COFFEE INDUSTRY

Industry Background/Situationer

Coffee already existed for more than a thousand years. In the olden times, it is considered a food, cure for some illnesses, aphrodisiac and wine. Today, coffee is generally taken as an envigorating beverage during breakfast, merienda and late night drink. The importance of coffee in the world economy is currently at its highest point, being one of the most valuable product traded by one economy to another. With recent discoveries thru researches and studies, its current use has further branched out … as beverage, wine, organic fertilizer, medicine, food supplement and a lot more. It became an excellent source of foreign exchange for developing countries like the Philippines, who supplies only 1.3 % of the global demand. Therefore, venturing into coffee production is very profitable with its escalating demand by both local and export markets. Recent developments in marketing coffee is getting convenient, since it has gone unconventional. Farmers may sold it either in its green form, dried and grounded.

In Davao Oriental, Lupon has the largest number of farmers growing coffee. Caraga and Manay has likewise substantial coffee growers and majority of its people are traditional coffee drinkers. Coffee drinking becomes an integral part of their daily food serving and enjoyed both by young and old people. Coffee trees are prevalent in those areas cited above because of the low level temperature in these areas that sustain the life and productivity of the tree. But , coffee trees are planted provincewide, only with lower productivity levels attributed by the trees’ age and previous industry practices .

Mati topped in traders of agricultural products being the business hub in the early trading history of the Province. Next to Mati apparently is Lupon with its accebility to the fast growing cities. The proximity of these two (2) areas to the nearest coffee processing plant, Nestle Philippines is considered as an excellent opportunity that stimulated rapid coffee tree planting particularly in the east coast areas.

With the Province’s advantage in terms of its agricultural land area, and ideal weather conditions, investments in the industry is seen to be more viable. Local, national and global demand of the product stand as guarantee of a high percentage of return on investments .

Quick Facts
 Total Land area  516,446.00 has.
 Total Agricultural Land Area  238,680.00 has.
 Area Planted to Coffee  5,175.00 has.
 Projected area for Expansion (has.)  7,500 has.
 No. of Farmers/Growers  3,450 farmers
Average Production 1,804 mt
Targeted Area For Expansion Mati, Lupon, San Isidro,
Banaybanay, Tarragona,
Manay, Cateel and Baganga

Existing Players
• 3,450 Farmer/Growers
• Local Coffee Traders
• Multi-million Coffee Manufacturing Firms in Region XI
• Existing Technology on Best Practices

Existing facilities/Capacities
• Best Farm PracticesTechnology
• Government Coffee Pointpersons provincewide
• Agricultural land area with ideal climatic conditions available
• Small scale Local coffee processors
• Coffee mills
• Local coffee traders

Market Potentials
o Coffee green or ripe beans (Arabeca, Robusta, Liberica & Excelsa)
o Dried Coffee
o Dried Coffee pulp
o Coffee Seedlings (all varieties)

Investment Opportunities
o Coffee Mill
o Commercial Dryer
o Coffee Seedling Nursery for various coffee varieties
o Instant Coffee Processing Plant
o Coffee Trading
o Post Harvest Support Facilities
o Micro Financing facility
o High-end Coffee Shoppe/Cafe

 

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