The Department of Agriculture (DA) has earmarked P84.15 million this year to scale up domestic production and improve the livelihood of local coffee farmers.
According to the DA, the development of the local coffee industry is on top of the government’s to-do list.
More than a third of the budget allocation or P30.37 million will go to the rehabilitation of 486,450 old trees while P10.56 million will be used to acquire planting materials for distribution to local growers.
It also set aside P7.79 million for the maintenance of production facilities in DA stations while the remaining P5.84 million will go to research and development.
“The coffee fund will also be used for capability enhancement and training of stakeholders, construction of storage facilities, roasting centers and other production equipment, as well as various farm inputs,” the DA said in a statement.By funneling additional funds to the sector through the High Value Crops Development Program, the DA aims “to improve productivity, product quality and profitability of Filipino coffee growers for the long term.”
Coffee, among the most traded agricultural commodities worldwide, is a major contributor to the Philippine economy and is given special attention in October, designated as Coffee Month in the Philippines.
Despite robust consumption, the Philippines only supplies 15 percent of its people’s needs, according to the DA, with the biggest output coming from Mindanao (83.63 percent share), followed by Luzon (9.18 percent) and Visayas (7.2 percent).Latest figures from the Philippine Statistics Authority also show that local coffee output has been declining with the second quarter production this year decreasing by 7.1 percent to 5,446.84 metric tons from 5,866.16 MT a year prior.Robusta coffee, the variety used in instant coffee, comprised 57.3 percent of the total volume while arabica coffee, which commands a higher price, came second with 30.4 percent.
Soccsksargen retained its standing as the top coffee-producing region with a 25.9-percent share, followed by the Autonomous Region in Muslim Mindanao and Davao Region with 23.2 percent and 22.8 percent, respectively.
In October last year, the DA unveiled a new coffee industry roadmap, which will be implemented until 2025, to beef up coffee production that has been on the downtrend.
The DA noted last year’s production of 30,303.59 MT green coffee beans was lower than 30,320.47 MT GCB in 2020 and 36,171 MT GCB in 2015.
The blueprint intends to further promote local coffee products in the short term and forge partnerships with the private sector while linking local growers with high-end local coffee shops in the medium term.
For the long-term, the DA plans to develop an online database of information such as current price, production volume and yield, among others to provide valuable information to stakeholders.
“This can be easily accessed by stakeholders and be used to initiate opportunities towards the development of quality coffee products that are globally competitive,” it added.