- The Philippine government has allocated PHP2.5 billion (US$40.6 million) to build farm-to-market roads, granting access to 29,000 hectares of land with the goal of increasing coffee production.
- Improved infrastructure in Mindanao is central to expanding the country’s coffee industry, enabling the use of underutilised land and supporting a shift toward high-value crop exports.
- The initiative aims to boost domestic coffee output, attract private investment, and reduce reliance on imports by improving logistics, market access, and farm incomes.
On May 9, the Department of Agriculture (DA) announced that it was intensifying efforts to expand the Philippines’ coffee industry.
Underpinning this is a multimillion-dollar investment to improve the infrastructure in Mindanao, a region which produces the lion’s share of the country’s coffee beans.
The infrastructure investment will enable the government to bring previously underutilised land into production, with the aim of scaling up the country’s coffee output.
“We have earmarked P2.5 billion for a farm-to-market road network that will provide access to 29,000 hectares of land… that we hope to develop to increase domestic coffee production,” said Agriculture Secretary Francisco P. Tiu Laurel Jr.
The initiative reflects a broader push by policymakers to pivot towards higher-value crops and improve farm incomes.
By improving access and logistics, the government aims to attract private investment, scale up production capacity and gradually narrow the country’s reliance on imports.
The road-building programme is intended to serve as the backbone of this strategy, enabling farmers to bring crops to market more efficiently while facilitating the delivery of inputs and extension services.
DA officials said this integrated approach will be critical to transforming the coffee sector into a more competitive as well as sustainable industry.
The Philippines’ coffee potential
Coffee has been considered a key diversification option, supported by strong market prices and rising domestic demand.
Beans are currently selling at around PHP300 (USD4.87) per kilogram, making the crop financially attractive for farmers.
Based on production models used by Nestlé, the DA projected that growers could generate at least PHP300,000 (USD4,867) per harvest.
Tiu Laurel noted that yields could be significantly improved with better inputs, technology, and access.
He pointed to Thailand, where coffee farms can produce up to three tons per hectare. He suggested that Philippine yields could realistically double under improved conditions.
An uphill climb
According to DA, coffee compares favourably with staple crops in terms of profitability despite being harvested once a year, with peak seasons from November to February.
It estimated that a hectare planted to coffee can generate roughly 30 per cent more income than a similarly sized rice field harvested twice annually, strengthening the case for crop diversification.
However, it added that the sector faced “a steep climb toward self-sufficiency” as domestic consumption continued to expand with a growing “cafe culture” and changing consumer preferences.
Per capita coffee consumption in the country was now estimated at 3.78 kilograms, among the highest in Asia, adding pressure on the domestic supply base.
Even if all newly accessible land were to become coffee farms, output was expected to remain insufficient.
“We need to develop an additional 100,000 hectares to achieve self-sufficiency in coffee,” said Undersecretary Jerome Oliveros, who has been tasked with overseeing the development of coffee and cacao.
To achieve this, Sultan Kudarat will form part of a wider regional strategy centred on Mindanao, said Oliveros.
Other provinces identified for expansion included Bukidnon, Davao del Sur and Agusan del Sur, which will be integrated into planned Mindanao Special Reserve Areas for Coffee Industry Development.
By clustering production areas, the government would be able to deploy interventions more efficiently while achieving economies of scale, added Oliveros.
The DA’s approach prioritises infrastructure development as a first step, with productivity improvements to follow.
