Many factors affect supply: the supply from Brazil may be affected by an unexpected frost, or the supply of Asia, by a drought in Vietnam. These two countries lead the world production of coffee. Brazil has been number 1 for years, and Vietnam is a close second.

In the Philippines, however, these world prices are not really followed because the demand is much greater than the local supply. We consume about 180,000 metric tons of while producing only 30,000 metric tons due to many factors. Added to this big disparity or gap is the development of the specialty market in the country.

THE SUPPLY CHAIN
Due to the inadequate supply of coffee, PCBI has endeavored to give farmers value for traceability, or to name the coffee source down to the village and farmer. This is coupled with lessons given to farmers in processing coffee for quality. Furthermore, PCBI and ACDI/VOCA launched Kape Pilipino, a green coffee quality grading competition, which led to the giving of scores to green coffee to signify its quality.

Next to traceability is process. Farmers learned different ways of processing coffee (the natural, honey, and washed processes), all of which result in the same coffee with different flavor profiles. This also drove up the prices as coffee roasters and enthusiasts clamored for the specialty processed beans.

The third factor is promotion. Coffee farmers were able to promote their coffee in exhibitions here and abroad, in Seattle in Washington, Singapore, and Bangkok in Thailand. This increased the demand in the region and overseas, further driving up the locally processed Robusta or Arabica. Robusta prices now range from 150 to 230 pesos per kilo while the Arabica farmgate prices zoomed to 350-700 pesos per kilo. Liberica beans, if you can find them, hover in the 250-300 pesos range, all still green and unroasted.

In a local Makati roasting shop, a 100g Matutum sells for 220 pesos, making the produce very special for a select market that likes to roast small batches of this prized harvest.

The online sales for green coffee have also risen. You will find them on Lazada and on the personal websites of coffee enthusiasts as well as on the websites of trading houses.

Even before roasting, these green beans have also upped their value. Hence, roasted coffee now sells a wide range of  prices, from a low 300 pesos per kilo in a market for coffee beans of unknown origin to 1,500 pesos per kilo of beans per kilo for beans with provenance and quality scores.

Philippine coffee has truly come a long way, and the news is there’s never enough supply for even just our local cafés’ consumption. Care to plant more coffee?

LANDBANK President and CEO Alex Buenaventura, Office of the Presidential Adviser on the Peace Process (OPAPP) Cotabato Director Wendell Orbeso, Embassy of Japan First Secretary Tetsuharu Mori, and JICA Philippines Senior Representative Yo Ebisawa led the launching of the program called “HARVEST,” which is welcome news at the heels of the recent passage of the Bangsamoro Organic Law.

LANDBANK President and CEO Alex Buenaventura (second from left) and JICA Philippines Senior Representative Yo Ebisawa (second from right) led the launching of the HARVEST lending program on August 30, 2018 in Cotabato City. They were joined by OPAPP Cotabato Director Wendell Orbeso (leftmost) and Embassy of Japan First Secretary Tetsuharu Mori (rightmost).

HARVEST stands for Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation. It is a ‎¥4.928 billion (Php2.12 billion) official development assistance (ODA) from JICA that seeks to provide concessional loans to small and medium enterprises (SMEs), corporatives (plantation farm management services), large agribusiness enterprises, cooperatives, and participating financial institutions in ARMM and its neighboring conflict-affected areas.

Roadshow in Kidapawan

This five-year relending facility will give private enterprises access to a credit line with LANDBANK for their capital investments, operations, expansion initiatives, and agriculture-related projects that support agri-related economic activities in the region.

“By improving access to finance and stimulating economic activities, the cooperation aims to help create jobs, improve living standards, and contribute to peace building,” noted Ebisawa.

Roadshow in CDO

In the Philippines, farmers remain one of the country’s poorest sectors, with a poverty incidence reaching 34.3% based on a 2015 report released by the Philippine Statistics Authority. The situations are worse in the conflict-affected areas.

“Giving them access to finance will help sustain job creation and raise their productivity through equipment and trainings, while also boosting the region’s agro-industry sector,” Ebisawa added.

Roadshow in Butuan

Under the program, JICA will provide human resource training and technical assistance to LANDBANK, agriculture cooperatives, and other participating institutions.

“Through the investment opportunities in agribusiness, we hope to help fuel growth in a region beleaguered by decades-old conflict, and ultimately uplift the quality of lives of our fellow Filipinos in these communities,” LANDBANK’s Buenaventura said.

Roadshow in GenSan

Aside from financial support, those who avail of the loans under the HARVEST project will also be provided with technical assistance in the form of capacity-building trainings, seminars, and market linkage initiatives.

LANDBANK and JICA signed the loan agreement for the HARVEST project on January 12, 2017, with Japanese Prime Minister Shinzo Abe and Philippine President Rodrigo Duterte leading the bilateral signing ceremony held at the Malacañang Palace.

Perfect for the coffee month of October, The Coffee Dinner will be held at Dusit Hotel Manila on October 26, 2018, at 7:00 p.m. It will definitely be a special event, coupled with the awarding of five individuals recognized for their great contributions to the Philippine coffee industry as well as the launching of the PCBI-designed coffee courses to be offered by Dusit Hospitality Management College.

Pegged as the home of International Coffee Organization, London is where coffee ideas continue to brew. The famous London Coffee Dinner has been hosted annually by British Coffee Association (BCA) since its conception in 1955. It is a venue for putting one’s feet up and sipping one’s coffee slowly, so to speak. Dubbed “the voice of United Kingdom coffee,” BCA aims to “foster a favorable environment for all the aspects of the coffee industry and its culture to thrive.” This same objective holds true for PCBI.

Here in Asia, with the Philippines set to be a future coffee hub, PCBI follows suit. Imagine one night of laying aside all agenda to simply get together and enjoy one another’s company with good food and the best local coffee while celebrating the achievements in the Philippine coffee sector.

“Coffee will not just be a commodity to be traded but a drink to be respected as a fuel for growth and progress because of the icons who have brought the industry closer to the coffee drinkers through their brands and through research and continuous innovations.” —Pacita Juan

This is PCBI’s vision for The Coffee Dinner. As host, PCBI, with the mission of unifying the fragmented Philippine coffee industry and transforming it into an engine of economic growth, encourages the next generation of coffee players to pursue unity in and through coffee. This is the goal of The Coffee Dinner: that of enjoining the consumers, buyers, and institutions to unite in the interest of keeping Philippine coffee in everyone’s consciousness, beyond summits and conferences. An awarding ceremony will also be held during the dinner, acknowledging the commitment and diligent work of veteran Philippine coffee players. All Philippine coffee aficionados are very much welcome!

It is hoped that with the active participation of more people—from farmers to investors, processors, and others—in The Coffee Dinner, it will eventually become an avenue for the improvement of coffee production in the country, and will boost the industry’s sustainability. As more coffee-centric stakeholders and players join hands for Philippine coffee, the future will indeed look a lot brighter. Philippine coffee will progress and will continue to make its mark as a sought-after world-class brew.

As perfectly put into words by Juan, “Coffee will not just be a commodity to be traded but a drink to be respected as a fuel for growth and progress because of the icons who have brought the industry closer to the coffee drinkers through their brands and through research and continuous innovations.”

It will be a dream come true to see all Philippine coffee lovers in unity, with one passion and vision: seeing Philippine coffee top the charts.

This article was first published in The Ultimate Coffee Guide Volume XI, Issue 2, 2018.