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Philippines hikes processed coffee exports.

The continued statement in the world coffee market, primarily resulting from the suspension of the export quotas, has prompted Philippine coffee companies (exporters, processors, roasters) to increase exports of processed coffee to non-traditional market, particularly Asia-Pacific countries.

As a result, the processed coffee exports grew in value by 65.4% from coffee year 1990-91 to coffee year 1991-92 (October-September), according to Antonio Reyes, director of the local International Coffee Organization Certifying Agency (ICOCA) under the Department of Trade and Industry.

Reyes reported that the Philippines exported USS 1,549,079 worth of processed coffee in 1991-92, accounting for a 65.4% increase from the previous coffee year's USS 936,480. The value of the exported processed coffee presented 25.3% of the overall total of USS 3,695,251 for all coffee forms.

For coffee year 1991-92, the total coffee exports reached 2,402,071 kilos, worth USS 3,695,251. This was broken down into: soluble, 253,612 kilos worth USS 1,702,522; roasted, 2,868 kilos, USS 8,406; and green beans, 2,145,590 kilos, USS 3,695,251. These were shipped to seven ICO member-countries and nine nonICO member-countries.

In coffee year 1990-91, the country exported a total of 7,147,663 kilos worth US$7,583,5530. This consisted of soluble, 120,483 kilos valued at $930,652; roasted, 2,768 kilos, $5826; and green beans, 7,024,412 kilos, $6,647,049. These went to nine ICO member-countries and 11 non-ICO-member countries.

The processed coffee exported consisted of roasted, ground, decaffeinated, liquid or soluble coffee from manufacturers, mostly based in Metro Manila and nearby provinces. These went to coffee buyers mainly in countries or islands in the Asia-Pacific region, namely Papua New Guinea, Malaysia, South Korea, Fiji Islands, Solomon Islands, Caroline Islands, Western Samoa, Republic of Kiribati and Hong Kong.

The top coffee exporter in 1991-92 was General Milling Corp., with a cumulative volume share of 49.85% of the market, followed by Nestle Philippines, Inc., with 25.8%, and Universal Robina Corporation, 21.45%. General Milling Corp. manufactures and exports Hills Bros. and Kaffee de Oro brands; Nestle Philippines Inc., Master Roast, Nescafe Classic, Nescafe Decaf and Sunrise; Universal Robina Corp., Blend 45 Instant, Great Taste Coffee, ad Iced Coffee. Soluble coffee manufactured in the Philippines is primarily Robusta-based. Only Nestle's Master Roast is a blend of Arabica and Robusta coffee beans. Commonwealth Foods Inc., which manufactures Care Puro and Le Care brands, is presently inactive.

Roasted or ground coffee comes in several brands which are sold mostly in groceries and supermarkets, and without brands, mostly retailed in sari-sari (variety) stores and public markets. Among the manufacturers are: Bayanan Delicacy Center, which makes Seite Baracos; Cafex International, Continental Coffee (Premium Collection and Regular Blend); ECI Trading Corp., Gourmet Coffee (Mountain Grown Arabica, Special Blend, Barako Batangas Espesyal, Espresso Blend); General Milling Corp., Kaffee de Oro; Premium Foods, Van Durant and Holsum Coffee; Mercado Trading Corp., Batangas Brew (regular Blend and Special Blend); Merlo Agricultural Corp., Care de Lipa (Robusta and Barako, Ala-Eh Kape; Merlo Coffee; and MSP Mercantile, Mr. Coffee.

The local ICO-CA said the value of processed coffee exports from coffee year 1987-88 to 1991-92 registered 29.73% average growth rate increasing from a level of USS 660,094 in coffee year 1987-88 to $1,549,079 in coffee year 1991-92. The value of processed coffee in all forms increased from 1.06% in coffee year 1988-89 to 44.5% in coffee year 1991-92.

A total of 26 countries imported processed coffee from the Philippines during the last five coffee years. Singapore was the biggest market, accounting for USS 2,707,345, or 47.87% of total processed coffee export.

Foreign supply

As this developed, Filipino consumers have noted an increase in the number of foreign instant and roasted coffee brands in the market, despite a law banning the importation of coffee. Supermarkets in Metro Manila and cities and capital towns in the provinces abound with these imported coffee brands in the familiar jars, cans and bags.

Imported tea brands in packs and jars are also sold openly in stores, groceries and markets.
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Article Details
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Author:Palacpac, Orlino Sol.
Publication:Tea & Coffee Trade Journal
Date:Dec 1, 1992
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