Coffee Industry Development Act

THE TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES A RECEIVED First Regular Session DATE: ÄPR 2 1 2026 TIME: 3:09 PM SENAT BY: 2056 BILLS & INDEX S. No. - Introduced by Senator Camille A. Villar AN ACT ESTABLISHING A NATIONAL PROGRAM FOR THE COFFEE INDUSTRY PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES EXPLANATORY NOTE The 1987 Philippine Constitution mandates that "the State shall develop a self- reliant and independent national economy effectively controlled by Filipinos" (Article XII, Section 19). Consistent with this constitutional policy, strengthening domestic industries such as coffee production is vital to promoting national economic growth, rural development, and agricultural sustainability. The Philippines is undeniably a nation of coffee drinkers. Coffee has become a staple beverage among Filipinos across all social and economic classes-from consumer beverages purchased from popular coffee shop chains and specialty brews from artisanal stores to affordable three-in-one coffee mixes sold by the sachet. The demand for coffee transcends economic divisions, making it one of the most widely consumed beverages in the country. A research study conducted by Kantar Worldpanel Philippines revealed that Filipinos have shifted from moderate to heavy coffee consumption. The study found that average consumers purchase coffee products nearly twice a week, or about 81 times a year, spending an average of P22 per shopping trip. Heavy coffee buyers purchase coffee nearly three times a week, or approximately 126 times annually, with an average spending of P28 per trip. Based on tracking the shopping behavior of 3,000 households nationwide from June 2014 to June 2015, the study further showed that around 30% of beverage expenditures are allocated to coffee.

Despite being a nation of coffee enthusiasts, the local coffee industry— including growers, processors, and traders-remains in a precarious state. The Philippines produces around 30,000 metric tons of coffee annually, while local demand reaches approximately 100,000 metric tons. As a result, domestic supply is insufficient to meet consumption needs, necessitating substantial imports. In terms of global output, the country ranks relatively low, especially when compared with neighboring Southeast Asian producers such as Vietnam, one of the world's leading coffee producers. Historically, however, the Philippines once held a prominent position in the global coffee trade, having been the fourth-largest exporter of coffee beans in 1880 during the Spanish colonial period. This proposed legislation seeks to revitalize the Philippine coffee industry, particularly with respect to increasing productivity and export potential, through the creation of a National Coffee Board. The proposed body shall be tasked with developing strategic programs and instituting industry-wide reforms aimed at strengthening the entire value chain, benefiting farmers, processors, traders, consumers, and other industry stakeholders alike. In view of the foregoing, the passage of this bill is earnestly sought. Camille cs ralla CAMILLE. A VILLAR

THE RECEIVED PHILIPP TWENTIETH CONGRESS OF THE DATE: APR 2 1 2026 REPUBLIC OF THE PHILIPPINES TIME: 3: 09 PM CB First Regular Session BY: _ BILLS & INDEX SENATE S. No. 2056 Introduced by Senator Camille A. Villar AN ACT ESTABLISHING A NATIONAL PROGRAM FOR THE COFFEE INDUSTRY PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This act shall be known as the "Coffee Industry

Development Act".

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

promote the coffee industry as an income source of farmers and increase farm productivity for sustainable development.

Sec. 3. Creation of a National Coffee Board. - There shall be a National Coffee

Board, hereinafter referred to as the Board, that shall direct, supervise and monitor the development and promotion of the coffee industry. The board shall be composed of: a) Secretary of the Department of Agriculture (DA) as Chairman; b) Secretary of the Department of Trade and Industry (DTI) as Vice Chairman; c) Secretary of Department of Science and Technology (DOST); d) Secretary of Department of the Interior and Local Government (DILG); e) One (1) representative from State Universities and Colleges; f) One (1) representative from the League of Municipalities where coffee is primarily grown;

g) One (1) representative from an Non-Governmental Organization (NGO) working on coffee production, research and development, processing or promotion; h) One (1) representative from coffee growers; i) One (1) representative from coffee traders; and j) One (1) representative from coffee processors.

Sec. 4. Development of the Coffee Industry. — The Board, in consultation with

the Department of Science and Technology (DOST), state universities and colleges, farmer groups, local government units, and the private sector, shall formulate necessary programs and projects for the advancement and industry-wide development of coffee in the Philippines, as follows: a) Create and maintain a coffee industry roadmap that will outline the planned programs and projects to develop the coffee industry on a national scale; b) Organize systematic programs that could improve coffee production including the development of effective production systems; c) Promote the coffee industry to investors; d) Provide technical assistance on planting systems and rehabilitation of farms; e) Develop efficient and productive processing technologies for coffee beans; f) Allow and facilitate the establishment of credit programs in government banks for coffee farmers; g) Conduct research and other scientific studies on coffee; h) Establish and maintain a germplasm collection and genre bank for coffee; i) Provide marketing and promotions of coffee for domestic and export markets; j) Classify coffee as a high value crop; k) Establish a coffee processing facilities for farmers and farmer's organizations; and I) Coordinate and collaborate with other government and non-government agencies involved in the development of the coffee industry.

Sec. 5. Secretariat of the Coffee Board. - The Undersecretary of Agriculture

in Charge of Crops and the Head of the Bureau of Plant Industry shall be the

Secretariat of the Board. The Office of High Value Crops Development shall establish an office space for the Coffee Board for their meetings.

Sec. 6. Appropriation. — The amount of fifty million pesos (Php50,000,000.00)

shall be allocated from the Special Activities Fund of the President of the Republic of the Philippines or from any other sources that may be identified for the purpose for the operation, industry development as contained in Section 4 hereof. Thereafter, such sum required shall be included in the annual General Appropriations Act of the Department of Agriculture.

Sec. 7. Separability Clause. - If any provision or part hereof is held invalid or

unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid and subsisting.

Sec. 8. Repealing Clause. - All existing laws, rules and regulations or part

thereof inconsistent with the provisions of this Act are hereby repealed, superseded or modified accordingly.

Sec. 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after

its complete publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,