Disaggregating the Coffee Supply Chain Network in Benguet, Philippines

Baguio City and the municipality of La Trinidad are the centers of coffee trading in Benguet and the Cordillera Region in the Philippines. The study examines the coffee supply chain network in both places while providing an overview of the global, national, and local coffee industry, explaining the relationships among the players in the supply chain network at the disaggregate level, determining the issues, weaknesses, and gaps, and offering recommendations for each supply chain and the entire network. Methodologies employed were key informant interviews of farmers, traders and coffee shop operators, visual observations and secondary data gathering, and descriptive analysis. Findings reveal that Benguet coffee supply chains have a complex and complicated networks of chain participants, interactions, and relationships. Seven supply chains which comprise the whole supply chain network in the area were identified with varying degrees of relational ties. Recommended interventions include developing road networks in the area, providing good quality planting materials, and utilizing financing products or schemes that are friendly to chain participants. Some investment entry points at the network level are the establishment of a coffee institute or center and coffee processing and/or warehousing or storage facilities.