Roadmap/Masterplan for the Philippine Coffee Industry Presented - - PowerPoint PPT Presentation

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Roadmap/Masterplan for the Philippine Coffee Industry Presented - - PowerPoint PPT Presentation

Towards a Roadmap/Masterplan for the Philippine Coffee Industry Presented during the Industry Roadmaps & AEC Gameplan: Roadmap Localization for Competitiveness on May 28-29,2015, Baguio country Club, Baguio City. Joan Dimas-Bacbac, HVCDP


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SLIDE 1

Towards a Roadmap/Masterplan for the Philippine Coffee Industry

Presented during the Industry Roadmaps & AEC Gameplan: Roadmap Localization for Competitiveness on May 28-29,2015, Baguio country Club, Baguio City. Joan Dimas-Bacbac, HVCDP Regional Coordinator, DA-RFO CAR

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SLIDE 2

Supported by:

Department of Agriculture Department of Environment and Natural Resources Department of Agrarian Reform Department of Trade and Industry Philippine Coconut Authority Government Financial Institutions Local Government Units National Competitiveness Council

Crafted by:

Farmers, Processors, Coffee Manufacturers, Industry Associations, Exporters, People’s Organizations and the Academe

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SLIDE 3

OUTLINE I. Benchmarking II Philippine Coffee Industry

  • III. Industry Vision, Mission and

Goals

  • IV. Target Setting

V. Strategic Directions and Action Programs of Major Issues

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SLIDE 4
  • I. BENCHMARKING

THE PHILIPPINE COFFEE INDUSTRY vs THE BEST: INDONESIA AND VIETNAM

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SLIDE 5

PERFORMANCE: Area, Yield and Production (2011) Item Philippines Indonesia Vietnam

Planted Area (ha) ~120,000 ha (a) 1.3 M ha 537,000 (90,000 ha Robusta, 19,000 ha Arabica, 9,000 ha Excelsa and 1,400 ha Liberica) (1.04 M ha Robusta, 251,000 ha Arabica) (500,000 ha Robusta, 37,000 Arabica) Yield (ton green beans /ha) 0.20 - 0.30 0.67 2.4 Production (tons green beans) 25,000 – 30,000 (b) 634,000 1.2 M Planting density 500 – 1,700 trees/ha (Robusta) 800 – 2,000 trees/ha (Arabica) 1,100 trees – 2000 trees/ha 1,100 trees/ha (Robusta) 5,000 – 6,000 trees/ha (Catimor) Average farm size 0.5 – 1 ha 0.6 ha 0.5 – 1 ha

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SLIDE 6

PERFORMANCE: Farming and Processing Costs Investment costs are comparable Item Philippines Indonesia Vietnam

Average establishment cost/ ha (Robusta) PhP 50,000 – 82,000 PhP 78,000 PhP 71,000 Average cost per kg green beans PhP 49 – 68 PhP 23 PhP 65.10 Price per kg of green beans (farmer’s selling price) PhP 79.38 PhP74 PhP 83 Payback period 4.3 – 6.3 years 4.9 years 6.2 years Financial Internal Rate of Return 8 – 36 percent 31 percent 21 percent Processing costs per kg Roasting Php 10 PhP8.10 Grinding Php 10 PhP8.93

Exchange Rates: PhP42/US$1; VND20,800/US$1; IDR9,400/US$1

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SLIDE 7

POLICIES: Credit

Item Philippines Indonesia Vietnam

Credit Mainly through government financial institutions (e.g., LBP) and informal sources LBP loan ceiling for coffee : New planting: PhP100,000/ha (US$2,381) (payable in 5 years, 10-12% interest per annum, 2 years grace period) Existing plantation (maintenance): 2nd year: PhP42,500 (US$1,012) 3rd year: PhP55,000 (US$1,310) 4th year: PhP63,000 (US$1,500) 5th year: PhP72,000 (US$1,714) Rural Bank of Indonesia small scale lending and micro finance (none for new plantings)

Vietnam Bank for Agriculture and Rural Development (VBARD or Agribank) Credit for planting (mainly for existing plants or rejuvenation and not for new plantings), and Credit for harvesting, processing and export trading (short-term loans with terms of one year and three to six months, respectively; interest is 13% p.a.) State Bank of Vietnam short term loan (up to 12 months) with maximum interest of 15% p.a.

