BIBLIOGRAPHY TONGYOFEN, RUBY LIZETTE L....
BIBLIOGRAPHY

TONGYOFEN, RUBY LIZETTE L. APRIL 2013. Marketing Practices of Coffee
Producers in Bantay, Tabuk City, Kalinga. Benguet State University, La Trinidad, Benguet.
Adviser: Rashid B. Lokines, BSc.
ABSTRACT
The study was conducted to identify the marketing practices, market outlets
preferred and the problems encountered by the coffee producers in Bantay, Tabuk City,
Kalinga. It was conducted from December 2012 to January 2013.
The producers were planting different coffee varieties such as Robusta, Arabica,
and Excelsa which were sold to the local market or retailer in Tabuk City and Nestle
Philippines Incorporated located at Tuguegarao City.
The producers performed different marketing practices such as cleaning, grading,
packaging, and transporting their produce.
According to majority of the respondents, they encountered problem during milling
of coffee because there was only one coffee milling center in the barangay. Some of them
encountered problems on drying their produce during rainy season. Another problem they
mentioned was price fluctuation. The coping mechanisms of producers for the problem
encountered during coffee milling said that they should early in the milling area because
of the “first come, first serve” basis. The coping mechanism of producers for price
fluctuation was to wait for a better price by storing the product while the coping mechanism
for the problems on drying during rainy seasons was by doing fire dried. It was done by
putting the coffee one meter away from the fire to dry.

Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013


INTRODUCTION


Rationale
Coffee is a brewed beverage with a distinct aroma and flavor prepared from the
roasted seed of the coffee plant. The seeds are found in coffee “cherries”, which grow on
trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia
and Africa. Coffee is slightly acidic (5.0-5.1 pH) and can have a stimulating effect on
humans because of its caffeine content. It is one of the most consumed beverages in the
world.
Coffee is an important commodity and a popular beverage. Over 2.25 billion cups
of coffee are consumed in the world every day. Over 90% of coffee production takes place
in developing countries, while consumption happens mainly in the industrialized
economies.
According to Tacio (2009), the popular drink comes from an evergreen tree, which
was first discovered in Ethiopia, where its red, cherry-like berries (generally containing 2
seeds per berry) were used for wine and food before A.D. 1000. Its beans are first ground
and roasted and made into a drink during the 15th century in the Arabian Peninsula. Coffee
later spread throughout Europe since the 17th century.
History records show that the first coffee tree was introduced in Lipa, Batangas in
1740 by a Spanish Franciscan monk. From there, coffee growing spread to other parts of
Batangas like Ibaan, Lemery, San Jose, Taal, and Tanauan. Batangas owed much of its
wealth to the coffee plantations in these areas and Lipa eventually became the coffee capital
of the Philippines. In 1880, the Philippines was the fourth largest exporter of coffee beans,
Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013

and when the coffee rust hit Brazil, Africa and Java (Indonesia), it became the only source
of coffee beans around the world (Tacio, 2009).
In the Philippines, 8 out of 10 adults drink an average of 2.5 cups of coffee every
day. Today, however, the Philippines produce only 0.012% of the world’s coffee supply.
Majority of coffee produced in the country comes from the mountain areas of Batangas,
Bukidnon, Benguet, Cavite, Kalinga, Apayao, Davao, and Claveria. About 164,139
hectares of agricultural lands are planted with coffee, employing at least 300,000 Filipinos
(Tacio, 2009).
Now, due to the demand of coffee, each coffee producer has their own strategy in
producing their product. This study intends to find out the marketing practices of coffee
producers in Bantay, Tabuk City, Kalinga.












Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013


REVIEW OF LITERATURE

Coffee Industry in Cordillera
The Cordillera, according to a Department of Agriculture, is one of the top
producers of quality coffee in the country. The Robusta variety is mostly grown in warmer
areas such as Kalinga and Ifugao while the Arabica variety thrives better in temperate and
mountainous terrain areas like Benguet and Mountain Province (Dar, 2012).
PCARRD (Philippine Council for Agriculture, Forestry and Natural Resources
Research and Development) is currently developing Industry Strategic Plans and they have
five specific initiatives which aim to improve coffee production and post-production
system, namely, P12.2 million to enhance micro-propagation techniques to meet the
demand for quality planting materials; P6 million for conservation and management of
coffee genetic resources in the Philippines; P9.9 million for climate adaptation and
mitigation; P20 million for development of integrated processing system for small-scale
coffee processors; and P3.6 million for the research and development program for organic
Arabica production (Dar, 2012).

Coffee Varieties
Arabica is characterized by waxy leaf margin, light green leaf color, thin leaves,
pulp and parchment, and known as “Kapeng Tagalog” Yields 500-1000 kg of clean, dry
coffee beans per hectare. It could be grown productively in cooler places with an elevation
ranging from 1200 to 1800 meters above sea level and 1000 to 3000 feet above the sea
level in the tropics. It starts flowering one to two years after transplanting. The plants
Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013

