A PIDS study says Northern Mindanaoโs coffee industry has strong potential but is held back by aging plantations, weak market links, and limited farmer bargaining power. (Image: freepik)
Northern Mindanao has the potential to become a sustainable coffee powerhouse, but aging plantations and weak market structures continue to limit the sectorโs growth, according to a policy note released by the Philippine Institute for Development Studies (PIDS).
According to the report, published on March 5, coffee farmers in Region 10 face persistent productivity challenges due to aging trees, limited access to quality seedlings, and poor postharvest practices that reduce bean quality.
Researchers said improving production techniques and postharvest systems is crucial to boosting farmersโ incomes. Proper drying, fermentation, and handling can significantly increase the value of coffee products.
The study found that fresh coffee cherries can yield up to 60 percent return on investment (ROI). In contrast, processed products such as dried parchment and hulled beans have higher returns of 85 to 95 percent.
Despite this potential, many farmers remain dependent on traders who set buying prices, weakening growersโ bargaining power. Limited access to alternative buyers and weak market linkages force smallholders to rely on intermediaries.
The report also cited limited branding initiatives, weak cooperatives, and poor access to market information as barriers that prevent farmers from entering specialty and premium coffee markets.
โRegion 10 has strong agroecological conditions and an emerging specialty coffee reputation,โ the authors said. โHowever, structural gapsโsuch as uneven access to quality planting materials, limited postharvest infrastructure, weak market linkages, and fragmented institutional coordinationโcontinue to constrain productivity and competitiveness.โ
Still, the study said Northern Mindanao has strong potential for sustainable coffee development due to its favorable agroecological conditions, active local institutions, and a growing specialty coffee sector.
To unlock this potential, the policy note recommended strategic investments in value addition, cooperative strengthening, climate-smart farming practices, and stronger market linkages.
Among the proposed measures are the establishment of a science-based coffee seed system and accredited nurseries to address the lack of quality seedlings. The report also recommended systematic rejuvenation programs for aging Arabica and Robusta plantations.
Researchers further proposed creating municipal-level processing hubs equipped with dryers and cupping laboratories to maintain quality standards.
The study also highlights the need to promote regional coffee branding and digital traceability to help farmers access premium markets.
To ensure that the value chain improves and smallholder farmers share in the economic gains, the report recommends enhancing postharvest systems and strengthening regional governance.
The policy note, titled Strengthening the Coffee Value Chain in Northern Mindanao, was authored by researchers from Xavier University โ Ateneo de Cagayan in Cagayan de Oro City, including Jerelyn B. Medalla, Glenda T. Orlanes, Ereca P. Ampoloquio, and Precious Dane P. Tagas.
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