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Towards a

Roadmap/Masterplan
for the Philippine Coffee
Industry

Presented during the Industry Roadmaps & AEC Gameplan: Roadmap Localization for
Competitiveness on May 28-29,2015, Baguio country Club, Baguio City.
Joan Dimas-Bacbac, HVCDP Regional Coordinator, DA-RFO CAR

Crafted by:
Farmers, Processors, Coffee Manufacturers, Industry Associations,
Exporters, Peoples Organizations and the Academe

Supported by:
Department of Agriculture
Department of Environment and Natural Resources
Department of Agrarian Reform
Department of Trade and Industry
Philippine Coconut Authority
Government Financial Institutions
Local Government Units
National Competitiveness Council

OUTLINE

I. Benchmarking
II Philippine Coffee Industry
III. Industry Vision, Mission and
Goals
IV. Target Setting
V. Strategic Directions and Action
Programs of Major Issues

I. BENCHMARKING
THE PHILIPPINE COFFEE
INDUSTRY
vs

THE BEST:
INDONESIA AND VIETNAM

PERFORMANCE: Area, Yield and Production (2011)


Item
Planted Area (ha)

Philippines

Indonesia

Vietnam

~120,000 ha (a)

1.3 M ha

537,000

(90,000 ha Robusta,
19,000 ha Arabica,
9,000 ha Excelsa and
1,400 ha Liberica)

(1.04 M ha
Robusta,
251,000 ha Arabica)

(500,000 ha
Robusta,
37,000 Arabica)

Yield (ton green


beans /ha)

0.20 - 0.30

0.67

2.4

Production (tons
green
beans)

25,000 30,000 (b)

634,000

1.2 M

Planting density

500 1,700 trees/ha


(Robusta)
800 2,000 trees/ha
(Arabica)

1,100 trees 2000


trees/ha

1,100 trees/ha
(Robusta)
5,000 6,000
trees/ha (Catimor)

Average farm size

0.5 1 ha

0.6 ha

0.5 1 ha

PERFORMANCE: Farming and Processing Costs


Investment costs are comparable
Item
Philippines
Indonesia

Vietnam

Average establishment
cost/ ha (Robusta)

PhP 50,000 82,000

PhP 78,000

PhP 71,000

Average cost per kg green


beans

PhP 49 68

PhP 23

PhP 65.10

Price per kg of green beans PhP 79.38


(farmers selling price)

PhP74

PhP 83

Payback period

4.3 6.3 years

4.9 years

6.2 years

Financial Internal Rate of


Return

8 36 percent

31 percent

21 percent

Processing costs per kg


Roasting

Php 10

Grinding

Php 10

PhP8.10
PhP8.93

Exchange Rates: PhP42/US$1; VND20,800/US$1; IDR9,400/US$1

POLICIES: Credit
Item
Credit

Philippines
Mainly through government
financial institutions (e.g.,
LBP)
and informal sources
LBP loan ceiling for coffee :
New planting: PhP100,000/ha
(US$2,381) (payable in 5 years,
10-12% interest per annum, 2
years grace period)
Existing plantation
(maintenance):
2nd year: PhP42,500 (US$1,012)
3rd year: PhP55,000 (US$1,310)
4th year: PhP63,000 (US$1,500)
5th year: PhP72,000 (US$1,714)

Indonesia

Vietnam

Rural Bank of
Indonesia
small scale lending
and micro finance
(none for new
plantings)

Vietnam Bank for


Agriculture and Rural
Development (VBARD or
Agribank)
Credit for planting (mainly
for existing plants or
rejuvenation and not for new
plantings), and Credit for
harvesting, processing and
export trading
(short-term loans with
terms of one year and three
to six months, respectively;
interest is 13% p.a.)
State Bank of Vietnam
short term loan (up to 12
months) with maximum
interest of 15% p.a.

