INTERNATIONAL

COFFEE INDUSTRY
SITUATIONER
International Situationer MAP: COFFEE PRODUCING COUNTRIES
© copyright National Federation of Coffee
Oneof the largest traded Growers of Colombia, 1996
commodities in the world
Grown in 70 countries in the
World 60 of which are exporters
World,

In 2007, world production was

g ggreen beans
119.3 million bags

Provideslivelihood for
some 100 million coffee
f
farming
i families
f i i around the
world

On Global scale,

500 million people
utilize coffee directly
or indirectly
i di tl for f
their incomes
Worldwide Coffee Production Mexico Sierre-Leone Brazil
Cuba Liberia Ecuador
Dominican Ivory Coast Cameroon
Republic Guinea Zaire
Haiti Ghana Uganda
Jamaica Togo Tanzania
Puerto Rico Benin Malawi
Guatemala Nigeria Zimbabwe
Honduras Cent. African Madagascar
Salvador Republic India
Costa Rica Congo Vietnam
Panama Gabon Thailand
Nicaragua Ethiopia Philippines
Venezuela Sri Lanka
Columbia Sumatra
Peru Borneo
Bolivia Java
Paraguay Celebes
Isulawesi
Timo
WORLD COFFEE EXPORTS
VARIETY YEAR EXPORTS
(million bags)
Arabica 2008 62
Robusta 2008 32.3
 TOP TEN COFFEE PRODUCERS
COUNTRY PRODUCTION IN PERCENT OF
MILLION OF WORLD
METRIC TONS PRODUCTION
1. BRAZIL 2.18 28.2%
2. VIETNAM 0.99 12.8%
3. INDONESIA 0.76 9.8%
4. COLOMBIA 0.68 8.8%
5. MEXICO 0.31 4.0%
6. INDIA 0.28 3.6%
7. ETHIOPIA 0.26 3.3%
8. GUATEMALA 0.22 2.8%
9. HONDURAS 0.19 2.5%
10. UGANDA 0.19 2.5%
TOP TEN COFFEE IMPORTERS
COUNTRY PERCENT OF WORLD
IMPORTS
1. USA 20.0%
2. GERMANY 15.1%
3. JAPAN 6.2%
4. ITALY 6.1%
5. FRANCE 5.3%
6. SPAIN 3.6%
7. BELGIUM 3.5%
8. UNITED KINGDOM 2.9%
9. NETHERLANDS 2.8%
10. POLAND 2.5%
TOP TEN COFFEE PER CAPITA
CONSUMPTION
COUNTRY CUPS PER CAPITA
1. FINLAND 1,686
,
2. DENMARK 1,374
3 NORWAY
3. 1 372
1,372
4. BELGIUM 1,354
5 SWEDEN
5. 1 249
1,249
6. AUSTRIA 1,065
7 SWITZERLAND
7. 1 017
1,017
8. GERMANY 988
9. NETHERLANDS 915
10. FRANCE 831
NATIONAL COFFEE
INDUSTRY
SITUATIONER
NATIONAL SITUATIONER
 Philippines used to be the top
producer and exporter in Asia

 Declining
g yields
y and conversion of
coffee plantations to other export crops
as well as to other commercial
purposes resulted to an importation of
coffee since 1997

High Value Commercial Crops

DA-RFU CAR
 NATIONAL PRODUCTION
 The average green bean yield per
hectare per year is less than 500
kilograms
The total local green production has
been declining significantly
Total production in 1990 was pegged at
43,200 metric tons

2002 production was only

approximately 30,000 metric tons
High Value Commercial Crops
DA-RFU CAR
 NATIONAL DEMAND AND
SUPPLY PROJECTION
 Estimated Annual domestic
consumption is 53,
53,000 metric tons
green beans

The country imports around 20

20,,000 to
30,,000 metric tons of coffee beans to
30
meet supply deficits which accounts to
around 70 million pesos a year

Approximately increasing at 3% per year

High Value Commercial Crops
DA-RFU CAR
 CORDILLERA
COFFEE INDUSTRY
SITUATIONER
VARIETIES ADOPTED

