MANILA, Philippines — In a major push to revitalize the local coffee industry, the Department of Agriculture (DA) has allocated ₱2.5 billion for the construction of a specialized farm-to-market road (FMR) network in Sultan Kudarat. The initiative, announced on May 11, 2026, aims to address infrastructure bottlenecks that have long hindered the growth of the country’s top coffee-producing province.
Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that the investment will unlock access to approximately 29,000 hectares of agricultural land, encouraging large-scale cultivation and improving the livelihoods of over 20,000 coffee-dependent families.
The project is part of a broader strategy to move the Philippines toward coffee self-sufficiency amid a “rapidly expanding café culture.”
- Regional Hub: Sultan Kudarat remains the Philippines’ top coffee producer. The new road network is designed to connect remote upland farms to processing centers and markets, reducing transport costs and post-harvest losses.
- Expansion Targets: DA Undersecretary Jerome Oliveros noted that the government aims to develop an additional 100,000 hectares of coffee plantations nationwide.
- Special Reserve Areas: Beyond Sultan Kudarat, the DA has identified Bukidnon, Davao del Sur, and Agusan del Sur to be clustered into “Mindanao Special Reserve Areas for Coffee Industry Development” to achieve economies of scale.
The DA is promoting coffee as a lucrative diversification crop for Filipino farmers, citing higher income potential compared to traditional staples.
| Metric | Coffee (1 Hectare) | Rice (1 Hectare, 2 harvests) |
| Market Price | ~₱300 per kg (Green Beans) | ~₱17–23 per kg (Palay) |
| Estimated Annual Income | ₱300,000 (at 1 ton/ha yield) | ~₱230,000 |
| Profitability Advantage | 30% Higher | — |
Note: Data based on production models used by Nestlé Philippines and current market rates.
Despite the aggressive investment, the Philippines remains a heavy net importer of coffee.
- Rising Demand: Domestic consumption is estimated at 3.78 kg per person, one of the highest in Asia.
- Import Reliance: The USDA projects coffee imports to rise by nearly 10% this year to roughly 378,000 metric tons, with the majority sourced from Vietnam and Indonesia.
- Production Dip: PSA data showed a slight 0.4% decline in green coffee bean production in Q1 2026, highlighting the urgency of the DA’s infrastructure and technology interventions.
The DA’s Coffee Industry Development Office (CIDO) is also seeking a separate ₱2.9-billion budget for 2027 to fund nursery expansions and post-harvest facilities. Secretary Tiu Laurel expressed optimism that with better inputs and road access, local yields could eventually mirror those of Thailand, which produces up to three tons per hectare.