Item

Philippines

Indonesia

Vietnam

Land Ownership

CARP Law Maximum 5


hectares

Co-existence of
smallholders and
large estates

Long-term leases
from government

Price Policy

No price policy on
coffee. Prices follow
world prices (London
exchange for Robusta, New
York Exchange for Arabica).
There are price speculators
or consolidator-traders who
offer premiums on top of
world market prices.

No price policy on
coffee. Prices
follow world
prices.

No price policy on
coffee. Prices
follow world
prices.

PhP639 M
(US$15.2 M)
(143 B IDR)
(MA)

PhP 14.7 B
(US$350 M)
(7,280 B VND)
(MARD)

Government
PhP 470 M
support
Breakdown : PhP 170 M
(budget for coffee) (DA-HVCDP)
PhP 300 M
(PCA Intercropping)

Macroeconomic Environment (Labor, Fuel and Power)


Labor costs are comparable but fuel and power costs are higher .
Item

Philippines

Indonesia

Vietnam

Labor

PhP 150 - 300 per day


(US$3.57 - 7.14 per day)

PhP 134 - 223


(US$3.19 - 5.32 per day)
(IDR 30,000 50,000)

PhP 242 - 303


(US$5.77 - 7.21 per day)
(VND 120,000150,000)

Fuel
(July
2012)

PhP 42 - 44 per liter


(diesel)
(US$1 - 1.05/li)

PhP20.11/li (diesel)
(US$0.48/li)
(IDR 4,500/li)

PhP 53-56 per liter


(gas)
(US$1.26 - 1.33/li)

PhP46.24-46.91/li (gas)
(US$1.10 - 1.12/li)
(IDR 10,350 10,500/li)

PhP46.44 - 48.46/li
(gas)
(US$1.11 - 1.15/li)
(VND 23,000
24,000/li)

Power

PhP 6.50 - 6.75 per kwh PhP 1.79 3.13


PhP 2.02
(US$0.15 - 0.16 per
(US$0.04 - 0.07 per
(US$0.05 per kwh)
kwh)
kwh)
(VND 1,000 per kwh)
(IDR 400700 per kwh)

PRACTICES: Farm
Item

Philippines

Indonesia

Vietnam

Input supply
Clones used

Mostly Robusta, Some


Arabica, Small Excelsa
and Liberica

Mainly Robusta,
Some Arabica

Mainly Robusta, Some


Arabica and Catimor
(Robusta TR varieties TR
4, 9, 10, 11 and 12)

Fertilizer
usage

Organic and inorganic


fertilizers
Some farms do not
fertilize (e.g. Kalinga)

Mostly inorganic
fertilizers from
government subsidy

Heavy application of
fertilizers (even
reaching 1 ton/ha)

Planting
density

600 1,700 trees/ha

1,100 trees 2000


trees/ha

1,100 trees/ha
(Robusta) 5,000 6,000
trees/ha (Catimor)

Intercrop

Fruits, vegetables, tree


crops

Mostly monocrop

Mostly monocrop

Sources of
planting
materials

Wildlings
Indonesian Coffee
Seeds of existing plants and Cocoa Research
Nurseries (e.g. Nestle
Institute (ICCRI)
nursery)

Western Highlands
Agro-forestry Science and
Technical Institute (WASI)

PRACTICES: Farm
Item

Philippines

Indonesia

Vietnam

Maintenance
activities

Weeding
Fertilization
Pruning

Weeding
Fertilization
Pruning
Some farms do
grafting

Weeding
Fertilization
Pruning
Irrigation

First harvest

Year 2

Year 3

Year 2-3

December - March

May - September

August Jan

Harvesting
practice

Selective harvesting
Strip harvesting

Selective harvesting
Strip harvesting

Selective harvesting
Strip harvesting

Drying

Mechanical drying
Solar drying

Mechanical drying
Solar drying

Solar drying
Mechanical drying

Certification

Organic, 4C

4C, Rainforest

4C, Rainforest, UTZ,


Viet Gap

Harvesting
period

PRACTICES: Processing
Item

Philippines

Indonesia

Vietnam

Processing
for beans

Wet processing (mainly Wet processing


for Arabica)
Dry processing
Dry processing (mainly
for Robusta)