Arabica
Excelsa
Liberica
Robusta

High Value Commercial Crops

DA-RFU CAR
Area Planted (ha), CAR

High Value Commercial Crops

DA-RFU CAR
Bearing Trees, CAR

Total 4,755,208
, ,

Source: BAS 2007 High Value Commercial Crops

DA-RFU CAR
CORDILLERA ARABICA COFFEE
SITUATIONER

Cordillera
C dill i suitable
is i bl to Arabica
A bi coffee
ff
production:
 Suitable climate and thrive best in an
altitude of 700 to 2,000
2 000 meters above
sea level

Temperature range off 17-25
1 2 oC C andd
annual rainfall of 1,500-2,000 mm
 CORDILLERA ARABICA COFFEE
SITUATIONER
Most preferred variety in the local and global
market due to its distinctive taste…
taste
High acidity
 Good flavor
Medium size
Good liquor quality
The region produces specialty coffee (coffee
motit / musang)
G
Generallyll grown as backyard
b k d crop
(organically grown)
 Importance of Arabica Coffee to the
Cordillera
Income Generation Potential-The
green coffee beans Market is currently
at 1.4
1 4 billi
billion pesos
Employment generation potential
potential- 1
hectare-2 farm workers + 2 indirect
farm
Livelihood Potential
workers
k
Export Potential
 Agroforestry farming system technology

 Integration of arabica Coffee under forest tress

encourages the highland farmers to protect the
watershed while earning income

 This technology follows the agroforestry

Farming System (Agrisilvicultural System) of
contour planting, organic fertilization and
conservation of biodiversity
What Needs To Be Done?
Rehab the existing 552 hectares –
th
throughh rejuvenation
j ti off the
th existing
i ti
Arabica coffee trees to double or
t i l currentt average yield
triple i ld

l th
Develop
D the 40
40,000
000 h
hectares
t
expansion areas of new arabica
coffee
ff plantation
l t ti b by 2015

The use off hi

Th high
h yielding
i ldi cultivars
lti
like bourbon variety.
POTENTIAL ARABICA COFFEE
EXPANSION AREAS

PROVINCE AREA
Benguet 14,000
Mountain Province 14,000
g
Ifugao 6,000
,
Kalinga 4,000
Abra 1 200
1,200
Apayao 600
Total 40,000
FUTURE PROSPECTS OF THE ARABICA
COFFEE INDUSTRY

The Bad News

 Conversion of coffee areas to other

crops and other uses is continuing

 Increasing imports is bad for the

Cordillera economy

 Continuous decline in coffee

production
 FUTURE PROSPECTS OF THE ARABICA
COFFEE INDUSTRY

The Good News!!!

 There is a continuous demand for Arabica coffee

posting
ti an annuall growthth off ttwo to
t fi
five percentt since
i
1994

 Change in Filipinos’ drinking habits favors

growth

 Proliferation of trendy coffee shops , local

traders and processors will fuel further growth
 Support to the Industry
Creation of Regional, provincial and
municipal Arabica Coffee Councils
Technical and financial support from the
Local Government Units, Government
Agencies, Funding Agencies, Pos, NGOs and
Other Stakeholders

 Launching of a 100 million peso coffee

fertilization/rehabilitation loan assistance
program
 Vision: To make the Cordillera region the
Arabica Coffee Capital of the Philippines and our
nation becomes prominent in the global map-of
world class Arabica coffee Exporters
 Economics of a one hectare Arabica Coffee
Production in CAR
Year Total Net Return (PhP)
Expenses
(PhP)
11,000
000 trees/hectare 22,000
000 trees/hectare
Price @PhP110.00/kg. Price @ 150.00/kg
1 62,113.00 (62,113.00) (124,226.00)
2 10 523 00
10,523.00 (10 523 00)
(10,523.00) (21 046 00)
(21,046.00)
3 33,576.00 15,924.00 31,848.00
4 22,475.00 96,325.00 192,650.00
5 27,080.00 121,420.00 242,840.00
6 27,080.00 121,420.00 242,840.00
7 27,880.00 121,420.00 242,840.00
8 34,850.00 133,450.00 266,900.00
9 34,850.00 133,450.00 266,900.00
10 34,880.00 133,450.00 266,900.00

Total PhP 876,859.00 PhP 1,753,718

Thank You !!!!!