INTERNATIONAL COFFEE INDUSTRY SITUATIONER
International Situationer One
of the largest traded 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 Provides
livelihood 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
MAP: COFFEE PRODUCING COUNTRIES © copyright National Federation of Coffee Growers of Colombia, 1996
Worldwide Coffee Production
WORLD COFFEE EXPORTS VARIETY
YEAR
EXPORTS (million bags)
Arabica
2008
62
Robusta
2008
32.3
Mexico Cuba Dominican Republic Haiti Jamaica Puerto Rico Guatemala Honduras Salvador Costa Rica Panama Nicaragua Venezuela Columbia Peru Bolivia Paraguay
Sierre-Leone Brazil Liberia Ecuador Ivory Coast Cameroon Guinea Zaire Ghana Uganda Togo Tanzania Benin Malawi Nigeria Zimbabwe Cent. African Madagascar Republic India Congo Vietnam Gabon Thailand Ethiopia Philippines Sri Lanka Sumatra Borneo Java Celebes Isulawesi Timo
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 10. FRANCE
915 831
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 Source: BAS 2007
4,755,208 , , 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 Generally ll 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 through h rejuvenation j ti off the th existing i ti Arabica coffee trees to double or t i l currentt average yield triple i ld Develop D l th 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 Benguet Mountain Province g Ifugao Kalinga Abra Apayao Total
AREA 14,000 14,000 6,000 , 4,000 1 200 1,200 600 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 growth th 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 Expenses (PhP)
Net Return (PhP) 11,000 000 trees/hectare Price @PhP110.00/kg.
22,000 000 trees/hectare 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
PhP 876,859.00
PhP 1,753,718
Total
Thank You !!!!!