Wet processing
Dry processing

Processing
plants
(ground and
instant
coffee)

Nestle (Nescafe)
market
leader
Universal Robina
Corporation
(Great Taste, Blend 45)
Commonwealth Foods
(Caf Puro)
Century Pacific Group
(Kaffe de Oro)
Regent Foods Corp.
(Koffie)

PT Torabika
PT Santos Jaya Abadi
Indocafe
Nestle

Vinacafe
Trung Nguyen
Nestle

Products
produced

Coffee beans
Roasted beans
Ground coffee
Instant coffee (3 in 1; 2

Coffee beans
Roasted beans
Ground coffee
Instant coffee

Coffee beans
Roasted beans
Ground coffee
Instant coffee

II. PHILIPPINE COFFEE


INDUSTRY
(Typical vs. Modern Farming)

ROBUSTA,
Typical and Modern Farms,
Philippines

COFFEE FARMING (ROBUSTA): Typical vs Modern


Activity

Typical

Modern

Cropping system

Mostly with intercrop


(vegetables, fruit trees)

Monocrop
(Block cropping)

Plant propagation
practices

Use of wildlings
Seeds from existing
plants
Absence of clone
selection

Use of selected clones


from certified nurseries
Buying price:
PhP15/seedling

COFFEE FARMING (ROBUSTA): Typical vs Modern


Activity

Typical

Modern

Planting density

600 1,200 trees/ha

1,500 1700 trees/ha

Fertilizer
application

Inorganic (46-0-0)
~ 2 bags per year
Organic
~ 68 bags per year

Inorganic (16-20-0, 46-0-0,


0-0-60)
~ 10 bags per year
Organic
~ 33 bags per year

Pruning

Not done at all / not


regularly
done

Regularly done (about 6


times
a year)

Pest and
disease control

Regularly done

Regularly done

COFFEE FARMING (ROBUSTA): Typical vs Modern


Activity

Typical

Modern

First harvest

Year 2

Year 2

Harvesting

Strip harvesting

Selective harvesting

COFFEE FARMING (ROBUSTA): Typical vs Modern


Parameters

Typical Farm

Modern Farm

600 1,200 trees/ha

1,500 1700 trees/ha

0.72

1.29

1.0

2.0

Average establishment cost per ha (Year 1)

PhP 50,000

PhP 82,000

Average cash outflow per ha per year

PhP 49,000

PhP 63,000

Price per kg of green beans (farmers


selling price)

PhP 80

PhP 80

PhP 58,000

PhP 103,000

Average net cash flow per ha per year

PhP 9,000

PhP 40,000

Average net cash flow per ha per year


(including returns to family labor)

PhP23,000

Planting density
Average yield (tons gcb/ha)
Peak yield (tons gcb/ha)

Average cash inflow per ha per year

Average cost per kg of green beans


Payback period
Internal Rate of Return (IRR)

PhP 68

PhP 49

6.3 years

4.3 years

8 percent

36 percent

COFFEE FARMING (ROBUSTA): Income and Area


Targets for Poverty Reduction
Item
Planting density

Typical

Modern

Incremental

850 trees/ha
(with intercrop)

1,667 trees/ha
(mono)

817

0.72

1.29

0.57

Gross income

PhP58,000

PhP103,000

PhP55,000

Gross income

PhP23,000 (a)

PhP40,000

PhP17,000

4.09 ha

2.35 ha

(1.74 ha)

Average yield (tons


green beans/ha)
Average income/ha at
PhP80/kg green beans

Average area to get


preferred net income of
PhP94,000 (poverty
threshold, 1H 2012)

ARABICA,
Typical and Modern Farms,
Philippines

COFFEE FARMING (ARABICA): Typical vs Modern


Activity

Typical

Modern

Cropping system

Mostly with intercrop


(forest trees, fruit trees)

Without or with
intercrop
(forest trees, fruit trees)

