A trader of black gold

Being the youngest of 10 siblings, it was Leonila Suarez who took over the Batangas-based family trading business called Ivory International Trading, Inc.

"There was nobody else to man the business because all of my siblings had businesses of their own," she said.

With a net worth of only P500,000 after the other Suarez siblings pulled out their shares, Leonila and her husband, Manolito, borrowed another P500,000 from Planters Development Bank, where Manolito worked as an accountant before he resigned to work full time in the single proprietorship renamed Ivory Grains

Ivory Grains trades mainly in coffee but also distributes black pepper, cacao beans, and achuete.

"There used to be more than 10 traders of coffee and other grains here in Lipa but only two remain," she said.

Crisis

Intense competition among traders was the direct result of drops in the world prices of coffee, which happened twice in the 1990s due to the oversupply of production from Indonesia and Brazil.

With the price of coffee below production costs, many coffee farmers in Batangas, Cavite and the Ilocos region either sold their farms or turned into other crops. The farmers with smaller patches of land began intercropping coffee and cacao with pepper.

"We were able to weather that with my experience in handling the business when I was still with my parents. It also helped that I inherited most of my Ivory suppliers," said Suarez.

Among farmers, Ivory Grains is known to buy at higher prices.

"There are no more huge coffee, cacao and black pepper plantations in Batangas. When these farmers come to the market to purchase their daily needs, they would also bring several kilos of pepper to sell or to send money to one of their kids who is studying in Manila. How can you haggle with that?," asked Suarez.

Steady income

On a weekly basis, Ivory Grains delivers about six tons of coffee beans to Nestle Phils. (which buys 90% of the country’s total coffee production) and another six tons of black pepper for a revenue stream of about P60,000 a month. A coffee manufacturing company in Cavite has recently been going to Lipa to directly buy the beans from Ivory Grains.

With steady income from the business, the Suarez couple have been able to purchase a 400 square meter property, which they have converted into a warehouse. This is in addition to the 200 sqm. warehouse they own near the public market, which is adjacent to their office.

"I am glad that some private companies have taken it upon themselves to help the local coffee industry, especially now that the country’s consumption is 36% more than production," said Suarez.