Nestlé backs DA office for coffee sector growth, eyes more local sourcing

Nestlé Philippines has expressed optimism over the Department of Agriculture’s new dedicated office for coffee development, saying the unit will deliver stronger, more focused government support for the local industry.

The Coffee Industry Development Office, or CIDO, was established in February this year through Department Order No. 06 signed by Agriculture Secretary Francisco Tiu Laurel Jr., Nestlé said in a statement Monday. Operated under the Office of the Undersecretary for special concerns and official development assistance led by Jerome Oliveros, the office centralizes all coffee-related programs, policies, and funding to boost local productivity, expand assistance to farmers, and cut the country’s reliance on imported coffee.

As the nation’s largest buyer and manufacturer of local coffee, Nestlé PH said it expects to source more coffee from Filipino farmers as the sector grows. It added the NESCAFÉ Plan will continue advancing efforts to improve crop yields, train farmers, scale regenerative agriculture, and build sustainable sourcing systems. The company emphasized that a whole-of-society approach—bringing together government agencies, private firms, farmer groups, academic institutions, nongovernmental organizations, and local communities—is essential to strengthen the Philippine coffee industry.

Nestlé has already held initial discussions with CIDO to align on priorities and explore collaboration. During these engagements, the company presented the NESCAFÉ Plan and identified areas where joint work can advance the sector’s growth and long-term sustainability.

The move follows earlier calls from the Philippine Coffee Board Inc. for an updated national coffee roadmap. PCBI has noted the country produces only 30,000 to 33,000 metric tons of coffee annually, far below domestic demand of 150,000 to 200,000 MT, leaving a 120,000 MT gap filled by imports. The group also cited limited government support beyond roasting facilities, a shortage of quality seedlings, and a low national average yield of just 500 to 700 kilograms per hectare as key barriers to expansion.

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