THE farm-gate prices of some coffee varieties could increase by a fifth, as ashfall from Taal Volcano damaged farms in Calabarzon and created a supply shortfall, the Philippine Coffee Board Inc. (PCBI) said.
PCBI President Pacita U. Juan said the value of coffee damaged by Taal Volcano’s eruption and the ash it spewed could breach P1.2 billion considering the economic value of the crop.
Citing data from farms, PCBI estimates that about 5,000 metric tons (MT) of green coffee beans (GCB) in Cavite and Batangas were affected by Taal Volcano’s activities, Juan added.
Based on PCBI’s figures, Cavite produces about 3,500 MT-GCB while Batangas produces around 1,500 MT-GCB, she said.
This, Juan said, could cause the prices of liberica or barako from Batangas, and robusta from Cavite to go up by at least 20 percent to as much as “anybody’s guess.”
“Barako right now is bought at about P280 to P300 per kilogram, it can go up to P400 per kg. For robusta, which sells right now at about P120 per kg to P150 per kg, it could go up to P180 per kilogram,” she told the BusinessMirror in a recent interview. Juan said micro-roasters and small coffee shops, particularly those vulnerable to Taal Volcano’s activities, would feel the impact of the cut in supply.
The latest report from the Department of Agriculture (DA) showed that Taal Volcano’s activities affected 4,309 hectares of coffee farms in Cavite and Batangas, which produce an estimated 8,240 MT of fresh coffee berries, or about 1,236 MT-GCB worth P360.5 million.
Juan said the government could consider repositioning coffee supplies from other coffee-producing areas in the country to mitigate the increase in the prices of liberica and robusta.
“It is feasible that other regions will be the source for liberica, like Basilan. What we will miss is the barako from Batangas and premium robusta from Cavite,” she said. “Volume-wise [we can fill the gap] and, in terms of quality, it’s comparable.”
Juan said PCBI plans to embark on a rejuvenation program for affected coffee farms in the area to help planters recover their losses.
Under a rejuvenation program, coffee trees would be cut up to 1 foot high to allow the plant to regrow and produce cherries again.
Rejuvenation, a common practice in coffee farming, is a way of making the plant “young” again and extending its production life.
The rejuvenation would take about one-and-a-half years before the plant can produce again, which is faster than growing a new tree which would take three to five years, Juan explained.
“If we rejuvenate, farmers are expected to miss two seasons,” she said.
Furthermore, Juan said the remaining harvestable coffee would be cleaned and would be used as seedlings instead of being sold in the market.
“We would need sponsors to buy the necessary equipment to undertake rejuvenation. We’re going to present it to the DA but the private sector, through the PCBI, is now collecting funds for the program,” Juan said.