Coffee production gets P700 million boost

MANILA, Philippines — The government is planning to release within the next two weeks the revised guidelines for its funding facility that supports the local farm sector, with around P700 million earmarked for the development of the domestic coffee industry

Agriculture Secretary Francisco Tiu Laurel Jr. said the amount makes up about 70 percent of the first P1 billion to be released from the P4 billion Competitiveness Enhancement Measures Fund (CEMF).

“If we are successful in using all of that, then maybe the next draw of P1 billion will be all for the coffee sector,” Tiu Laurel said in an interview on the sidelines of Nestlé Philippines’ closing ceremony for its coffee accelerator program in Sultan Kudarat.

The EMF was established under Republic Act 8800, also known as the Safeguards Measures Act of 2000.

The law aims to help improve the competitiveness of domestic industries that may be affected by the influx of imported goods.

Half of all safeguard duties, fees and other charges collected by the government from imported products are remitted to the CEMF, which serves as a financing mechanism for programs that strengthen local industries.

Tiu Laurel said the country’s coffee deficit stands at around 200,000 tons annually, highlighting the need to ramp up local production to reduce dependence on imports.

“We are importing that amount. So, if we can produce one ton per hectare, we need to plant 200,000 hectares,” the agriculture chief said.

In Sultan Kudarat, the country’s top coffee producer, he said the plan is to develop around 32,000 hectares for coffee production.

The agriculture chief admitted that the country cannot yet achieve full self-sufficiency in coffee but said the goal is to reach at least 80 to 90 percent in the long term.

He added that such progress would take time, noting the challenges for Filipino coffee producers.

“There are no roads. So, it’s a wasted opportunity. Those are what we will build first, roads and irrigation facilities,” he said, adding that training programs for coffee farmers are also in development.

Tiu Laurel also expressed support for the Philippine Coffee Board Inc.’s proposal to establish a Philippine Coffee Research Institute, a move that could require funding of about P40 million to P50 million.

He said the Department of Agriculture (DA) could fund the establishment of the institute if additional resources next year become available.

“If we can get the CEMF funds, that will free up our other funds,” he said.