nown as the second most consumed beverage in the world, coffee occupies an important place in the world economy.

Even the Philippines, as one of the exporting countries of coffee, have an existing production area of 123,269 hectares that produced a volume of 97, 428 metric tons (MT). Coffee grows in 70 countries, 60 of which are exporters. It has four varieties namely Arabica, Robusta, Liberica and Excelsa. Arabica, also known as Kapeng Tagalog bears clean dry coffee beans in two to three years from planting, which is the earliest compared to the other varieties. While Robusta yield the highest volume of clean dry coffee beans. Excelsa , on the other hand, is resistant to drought unlike Liberica Kapeng Barako can tolerate and grow in wider soil types.

COST STRUCTURE FOR THE PRODUCTION OF ONE-HECTARE Table A: COFFEE PLANTATION

Year Estimated Cost (Php ) 39,616 13,318 16,640 20,587 28,585 33,559 37,647 42,478 42,478 42,478 Cost Composition (Php cost/ year) Establishment Materials 1 2 3 4 5 6 7 8 9 10 23,253 Labor 16,363 Maintenance Materials 9,193 11,415 15,087 17,860 22,284 26,097 30,378 30,378 30,378 Labor 4,125 5,225 5,500 10,725 11,275 11,550 12,100 12,100 12,100

TABLE B:
Year

Gross Income (Php) 0 0 28,000 42,000 70,000 91,000

Yearly Net Income (Php) -39,616 -13,318 11,360 21,413 41,415 57,441 67,353 97,522 97,522 97,522 438,614

TABLE C:

Potential Yield (kg) Farm Gate Price (Php/kg) Wholesale Gross Income (Php) Total Cost of Production (Php) Net Return (Php) ROI (%)

10,800 70

1 2 3 4 5 6 7 8 9 10 Total

756,000 317,386 438,386 138.19

105,000 140,000 140,000 140,000 756,000

Ten-year Cost and Return Analysis

Estimated Income in one-hectare of coffee plantation

The table shows the average cost of establishing and maintaining one- hectare coffee plantation

Market
n the world trade, coffee ranks first among non-staple food and is rated as fifth most important agricultural product. It is considered as one of the high-value commercial crops in the local and foreign markets. About half of the market demand is being imported to meet supply deficits due to lack of production. This shows that there are lots of rooms for new investors to penetrate the coffee industry and accommodate its consumers.

Start counting your earnings

he farmers need three years before they can start harvesting the coffee beans. Also, the farmers will earn more income if they will also engage in coffee processing.

Profitability Analysis:

Production Cost
he production cost, productivity and earnings vary in farms since there are factors that affect the trees and the market. Nevertheless, there are basic fixed costs of production and operational activities that can be fairly projected on prevailing conditions. (See Table A)

For the first two years of production, a farmer may experience losses due to zero harvest and costs being incurred in the farm. However, on the third year, the farmer will start to harvest his coffee beans and earn profits continuously through the following years. (See Table B) Based on the table C, 236.09% Return on Investment (ROI) is expected from one-hectare coffee farm. The high ROI can be attributed to the high volume that can be harvested from a single coffee tree. A coffee tree can yield 2 to 3 kilograms per year. A farmer has to invest about Php 334,000 for his farm and expect a net return as much as Php 790,000.

he minimum soil depth for a coffee propagation is 15 centimeters. The soil must be highly fertile with medium texture and high moisture holding capacity. The optimum soil pH must be 5.5 to 6.5 and a temperature of 21 to 26 degrees celsius.

Area:

Things you need to begin with

Material Inputs:

A farmer must have the following in order to start a coffee plantation: coffee seeds, granular and foliar fertilizers, insecticides, and fungicides.

Labor Inputs:

Department of Agriculture
4th Flr., Department of Agriculture, Elliptical Road, Diliman, Quezon City Telefax: (02)927.9460 Trunkline: (02)928.8741 loc. 2404 / 2403 Website: http://hvcc.da.gov.ph Email: hvccpmo@yahoo.com RFU CAR

Laborers are necessary for the establishment and maintenance of a coffee farm. Clearing, seed bed preparation, seed sowing and layouting are some of the tasks performed in establishing a plantation. On the other hand, in maintaining the coffee farm, the laborers will be applying fertilizer, spraying chemicals, and weeding.

