Industry leaders say Benguet arabica coffee, though praised the world over by connoisseurs for more than a century, badly needs a push to capture the imagination of the growing worldwide specialty coffee market.  High time to catch up.

Local coffee growers need to aim for specialty market

by Michael Leonen, Businessworld, 15-16 December 2000

BAGUIO CITY -- Greater emphasis should be put in the production of the Benguet Arabica coffee to help the Philippine coffee regain a foothold in the world market and catch the emerging trend for specialty coffees, industry leaders said.

During the First National Coffee Congress held here, Specialty Coffee Association president Emmanuel Torrejon said the Specialty coffee trade is an exploding market in the United States and Asia. In the Philippines, this trend can be seen with the advent of upscale coffee shops and espresso carts, including the entry of foreign cafes like Starbucks.

Torrejon, who is also president of Consolidated Food Corporation, said the country remains devoted to the production of the robusta variety, which has a minimal potential in the export market. The Benguet Arabica, although sought by gourmet buyers all over the world, continues to be ignored and remains undeveloped.

"The Philippines is known for robusta, the inferior variety," Mr. Torrejon said. "We, however, have the potential to be known for good quality arabica from (Northern Luzon),"

"What we should strive for is to produce Benguet Arabica coffee in quantity and market this to specialty coffe markets of the US, Germany and Japan where we can get the premiums that the farmer can be proud of," he added.

Elizabeth Verzola, regional director of the Cordillera office of the Department of Agriculture, agreed but said local government units and the private sector should first address the problem besetting Benguet coffee planters.

These problems include poor technical knowledge in growing coffee beans and the lack of farm-to-market roads to transport harvested beans.

Most of the coffee plantations in Benguet are located in remote areas. Provincial statistics show 46% of provincial roads and 89% of municipal roads remain gravel and dirt roads. Fifteen of the 140 barangays in the province remain inaccessible.

Verzola also said Benguet coffee plantations are, at an average, 10 to 12 years old. These need rejuvenation with the proper technical care and with the use of proper organic and inorganic fertilizers, some of which are beyond what the average farmer can afford.

The Philippine coffee industry, according to statistics made available during the Congress, currently exports 1,200 metric tons of soluble and instant coffee from a high of 44,760 metric tons in 1985. The decrease is attributed to the suspension of quotas in 1988 and a 115.44% increase in the domestic consumption from 22,140 metric tons in 1976 to the current 47,700 metric tons.

In the 1980s, the Philippines was considered the 17th ranked world coffee producer, supplying 1%-2% of the US robusta green coffee market.

Nestlé remains the dominant market leader, cornering close to 80% of the local instant coffee market. The remaining 20% is shared among Consolidated Foods Corporation, Commonwealth Foods Corporation and General Milling Corporation.

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