Plant propagation
practices

Use of wildlings
Use of certified seedlings
Existing plants
Buying price:
Absence of clone selection PhP25 30/seedling

COFFEE FARMING (ARABICA): Typical vs Modern


Activity

Planting density

Typical

600 1,200 trees/ha

Modern

1,200 1,500 trees/ha

Fertilizer
application

None / Minimal fertilizer


application

Inorganic ~ 18 bags every


three years
Organic~ 90 bags every
four years

Pruning

Regularly done

Regularly done

Pest and disease


control

As need arises

Regularly done

Harvesting

Year 2 3

Year 3

Harvesting practice

Strip harvesting

Selective harvesting

COFFEE FARMING (ARABICA): Typical vs Modern


Parameters
Planting density

Typical Farm

Modern Farm

600 1,200 trees/ha

1,200 1,500 trees/ha

Average yield per ha

0.5 tons dry parchment


(0.40 tons gbe)

1.1 tons green beans

Peak yield per ha

0.6 tons dry parchment


(0.50 tons gbe)

1.5 tons green beans

PhP 37,000 (Year 1)

PhP 135,000 (Years 1-2)

PhP 29,000 (Years 2 - 10)

PhP 65,000(Years 3 - 10)

Price per kg (farmers selling price)

PhP 100/kg of dry parchment

PhP 200/kg of green beans

Average cash inflow per ha per year

PhP 49,000

PhP 229,000

Average net cash flow per ha per year

PhP 20,000

PhP 164,000

Average net cash flow per ha per year


(including returns to family labor)

PhP36,000

Average establishment cost per ha


Average cash outflow per ha per year

Average cost per kg


Payback period
IRR

PhP 58 per kg of dry parchment

PhP 59 per kg of green beans

4.9 years

4.1 years

31 percent

53 percent

COFFEE FARMING (ROBUSTA): Income and Area


Targets for Poverty Reduction
Item
Planting density

Typical

Modern

Incremental

800 trees/ha
(with intercrop)

1,250 trees/ha
(with intercrop)

450 trees

Average yield

0.49 tons dry


parchment coffee
(0.39 tons gbe)

1.14 tons green


beans

0.75 tons green


beans

Average price (PhP/kg)

PhP 100/kg dry


parchment coffee

PhP200/kg green
beans

PhP49,000

PhP229,000

PhP180,000

PhP36,000 (a)

PhP164,000

PhP128,000

2.61 ha

0.57 ha

(2.04 ha)

Average income
Gross income
Net income
Average area to get
preferred net income of
PhP94,000 (poverty
threshold, 1H 2012)

Supply Chain Segments and Activities


Inputs for
Nursery

Developm
ent Inputs

Farm
Production

Primary
Processing

Marketing
Logistics

Secondary
Processing

-Area
selection
-Seeds
-Plastic
bags
-Fertilizer
-Tools and
equipment

-Seedlings
-Fertilizer
-Pesticides
-Tools and
equipment

-Area
Selection
-Land
preparation
-Maintenance
-Fertilization
-Pest control
-Harvesting
-Sorting/
Grading
-Storage

-Depulping
-Fermentation
-Drying
-Dehulling
to green beans

-Trading
-Handling
-Transport
/ Shipping
-Storage

-Roasted
beans
-Roast and
ground
coffee
-Instant
coffee

Logistics

Market

-Handling
-Transport/
Shipping
-Storage

-Domestic
-Exports

Selected Stakeholders and Players along the Coffee


Supply/Value Chain
Input
Supply
Seedlings
Nestle
Rocky Mountain
MacNut
CavSU
BSU
HVCC ZDN
Greenworld
Greenday
BPI accredited
nurseries

Farm
Production

Primary
Processing

Fresh cherries
Individual
Farmers
Greentropics
Rocky
Mountain
MacNut
Mt. Matutum
Farms
Dacon/SII
CHMI Agro
Others

Green Beans
Individual
Farmers
Greentropics
Dacon/SII
Rocky Mountain
MacNut
Mt. Matutum
CHMI Agro

