#MINDANAO
John Tria
Time and again we hear stories about playing the long game, which is the long-term view of developments, opportunities and challenges for an economy, or businesses, despite ups downs and disruptions in the social and economic terrain.
In my last article, my experience with the Reserve Officers Training Course (ROTC) taught me to take difficulties in stride and focus on the long game to have time to make adjustments in order to adapt. This, in turn makes us resilient no matter what disruptions come our way. In the end, an understanding of the long game enables us to see opportunities we will not otherwise easily understand.
That said, I believe the road to future inclusive development for Mindanao will require, among others, sustainably developing its income sources, natural resources and agricultural output through added value and job generating enterprises, such as manufacturing.
What’s there to manufacture, you may ask.
For one, there are various agricultural products which are world class. Coffee and chocolate easily come to mind. Since Mindanao sprawls on the global latitudes where these can be produced very well, the potential for producing chocolate and coffee powder plant is not a far-fetched idea. It is clear that we are net importers of cacao and coffee because we supply local demand which is expected to grow. This proves to be an opportunity that needs to be unlocked.
Let’s start with coffee. We all know that we are a net importer of this beverage and in a March 2022 column I already shared how our 70,000 MT output is not enough for the 200,000 MT demand. Yet in addition to this number the question is: What kind of coffee do Pinoys consume? Though demand for it is growing, majority of Filipino consumers do not consume the artisanal, high value roasted beans meant for brewing in the espresso machine or coffee maker, at least not as often enough to drive much higher demand. The vast majority consume more affordable powdered coffee, or 3-in-one coffee beverages in sachets. This demand can be met with manufactured, powered local coffee.
Another advantage to manufacturing coffee is that this gives an opportunity for coffee producers, the coffee farmers, to sell their second-grade crop. This will increase their income rather than allow this to go to waste. Roasted brewed coffee demands top grade beans. Not all the beans are top grade.
Another is chocolate. Our cacao roadmap tells us that we also are a net importer of chocolate products and that a big number of these are manufactured products for use in candy and instant drinks. Can we not make the same products here? This will also expand demand for cacao, which is often intercropped with coconuts adding an income stream for coconut farmers The jobs created by a larger confectionery industry will not only meet local demand, but allow producers to export higher value-added products.
Apart from what is mentioned above, the common benefit of manufacturing is that it enables us to add value to products while creating jobs beyond the farm. It is also vital to achieve economies of scale and therefore, competitiveness. Manufacturing products from our high value crops like cacao and coffee are such items that bear such potential to create value and more jobs in Mindanao. Hence, we must manufacture.
John Tria
Time and again we hear stories about playing the long game, which is the long-term view of developments, opportunities and challenges for an economy, or businesses, despite ups downs and disruptions in the social and economic terrain.
In my last article, my experience with the Reserve Officers Training Course (ROTC) taught me to take difficulties in stride and focus on the long game to have time to make adjustments in order to adapt. This, in turn makes us resilient no matter what disruptions come our way. In the end, an understanding of the long game enables us to see opportunities we will not otherwise easily understand.
That said, I believe the road to future inclusive development for Mindanao will require, among others, sustainably developing its income sources, natural resources and agricultural output through added value and job generating enterprises, such as manufacturing.
What’s there to manufacture, you may ask.
For one, there are various agricultural products which are world class. Coffee and chocolate easily come to mind. Since Mindanao sprawls on the global latitudes where these can be produced very well, the potential for producing chocolate and coffee powder plant is not a far-fetched idea. It is clear that we are net importers of cacao and coffee because we supply local demand which is expected to grow. This proves to be an opportunity that needs to be unlocked.
Let’s start with coffee. We all know that we are a net importer of this beverage and in a March 2022 column I already shared how our 70,000 MT output is not enough for the 200,000 MT demand. Yet in addition to this number the question is: What kind of coffee do Pinoys consume? Though demand for it is growing, majority of Filipino consumers do not consume the artisanal, high value roasted beans meant for brewing in the espresso machine or coffee maker, at least not as often enough to drive much higher demand. The vast majority consume more affordable powdered coffee, or 3-in-one coffee beverages in sachets. This demand can be met with manufactured, powered local coffee.
Another advantage to manufacturing coffee is that this gives an opportunity for coffee producers, the coffee farmers, to sell their second-grade crop. This will increase their income rather than allow this to go to waste. Roasted brewed coffee demands top grade beans. Not all the beans are top grade.
Another is chocolate. Our cacao roadmap tells us that we also are a net importer of chocolate products and that a big number of these are manufactured products for use in candy and instant drinks. Can we not make the same products here? This will also expand demand for cacao, which is often intercropped with coconuts adding an income stream for coconut farmers The jobs created by a larger confectionery industry will not only meet local demand, but allow producers to export higher value-added products.
Apart from what is mentioned above, the common benefit of manufacturing is that it enables us to add value to products while creating jobs beyond the farm. It is also vital to achieve economies of scale and therefore, competitiveness. Manufacturing products from our high value crops like cacao and coffee are such items that bear such potential to create value and more jobs in Mindanao. Hence, we must manufacture.