Coffee giants tapped for industry roadmap

Major coffee industry players are joining a public-private effort led by the Philippine Coffee Board (PCB) to complete a roadmap that will reduce the Philippines’ P9.5-billion annual import bill for coffee. This, as farmers face an influx of cheap imports amid Asean’s progression as an open market.

Aside from major industry players such as Nestlé, Universal Robina and Commonwealth Foods, PCB is also in talks with coffee shop chains such as Bo’s Coffee, roast coffee producers such as Gourmet’s Coffee, and even small-sized farm operators to get fresh inputs across the supply chain, PCB co-chairperson Pacita Juan told reporters at the opening of the 5th National Coffee Summit at AIM Conference Center in Makati City.

PCB chairperson Nicolas Matti said one challenge farmers face is how to compete against cheap imports. While some countries like Thailand still enjoy high import tariffs for coffee (presently at 90 percent) until 2018, those for the Philippines have already gone down.

“Right now our farmers have to operate in a free market set-up. That is the reality of trade agreements for us.”

In a separate interview, NCC private sector co-chairperon Guillermo Luz said on the sidelines of the NCC Dialogues series that, since demand for coffee is coming from the private sector, it is only fitting that industry leads the crafting of the roadmap.

Increasing consumption alongside economic expansion, which the government hopes will average at 7 to 8 percent annually over the medium term, is driving demand for various commodities including coffee.

“We need to come up with a plan to wipe out the deficit in coffee supply and nurture specialty coffee exports,” Luz said.

According to PCB, Philippine coffee consumers require up to 120,000 tons annually, but production has stagnated at 25,000 tons a year over the past 10 years. That leaves the Philippines with a supply gap of up to 95,000 tons a year.