Land Access
Farmers
ARCs
IFMA
CBFM
DENR
DAR
PADCC
LGU
Private sector
Financing
Private sector , LBP, DBP,
DENR, DA-HVCDP, Phil
Coconut Authority, LGU

Marketing/
Trading
Local traders
Nestle
URC
Comfoods
Rocky
Mountain
MacNut
Mt. Matutum
Bote Central
Greentropics
Dacon/SII
CBCEs
DTI

Secondary
Processing

Marketing

Nestle
URC
Comfoods
Rocky Mountain
MacNut
Mt. Matutum
Bote Central
Greentropics
Dacon/SII
CBCEs
Local processors

Households
Supermarkets
Convenience
stores
Fast food
chains
Coffee shops
Hotels
Restaurants
Sari-sari stores
Exports

Other Related Cross Cutting Segments


Training/Tech
Assistance
Nestle
PCB
PCA
Rocky Mountain
TESDA
LGU

Research,
Devt & Extn
CavSU
BSU
PhilMech
Nestle
Rocky
Mountain
LGU

Policy
Advocacy
PCB
PCA
NCC
DA HVCDP
DA NAFC
DTI
LGU

III. INDUSTRY VISION,


MISSION
AND GOALS

VISION
An industry that is cost-competitive,
aligned with global quality standards,
reliable and environment-friendly; and
provides sustainable benefits to farmers,
processors, traders and exporters.

MISSION
Development of a cost-competitive,
quality-driven, supply-reliable, productdiversified value chain from farming to
coffee products manufacturing under
sustainable practices

GOALS
1. Increase productivity and production
2. Improve farmers standard of living through
diversified high value agriculture
3. Increase rural employment
4. Promote environment-friendly technologies
5. Lessen coffee bean and coffee products
importation
6. Improve incomes of farmers, processors and
other stakeholders

IV. AREA TARGETS


AND REQUIRED INVESTMENTS

THE PLANS FOCUS:


1. Improve smallholder coffee farmers
productivity, profitability and product
quality
2. Promote new plantings and provide
funding
3. Target value-addition in coffee products

SPECIFIC TARGETS (2015-2016)


TARGETS
New Planting (ha) (All Regions)
Re-Planting (ha) Kalinga,Northern
Mindanao, Davao, Soccsksargen
Rejuvenation (ha) Kalinga, Davao,
Soccsksargen
Total seedling requirement
(including 10% mortality
allowance) (million)
Investment Cost
(PhP million)

2015

2016

2017

70,747

78,919

253,433

2,008

2,008

8,032

572

572

2,388

62.5

67.5

215.7

4,645.1

5,224.4

16,309.6

Basic Considerations:
New planting/replanting cost
-Robusta: PhP 30,000/ha (600 trees, Year 1)
-Arabica: PhP 130,000/ha (1200 trees, Years 1-2)
Rejuvenation cost: PhP17,000/ha (600 trees)
Seedling requirement/ha w/ 10% mortality

-Robusta: 660 trees


-Arabica: 1,320 trees

Nursery investment cost: PhP8.00/seedling

Replanting is replacement of old trees with new plants


in the same area

Rejuvenation refers to cutting of the vertical stems of


old trees to promote the growth of new sprouts

Targets and Sufficiency Levels


Assumptions:
Domestic requirement of 70,000 tons*
green beans, to grow by 3% per annum
Local current production of 25,000 tons to
remain stable
Net demand deficit of 45,000 tons
Around eight million seedlings estimated
to be available in the existing nurseries

When do we cover deficits?


Coverage of beans deficit will depend on:
Harvested area (old and new planting)
Average yield
Implementation of identified expansion
targets by the various stakeholders

When do we cover deficits?