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SLIDE 8

Item Philippines Indonesia Vietnam

Land Ownership CARP Law – Maximum 5 hectares Co-existence of smallholders and large estates Long-term leases from government Price Policy No price policy on

  • coffee. Prices follow

world prices (London exchange for Robusta, New York Exchange for Arabica). There are price speculators

  • r consolidator-traders who
  • ffer premiums on top of

world market prices. No price policy on

  • coffee. Prices

follow world prices. No price policy on

  • coffee. Prices

follow world prices. Government support (budget for coffee) PhP 470 M Breakdown : PhP 170 M (DA-HVCDP) PhP 300 M (PCA Intercropping) PhP639 M (US$15.2 M) (143 B IDR) (MA) PhP 14.7 B (US$350 M) (7,280 B VND) (MARD)

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SLIDE 9

Macroeconomic Environment (Labor, Fuel and Power)

Labor costs are comparable but fuel and power costs are higher . Item Philippines Indonesia Vietnam

Labor PhP 150 - 300 per day (US$3.57 - 7.14 per day) PhP 134 - 223 (US$3.19 - 5.32 per day) (IDR 30,000 – 50,000) PhP 242 - 303 (US$5.77 - 7.21 per day) (VND 120,000–150,000) Fuel (July 2012) PhP 42 - 44 per liter (diesel) (US$1 - 1.05/li) PhP 53-56 per liter (gas) (US$1.26 - 1.33/li) PhP20.11/li (diesel) (US$0.48/li) (IDR 4,500/li) PhP46.24-46.91/li (gas) (US$1.10 - 1.12/li) (IDR 10,350 – 10,500/li) PhP46.44 - 48.46/li (gas) (US$1.11 - 1.15/li) (VND 23,000 – 24,000/li) Power PhP 6.50 - 6.75 per kwh (US$0.15 - 0.16 per kwh) PhP 1.79 – 3.13 (US$0.04 - 0.07 per kwh) (IDR 400–700 per kwh) PhP 2.02 (US$0.05 per kwh) (VND 1,000 per kwh)

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SLIDE 10

PRACTICES: Farm

Item Philippines Indonesia Vietnam

Input supply Clones used Mostly Robusta, Some Arabica, Small Excelsa and Liberica Mainly Robusta, Some Arabica Mainly Robusta, Some Arabica and Catimor (Robusta TR varieties – TR 4, 9, 10, 11 and 12) Fertilizer usage Organic and inorganic fertilizers Some farms do not fertilize (e.g. Kalinga) Mostly inorganic fertilizers from government subsidy Heavy application of fertilizers (even reaching 1 ton/ha) Planting density 600 – 1,700 trees/ha 1,100 trees – 2000 trees/ha 1,100 trees/ha (Robusta) 5,000 – 6,000 trees/ha (Catimor) Intercrop Fruits, vegetables, tree crops Mostly monocrop Mostly monocrop Sources of planting materials Wildlings Seeds of existing plants Nurseries (e.g. Nestle nursery) Indonesian Coffee and Cocoa Research Institute (ICCRI) Western Highlands Agro-forestry Science and Technical Institute (WASI)

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SLIDE 11

PRACTICES: Farm

Item Philippines Indonesia Vietnam

Maintenance activities Weeding Fertilization Pruning Weeding Fertilization Pruning Some farms do grafting Weeding Fertilization Pruning Irrigation First harvest Year 2 Year 3 Year 2-3 Harvesting period December - March May - September August – Jan Harvesting practice Selective harvesting Strip harvesting Selective harvesting Strip harvesting Selective harvesting Strip harvesting Drying Mechanical drying Solar drying Mechanical drying Solar drying Solar drying Mechanical drying Certification Organic, 4C 4C, Rainforest 4C, Rainforest, UTZ, Viet Gap

