VALUE CHAIN ANALYSIS FOR ROBUSTA COFFEE (Coffea canephora) IN MALUNGON, SARANGANI PROVINCE

This study maps out and analyzes the value chain of Robusta Coffee in the municipality of Malungon, Sarangani Province. This examines the most efficient chain since, despite the increasing demand for coffee beans, the problem of inexpensive coffee beans in the farm gate has not been elucidated. This study was conducted at the said municipality from October 2021-January 2022. The respondents were the selected Robusta coffee farmers of the municipality, where quota sampling was employed in 17 accessible barangay. In identifying other players along the chain, forward identification was done. The respondents were interviewed using a structured questionnaire, and secondary data were gathered from different institutions. Cost and Return Analysis was also used to determine the profitability of Robusta coffee production, and descriptive analyses were also used.

Results show the first value-chain is from farmers to traders who also process the coffee beans and sell them to the local public market or directly to coffee shops. The second one is from farmers to traders, the latter to the processor, the Nestle Company, or coffee shops and local markets. In 500 kilograms of coffee beans from 1 hectare of land, 80% of the coffee produced in the municipality goes to Nestle Company. The remaining 5% will be disposed to local market (wholesaler and retailer), and 15 % will be disposed to local processor. The price of green coffee beans from farmers is P65.00/kg. At the same time, traders sell coffee beans at P100.00/kg kilogram to Nestle Company and P90.00/kg to the local market (wholesalers and retailers) and local processors. In terms of profitability, the ROI in coffee production is 168.6%, while the BCR is 2.68. Considering that coffee is a high valued crop, with good support services from the government, Malungon will increase its capacity to produce quality coffee and fine Robusta.