09/09/2026
𝗥𝗘𝗔𝗗: The Marcos administration will allocate Php 50 million to strengthen the coffee industry in Bukidnon, as part of broader efforts to increase local coffee production, raise farmers’ incomes, and gradually reduce the country’s dependence on imported coffee.
According to executive secretary Ralph Recto, the funding will be released through the Local Government Support Fund (LGSF) following his recent meeting with coffee growers, including Indigenous coffee farmers, in Bukidnon.
The funds will be used to purchase specialty coffee seedlings, farm inputs, and materials for establishing and expanding nurseries. These include parchment, chicken manure, nets, plastic bags, hoses, and plastic drums.
ES Recto said President Ferdinand “BBM” Marcos, Jr. has directed the government to support coffee farmers “from seedling to market” so that they can not only increase the number of trees planted but also improve their yields, coffee quality, and incomes.
Bukidnon has set ambitious targets for its coffee sector. The province aims to double, or increase by 200 percent, its coffee production by planting up to 10,000 hectares of Arabica coffee and achieving an average yield of one kilogram of beans per tree.
It also aims to enter the export market for high-quality specialty coffee within the next decade by improving farming practices, processing, market access, and the entire value chain.
Part of the plan is the establishment of new coffee nurseries in various local government units (LGUs), including facilities in Kibenton in Impasugong and Bangcud in Malaybalay city.
Farmer cooperatives and associations will also be assisted in establishing or upgrading their nurseries in Impasugong, Lantapan, Pangantucan, Talakag, and Valencia city.
The government also needs to address challenges beyond seedlings, including the lack of farm-to-market roads (FMRs) and other infrastructure, to make it easier and less costly for farmers to transport their produce to processors, traders, and other markets.
The Philippines’ major challenge is not a lack of demand but low domestic production compared with market demand.
According to the Department of Agriculture (DA), domestic coffee production has historically been able to meet only about 15 percent of the country’s coffee requirements, based on an earlier industry assessment. A significant portion of local production comes from Mindanao.
Pressure on the industry is increasing as coffee consumption continues to grow in the country, alongside the rapid expansion of cafés, specialty coffee shops, and other coffee businesses.
In a 2026 assessment by the DA, Philippine coffee imports were projected to reach 378,000 metric tons, nearly 10 percent higher, with Vietnam and Indonesia among the country’s major sources. Coffee consumption in the Philippines was estimated at 3.78 kilograms per person.
This means that while more Filipinos are drinking and purchasing coffee, a large portion of the beans used by the industry still has to be sourced from other countries.
Bukidnon is not the only area being targeted by the government for expanded coffee production.
In Sultan Kudarat, the DA is preparing an approximately Php 2.5 billion farm-to-market road network that will provide access to an estimated 29,000 hectares of agricultural land that could be used to expand coffee production.
According to the DA, the country still needs to develop an additional 100,000 hectares to move closer to coffee self-sufficiency. Areas being identified for more aggressive coffee development include Agusan del Sur, Bukidnon, Davao del Sur, and other parts of Mindanao.
Mindanao is crucial to this plan because a large portion of the country’s coffee-producing areas is located in the region.
One of the most significant developments in 2026 was the creation by the DA of the Coffee Industry Development Office (CIDO). Its goal is to consolidate and coordinate programs, funding, and policies for the coffee sector, which were previously spread across different DA units.
Its mandate includes developing programs, monitoring projects, coordinating with LGUs, the private sector, farmer organizations, and universities, and identifying gaps in policies and implementation.
This is important because the coffee industry has long faced challenges such as low farm productivity, limited access to modern equipment and inputs, infrastructure deficiencies, and an aging coffee farmer population.
For experts and industry stakeholders, simply increasing the number of coffee trees is not enough. The quality of beans, post-harvest processing, drying, roasting, packaging, and branding must also be improved so that farmers can capture a larger share of the value generated by coffee.
In this way, the Philippines would not only be able to sell raw coffee beans but could also expand the production of locally processed and specialty coffee products with higher value in both domestic and international markets.
This is also the direction of current government programs, which cover everything from production and infrastructure to processing and market access.
Aside from the PHP 50 million for Bukidnon, another Php 400.54 million has been proposed for the DA under the 2027 National Expenditure Program for coffee development.
This shows that support for Bukidnon is only part of a broader national strategy for the coffee sector.
The main objectives are to increase domestic supply, reduce dependence on imported coffee, strengthen farmers’ livelihoods, and make Philippine coffee more competitive in the international market.
The DA has also previously developed a national coffee roadmap aimed at increasing productivity and yields, reducing import dependence, and improving the quality of Philippine coffee.
The Philippines has clear potential to become a larger coffee producer because of its suitable climate, available agricultural land, and growing domestic market.
However, significant challenges remain, including low productivity per hectare, an aging farmer population, access to planting materials, post-harvest facilities, farm-to-market roads, financing, and stable market linkages.
Therefore, the true measure of new investments in the coffee industry should not be based solely on how many millions of seedlings are distributed. More important are the number of trees that become productive, the volume and quality of beans produced, the income earned by farmers, and how much of the country’s coffee demand can eventually be supplied by domestic production.
If Bukidnon and other coffee-producing provinces in Mindanao succeed in improving productivity and quality, this could become an important step toward building a stronger, more self-reliant, and globally competitive Philippine coffee industry.
*The Tagalog version can be read in the comment section.