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Manila Bulletin devider Business devider The Economy devider PIDS: Northern Mindanao coffee needs profitability, sustainability push

PIDS: Northern Mindanao coffee needs profitability, sustainability push

Published Feb 5, 2026 01:40 pm
Craft Coffee
Craft Coffee

Northern Mindanao’s coffee sector will fail to reach its full potential unless improvements in profitability, sustainability, and social equity advance in tandem, according to a new study by state-run policy think tank Philippine Institute for Development Studies (PIDS).

In a Feb. 5 discussion paper titled “A Comprehensive Economic Analysis of the Coffee Value Chain in Region X: Advancing Sustainability and Empowering Local Communities,” PIDS researchers found that Region 10—particularly the provinces of Bukidnon and Misamis Oriental—has significant potential to develop a competitive and resilient coffee industry.

However, the report, authored by Jerelyn B. Medalla, Glenda T. Orlanes, Ereca P. Ampoloquio, and Precious Dane P. Tagas, noted that this potential is constrained by structural weaknesses that limit the sector’s ability to generate broader economic and social benefits.

PIDS said strengthening postharvest systems, expanding extension and financial services, improving governance coordination, and enhancing cooperative and market structures are essential to building a more competitive, inclusive, and sustainable coffee value chain.

These measures, the think tank added, are critical to positioning Region 10 as a leading model for coffee development in the Philippines.

The study said efforts to improve sustainability and competitiveness should begin with strengthening production competitiveness, particularly through the establishment of a science-based coffee seed system.

The think tank recommended setting up accredited nurseries and implementing a systematic rejuvenation program for aging Arabica and Robusta plantations to raise productivity.

PIDS added that improving postharvest systems and value-added processing is vital to enhancing profitability, citing the need for municipal-level processing hubs equipped with dryers, moisture meters, hullers, and cupping laboratories.

The report also underscored the importance of enhancing market access and regional branding, strengthening institutional governance and multi-stakeholder coordination, and promoting climate-resilient and sustainable coffee production systems.

PIDS emphasized the need for social inclusion and community empowerment in the Region X coffee sector, highlighting policies that encourage wider participation, particularly among women and youth, given the industry’s strong socioeconomic role.

Ultimately, the think tank called for a strong focus on sustainability to ensure long-term viability. It recommended integrating agroforestry, organic certification, and climate-smart agriculture into regional programs, while promoting market diversification to reduce farmers’ reliance on traders and middlemen.

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