In a significant move to elevate coffee production in Mindanao, the Department of Agriculture (DA) has forged a partnership with Nestlé Philippines Inc., ushering in the Mindanao Robusta Coffee Project. This initiative aims to enhance coffee production by improving farmers’ access to essential resources, training, and market opportunities.
The memorandum of understanding (MOU), signed on March 1, will primarily benefit Mindanao’s Robusta coffee farmers engaged in both monocropping and intercropping within diversified farming systems conducive to coffee cultivation.
Under this MOU, the DA and Nestlé Philippines share a common goal of raising Robusta coffee production to 1,000 kilograms per hectare (kg/ha) by 2027, with a specific focus on Mindanao, the epicenter of 80 percent of the nation’s coffee output.
Robusta coffee, constituting over 60 percent of coffee variants grown in the Philippines, holds significant market relevance, particularly for the production of soluble coffee blends.
DA Senior Undersecretary Domingo Panganiban stressed the importance of coffee as one of the country’s top five high-value crops, making it a high priority for development and support within the national economic agenda. He noted, “The Mindanao Robusta Coffee Project is a public-private partnership that aims to create a more robust and globally competitive coffee industry through programs that will increase farmers’ volume production and improve the quality of their green coffee beans.”
This collaboration between the DA and Nestlé Philippines will encompass five pivotal components, spanning the entire coffee value chain, which includes research, fertilizer support, farmer upskilling, the establishment of coffee centers, as well as logistics and marketing.
The government, through its agencies like the DA’s High Value Crops Development Program (HVCDP), Bureau of Agricultural Research (BAR), Agricultural Training Institute (ATI), Agribusiness and Marketing Assistance Service (AMAS), and regional offices, will contribute inputs, facilities, capacity-building activities, and marketing support.
Nestlé, on the other hand, will offer intensive technical assistance, collaborate with relevant institutions, ensure farmers’ compliance with quality standards, and serve as a ready market for coffee produced by local farmers.
Nestlé Philippines Chairman and CEO Kais Marzouki expressed their commitment to improving the livelihoods of smallholder coffee farmers, equipping them with agro-enterprise skills and introducing regenerative agriculture practices to enhance their resilience to climate change. He also highlighted Nestlé’s goal to shift sourcing to 100 percent local coffee beans by innovating their green coffee beans procurement process.
This collaborative endeavor aligns with the Philippine Coffee Industry Roadmap 2021–2025, envisioning a cost-competitive, globally-aligned, resilient, sustainable, and environmentally friendly coffee industry that benefits various stakeholders, from farmers to exporters.
Under this roadmap, coffee growers are expected to significantly increase their self-sufficiency levels, from 15 to 39 percent. Local coffee production has struggled to meet rising demand, with 2020 production figures falling short compared to 2015. Despite these challenges, the DA-Nestlé partnership is a promising step toward revitalizing the country’s coffee industry.
