Status, Problems and Prospects of Coffee Processing Enterprises in Selected Municipalities in Upland Cavite: Amadeo, Silang and Mendez, Cavite

Date

4-2010

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nimfa D. Montes

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Abstract

This study is conducted mainly to describe and analyze the status, problems, and prospects of the coffee processing enterprises in selected municipalities in Cavite. Specifically, this study was done to determine the status of the coffee processing enterprises in Amadeo, Silang and Mendez, Cavite; to present the profile of the entrepreneurs and enterprises engaged in coffee processing; to identify the current practices of the processors in the aspect of processing, marketing, finance and human resource; to pinpoint the problems of coffee processing enterprises and the opportunities in the industry; to integrate all the findings and be able to come up with conclusions regarding status, problems and prospects of the coffee processing enterprises; and to provide the key stakeholders with the suggestions, recommendations for sustainability and improvement of the coffee processing enterprises.

The study used descriptive analysis to assess the status, problems and prospects of the industry. Secondary data were gathered from internet websites of various institutions such as Department of Agriculture, Philippine Coffee Board, Bureau of Agricultural Statistics, Philippine Council for Agriculture, Forestry and Natural Resources Research and Development, Office of the Provincial Agriculturist of Cavite, Bureau of Agricultural Research; and journals, brochures and previous special problem report and thesis in the Department of Agribusiness Management, College of Economics and Management Library and Cavite State University Library.

Area of the study was chosen based on the volume of coffee production in the municipalities and the number of coffee processors. Out of 31 coffee processors, 22 were interviewed consisting 12 coffee millers, 5 ground coffee processors, and 5 coffee miller- ground coffee processors. The respondents of the study were determined through a list given by the Office of Provincial Agriculturist of the province, Department of Trade and Industry and actual interviews. Interviews were also conducted with some expert in the coffee industry in National Coffee Research Development and Extension Center, Nestle Satellite Buying Station in Silang and agricultural technicians.

There were twelve sole coffee millers, five sole ground coffee processors and five miller- ground coffee processors in the area of study. Majority of the coffee processors were male, married and were in there mid 40’s and 50’s. Majority of them did not have children participating and the business. However, most of them were college graduate with degree in engineering and management. Majority of them were in the business for 20 to30 years and have just inherited the business from their parents.

Majority of the enterprises were sole proprietorship and were mostly in the micro-scale level of operation. The enterprises were also established for about 21 to 40 years in the land of the owners who were also the managers.

The enterprises offer different forms of coffee such are green coffee beans, roasted beans and ground coffee. Coffee mills produce green beans while the ground coffee processors produce roasted and ground coffee.

The coffee millers cater to institutional buyers such as instant coffee processors like Nestle, Universal Robina Corporation, and General Milling Corporation and local ground coffee processors. On the other hand, the present markets of ground coffee processors are the coffee shops, hotels and restaurants in Manila and Tagaytay City, walk-in and household buyers and some institutional buyers.

Major problems encountered by coffee the coffee millers and ground coffee processors were seasonality of supply of coffee and low volume of coffee production, defects of beans, lack of capital, fluctuating price of coffee beans, and underutilization of machines.

On the other hand, there were also good opportunities for the coffee processing enterprises in Cavite. The strong support given by provincial government and LGU’s and other institutions like Nestle, Cavite State University and PCARRD for research and development, training and seminars gives a great potential for the industry. The competitive quality of coffee beans from Cavite is also a great potential for bigger market. The emergence of e-commerce is also an opportunity for local ground coffee processors to promote their products.

In order to improve the status of coffee processing enterprises, value-addition was recommended to coffee millers, while strategic alliance with coffee millers was recommended to ground coffee processors. Both groups were recommended to also focus on production and motivate farmers to plant more coffee by supporting them to increase supply. On the other hand, strengthening of the existing cooperatives, continuous research and development, coordination and motivation were recommended to the different supporting institutions.

Language

English

LC Subject

Coffee industry, Coffee--Processing Business enterprises

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2010 M17 O78

Notes

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Document Type

Thesis

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