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SLIDE 12

PRACTICES: Processing

Item Philippines Indonesia Vietnam

Processing for beans Wet processing (mainly for Arabica) Dry processing (mainly for Robusta) Wet processing Dry processing Wet processing Dry processing Processing plants (ground and instant coffee) Nestle (Nescafe) – market leader Universal Robina Corporation (Great Taste, Blend 45) Commonwealth Foods (Café Puro) Century Pacific Group (Kaffe de Oro) Regent Foods Corp. (Koffie) PT Torabika PT Santos Jaya Abadi Indocafe Nestle Vinacafe Trung Nguyen Nestle Products produced Coffee beans Roasted beans Ground coffee Instant coffee (3 in 1; 2 in 1) Coffee beans Roasted beans Ground coffee Instant coffee Coffee beans Roasted beans Ground coffee Instant coffee

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SLIDE 13
  • II. PHILIPPINE COFFEE

INDUSTRY (Typical vs. Modern Farming)

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SLIDE 14

ROBUSTA, Typical and Modern Farms, Philippines

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SLIDE 15

Activity Typical Modern Cropping system Mostly with intercrop (vegetables, fruit trees) Monocrop (Block cropping) Plant propagation practices Use of wildlings Seeds from existing plants Absence of clone selection Use of selected clones from certified nurseries Buying price: PhP15/seedling

COFFEE FARMING (ROBUSTA): Typical vs Modern

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SLIDE 16

Activity Typical Modern Planting density 600 – 1,200 trees/ha 1,500 – 1700 trees/ha Fertilizer application Inorganic (46-0-0) ~ 2 bags per year Organic ~ 68 bags per year Inorganic (16-20-0, 46-0-0, 0-0-60) ~ 10 bags per year Organic ~ 33 bags per year Pruning Not done at all / not regularly done Regularly done (about 6 times a year) Pest and disease control Regularly done Regularly done

COFFEE FARMING (ROBUSTA): Typical vs Modern

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SLIDE 17

Activity Typical Modern First harvest Year 2 Year 2 Harvesting Strip harvesting Selective harvesting

COFFEE FARMING (ROBUSTA): Typical vs Modern

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SLIDE 18

Parameters Typical Farm Modern Farm Planting density 600 – 1,200 trees/ha 1,500 – 1700 trees/ha Average yield (tons gcb/ha) 0.72 1.29 Peak yield (tons gcb/ha) 1.0 2.0 Average establishment cost per ha (Year 1) PhP 50,000 PhP 82,000 Average cash outflow per ha per year PhP 49,000 PhP 63,000 Price per kg of green beans (farmer’s selling price) PhP 80 PhP 80 Average cash inflow per ha per year PhP 58,000 PhP 103,000 Average net cash flow per ha per year PhP 9,000 PhP 40,000 Average net cash flow per ha per year (including returns to family labor) PhP23,000 Average cost per kg of green beans PhP 68 PhP 49 Payback period 6.3 years 4.3 years Internal Rate of Return (IRR) 8 percent 36 percent

COFFEE FARMING (ROBUSTA): Typical vs Modern

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SLIDE 19

COFFEE FARMING (ROBUSTA): Income and Area Targets for Poverty Reduction

Item Typical Modern Incremental Planting density 850 trees/ha (with intercrop) 1,667 trees/ha (mono) 817 Average yield (tons green beans/ha) 0.72 1.29 0.57 Average income/ha at PhP80/kg green beans Gross income PhP58,000 PhP103,000 PhP55,000 Gross income PhP23,000 (a) PhP40,000 PhP17,000 Average area to get preferred net income of PhP94,000 (poverty threshold, 1H 2012) 4.09 ha 2.35 ha (1.74 ha)

