Philippines Coffee Prospects

Thursday, July 06, 2006

Wake up and smell

By Rowena C. Burgos
Inquirer News Service

EVERY year, according to Nicholas Matti, co-chairperson of the National Coffee Development Board and president and general manager of Negros Coffee & Grains, Filipinos consume about 55,000 tons of coffee. Thanks to the high-street coffee war waged by popular coffee shops, whose extensive menus woo our palates and central nervous system, our country is one of the few that produce four varieties of commercially viable coffee: Robusta, Excelsa, Arabica and Liberica.

So if you thought Philippine coffee ends with Batangas' renowned kapeng barako, clearly, you have a lot more coffee to drink.

The National Coffee Development Board, Makati Business Club and Ayala Center have gathered the country's best coffee producers and merchants in "Coffee Break: A Toast to Coffee," ongoing until Oct. 26 at Greenbelt 3, Ayala Center, Makati.

At Greenbelt 3's Coffee Lounge, mall-goers can sample different coffees for free at 11 a.m. to 11 p.m. every day. Coffee merchants from different parts of the country sell whole beans and ground coffee.

"The festival aims to make people realize that coffee is the biggest industry in the Philippines. Its bean value is at least three billion pesos. It's growing by leaps and bounds and there's more room for investment, not only in retail but also in farming," Matti says.

Formerly called "Black and White Coffee Festival," the affair was started by Ayala Center seven years ago.

"Coffee Break: A Toast to Coffee" features coffee paraphernalia, memorabilia, equipment, storyboards, an Internet wireless cafe, seminars, cooking demos and live entertainment starting at 7 p.m. at different venues in Greenbelt 3.

Coffee, on the surface, appears to be a simple commodity. But what we don't know is the Philippines stands to save close to 1.5 billion pesos in coffee imports every year should the country be successful in rehabilitating the ailing coffee industry.

According to Matti, the 35,000 metric tons (MT) shortfall in local coffee production translates to 1.5 billion pesos based on a world market price of over 40 pesos per kilo. "The Philippines is producing about 20,000 MT a year and our local consumption is increasing at three percent annually," Matti adds, projecting that the country is poised to save more once the industry recovers.

The National Coffee Development Board is a private sector-led group, originally sworn into office as the National Task Force on Coffee Rehabilitation by President Gloria Macapagal-Arroyo last year. The board aims to develop and promote the Philippine coffee industry through technical assistance and credit programs for coffee farms, certification of coffee farms, millers and roasters and through marketing of coffee for domestic and export markets.

The board aims to cover the shortfall and return to the export market over the next 10-year period. Matti says, however, that this period may be shortened as the board continues to find ways and means to produce seeds and seedlings more quickly. "It's technologically possible because we have local plant geneticists. We have the expertise here."

Matti says there are other components to the coffee rehabilitation program and all these are focused on a total revival of the industry. The Kape Isla program is the marketing and promotional component, which aims to serve as the industry's battle cry to develop loyalty to Philippine coffee, reduce imports, increase domestic production and create new jobs. Kape Isla is intended for the use of different players in the industry as a Philippine quality seal.

To date, 22 merchants have signed up with the program. They are Batangas Brew, Big Shot Billiards, Bean Central Roastery, Bo's Coffee Club, Boyd Coffee Co. (Phils.), Cafe Amadeo, Cafe Breton, Coffee Dream Co. Inc., Coffee Experience, Commonwealth Foods Inc., Cravings Group, Culinary Exchange, Deck Coffee, Dunkin' Donuts, Figaro Coffee Company, Gourmet Farms, Max's (Congressional branch), Mocha Blends, Monks' Blend, Seattle's Best, Siete Barako and Starbucks.

"We want to raise public awareness that Philippine coffee is good. It can be [on] par with the world's best. Our country's geographical location and climate make this possible," Matti says.

http://www.inq7.net/globalnation/sec_fea/2003/oct/24-03.htm

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