Department of Agriculture
Philippine Rural Development Project
And
PROVINCE OF BENGUET
PROVINCIAL COMMODITY
INVESTMENT PLAN
(PCIP)
PROVINCIAL COMMODITY INVESTMENT PLAN (PCIP)
I. Development Background/Context
Benguet is one of the six provinces that compose the Cordillera Administrative
Region (CAR) and is located in the southern part of the region. It comprises 13
municipalities and 140 barangays. It has a land area of 298,160.062 hectares, which
is 16.65% of the total land area of the Cordillera Administrative Region (DENR
Cadastral survey 2006). Of its total land area, 13.82% or 41,213.61 hectares are
classified as agricultural area, while grassland and pine forests cover 50.24% of the
total land area. (NAMRIA, DENR 2003)
The Provincial and Municipal governments of Benguet recognize that concerted and
focused efforts are important in developing the agriculture industry of the province.
The Philippine Rural Development Project (PRDP) of the Department of Agriculture
which capitalizes on the value chain approach is an important opportunity for the
province to advance the agriculture industry and the Provinces economy as a whole.
One of the approaches in developing the province is by making its people feel the
local government through its programs. This is done by strengthening the
relationship of the stakeholders and the local government through the different
implementing offices. Various supports are being given to the agriculture industry
through the offices of the Provincial Agriculturist and Provincial Veterinarian Office.
In addition, support for cooperatives and small and medium enterprises are provided
Benguet PCIP page 2
through the Cooperative Development Services and the Livelihood, Enterprises and
Investment Services under the Governors Office. In partnership with the different
national government agencies, these offices provide support in the different nodes of
the value chains of the different commodities that are being produced in the
province.
For the agriculture industry, the Provinces development framework is aligned with
the vision of environmentally balanced, globally competitive and sustainable systems
in the wide array of agriculture activities. As of late, intensive awareness on the need
for concerted efforts in improving the competitiveness of the industry in view of the
imminent implementation of the ASEAN Free Trade Agreement is given importance.
Inclination towards organic and safe agriculture practices are promoted in the
production sector, whereas good manufacturing practices and improved linkaging
are supported in the processing and marketing sectors. It is the Local Governments
aim to improve the productivity of farmers as well as improving competitiveness
across the value chain of the different commodities within the province.
With these goals at hand, the Provincial Government of Benguet sees the
implementation of the PRDP in the province as a great opportunity of reaching its
goals in the near future.
A. Commodity Profile
In the Philippines, coffee production as of 2011 is 88,526 metric tons, which is 6.35
percent lower than the production of 2010. On the same year, coffee imports
amounted to 24,200 metric tons. More than 70 percent of the total production of the
coffee in the country is of the Robusta variety, while Arabica, which is grown in high
altitudes and is primarily used for blending, account to about 21 percent of the total
production (DA-HVCDP).
Value Chain Analysis (VCA) for coffee in the region shows that the coffee industry
has a number of product formats and players or actors along the chain. Product
formats for coffee include fresh berries, dried berries, green coffee beans, roasted
coffee beans and ground roasted coffee. Players or actors are identified according to
their functions in the value chain. Functions in value chain include Input provision,
Production, Processing, Marketing, and Enablers. Players in the Input provision
include farm suppliers and dealers and nursery operators. Coffee farmers or growers
The trend for coffee production in the province is on an increasing level, due to the
increasing awareness on the market potential of coffee. With findings from the VCA
of Coffee in CAR, it can be deduced that the Provincial Governments goal of
improving the coffee industry in the province is on the right track. By further
developing the coffee industry in the province, the provinces farmers will have an
opportunity of increasing their income by producing coffee. In addition, by promoting
coffee production, the province will also be able to attain its vision of sustaining the
environment.
The following figure shows the typical Value Chain (VC) map in CAR. It details the
different functions in the chain as well as the operators/players/actors and the flow
of product from one actor to another.
C. Opportunities
D. Constraints
The VCA also shows that despite the opportunities, actors along the chain,
specifically the smallholding coffee farmers and nursery operators, have the least
shares in the value addition. Some of the constraints identified that contribute to this
scenario include low productivity (yields) due to ageing coffee trees, non-compliance
to GAP, inadequate/ declining supply of green coffee beans topped with
inconsistency in the quality of green coffee beans, inadequate service providers on
roasting and cupping, roasting facilities are non-GMP compliant, traditional facilities
have no economies of scale, weak interfirm relations and poor farm to market roads.
It is evident that for smallholding coffee farmers to benefit in value addition, gaps in
the production side should be addressed. Priority Investments for the development
of the coffee industry in the Province of Benguet underscores the need to increase
the production of green coffee beans through investments on key gaps/constraints
as identified in the VCA. The following are the gaps that will be prioritized for
upgrading in the province of Benguet.
The expanded vulnerability and suitability analysis (E-VSA) for coffee for the
province of Benguet was done to assist the province in the prioritization process for
the identified interventions. The E-VSA tool was developed by PRDP using the VSA
of the Bureau of Soils and Water Management. For the consideration of the socio-
economic aspect of coffee production in the province, the analysis was expanded to
consider the number of coffee trees planted in the municipalities, the poverty index,
and the income class of the municipalities. These parameters were considered to
give priority to coffee areas with higher incidence of poverty, and to give lower
income class of municipalities a higher chance of development.
The following table shows the result of the E-VSA. Maps 1, 2, and 3 show the
priority areas for development considering the poverty index, number of coffee trees,
and income class of municipalities. Priority areas identified are the Municipalities of
Atok, Kibungan, Bakun, Kabayan and Kapangan.
The result of the E-VSA shows that the priority areas for development are the
municipalities of Atok, Kibungan, Bakun, Kabayan and Kapangan. The Provincial
Commodity Investment Plan Matrix for Coffee is shown in Annex A.
Attached as Annex D is the Executive Order which embodies the Provincial Program
Management and Implementing Unit and the function of its members.
D. Safeguards
All projects that will be implemented under the PRDP shall have its Environment and
Social Management Plan in order to safeguard the environment and project affected
persons or community, especially the indigenous peoples.
V. PDC and/or SP Resolution endorsing the PCIP and the PLGU commitment
for budget counterparting.
Segments:
Input Supply Lack of Investment for the Rank of
accredited establishment of new Gap/
coffee nurseries accredited nurseries Constraint:
5
9 nurseries Itogon; 9
established/ barangays
accredited
1 nursery Domolpos,
established/ Tinongdan, Itogon
accredited
9 of composting TUBENGCOGA
facility (Tuba; Poblacion,
established; Taloy Norte, Taloy
Sur, Tabaan Norte,
Camp 4)
2. Amburayan - Lubo FMR 15 kms all Kapangan: Cuba, PLGU/MLGU 150,000,000.00 Erosion/ 2
weather road Boklaoan; landslides/
constructed/impro Kibungan: Lubo Washout:
ved Clearing/
600 farmers riprapping/ re-
benefited routing/
regrading shall
Support
Services:
Logistics
Financing
R&D 1. Establishment of on site
demo-farms
Extension 1. TOT on Farm Enterprise
Development
Laboratory
Enabling
Environment:
Policy