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SLIDE 20

ARABICA, Typical and Modern Farms, Philippines

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SLIDE 21

Activity Typical Modern Cropping system Mostly with intercrop (forest trees, fruit trees) Without or with intercrop (forest trees, fruit trees) Plant propagation practices Use of wildlings Existing plants Absence of clone selection Use of certified seedlings Buying price: PhP25 –30/seedling

COFFEE FARMING (ARABICA): Typical vs Modern

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SLIDE 22

Activity Typical Modern Planting density 600 – 1,200 trees/ha 1,200 – 1,500 trees/ha Fertilizer application None / Minimal fertilizer application Inorganic ~ 18 bags every three years Organic~ 90 bags every four years Pruning Regularly done Regularly done Pest and disease control As need arises Regularly done Harvesting Year 2 – 3 Year 3 Harvesting practice Strip harvesting Selective harvesting

COFFEE FARMING (ARABICA): Typical vs Modern

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SLIDE 23

Parameters Typical Farm Modern Farm

Planting density 600 – 1,200 trees/ha 1,200 – 1,500 trees/ha Average yield per ha 0.5 tons dry parchment (0.40 tons gbe) 1.1 tons green beans Peak yield per ha 0.6 tons dry parchment (0.50 tons gbe) 1.5 tons green beans Average establishment cost per ha PhP 37,000 (Year 1) PhP 135,000 (Years 1-2) Average cash outflow per ha per year PhP 29,000 (Years 2 - 10) PhP 65,000(Years 3 - 10) Price per kg (farmer’s selling price) PhP 100/kg of dry parchment PhP 200/kg of green beans Average cash inflow per ha per year PhP 49,000 PhP 229,000 Average net cash flow per ha per year PhP 20,000 PhP 164,000 Average net cash flow per ha per year (including returns to family labor) PhP36,000 Average cost per kg PhP 58 per kg of dry parchment PhP 59 per kg of green beans Payback period 4.9 years 4.1 years IRR 31 percent 53 percent

COFFEE FARMING (ARABICA): Typical vs Modern

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SLIDE 24

COFFEE FARMING (ROBUSTA): Income and Area Targets for Poverty Reduction

Item Typical Modern Incremental Planting density 800 trees/ha (with intercrop) 1,250 trees/ha (with intercrop) 450 trees Average yield 0.49 tons dry parchment coffee (0.39 tons gbe) 1.14 tons green beans 0.75 tons green beans Average price (PhP/kg) PhP 100/kg dry parchment coffee PhP200/kg green beans Average income

  • Gross income

PhP49,000 PhP229,000 PhP180,000

  • Net income

PhP36,000 (a) PhP164,000 PhP128,000 Average area to get preferred net income of PhP94,000 (poverty threshold, 1H 2012) 2.61 ha 0.57 ha (2.04 ha)

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SLIDE 25

Supply Chain Segments and Activities

Inputs for Nursery Developm ent Inputs Farm Production Primary Processing Marketing Logistics Secondary Processing Logistics Market

  • Area

selection

  • Seeds
  • Plastic

bags

  • Fertilizer
  • Tools and

equipment

  • Seedlings
  • Fertilizer
  • Pesticides
  • Tools and

equipment

  • Area

Selection

  • Land

preparation

  • Maintenance
  • Fertilization
  • Pest control
  • Harvesting
  • Sorting/

Grading

  • Storage
  • Depulping
  • Fermentation
  • Drying
  • Dehulling

to green beans

  • Trading
  • Handling
  • Transport

/ Shipping

  • Storage
  • Roasted

beans

  • Roast and

ground coffee

  • Instant

coffee

  • Handling
  • Transport/

Shipping

  • Storage
  • Domestic
  • Exports
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SLIDE 26

Selected Stakeholders and Players along the Coffee Supply/Value Chain

Input Supply Farm Production Primary Processing Marketing/ Trading Secondary Processing Marketing

