Demand for coffee to rise

MANILA, Philippines - Local demand for coffee is expected to rise by five percent annually because of increased consumption of instant coffee, now a staple in most offices, according to non-profit organization Philippine Coffee Board (PCB).

PCB chairman Nicholas Matti said domestic demand for coffee is seen pushing up to 100,000 metric tons (MT) of green beans equivalent from around 75,000 MT two years ago.

“But we project an increase in roast and ground coffee, too, of about five percent annually or about 5,000 MT,” said Matti.  

Green coffee beans are roasted and ground for brewing or processing into instant coffee.

The Philippines currently produces only an average of 25,000 metric tons of coffee while traders and manufacturers import around 75,000 MT from Vietnam and Indonesia to address the supply gap.

The importation of the commodity costs around P5 to P7 billion  annually.

The coffee industry is drafting a roadmap that will enable the country to lessen dependence on imports and eventually become an exporter again.

“We are presently working together with the National Competitiveness Council (NCC) to draft a roadmap so we can be competitive in coffee again.  If we join hands in addressing the challenge, the Philippines can become a net exporter again maybe in about 10-15 years,” said Matti.

Among the short-term solutions considered by industry players is to encourage local production by driving up local demand by encouraging the consumption of specialty coffees.

Matti noted that while urbanization has caused many coffee farms such as those in Cavite and Batangas to become resorts or subdivisions, Cavite still actively sells coffee as roasted beans under the brands Café Amadeo, Kape de Bailen, and Aguinaldo Blend to among others.