Status of the Philippine coffee industry / by Leighvanz H. Roderno.

Thesis (BSBM - - Agribusiness Management) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

RODERNO, LEIGHVANZ H. Market Outlook for Philippine Coffee. Undergraduate Thesis. Bachelor of Science in Business Management major in Agribusiness. Cavite State University, Indang, Cavite. April 2004. Adviser Prof. Roderick M. Rupido.
The study analyzes the status of the Philippine coffee industry. Specifically, it describe the situation of the Philippine coffee industry; analyze the environment for Philippine coffee; describe the environment in some of the countries where the Philippines is currently exporting coffee; enumerate the programs that the government and private agencies are implementing to support the Philippine coffee industry; and projects the volume of export of coffee for five years. Secondary data on the annual production, volume of imports, and number of coffee bearing trees, area planted with coffee and the supply and utilization were gathered from the DA- Bureau of Agricultural Statistics, National Statistical Coordination Board and National Statistics Office.
The data on the volume of exports were gathered from the Department of Trade and Industry- International Coffee Organization Certifying Agency (DTI- ICOCA). Programs being conducted by government and private organizations were also gathered. Growth rate was used to describe the trends and situation of the Philippine coffee industry. SWOT analysis was used to describe the external and internal environment for coffee. To analyze the environment in countries where the Philippines is currently exporting coffee, PEST analysis was used. To project trends in export of coffee, ordinary least square method (OLS) was used.
The Philippine coffee industry generally followed a downward trend during the 17-year period. Although there were increases in the indicators of trend and situations, it is mostly dominated by a negative growth. A decline in the production, however, is consistent with the decrease in the total area planted with coffee, volume of exports, supply and utilization and number of bearing trees thus increasing the volume of imports to sustain the need of the industry. Results of the SWOT analysis showed that good packaging, availability of coffee blends, and ability to sustain the demand can be considered as the strengths of the Philippine coffee. However, the unprofitable coffee farming, improper infrastructure, lifting of the coffee importation ban and poor quality can be considered as the weaknesses of the industry. Increase in demand and opportunity to expand market can be considered as opportunities to further improve the coffee industry. However, the change in exchange rate and emerging technology can threaten the local coffee industry.
Based on the result of the PESTE analysis, Japan and Oman can be considered as major markets for the Philippine coffee. More than half of the coffee export was absorbed by Japan and Oman. Even though taxes and tariff in Japan was high, Japan is politically and economically stable and coffee is now becoming a part of their culture just like tea. Its popularity adds to the increase in its demand. Moreover, other countries like China, Thailand, Taiwan, Greece, Korea, Western Samoa, and Malaysia, can also be good markets for Philippine coffee. The Philippines export of coffee is increasing. Australia can be considered as major market for green beans. Japan was forecasted to have the highest volume of coffee export for soluble coffee and export for roasted coffee purchased in the Philippines, Philippines, Taiwan was projected to purchase 7.464 metric tons of roasted coffee export by year 2011

Submitted to the University Library 05/29/2008 T-3766