Seedlings

  • Nestle
  • Rocky Mountain
  • MacNut
  • CavSU
  • BSU
  • HVCC ZDN
  • Greenworld
  • Greenday
  • BPI accredited

nurseries Land Access

  • Farmers
  • ARCs
  • IFMA
  • CBFM
  • DENR
  • DAR
  • PADCC
  • LGU
  • Private sector

Financing

  • Private sector , LBP, DBP,

DENR, DA-HVCDP, Phil Coconut Authority, LGU Fresh cherries

  • Individual

Farmers

  • Greentropics
  • Rocky

Mountain

  • MacNut
  • Mt. Matutum

Farms

  • Dacon/SII
  • CHMI Agro
  • Others

Green Beans

  • Individual

Farmers

  • Greentropics
  • Dacon/SII
  • Rocky Mountain
  • MacNut
  • Mt. Matutum
  • CHMI Agro

Local traders

  • Nestle
  • URC
  • Comfoods
  • Rocky

Mountain

  • MacNut
  • Mt. Matutum
  • Bote Central
  • Greentropics
  • Dacon/SII
  • CBCEs
  • DTI

Nestle

  • URC
  • Comfoods
  • Rocky Mountain
  • MacNut
  • Mt. Matutum
  • Bote Central
  • Greentropics
  • Dacon/SII
  • CBCEs
  • Local processors

Households

  • Supermarkets
  • Convenience

stores

  • Fast food

chains

  • Coffee shops
  • Hotels
  • Restaurants
  • Sari-sari stores
  • Exports

Training/Tech Assistance

  • Nestle
  • PCB
  • PCA
  • Rocky Mountain
  • TESDA
  • LGU

Research, Dev’t & Ext’n

  • CavSU
  • BSU
  • PhilMech
  • Nestle
  • Rocky

Mountain

  • LGU

Policy Advocacy

  • PCB
  • PCA
  • NCC
  • DA HVCDP
  • DA NAFC
  • DTI
  • LGU

Other Related Cross Cutting Segments

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SLIDE 27
  • III. INDUSTRY VISION,

MISSION AND GOALS

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SLIDE 28

VISION

An industry that is cost-competitive, aligned with global quality standards, reliable and environment-friendly; and provides sustainable benefits to farmers, processors, traders and exporters.

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SLIDE 29

MISSION

Development of a cost-competitive, quality-driven, supply-reliable, product- diversified value chain from farming to coffee products manufacturing under sustainable practices

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SLIDE 30

GOALS

  • 1. Increase productivity and production
  • 2. Improve farmers’ standard of living through

diversified high value agriculture

  • 3. Increase rural employment
  • 4. Promote environment-friendly technologies
  • 5. Lessen coffee bean and coffee products

importation

  • 6. Improve incomes of farmers, processors and
  • ther stakeholders
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SLIDE 31
  • IV. AREA TARGETS

AND REQUIRED INVESTMENTS

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SLIDE 32

THE PLAN’S FOCUS:

  • 1. Improve smallholder coffee farmers’

productivity, profitability and product quality

  • 2. Promote new plantings and provide

funding

  • 3. Target value-addition in coffee products
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SLIDE 33

SPECIFIC TARGETS (2015-2016)

TARGETS 2015 2016 2017

New Planting (ha) (All Regions)

70,747 78,919 253,433

Re-Planting (ha) Kalinga,Northern Mindanao, Davao, Soccsksargen

2,008 2,008 8,032

Rejuvenation (ha) Kalinga, Davao, Soccsksargen

572 572 2,388

Total seedling requirement (including 10% mortality allowance) (million)

62.5 67.5 215.7

Investment Cost (PhP million)

4,645.1 5,224.4 16,309.6

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SLIDE 34

Basic Considerations:

  • New planting/replanting cost
  • Robusta: PhP 30,000/ha (600 trees, Year 1)
  • Arabica: PhP 130,000/ha (1200 trees, Years 1-2)
  • Rejuvenation cost: PhP17,000/ha (600 trees)
  • Seedling requirement/ha w/ 10% mortality

