Gov't to boost dying Davao coffee industry

released 6/29/2005

DAVAO CITY, June 29 (PNA) - The government is now revitalizing the region's coffee industry to generate more investments, according to the Department of Agriculture.

Plans are underway to expand some 600 hectares of coffee farms in Compostela Valley, Davao del Sur and this city, with 500 farmers as initial beneficiaries.

Prospero Panutan, DA Davao region's focal person for the coffee expansion project, said they are targeting at least four metric tons of coffee beans per hectare of plantation.

"We will do expansion as well as rehabilitation of our existing coffee farms to boost the region's coffee industry," Panutan said.

Data from DA Davao revealed that the country's present coffee production averages only 0.39 metric tons per hectare, which is way below its potential of two to three metric tons per hectare.

Accordingly, the annual demand for coffee is 55,000 metric tons while production is estimated only at 25,000 metric tons.

With this scenario, the agency said, "we resort to importation of the supply shortage, costing the country over 20 million US dollars yearly."

Panutan said Davao region has a lot of potential areas for coffee production. "We could avoid importation if we can entice a number of investors to provide capitalization for the industry."

Mindanao, for its part, has enough area to meet the projected 10,000 hectares annual expansion necessary for the country to be self-sufficient.

Accordingly, the island region comprises 49,200 hectares out of the 72,620 hectares total production area for coffee in the country.

Panutan said DA has started the initial stages of the project with a one-hectare coffee nursery in Bansalan, Davao del Sur worth P1.3 million.

He said the nursery will grow an initial 600 seedlings.

Once the program is fully implemented, DA will assist potential coffee farmers to avail of loans from the state-run Quedan Rural Credit and Guarantee Corp. (Quedancor) to develop their own farms, according to Panutan.

Panutan said Nestle Philippines, Inc. has committed to buy the farmers' produce of robusta coffee variety at P59 per kilo. (PNA)

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