State of Philippine coffee 2010

Production:

  1. Situated in the coffee belt, the Philippines can grow four varieties:  Arabica, Excelsa, Liberica, and Robusta.
  2. 75% of coffee trees grown were of the Robusta variety.  However, the number of Robusta trees dropped by 0.83% whereas Arabica grew by 0.70%.
  3. Average composite farm gate price of coffee, all varieties, was 58.03 Pesos, up by 1.2% from 2009.  This is partly due to the decline in local coffee production.
  4. The decline in local coffee production, projected at 5-6% in 2010-2011, is due to producers’ shift into higher value crops such as rubber and bananas and conversion of coffee farms into residential areas.
  5. The country accounts for less than 1% of world coffee production.

Consumption:

  1. Importation of coffee beans declined by 3,700 MT from 30,700 MT in 2009.  But, imports of soluble coffee and coffee concentrates – instant coffee – went up by 20,907 MT from 19,293 MT in 2009.
  2. The country largely imports from Vietnam, 54%, and Indonesia, 44%.
  3. Instant coffee accounts for 90% of local coffee consumption.
  4. Slight increase in coffee consumption is projected, due partly to the robust growth of the BPO sector, 25% growth in 2010, big consumers of coffee, and the growth in specialty coffee shops, both international and local chains.  Increasingly, social activity is conducted around coffee drinking, and becoming a status symbol especially among young Filipinos.

Source:  Philippine Coffee Situation and Outlook, USDA Foreign Agricultural Service, 2010.

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