The coffee bean, sometimes also referred to as "brown gold," is said to be the world’s most valuable agricultural commodity. As a traded commodity, it ranks second only to petroleum.
Why should this be of interest to a country with a faltering economy like ours?
Well, time was when the Philippines ranked as the fourth largest exporter of coffee in the world. The country used to earn about $150 million in annual sales.
Now, Indonesia ranks number four. Third is Colombia, which was displaced by Vietnam, which now ranks second only to Brazil, the world’s largest producer and exporter of coffee. Meanwhile, the Philippines has dropped to number 14. Not only that, today, we import about P1.6 billion worth of coffee beans from our fellow Asean member countries Indonesia and Vietnam. This, in order to address the production shortfall and meet the growing demand.
"The Philippine annual consumption of coffee is about 55,000 metric tons, while annual production is only about 20,000 metric tons," says Pacita "Chit" Juan, CEO of Figaro Coffee Co. "The demand increases at the rate of three percent or 1,500 tons a year."
This, however, is not the only argument favoring the current drive to save the local coffee industry.
Coffee is a high-altitude crop that grows best in countries with an equatorial location and a mountainous, sub-tropical climate.
"They don’t have it in Japan," Juan points out. "And even if China has been trying very hard, they can grow it only in the most southern part. In the US, it is found only in Hawaii."
Coffee-producing countries are found in Central and South America, Africa, as well as Southeast Asia. The Philippines is one of the few countries that produce all four varieties of commercially-viable coffee – arabica, robusta, excelsa and liberica, or barako – making it possible for quality blends to be produced here. The plantations are concentrated in the mountains of Benguet, Kalinga Apayao, Davao, Claveria, Misamis Oriental, Bukidnon, Batangas and Cavite. Favorable climatic and soil conditions make the Philippine mountain ranges ideal sites for nurturing a robust and potentially profitable local coffee industry.
"In the late 1990s, robusta coffee prices dropped from US$3,700 a ton to US$370 a ton, losing 90 percent of its value in five years," Juan relates. "Many demoralized farmers started to cut down their coffee trees and converted to other cash crops. Some farms were even converted to housing subdivisions or industrial parks. The Philippines now has approximately 60,000 to 80,000 coffee families with only approximately 120,000 hectares of productive coffee land, down from 200,000 hectares in 1989."
In April 2002, a number of concerned coffee producers, farmers, sellers, coffee-shop owners and plain coffee aficionados came together to form the National Coffee Development Board (NCDB).
"Spurred by the Office of One Million Jobs and the Makati Business Club, the NCDB was put together to create opportunities to build up the local coffee industry," says Juan who, together with Nicholas Matti of Negros Coffee and Grains, co-chairs the NCDB.
Programs were initiated that provide farmers’ training and technical support. Demonstration farms and nurseries were established. Farmers were encouraged to participate in a fertilization program and loans in the form of farm input were made available. An ambitious nationwide program was launched with the aim to replant and rehabilitate about 20,000 hectares of coffee plantations in 22 provinces, with Cavite as the lead province and the town of Amadeo as the local government model for the program.
Amadeo is a fourth-class municipality situated in the southern part of Cavite with a total land area of 4,790 hectares and an elevation of 1,400 feet above sea level. It is bounded in the north by the municipality of Gen. Trias, in the west by Indang, in the northwest by Trece Martirez, in the east by Silang and in the south by Tagaytay. Amadeo has been a coffee-producing town since the 1800s. Today, it lays claim to the title Coffee Town of the Philippines.
Its mayor, Albert "OJ" Ambagan, Jr., is only 26 years old, but this is one instance when youth did not get in the way of vision. With the support of the other municipal officials and barangay captains, he conceived and implemented the Adopt-a-Coffee Farm Project, an innovative and original concept that aims to convert idle and under-utilized lands into productive ones. Landowners lease out their land for a period of five years subject to renewal. Only P1 per square meter or P10,000 per hectare per year is paid to the landowner for the use of the land for coffee-based farming. The adoptee gets the right to clear and cultivate the land, fertilize, operate, harvest and sell its produce. More job opportunities are also generated since farm helpers and technical experts are needed to maintain the coffee farm.
It took only six months for Melchor Ocampo to realize the ROI from his adopted farm in Banaybanay in Amadeo. With less than a hectare at 6,000 square meters, the coffee plants were inter-cropped with sweet peppers and beans that were harvested and sold before the end of the first year.
"It takes from three to five years for the coffee tree to bear fruit," Juan explains. "In the meantime, profits can be realized through successful inter-cropping methods."
The vegetables suitable for inter-cropping are ampalaya, squash, watermelon, tomato, eggplant, sweet and hot pepper.
Louie Hieras chose diamante tomatoes, as well as squash and eggplants for his adopted one-hectare coffee farm in Halang, Amadeo. A civil engineer who used to work with the MMDA, he has since quit his job to concentrate on weekend farming on a full-time basis. Miguel Yuvienco now also spends most of his time on the old coffee farm of a relative, which he adopted when he retired recently as provincial auditor of Laguna and Batangas. As part of the rehabilitation process, some of the old coffee trees have been rejuvenated or replaced. Nothing is wasted since the wood from the cut trees are used for making furniture that are sold by the Café Amadeo Development Cooperative.
About 1,500 hectares in Amadeo planted to the robusta variety are now in the process of rehabilitation. A total of 170 hectares are enrolled under the Adopt-a-Coffee Farm program. While robusta is the preferred variety, liberica and excelsa varieties are also part of the program. The farms adopted by Figaro are planted to liberica or the barako variety. Excelsa and liberica are highly sought after in the Middle East markets. There is a strong domestic demand for robusta coffee. Most instant coffee is made from the robusta variety.
As part of its marketing and promotional program, the NCDB developed the Kape Isla seal. It is not a brand name, nor is it the name of a blend of coffee, a coffee shop nor a restaurant.
"Kape Isla is an umbrella name for all good Philippine coffees and gives a stamp of approval for quality Philippine coffees," explains Guillermo "Bill" Luz, executive director of the Makati Business Club and NCDB director. "The Coffee Board issues the Kape Isla seal to accredited roasters, merchants and retailers to indicate that their product represents quality Philippine coffee. It appears in merchants’ in-store signage, product packaging, menus, and other company-related items."
To date, 23 merchants and coffee shops carry the Kape Isla seal, among them Batangas Brew, Café Amadeo, Café Breton, Commonwealth Foods Inc., Cordillera Coffee, Cravings, Dunkin’ Donuts, Figaro, Gourmet Farms, Mocha Blends, Monk’s Blend, Seattle’s Best and Starbucks.
When President Gloria Arroyo launched it in April 2002 during the first coffee festival in Amadeo, she said, "The Kape Isla seal is intended to serve as the industry’s battlecry to develop our loyalty to Philippine coffee, reduce imports, increase domestic production and create new jobs."
The annual coffee festival in Amadeo called Pahimis, which means pasasalamat or thanksgiving, is intended to promote not only the local coffee industry but also the development of agri-tourism in the country. Street dancing in colorful coffee costumes, all-night nonstop music and dance and drink-all-you-can free coffee are the hallmarks of this annual celebration. This year, the Pahimis was held in Amadeo on Feb. 14 and 15.
Besides the model coffee farms, the "Bean to Brew" tour also brought journalists to the Beneficio Amadeo coffee mill, as well as Gourmet’s roasting facility. Final stop was Gourmet Café in Silang, which left us with a lasting impression of its vast organic vegetable farm, its sumptuous salad bar and wide selection of, what else gourmet coffee.