flower from December to January and harvesting is done from November to March
(Anonymous, 2012).
Robusta coffee trees represent about 30 percent of the world's market. The bean is
smaller and rounder than an Arabica bean. Robusta is a heartier plant and can withstand
warmer temperatures, up to 85 F (29 C). It can also thrive at lower altitudes than Arabica.
Robusta beans produce a bitter-tasting coffee with about 50 percent more caffeine than
Arabica. You will find Robusta coffee trees in Southeast Asia and Brazil (Beller, 2012).
Excelsa yields 1000 kg of clean dry coffee bean per ha. It could be grown from sea
level to 600 meters above sea level. This variety is more tolerant to drought, nematodes
and rust than other varieties. Excelsa has better flavor and aroma than Robusta and
Liberica. The plant starts bearing 4 to 5 years from transplanting. It flowers from March to
July and harvesting is done from January to April (Tacio, 2009).
Liberica it is locally known as “Kapeng Barako” or “Kapeng Amerikano” because
it produces the biggest berry. This variety belongs to the species of Coffea liberica. It is
rounded and borne singly or in a small clusters, has thicker leaves than Excelsa and twice
as long as Arabica. The pulp is thick and the parchment is woody. Liberica also
characterized a very strong pharmocopial taste and flavor. It is tolerant to drought, quite
resistant to nematodes and grows in a wider type of soil. It begins to bear fruits 4 to 5 years
from transplanting. Yields 1000kg of clean dry coffee beans per ha (Anonymous, 2012).
Beller (2012) states that all commercial varieties of coffee are available in the
Philippines – Robusta accounting for 70% of the country’s total production, and Arabica
with about 5-10%. Other variety such as Excelsa and Liberica also thrives in the country
and accounts for 15-20% of the total.
Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013


METHODOLOGY

Local and Time of the Study
The study was conducted in Bantay, Tabuk City, Kalinga. It was conducted on
December 2012 to January 2013.
Barangay Bantay has major crops like coffee, corn, fruits, and vegetables.

Respondents of the Study
The respondents of the study were the coffee producers having more than 30 coffee
trees planted in their farm. There were 15 coffee producers as respondents.

Data Gathering Procedure
The data were gathered through personal interview, with the aid of an interview
schedule.

Data Analysis
The data gathered were tabulated and analyzed using frequency and descriptive
analysis.





Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013


RESULTS AND DISCUSSIONS

Profile of the Respondents

Table 1 shows the profile of the respondents according to age, sex, civil status and
educational attainment.

Age. In terms of age, a greater proportion (40%) of the respondents belonged to the
age bracket of 54-58 years old, 33.33% fall under the age bracket of 49-53 while the age
bracket of 39-43 were 20% followed by 6.67% who belonged to the age bracket of 44-48
years old. This finding implies that production of coffee is managed mostly by farmers who
are adult.
Sex. As to the sex of the respondents, most (80%) of the respondents were males
and 20% were females. This can be attributed to the fact that male were the ones who do
most of the farm works in the area.

Civil status. Most (80%) of the respondents were married while 20% were single.

Educational attainment. Finding shows that 53.33% finished college while 46.67%
completed high school. This means that all of the respondents attended formal education
and literate enough to enter into agreements with traders or middlemen.

Years in coffee farming. Table 1 presents the years in coffee farming of the
respondents. A greater proportion of the respondents (46.67%) have been engaged in coffee
production for 18-24 years while 26.67% for 4-10 and 11-17 years. The results show that
the respondents experience in coffee production.


Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013


SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary

The study was conducted to identify the marketing practices of coffee producers,
market outlet preferred and problems encountered by respondents in Bantay, Tabuk City,
Kalinga. Fifteen coffee producers were taken as the respondents of the study. It was
conducted from the month of December 2012 to January 2013.

Majority (80%) of the respondents were male while 20% of them were female. A
greater proportion (40%) of the respondents belonged to the age bracket of 54-58 years
old. As to educational attainment, all of them attended formal education thus they are
literate enough to enter into agreements with traders or middlemen.
A greater proportion of the respondents (46.67%) have been engaged in coffee
production for 18-24 years. Majority (86.67%) of the respondents have a land area of 1 to
2 hectares devoted to coffee production. All of them are land owners. The coffee varieties
that they are planting are Robusta, Arabica, and Excelsa which are sold to the local market
or retailer in Tabuk City and Nestle Philippines Incorporated located at Tuguegarao City.
The farmers performed different marketing practices such as cleaning, grading,
packaging, and transporting. In terms of cleaning, majority (80%) of them dried their
produce under the sun for 4-6 days because it was considered to be required for producing
coffee of the best quality. In grading, majority (80%) of the respondents based on weight
by percentage because the coffee beans remaining after the screening is weighed and the
percentage is recorded. All of the respondents prefer to use sack in packaging their product.
Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013

Majority (66.67%) of the respondents use truck when transporting their products to the
market.
Majority of the respondents, encounter problem during coffee milling. Some of
them encountered problems on drying their produce during rainy season. Another problem
they mentioned is price fluctuation. The coping mechanisms of producers for coffee milling
said that they should early in the milling area because of the “first come, first serve” basis.
The coping mechanism of the producers for price fluctuation is to wait for a better price by
storing the product while the coping mechanism for the problems on drying during rainy
seasons is by doing fire dried.

Conclusions

Based on the findings, the conclusions were derived:

1. All of the respondents performed different marketing activities such as cleaning
the product through drying under the sun, milling using coffee miller, and pounding using
mortar and pestle. The grading is in weight, screening, class and variety namely robusta,
excelsa, and arabica;

2. The market outlets preferred by the coffee farmers in selling their product are the
local market or retailer in Tabuk City and Nestle Philippines Incorporated located at
Tuguegarao City because they offer higher prices; and,

3. Majority of the respondents, encountered problem during coffee milling because
there is only one coffee miller in the barangay, some of them encountered problem during
rainy seasons because the drying of coffee beans will be affected and price fluctuations.
Recommendations
Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013

Based on the conclusions, the following recommendations are derived:
1. The government should provide facilities and equipment like coffee miller that
will be used in milling the coffee beans; and
2. The government should administer seminars or trainings to improve the
knowledge and skills of the coffee farmers in the production and marketing their products.


















Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013


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TONGYOFEN, RUBY LIZETTE L. APRIL 2013


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Marketing Practices of Coffee Producers in Bantay, Tabuk City, Kalinga
TONGYOFEN, RUBY LIZETTE L. APRIL 2013