New PPP project for coffee launched in Surigao

MANILA, Philippines - Nestlé Philippines Inc. (NPI), through its brand NESCAFÉ and with its partners Deutsche Investitions-und Entwicklungsgesellschaft (DEG) and Asia Society for Social Improvement and Sustainable Transformation (ASSIST), recently launched a private-public partnership (PPP) project called the Coffee Technologies and Funds to Fuel Economic Empowerment (CoFFEE) project.

The objectives of this PPP project are to provide small-scale coffee farmers and communities in Mindanao with innovative farming technologies training, post-harvest upgrades, and marketing support. 

Designed by Nestlé Philippines, the CoFFEE project is envisioned to be the development model for coffee stakeholders in Mindanao to replicate, adapt, and scale up. 

The project specifically aims to:

• determine the gaps and opportunities in the coffee value chain of a locality.

• share theoretical and practical knowledge on Robusta coffee farming.

• introduce the latest technologies in Robusta coffee such as high-yielding seedlings, innovative fertilizer that is both efficient and sustainable, and new post-harvest drying techniques.

• develop 30 farming entrepreneurs or FARMtrepreneurs in one area, and

• create a business case for sustainable small-scale coffee communities. 

According to Nestlé agricultural services head Arthur Baria, “The main challenges facing small-holder coffee communities are lack of training, lack of access to new coffee technologies, and minimal awareness of the potential of the local Robusta coffee industry.” 

“Through this collaborative project, we hope to address these challenges, especially in far-flung coffee communities such as those in Mindanao,” said Baria, adding, “We expect this project to not only help the small-coffee farmers but to also help address the supply shortage in the country.” 

Seventy percent of the Philippines’ coffee requirement is currently imported. While the local coffee production is estimated to be at 20,000-30,000 metric tons of coffee beans annually, the local demand for coffee beans is estimated to be 64,000 metric tons – a shortfall of over 50 percent.

Nestlé, already the biggest buyer of coffee in the country purchasing an estimated 80 percent of the entire Philippine coffee produce, has noted the demand is still growing. 

“We are accelerating our efforts to help grow the coffee industry and reverse the trend.  Ideally, we would like to source all our coffee beans from the Philippines. The CoFFEE project is expected to greatly contribute to this goal because it encourages cooperation and knowledge-sharing among key stakeholders in a coffee community,” Baria explained. 

Senior investment manager Daniela Soehngen of DEG, one of Europe’s biggest development finance institutions and serving as co-financier for the project expressed high hopes for the impact of the project on the coffee community in Tagbina, Surigao del Sur. 

“DEG’s investment in Project CoFFEE is truly a testament to the continuing commitment of the organization to create a strong foundation for sustainable economic growth. We hope that through this contribution, we can make a l ong-term improvement in the livelihood of small coffee farmers in Tagbina,” said Daniela Soehngen. 

The pilot venue for the project implementation is the municipality of Tagbina in Surigao del Sur, where the first phase of the project was launched on Feb. 27.

The launch will be followed by multi-stakeholder forums and community awareness sessions to orient the beneficiaries about the project.

 The second phase of the project will entail the establishment of one pilot coffee community at Barangay Kahayagan and the conduct of training for 30 participants coming from coffee cooperatives and associations, the municipal government and the academe. A business clinic, mother plant garden, nursery, and warehouse for post-harvest processing will also be established. The business clinic will assist coffee producers and growers in acquiring financial support, business development skills, technical training, and provide linkage to Nestlé’s satellite coffee buying station. 

The development of the case study, which will include the step-by-step process of setting up a coffee community, will commence during the third phase of the project. 

“Project CoFFEE seeks to make the information on best coffee practices widely available to other communities,” shared Baria. “We hope that through this project, we can build a strong network of coffee communities that will become a significant resource base for Robusta coffee in the country.”