The Department of Agriculture (DA) is investing P2.5 billion in a new farm-to-market road network in Sultan Kudarat as part of a broader push to expand domestic coffee production and reduce the country’s growing reliance on imported beans.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the infrastructure project will unlock access to around 29,000 hectares of agricultural land in Mindanao that could be developed for coffee farming and other high-value crops.
“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,” Tiu Laurel said.
The project forms part of the government’s strategy to strengthen the local coffee industry as demand continues to outpace supply. Officials said improving road access remains critical in raising productivity and encouraging more private investments in agricultural areas that have long been difficult to reach.
Coffee has emerged as one of the country’s more attractive crops for farmers due to rising prices and strong consumer demand. With coffee beans selling for about P300 per kilo, the DA said farmers could potentially earn at least P300,000 per harvest from a single hectare under basic production models.
Tiu Laurel noted that yields could still improve significantly with better farm inputs, infrastructure, and technology support.
He cited Thailand’s coffee sector, where farms can produce as much as three tons per hectare, as an example of the production levels the Philippines could eventually achieve.
At current market prices, the DA estimates that a hectare devoted to coffee farming could generate roughly 30 percent more income than a similarly sized rice field harvested twice annually, making coffee an increasingly viable diversification crop for growers.
Despite the planned expansion, officials acknowledged that the country remains far from self-sufficient in coffee production.
The United States Department of Agriculture projects Philippine coffee imports to rise nearly 10 percent to around 378,000 metric tons, with most supplies coming from Vietnam and Indonesia as domestic consumption continues to climb.
The Philippines’ growing café culture and rising demand for specialty beverages have pushed coffee consumption to an estimated 3.78 kilograms per person, among the highest levels in Asia.
Agriculture Undersecretary Jerome Oliveros said Sultan Kudarat is only one of several Mindanao provinces being positioned as major coffee production areas under the government’s long-term development strategy.
Other provinces identified for expansion include Bukidnon, Davao del Sur, and Agusan del Sur, which will form part of the proposed Mindanao Special Reserve Areas for Coffee Industry Development.
“We need to develop an additional 100,000 hectares to achieve self-sufficiency in coffee,” Oliveros said.
He added that clustering production areas would allow the government to implement development programs more efficiently while helping farmers benefit from economies of scale.