Brewing success: Agusan Norte coffee farmers thrive with gov’t aid

By Alexander Lopez, Philippine News Agency

COFFEE FARMING SUCCESS. Members of the Casiklan Wheels Farmers Association, Inc. in Las Nieves, Agusan del Norte, display their coffee beans at their headquarters on Thursday (Nov. 7, 2024). The group has successfully ventured into coffee processing and marketing with government support from the Department of Agriculture. (PNA photo by Alexander Lopez)

BUTUAN CITY – What started as a small, community-driven effort has blossomed into a successful venture for the Casiklan Wheels Farmers Association, Inc. (CAWFAI), a group of robusta coffee farmers from Las Nieves, Agusan del Norte.

Thanks to the support of the Department of Agriculture (DA) through the Philippine Rural Development Program (PRDP), CAWFAI has transformed from a producer of raw coffee beans to a full-fledged processor and marketer, reaping significant economic benefits.

Formed in 1998, CAWFAI initially organized as a cooperative in Barangay Casiklan with a vision of enhancing the lives of local farmers.

“We started as a bayanihan (cooperation) group, hoping to improve our farming practices and gain support from the government to elevate robusta coffee farming,” CAWFAI chair Felomino Ancog said in an interview.

In 1999, CAWFAI received its first financial boost of PHP20,000 from former Agusan del Norte 1st District representative Leovigildo Banaag, allowing the group to acquire a one-hectare coffee farm.

The small beginning was bolstered by the Department of Environment and Natural Resources, which supported CAWFAI’s coffee nursery initiative under the National Greening Program.

Challenges, motivation to expand

Amid the initial gains, coffee farmers in Casiklan and nearby villages struggled with low buying prices from local traders, at times earning as little as PHP80 per kilo.

Faced with these constraints, CAWFAI realized that they needed to shift from merely producing raw coffee beans to processing and selling their own products.

“We understood that relying on traders would keep us from reaching our potential,” Ancog said. “Expanding into value-added processing and marketing became our goal.”

DA-PRDP partnership

In collaboration with the provincial and municipal agricultural offices, CAWFAI submitted a proposal for a green coffee bean production and marketing project under the DA-PRDP’s I-REAP (Investments for Rural Enterprises and Agricultural and Fisheries Productivity) program.

The proposal aimed to boost the farmers’ income by at least five percent while enhancing product quality and distribution.

Approved in 2021, the project secured PHP19.8 million in funding from the DA-PRDP.

The financing was sourced from the World Bank loan (PHP8.4 million), Philippine government (PHP2.8 million), and additional support from the provincial government, Las Nieves local government and CAWFAI.

The funding covered both enterprise and infrastructure costs, enabling CAWFAI to acquire processing equipment and build a coffee processing center, which was completed in July 2022.

Expanding market reach

CAWFAI now manages over 400 hectares of coffee farms across seven villages, harvesting around six tons of beans per bi-monthly harvest.

The organization’s 736 members, including indigenous Manobo and Higaonon people, benefit directly from the cooperative’s success.

Women represent 37 percent of CAWFAI’s members, and the project aims to further increase their participation.

Since scaling up operations in mid-2022, CAWFAI has been able to purchase green coffee beans from members at PHP240 to PHP245 per kilo, significantly increasing farmers’ income.

The cooperative now supplies one to two tons of coffee beans weekly to markets across Mindanao, the Visayas, and Luzon, including Metro Manila.

The roasted coffee products are also gaining traction, with weekly sales averaging over 100 packs.

Anthony Buntag, CAWFAI’s manager, attributed the market expansion to trade fairs facilitated by the DA-PRDP, including the Philippine Coffee Expo and events in major cities.

“These exposures have been invaluable in connecting us with buyers nationwide,” Buntag said.

The organization’s efforts were recognized in December 2023 when CAWFAI won in the Caraga Coffee Festival’s Coffee Quality Competition.

Sustaining success

DA-13 Regional Executive Director Arlan Mangelen assured CAWFAI of continued support through skill-building and product enhancement initiatives.

“The PRDP will sustain monitoring and help CAWFAI create more market linkages,” Mangelen said, adding that training programs will ensure that members continue to produce top-quality coffee.

Lucita, a CAWFAI member, said her family’s income has doubled since the cooperative expanded into processing.

“With DA support, we’re now selling our coffee at PHP240 per kilo. This progress truly matters to us farmers,” she said.

With its sights set on further growth, CAWFAI’s journey from small-scale coffee farmers to industry players illustrates the transformative impact of strategic government support on rural communities.