  • Robusta: 660 trees
  • Arabica: 1,320 trees

  • Nursery investment cost: PhP8.00/seedling

  • Replanting is replacement of old trees with new plants

in the same area „

  • Rejuvenation refers to cutting of the vertical stems of
  • ld trees to promote the growth of new sprouts
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SLIDE 35

Targets and Sufficiency Levels

  • Assumptions:
  • Domestic requirement of 70,000 tons*

green beans, to grow by 3% per annum

  • Local current production of 25,000 tons to

remain stable

  • Net demand deficit of 45,000 tons
  • Around eight million seedlings estimated

to be available in the existing nurseries

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SLIDE 36

When do we cover deficits?

Coverage of beans deficit will depend on:

  • Harvested area (old and new planting)
  • Average yield
  • Implementation of identified expansion

targets by the various stakeholders

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SLIDE 37

When do we cover deficits?

Coverage of imported 3-in-1 sachet deficit will depend on:

  • Domestic production
  • Cost of sugar and cream
  • Cost of packaging
  • Cost of power
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SLIDE 38
  • V. STRATEGIC DIRECTIONS AND

ACTION PROGRAMS ON MAJOR ISSUES

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SLIDE 39

INPUTS: Improve quality and availability of planting material

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group

Establishment of accredited/ certified mother clonal gardens and nurseries

  • No. of accredited/

certified mother Clonal gardens and Nurseries

  • No. of

accredited/certified seedlings produced Invest in mother Clonal gardens and nurseries (1 per major coffee area) Train prov’l reps on Nursery development Promote accreditation/certification

  • f nurseries

2013-2016 LGU, Private Sector, DA- RFUs, BPI, SCUs Training of propagators and provision of IEC materials

  • No. of trainings

conducted

  • No. of IEC

materials produced Conduct trainings for nursery establishment Reproduce and distribute IEC materials to farmers DA-ATI, TESDA, LGU,Industry Associations, Private sector

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SLIDE 40

INPUTS: Improve quality and availability of planting material

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Training on proper handling

  • f seedlings

Improvement in quality and availability of accredited/ certified seedlings

  • No. of trainings

conducted

  • No. of nurseries/farmers

trained Conduct trainings on proper handling of seedlings SCUs, BPI DA-ATI Private Sector TWG, LGU

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SLIDE 41

INPUTS: Improve quality and availability of planting material

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Yield improvement

  • Ave. yield from 300

kg/ha to 1.0 ton/ha (Arabica) Ave. yield from 700 kg/ha to 1.5 tons/ha (Robusta) Net Income > PhP84,000/year Improved harvesting practices IEC campaign on GAP/best farm practices including seed selection 2013 to 2016 Private Sector, DA ATI, PCARRD LGU - PAO, MAO, NGOs Production Expansion-new planting and replanting areas Total expansion area ≥ 100,000 ha to address deficit? Develop PPP for planting and replanting projects Continuing

  • Industry/third

party group

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SLIDE 42

FARM PRODUCTION: Enhance farm efficiency and investments

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Adoption of GAP and GMP

  • No. of GAP

certified farms

  • No. of GMP

certified processing companies Benchmarking and best practices dissemination Conduct trainings

  • n modern farm /

processing practices DA, ATI, SCUs, Private sector, LGU Enhanced quality

  • f seedlings
  • No. of accredited/

certified nurseries Conduct trainings

  • n nursery operation

and management DA, BPI, LGU, ATI Trainings on proper harvesting and pruning

  • No. of skilled

farmers/farm workers Conduct trainings Private Sector, TESDA, LGU, SCUs, ATI, NGOs

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SLIDE 43

PROCESSING: Reduce Processing Cost

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group

Lower processing costs

Power cost per kg Labor cost per kg Material cost per kg Better recoveries Enhance processing efficiency 2013-Private Sector, DA, DTI, Philmech, DOST

Increase capacity utilization of plants

Volume of gcb marketed Higher recoveries Improve supply of gcb Inspection and upgrade processing plants Private Sector DA, DTI LGU

