' Association Alberto Dadulla Gen. Macarthur Government Support
9. San Julian Coffee & Cacao Producers Association Geronimo T. Madolid San Julian
ExpansionFarmers'
10. Sitio Guindohaan of coffee
Association areas hasIluminada
been C.encouraged
Lira Maydolong and
• A priority crop under the Ginintuang Masaganang
11. Taft Producers Association Francisco C. Adalin Taft
Ani– High Value Commercial Crop Program.
NORTHERN SAMAR • The National Coffee Development Board provides support
12. Action for Community Empowerment (ACE) Abundio C. Amante FTC, UEP Campus, to the coffee industry in the country
Association, Inc. Catarman • DA-RFU 8 also offers market information update
• The Leyte State University (LSU) conducts researches on
(Source: AMAD Directories 2005) coffee
• The LGUs/Office of the Municipal Agriculturist provide
support to coffee farmers in their respective areas

Coffee A Commodity Profile 6 Agribusiness and Marketing Assistance Division 5