Philippines Launches Dedicated Coffee Office to Address Supply-Demand Gap
The Department of Agriculture (DA) has taken a significant step to bolster the nation's coffee sector by establishing the Coffee Industry Development Office (Cido). This new entity, created through Department Order 06 under Agriculture Secretary Francisco Tiu Laurel Jr., aims to provide enhanced support as domestic demand continues to surpass local production capabilities.
Centralizing Efforts for a Struggling Industry
Operating under the Office of the Undersecretary for Special Concerns and Official Development Assistance, led by Undersecretary Jerome Oliveros, Cido marks the first dedicated office within the DA focused solely on coffee. It consolidates all coffee-related programs, funds, and policies that were previously fragmented across multiple DA units. This reorganization, authorized under Executive Order 292 (the Administrative Code of 1987), shifts from scattered oversight to a focused, commodity-based strategy, emphasizing the DA's mandate to support both local and export agriculture.
Addressing Critical Challenges in Coffee Production
DA officials highlight that the creation of Cido responds to pressing issues in the sector. While coffee consumption rises globally and in Philippine urban areas, local production lags due to several factors. These include an aging farmer population, limited access to farm inputs and credit, outdated equipment, and weak post-harvest facilities—systems for processing, storing, and transporting crops after harvest. These problems have resulted in lower yields, inconsistent quality, and increased reliance on imports to meet demand.
Previously, coffee programs were managed under the Office of Special Concerns and Official Development Assistance through Department Order 19, Series of 2025. The elevation to a standalone office underscores a strategic move to provide clear leadership and measurable targets for the struggling industry.
Clear Mandate and Consolidated Funding
Cido is tasked with leading planning and setting priorities for coffee programs, monitoring implementation across DA bureaus and regional offices, and ensuring alignment with national goals and official development assistance-funded initiatives. The office will collaborate with local governments, state universities, private companies, and farmer groups, and it can recommend policy and operational changes to address gaps in the coffee value chain—from production to sale.
All coffee development funds will now be consolidated under Cido, including allocations from the High Value Crops Development Program and the Office of the Secretary. This consolidation is expected to improve accountability and accelerate project implementation, providing a more streamlined approach to tackling industry challenges.
Analysts Weigh In on Strategic Implications
Industry analysts note that Cido reflects a broader DA strategy to offer struggling agricultural sectors focused leadership. However, they caution that success hinges on effective execution, particularly in modernizing farms, attracting younger farmers, upgrading processing facilities, and connecting producers to higher-value markets. Agriculture Secretary Laurel emphasized the urgency, stating, "We cannot keep talking about the promise of Philippine coffee while farmers grow older, yields stagnate and imports rise. By creating Cido under focused leadership, we are putting strategy, funding and execution in one accountable office. This is about restoring competitiveness and ensuring Filipino coffee farmers finally benefit from a market that is already growing around them."
Quantifying the Supply-Demand Imbalance
According to the Philippine Coffee Board Inc. (PCBI), the country's coffee demand ranges from 150,000 to 200,000 metric tons (MT) annually, while production is only about 30,000 to 33,000 MT. This leaves a gap of approximately 120,000 MT filled by imports. Additionally, the PCBI reports that the national average coffee production in the Philippines currently stands between 500 to 700 kilograms per hectare, highlighting the need for improved yields and efficiency.
The establishment of Cido represents a proactive effort to centralize resources and strategies, aiming to revitalize the Philippine coffee industry and reduce dependency on imports in the face of growing consumer demand.