GMA High V alue Commercial Crops Program ( HVCC )

GMA - High Value Commercial Crops Program

Regional Program Offices (Field Units)

RFU Region VII
DA-RFU 7 M. Velez St., Cebu City Tel: 032.256.3149 Fax: 032.256.3149 Email: ricehvcccorn@yahoo.com

DA-CAR, BPI Complex Guisad, Baguio City Tel: 074.300.5027 Fax: 074.300.4548 Email: gma_hvcc_car@yahoo.com

RFU Region I

RFU Region VIII

Invest Earn

Coffee Suitability
Areas where planting different varieties of coffee are most suitable:

DA-RFU 1, Capitol Compound San Fernando City, La Union Tel: 072.242.1045 to 46 Fax: 072.888.0341 Email: da_reg01@yahoo.com

DA-RFU 8 Kanhuraw Hill, Tacloban City Tel: 053.321.3047 or 053.325.3610 Fax: 053.321.3043 Email: da8_operations@yahoo.com

RFU Region II

RFU Region IX

Prosper in

VARIETY CAR
Arabica Robusta, Liberica, Excelsa

DA-RFU 2 Tuguegarao City, Cagayan Tel: 078.846.3379 Fax: 078.844.1031 Email: hvcc_rfu@yahoo.com

DA-RFU 9, Lenienza Pagadian City, Zamboanga del Sur Tel: 062.214.4677 Fax: 062.215.4068 Email: marfanhvcc@yahoo.com

RFU Region III

RFU Region X

Region III Region IVA Region VI Region XIII

DA-RFU 3, Capitol Compound City of San Fernando, Pampanga Tel: 045.963.7412 Fax: 045.961.3336 Email: fernandoclorenzo@yahoo.com

DA-RFU 10 A. Luna St., Cagayan de Oro City Tel. 0882.272.5725 loc.245 Fax: 0882.272.6564 Email: chedyansale@yahoo.com

RFU Region IV A

RFU Region XI

RFU Region IV B

DA-RFU 4B, ATI Bldg., Elliptical Rd. Diliman, Quezon City Tel: 921.2641 / 920.2013 Fax: 920.2048 or 426.4758 Email: gmahvcc_rfu4b@yahoo.com

CSA Bldg., Gen. San Drive corner Zulueta St., City of Koronadal, South Cotabato Tel: 083.520.0498 Fax:083.520.0425 / 083.520.0498 Email:hvccda_12@yahoo.com

RFU Region V

RFU Region XIII

Region X ARMM Region XI

DA-RFU 5 San Agustin Pili, Camarines Sur Tel: 054.477.7254 Fax: 054.361.1264 Email: darfu5operations@yahoo.com

DA-CARAGA Capitol Compound, Butuan City Tel: 085.341.4546 Fax: 085.341.2114 Email: gmahvcc_r13@yahoo.com

RFU Region VI

RFU ARMM

Source:

Bureau of Agricultural Research

Region XII

DA-RFU 6 Port San Pedro, Iloilo City Tel: 033.337.4775 Fax: 033.337.1018 Email: highvalue_darfu6@yahoo.com

DAF-ARMM ORG Compound, Cotabato City Tel: 064.421.1248 Fax: 064.421.1248 Email: alitatak@yahoo.com

Coffee

www.scottscoffeehouse.com

DA-RFU 4A, BPI Compound Visayas Ave., Diliman, Quezon City Tel: 02.928.3919 or 441.5071 Fax: 02.441.5071 Email: ecinaj_0912@yahoo.com

DA-RFU 11 Bangoy St., Davao City Tel: 082.226.3625 loc.1120 Fax: 082.226.3625 Email: elnora_secreto@yahoo.com

RFU Region XII

Production