Coverage of imported 3-in-1 sachet
deficit will depend on:
Domestic production
Cost of sugar and cream
Cost of packaging
Cost of power

V. STRATEGIC DIRECTIONS AND


ACTION PROGRAMS ON MAJOR
ISSUES

INPUTS: Improve quality and availability of


planting material
Key Result Area

Performance
Indicators

Action Programs

Time Frame/
Working
Group

Establishment of
accredited/
certified mother
clonal
gardens
and nurseries

No. of accredited/
certified mother
Clonal gardens and
Nurseries
No. of
accredited/certified
seedlings produced

Invest in mother
Clonal gardens and
nurseries (1 per major
coffee area) Train provl
reps on Nursery
development Promote
accreditation/certification
of nurseries

2013-2016 LGU,
Private Sector, DARFUs, BPI, SCUs

Training of
propagators and
provision of IEC
materials

No. of trainings
conducted
No. of IEC
materials produced

Conduct trainings for


nursery establishment
Reproduce and
distribute IEC
materials to farmers

DA-ATI, TESDA,
LGU,Industry
Associations,
Private sector

INPUTS: Improve quality and availability of


planting material
Key Result Area

Training on
proper handling
of seedlings

Performance
Indicators

Action Programs

Improvement in quality Conduct trainings on


and availability of
proper handling of
accredited/ certified
seedlings
seedlings
No. of trainings
conducted
No. of nurseries/farmers
trained

Time Frame/
Working
Group
SCUs, BPI
DA-ATI Private
Sector TWG,
LGU

INPUTS: Improve quality and availability of


planting material
Key Result Area

Performance
Indicators

Action Programs

Time Frame/
Working
Group

Yield
improvement

Ave. yield from 300


kg/ha to 1.0 ton/ha
(Arabica) Ave. yield
from 700 kg/ha to 1.5
tons/ha (Robusta)
Net Income >
PhP84,000/year
Improved harvesting
practices

IEC campaign on
GAP/best farm
practices including
seed selection

2013 to 2016
Private Sector,
DA ATI, PCARRD
LGU - PAO,
MAO, NGOs

Production
Expansion-new
planting and
replanting areas

Total expansion area


100,000 ha to
address deficit?

Develop PPP for


planting and
replanting projects

Continuing
-Industry/third
party group

FARM PRODUCTION: Enhance farm


efficiency and investments
Key Result Area

Performance
Indicators

Action Programs

Time Frame/
Working
Group

Adoption of GAP
and GMP

No. of GAP
certified farms
No. of GMP
certified
processing
companies

Benchmarking and
best practices
dissemination
Conduct trainings
on modern farm /
processing practices

DA, ATI, SCUs,


Private sector,
LGU

Enhanced quality
of seedlings

No. of accredited/
certified nurseries

Conduct trainings
on nursery operation
and
management

DA, BPI, LGU,


ATI

Trainings on
proper harvesting
and pruning

No. of skilled
farmers/farm
workers

Conduct trainings

Private Sector,
TESDA, LGU,
SCUs, ATI, NGOs

PROCESSING: Reduce Processing Cost


Key Result Area

Performance
Indicators

Action Programs

Time Frame/
Working
Group

Lower processing
costs

Power cost per kg


Labor cost per kg
Material cost per kg
Better recoveries

Enhance processing
efficiency

2013-Private
Sector, DA, DTI,
Philmech, DOST

Increase capacity
utilization of
plants

Volume of gcb
marketed
Higher recoveries

Improve supply of gcb


Inspection and
upgrade processing
plants

Private Sector
DA, DTI
LGU

Quality discipline

Better prices of
gcb

Establish guidelines in
sale of gcb
Incentivize compliance
to product standard

Private
Sector
DA, BAFPS,
DTI

PROCESSING: Increase Export Value


Key Result Area

Performance
Indicators

Action Programs

Time Frame/
Working
Group

Adequate postharvest facilities

No.of drying, hulling,


storagefacilities

Coordinate with
Private Sector,
PhilMechre: village level
DA,
facilities e.g. small dehuller/ PhilMech
depulper

