More and more local farmers going into coffee growing

Planting coffee as a primary crop has become a lot more attractive for Filipino farmers today than it was a decade ago, especially since coffee is enjoying its highest trading price for the past two years.

"For the last two years world market coffee price has hovered above P50 — one of the highest trading prices since it plummeted to P27 in 2002 because of surpluses from Vietnam," says Zenon Alenton, resident agronomist for Nestle experimental and demonstration farm (NEDF) in Tagum City, Davao.

However, Alenton is quick to add that good market price is not the only reason why farmers should take up coffee anew. Nescafe, the country’s top-selling instant coffee, has been actively promoting coffee-based sustainable farming system (CBSFS) since three years ago in line with the sustainable agriculture initiative of Nestle (SAIN).

Nescafe’s sustainable farming system encourages farmers to use coffee as a main crop and a variety of secondary crops to provide additional or alternative income for the farmers. Since rows of coffee trees are ideally planted five meters apart, CBSFS promotes the planting of companion crops to maximize the space.

Although ampalaya, bell pepper, cabbage, eggplant, kamote, lettuce, peanuts, spring onion, string beans, ube, and upland kangkong, are ideal candidates, Alenton says it’s better if the farmers determine the most in-demand produce in their local market. Mid-sized fruit-bearing plants and trees like banana, cantaloupe, honeydew melon, lanzones, papaya and rambutan are also good since these plants will not compete for sunlight and water with the coffee trees.

Free training

Coffee is the second most consumed beverage in the world next to water. Next to oil, it is the second most valued commodity in the world.

A coffee plant is very adaptive to all types of soil and is highly suited to the Philippines’ tropical climate. The Robusta variety, which Nescafe uses to manufacture the country’s best selling coffee Nescafe Classic, has high pest attack tolerability.

"Aside from having ready market for their produce, coffee farmers enjoy good and high-yielding planting materials available locally," says Alenton. "Through this farm, we also offer coffee farmers free training and technology."

Established in 1994, NEDF offers farmers and agriculture students free technical training in coffee agriculture. It also serves as a venue for experiment and production of coffee planting materials. It sells Robusta seeds, and plantings, and fertilizer at cost price.

Nestle also supports coffee farmers through its buying policy. It commits to purchase all coffee produced in the country at a suitable price based on the prevailing world market price and Nescafe coffee grading system. Green coffee beans are bought directly from farmers through various buying stations located in various parts of the country.

"One of the biggest assistance that we have given farmers so far is the initiation of direct procurement system (DPS) which totally eliminates the purchase orders to coffee suppliers," says Alenton. Started in 1990, DPS enables farmers to sell directly to Nestle through its 10 buying stations spread across the country.

"Today Nescafe buys around 80 percent of the local farmers’ total green coffee bean (GCB) output," tells Alenton.

Good return on investment

Alenton reveals the biggest obstacle for prospective coffee farmers remains to be financing. A one-hectare coffee plantation generally requires a maximum of P60,000 initial investment for the first two years which goes to planting materials, labor, fertilizer and farming equipment. In mono-coffee plantation, one hectare of land can accommodate 1,667 coffee trees spread at 2x3 meter row. In the sustainable coffee farming program, one hectare of land can fit 1,000 coffee trees at 2x5 meter row. While Nescafe cannot provide the farmer’s initial capital investment, he says Nescafe can give them big savings on Robusta plantings, not to mention the free technical assistance they provide. NEDF sells Robusta planting at cost price of P8 each versus P10 to P12 anywhere else.

"While it will take 18 to 20 months for a farmer to harvest his first coffee cherries, he can augment his initial investment by planting secondary crops like peanuts, which can be harvested every three months," explains Proceso Cortejos, another NEDF agriculturist.

Under CSBFS, a farmer can plant 50 kilos of peanut seedlings in one hectare of coffee farm. A good harvest will yield him 5,000 kilos of peanuts and at current market price of P40 to P50, the sale will be more than enough to cover the initial investment. The prospect of harvesting 1,000 to 1,500 kilos of coffee in the next year will be the best icing on the cake.

As of today, Alenton and the rest of NEDF’s agronomists are currently offering free lectures and brochures on CSBFS in NEDF. They are also available for free on-site trainings anywhere in the Philippines.

"Nescafe will always be here as long as farmers produce coffee," professes Alenton.