Coffee is life for many Filipinos, but for our local growers, it’s a daily fight for survival against imports and limited support from the Philippine government.
In this light, Senate President Pro Tempore Ping Lacson filed Senate Bill 1556, establishing a Philippine national coffee industry development program.
Lacson’s bill also creates the Philippine Coffee Board and provides comprehensive support mechanisms for the coffee sector.
“This measure seeks to establish a national framework that will accelerate the development of the coffee industry.”
“This measure seeks to establish a national framework that will accelerate the development of the coffee industry, create a National Coffee Board, strengthen every link of the value chain, improve the country’s competitiveness, and reduce our heavy reliance on imported coffee,” the veteran legislator said in his bill, titled the “Philippine National Coffee Industry Development Act of 2025.”
The seasoned lawmaker noted that in the 1880s, the Philippines was among the world’s top coffee exporters, but the industry has collapsed and relies on imports for as much as 81 percent of our coffee requirements.
Government agencies’ guidance is limited and outdated. Worsening the problem are the lack of basic equipment and post-harvest facilities, and the lack of access to planting materials, fertilizers, bio-control inputs, as well as poor farm-to-market roads.
Even post-harvest support is not enough as farmers sun-dry their beans and rely on small local millers, while existing facilities in some areas are being underutilized due to inconsistent or insufficient supply of raw beans. Research and development efforts remain limited.
The senator said the Department of Agriculture recommended a program to encourage and assist private sector processors to develop quality coffee and cacao products that can compete with international brands; a harmonized online industry information database including price, production and yield that can be accessed by stakeholders; increased promotion of patronizing local coffee and cacao products; partnerships between local coffee and cacao farmers with high-end and local coffee shops; and profiling of different coffee and cacao varieties.
Under the bill, the State aims to transform the Philippines into a globally competitive producer and net exporter by 2035; improve the livelihood of small coffee farmers operating 95 percent of the country’s coffee farms; preserve and enhance our unique coffee varieties including Barako, Robusta, Arabica and Excelsa; ensure sustainable and climate-resilient coffee production; and develop world-class quality standards and value-added processing capabilities.
The bill shall cover all coffee farmers including smallholders who comprise 95 percent of farms under five hectares each.
It creates the Philippine Coffee Board under the Department of Agriculture. The Board shall absorb the functions of the private sector-led Philippine Coffee Board Inc., which was established in 2002.
Regional councils shall be established in major coffee-producing regions in Cordillera (Benguet, Mountain Province), Southern Luzon (Batangas, Cavite), and Mindanao (Davao, Bukidnon, Sultan Kudarat, Cotabato), SOCCSKSARGEN, and other emerging coffee areas.
A National Coffee Replanting and Rehabilitation Program shall be established, targeting coffee expansion to 250,000 hectares over 10 years.
A National Coffee Replanting and Rehabilitation Program shall be established, targeting coffee expansion to 250,000 hectares over 10 years. It involves free distribution of 150 million high-yield climate-resilient seedlings, technical assistance, P50,000 per hectare subsidy for establishment costs, and insurance coverage for the first three years.
The PCB shall establish comprehensive quality standards for Philippine coffee, and facilitate extension services to improve the coffee industry, including farmer field schools in coffee-producing areas, monthly farm visits and technical consultations, and mobile apps for technical support.
A Coffee Credit and Insurance Program will be available for coffee farmers, producers and traders, with a P10-billion annual allocation for production loans at 3% interest; P5 billion for processing and marketing loans at 4% interest; crop insurance covering 100% of production costs; and calamity assistance fund of P2 billion yearly.
A Coffee Farmer Subsidy Program will be created with fertilizer subsidy of P5,000 per hectare yearly, price support mechanism guaranteeing minimum farm gate prices, and transport subsidy for remote highland areas.
The PCB shall facilitate coffee processing hub development and value chain integration, along with domestic market development and export promotion.
Meanwhile, a National Coffee Research Institute shall be created under the Department of Science and Technology (DOST) to develop climate-resistant varieties, improve processing technologies, conduct market and consumer research, and coordinate with international research institutions.
Also, the bill provides for an initial appropriation of P15 billion per year for the first five years under the DA’s budget. The fund allocation shall include 40% for production support, 15% for research and development, 20% for processing and infrastructure, 10% for marketing and promotion, 10% for institutional support, and 5% for emergency and calamity fund.
“Through these reforms, the Philippines can steadily work toward regaining its place in the global coffee sector, while building an industry that is more responsive and productive – one that focuses on increasing yields, improving farmer incomes, strengthening technical skills, widening market opportunities, and ensuring long-term stability,” Lacson concluded.