More value
adding on farm

No. of value added


products produced

Evaluate/ monitor field


processors

TWG, SCUs, DA,


Private Sector

MARKET: Improve Market Price and Coffee


Standards
Key Result Area

Performance
Indicators

Action Programs

Time Frame/
Working
Group

Transparent
pricing linked to
world market

Farm price as a
percent of world
price

Daily world price


access from DA
website/SMS

Private Sector,
DTI, DA, LGU

Geographic
branding and
standards for
coffee

No. of geographic
brands and
standards for
Philippine coffee
products

Convene
concerned
organizations to
settle standards

BPS, DA, BAFPS,


TWG, Industry
Associations, DTIBETP, CITEM

Enhanced market
access and
marketing
strategies for
specialty coffee

No. of new
markets accessed

Find alternative
markets

DA AMAS, DTI

MARKET: Improve Market Price and Coffee


Standards
Key Result Area

Inadequate
market
intelligence for
specialty coffee

Performance
Indicators

No. of market
opportunities
explored

Action Programs

Tap agricultural/
trade attaches in
Philippine embassies

Time Frame/
Working
Group
Private sector, DAAMAS, DTI,
Industry Associations,
DOST

SUPPORT SERVICE
Financing: Access to Long Term Funds
Key Result Area

Access to long
term financing

Performance
Indicators
Longer grace and
Repayment periods
of loans
Lower interest rates

Action Programs

Review financing
program for coffee
DA to endorse
proposal to LBP

Time Frame/
Working
Group
2013 LBP, DBP,
AGFP-ACPC
Private Sector
DA
LGU

SUPPORT SERVICE
Logistics: Reduce Logistics Cost to
Processors Market
Key Result Area

Performance
Indicators

Farm to Market
Roads

Length of FMRs to
coffee farms
Lower transport
cost/ton km

Establishment of
Tram Lines

No. of tramlines
established

Action Programs

Advocacy to
prioritize FMRs

Identify areas

Time Frame/
Working
Group
Industry assns.
LGU, DA,
Private Sector
Industry assns.
DA, PhilMech
Private Sector,
LGU

SUPPORT SERVICE
R & D: Improve Search and Extension
Services
Key Result Area

Strengthen
National Coffee
Research,
Development
and Extension
Center (based at
CavSU)

Performance
Indicators
Number of coffee
scientist/experts
Multi-year budget
allocation for coffee

Action Programs

Establish three
research stations
(BSU, SMIARC*,
SK State University)

Time Frame/
Working
Group
CavSU, BSU
DA-BAR,
DOST-PCARRD
Private Sector

SUPPORT SERVICE
Policies: Appropriate Investment Incentives
Key Result Area

Improved policies
(e.g. land access)

Performance
Indicators

Action Programs

Land ownership
ceiling
Land
consolidation for
development
Public lands opened
to investors

Review
CARPER
Review land use policy
Review IPRA Law
Advocacy with DENR
Development of
military reservations
and abandoned
mined areas

Time Frame/
Working
Group
DAR, DENR, DA
PADCC-NCI
NCIP
Private Sector
DND-AFP

SUPPORT SERVICE
Market Intelligence: Reliable Industry Data
Key Result Area

Improved collection
and recording of
industry data
(e.g.production,
area, trade,
demand)

Performance
Indicators
Industry data
aligned with
private sector
estimates

Action Programs

Time Frame/
Working
Group

Review official data in


consultation with
the private sector

Industry
associations,
BAS, Private
Sector, DA , LGU

SUPPORT SERVICE
Organization: Industry Unity in Diversity
Key Result
Area

Performance
Indicators

Improved
industry
organizational
structure

Aligned
government and
private sector
initiatives

Action Programs

Conduct seminar
on organizational
development
Team building

Time Frame/
Working
Group
Industry assns,
DA, Private
Sector

The finalization of the


Masterplan/Roadmap will
determine the major terms of reference
:

The following principles are


important:

High farm income arising from good farm yields is a result of


GAP.
Self-sufficiency in green beans estimated by 2017 will be
reached and sustained provided farmers derive good income
from coffee compared to alternative crops.
The ENGINE OF GROWTH will be the farmers, private sector,
CSOs backed by government, LGUs, and SUCs in unison.