Quality discipline

Better prices of gcb Establish guidelines in sale of gcb Incentivize compliance to product standard Private Sector DA, BAFPS, DTI

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SLIDE 44

PROCESSING: Increase Export Value

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Adequate post- harvest facilities No.of drying, hulling, storagefacilities Coordinate with PhilMechre: village level facilities e.g. small dehuller/ depulper Private Sector, DA, PhilMech More value adding on farm

  • No. of value added

products produced Evaluate/ monitor field processors TWG, SCUs, DA, Private Sector

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SLIDE 45

MARKET: Improve Market Price and Coffee Standards

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Transparent pricing linked to world market Farm price as a percent of world price Daily world price access from DA website/SMS Private Sector, DTI, DA, LGU Geographic branding and standards for coffee

  • No. of geographic

brands and standards for Philippine coffee products Convene concerned

  • rganizations to

settle standards BPS, DA, BAFPS, TWG, Industry Associations, DTI- BETP, CITEM Enhanced market access and marketing strategies for specialty coffee

  • No. of new

markets accessed Find alternative markets DA –AMAS, DTI

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SLIDE 46

MARKET: Improve Market Price and Coffee Standards

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Inadequate market intelligence for specialty coffee

  • No. of market
  • pportunities

explored Tap agricultural/ trade attaches in Philippine embassies Private sector, DA- AMAS, DTI, Industry Associations, DOST

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SLIDE 47

SUPPORT SERVICE Financing: Access to Long Term Funds

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Access to long term financing Longer grace and Repayment periods

  • f loans

Lower interest rates Review financing program for coffee DA to endorse proposal to LBP 2013 –LBP, DBP, AGFP-ACPC Private Sector DA LGU

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SLIDE 48

SUPPORT SERVICE Logistics: Reduce Logistics Cost to Processors Market

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Farm to Market Roads Length of FMRs to coffee farms Lower transport cost/ton km Advocacy to prioritize FMRs Industry assns. LGU, DA, Private Sector Establishment of Tram Lines

  • No. of tramlines

established Identify areas Industry assns. DA, PhilMech Private Sector, LGU

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SLIDE 49

SUPPORT SERVICE R & D: Improve Search and Extension Services

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Strengthen National Coffee Research, Development and Extension Center (based at CavSU) Number of coffee scientist/experts Multi-year budget allocation for coffee Establish three research stations (BSU, SMIARC*, SK State University) CavSU, BSU DA-BAR, DOST-PCARRD Private Sector

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SLIDE 50

SUPPORT SERVICE Policies: Appropriate Investment Incentives

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Improved policies (e.g. land access) Land ownership ceiling Land consolidation for development Public lands opened to investors Review CARPER Review land use policy Review IPRA Law Advocacy with DENR Development of military reservations and abandoned mined areas DAR, DENR, DA PADCC-NCI NCIP Private Sector DND-AFP

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SLIDE 51

SUPPORT SERVICE Market Intelligence: Reliable Industry Data

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Improved collection and recording of industry data (e.g.production, area, trade, demand) Industry data aligned with private sector estimates Review official data in consultation with the private sector Industry associations, BAS, Private Sector, DA , LGU

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SLIDE 52

SUPPORT SERVICE Organization: Industry Unity in Diversity

Key Result Area Performance Indicators Action Programs Time Frame/ Working Group Improved industry

  • rganizational

structure Aligned government and private sector initiatives Conduct seminar

  • n organizational

development Team building Industry assns, DA, Private Sector

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SLIDE 53

The finalization of the Masterplan/Roadmap will determine the major terms of reference :

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SLIDE 54

The following principles are important:

  • High farm income arising from good farm yields is a result of

GAP.

  • Self-sufficiency in green beans estimated by 2017 will be

reached and sustained provided farmers derive good income from coffee compared to alternative crops.

  • The ENGINE OF GROWTH will be the farmers, private sector,

CSOs backed by government, LGUs, and SUCs in unison.

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SLIDE 55