THE GOVERNMENT and the private sector converge to make coffee the next best thing in the export industry. Among the guests invited at the Kapihan is Dax Gazmin, director of agribusiness (third from left), Agriculture Undersecretary Bernadette Romulo-Puyat and Chit Juan, president of Philippine Coffee Board Inc. Photo by VANESSA B. HIDALGO
If not, then don’t you think it’s time you do?
Coffee has become a very exciting commodity, not just in the Philippines, but throughout the world.
There is now a new approach to appreciating coffee and highlighting the experience of drinkers.
According to Chit Juan, president of Philippine Coffee Board Inc. (PCBI), the third wave coffee is upon us.
She explains that the first wave occurred in the post-war years, when coffee companies brought canned coffee to the American market.
“This was the time when our parents used to buy Folgers and Maxwell House,” Juan says. Medium roast coffee characterized this period.
The second wave came with the boom of espresso bars. Starbucks Coffee came into the picture and made the world go nuts over macchiato, espresso and latte.
The third wave began in the late 1990s. The yuppies and skateboarders of that generation wanted to learn more about coffee. They then trooped to the mountains where coffee originated.
The third wavers sought the wisdom of coffee farmers and, in turn, the coffee growers taught them the process of making good coffee.
The trend now is leaning toward light roast which “brings out the true taste of coffee.”
With the onset of the third wave, it has also raised the bar of making coffee. It introduced significant steps like honey process, natural pulping and careful roasting.
Green coffee
With this, coffee growers turned to green coffee. Sporting the third wave, green coffee comes from green beans—the most sought-after variety in the world.
Its popularity among coffee aficionados stems from the fact that one can tailor-roast the coffee until it suits their taste buds.
“From green coffee, the opportunities are endless,” says Emmanuel Torrejon, president of Coffee Roastmakers Alliance Inc. (CRAI).
He also notes that there is good business in roasting coffee.
A haven for green beans
PCBI has urged the Center for International trade and missions (Citem) to consider green coffee for export, marketing the product in trade shows across the globe.
But the export of green beans entails certain requirements, Chit Juan says.
Quality is of top-most importance, she adds. Next, the beans need to be sealed in vacuum-packed containers to eliminate unwanted organisms.
But the coffee growers noticed that they could not sell beans in large volumes, even if the customers thoroughly appreciated the taste.
In specialty markets, where green beans are a hit, people are looking for small micro-lot coffees. Micro-lots pertain to a few kilos of beans, Juan explains.
Other countries were surprised to learn that the Philippines now offers micro-lot coffees.
The Philippine International Trading Corp. (PITC) is the procurement arm of the Department of Trade and Industry. The only international trading agency in the country, PITC is at the forefront of the government’s thrust to improve trade opportunities and market expansion.
Anuga
The Philippines participated in Anuga—the biggest food show in the world—where 187 countries participated and over 155,000 buyers were present to survey each country’s offering.
Joel Rodriguez of PITC represented the country in Anuga.
Rodriguez reports that Anuga has identified five major trends in the food export industry: Manufacturing focus on food values, convenience products, fair trade products, development of regional specialty, promotion of transparency and traceability of food.
Manufacturing focus on food values pertains to freshness, taste and sustainability of high-quality products.
Convenience products must be developed to cater to changing lifestyles and changing food habits. Target groups include vegans, vegetarians and people with certain food intolerance.
Fair trade products aim to sell in Europe and in Asia.
Another trend is looking for new products that can be sold in retail stores worldwide.
Finally, the promotion of transparency and traceability of food must be recognized not as a trade barrier but as a responsibility to the consumer.
Rodriguez adds that the trends are welcome news to the coffee industry.
It shows that our coffee as a commodity can compete in trade shows across the globe, he says.
Coffee can also raise awareness on the many export products the Philippines has to offer.
Through coffee, the convergence between the government and private sector exists.
Bernadette Romulo-Puyat, Department of Agriculture undersecretary, explains that the passage of Republic Act 168, or the Organic Act, in 2010 supports the trend of organic and natural products.
In international food expos, the top-sellers include coconut, organic rice and coffee, Puyat explains.
“But what we like about coffee is that it employs women. It has two aspects: coffee production and helping the women,” she points out.
Puyat is also chair of National Organic Agriculture Board (NOAB). The group helps coffee producers by exposing them to food shows. Part of NOAB’s budget is allotted for certification.
This year, NOAB has subsidized 14 farms.
“We all know that certification can get quite expensive. This is why the DA shoulders the expenses for small farmers,” she explains.
Dax Gazmin, director of agribusiness marketing service of DA, says that their mandate is on market-matching.
“We direct the producers to the processors and the processors to the exporters,” he explains.
Organic
Over time, the DA’s focus has shifted toward Asian integration.
Gazmin reiterates that the key to achieving a competitive status in Asia is through certification.
“Organic practitioners must be certified. Based on the law, you can only claim your products to be organic if you are certified,” he explains.
He also says that the government wants to give organic practitioners the opportunity to develop their products and gain access to markets.
“We are asking organic practitioners to broaden their minds … to allow others to know about them. In the coming years, we will be concentrating on value-chain analysis from sea to shelf. There is truly a need for collaboration with different agencies in order to achieve competitiveness, not only for coffee but for other products as well,” he says.
The Peace and Equity Foundation aims to help the coffee industry by allotting P1.25 billion to finance over 250 million producers in the country.