MANILA, Philippines - To protect its coffee supply chain in the Philippines, the manufacturer of Nescafé instant coffee has tied up with the government for the intercropping of coffee with coconut trees in the Zamboanga Peninsula.
Nestlé Philippines, Inc. would provide high-yielding robusta coffee seedlings to the towns of Buug in Zamboanga Sibugay and Dumalinao in Zamboanga del Sur through the Philippine Coconut Authority’s (PCA) Coconut-Coffee-Based Enterprise Development (Cocobed).
The government is encouraging farmers to plant high value crops under coconut trees to increase their income.
Nestlé agronomists would also provide technical assistance to the recipients of the seedlings.
“Nestlé is proud to support the government’s efforts to provide better livelihood for coconut farmers by providing opportunities to increase productivity by diversifying into coffee production,†Art Baria, Nestlé Philippines assistant vice president and Agri-Services Department Head said.
Nestlé Philippines’ engagement with the PCA is part of the global implementation of the Nescafe Plan, the initiative of the international firm to optimize its coffee supply chain.
Under the Nescafé Plan, Nestlé would distribute 220 million high-yield plantlets to farmers in various countries by 2020 to revive plantations.
Other than the Philippines, Nestlé has forged partnerships with private and public institutions in Indonesia, Mexico, Thailand and Colombia.
Nestlé is also expanding its technical assistance programs on farming and post harvest practices under the program.
Other global firms engaged in the processing of farm produce in the country have been providing direct assistance to farmers of high value crops to protect their supply chain.
Increased demand for instant coffee is expected to push demand for green coffee beans by five percent annually.
The Philippines currently produces only an average of 25,000 metric tons of coffee, while traders and manufacturers import around 75,000 MT from Vietnam and Indonesia to address the supply gap.
The importation of green coffee beans costs local manufacturers around P5 billion to P7 billion annually.