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Republic of the Philippines
HOUSE OF REPRESENTATITVES
|9th Congress
House Bill N  qu
Introduced by Cong. Claude P. Bautista
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EXPLANATORY NOTE
This Bill titled AN ACT CREATING THE NATIONAL COFFEE DEVELOPMENT
AUTHORITY FOR THE MODERNIZATION OF THE PHILIPPINE COFFEE INDUSTRY AND
APPRORIATING FUNDS THEREFORE seeks to promote and enhance the production of the
coffee industry in the country with the aim of having an import-substitution to export-
substitution of coffee in the global market.  Approximately 81% of all coffee requirements
in the Philippines ls I.mported.
The Philippines has the favorable climatological conditions, soil specifications, and
land areas suitable for the production of Arabica, Robusta, Excelsa, and Liberica variants.
There are also other import coffee varieties like the Blue Mountain from Hawaii which
experts said can be cultivated in the Philippines.
The Phjlfppjnes used to be a top exporter of coffee, but through the years this has
changed for lack of comprehensive and viable plan and actions, as well as minimum
support from concerned government agencies.  Local coffee production is decreasing by
3.5% per year over the past 10 years, when the Philippine's consumption from 2018-2020
increased by 2.1.%.  In 2015, the Philippines occupy the  30th slot among coffee producers
in the world, but further slid to the 34the slot in 2020.
The production value of coffee in the Philippines from 2012-2022 (in billions of
Philippine pesos) amounted to the following:   In 2022, the value of coffee produced in the
Philippines amounted to around Php 3.37 billion, indicating an increase from the previous
year.  In the same year, the total coffee consumed by Filipinos amounted to 3.31 million 60-
million-kilogram bags.
Percent share in area planted to coffee by region (2020) was 113, 264.89 has.  The
top five regions with the biggest planting area for coffee in the last five years ago are as
follows:  SOCCSKARGEN, 27,010.25 ha; Davao Region,15, 881, 29 ha; ARMM,13, 976,ha;
CALABARZON,13,196 ha.; and Northern Mindanao,11, 639.41 ha.
There is a need to focus on the production andmodernization of the Coffee Industry
in the Philippines if the country is to increase its production and be able to be globally
competitive .  For this reason,  this presentation proposes the Creation of the National
Coffee Development Authority that will, among others, promote the coffee industry in
order to address not only the shortage of domestic coffee supply but be able to create a
niche in the worldwide market for high value cash crop.


)ust like other agencies under the Department of Agriculture e.g., Fertilizer
and Pesticides Authority and the Philippine Fiber Development Authority, the
National Coffee Development Authority will have a governing board composed of
the Secretaries from DA, DTI, DAR, Executive Director and a Director from the
Philippine Council for Agricultural and Resources Research and Development.
There will be one representative from among the concerned government
financial institutions and regional coffee  farmers association representatives.  A
regionalized coffee commission shall take charge and oversee the operation of the
coffee farms.  They shall be the conduit of all information and concerns/issues
coming from the field to the NCDA board for proper disposition.
Fortheforego]ngreasonsthepassage°fth]SB][]]Se:#:tBautrsta


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSEBH.LNO.       9830
htroduced by Representative Claude P. Bautista
AN ACT CREATING IRE NATIONAL COFFEE DEVELOPRENT
AUTHORITy FOR Tin MODERNlzATloN oF THE pELlpplNE COREE
INDUSTRT AND APPROPRIATINd FUNDS TREREFOR
Be  it  enacted  by  the  Senate  and  House  Of Rapreseutatives  Of the  Phittppines  in
Congress assembled.-
SECTION 1. 4#8rf 7Zute. - This Act chall be known as the 'NATI0NAL COFFEE
DEVELOphmIT AUTHORrry ACT. "
SECHON. 2. I)cadanaffio» a/Potty. - It is hereby declared the poliey of the State to
promote and modenize the coffee ind:usqr throuch creating an efficient fianev`rork in the
coffee prodrction and establishment of research and development facflities, and sufficient
support services in order to empower lcoal coffee stakcholdes to Cam higher income and
increase  in  coffee production thereby  enhancing the country's global  competence  in the
coffee industry.
The State shall fully exploit the industlys potentials to increase the farmers' income,
reduce inpchs of coffee products and generate foreign exchange revenues.
S;ECT\!0". 3. Ndrional Cog i ice Development Authority Act This Auct Bhal:1 ercahe  an
Authority in order to modmize the coffee industry in the country throu8b establishing a
structure that would enable the coffee industry stakeholders especially the coffee fanners,
processors, traders, and exporters to be guided and provided with sustainable benefits and
prog[ans  in order to  establish an  efficient and  stable coffee  industry that can meat the
demands of the local market and eventiially the global market.
SECHON 4. Creation of the National Coffee Development Authority OrcDA+
There shall be  a Natioml Coffee Development Authority to serve as the  authority for the
development  of the  Philippine  Coffee  hdustry.  It  shall  be  an  attached  ngeney  of the
DapartmentofAgriculture.


h relation thereto, NCDA will subsume the functions of the Philippine Council for
Agriculture  and Fichedes  Q'CAF)  only    in   monitoring,  specifically  in   monitoring  the
implementation of the coffee programs and the Deparfuent of Agriculture'8 High Value
Crops Develapment Program as the lead coordinator of coffee produetion and fan expansion
projects.
SECHON 5. Objcetives of NCDA.- The NCDA shall have the fonowing objectives:
1.   To promote the country's coffee industry in order to address the problems on
choctage of domestic coffee supply;
2.   To inprove the quality of life of Filipino fames through coffee farming in
the areas suitable for the crop;
3.   To safeguard the profitability of coffee fanners   through their adoption of
prescribed  and modem technology in terms of coffee prodredon, processing
and marketing;
4.   To ensure that coffee is planted only during the times preschbed and only in
areas  specifically  identified  as  suitable  for  coffee-growing  and  that  only
propedy certified seedlings are used;
5.   To provide sufficient sxppct services to local coffee famers in order for them
to maxinize market efficiency;
6.   To  create    programs  in  order  to  emble  the  local  coffee  farmers  to  be
economically sustainable; and
7.   To promote the brmding Of phihippine Coffee for export purposes
Section 6. Fzl»rfuus. - The NCDA shall have the following functions:
a. To undertake research studies on all aspects of the industry, including pilot studies,
and to ensure strong and effective linkages between research and extension;
b. To package and disseminate recommended production technology to guide coffee
pnduction activities in the country;
c. To design and inplement a spcchlized exeension program on coffee production,
and other training and communications program for manpower development in the
various aapects of industry operations;
d.  To promulgate  and enforce rules  and regulations  to govern  coffee production,
particLilady with regard to closed season planting; the producfron, distribution, and
use of planthg seeds; the areas for coffee-growing; pest control, and other quarantine
measures;


e. To identify suitable areas for coffee-production and promote production in such
areas;
f. To supput and enhance efrocts of coffee farmers in organizing themselves into
coffee famers' associntios or cooperatives;
9. To produce breeder, foundation and registered seeds; sot and enforce standards and
procedures for seed production and markedng; supervise certified seed production by
private coffee seedling growers;
h. To source out and import suitable coffee varieties from other counties;
i. To provide assistance to small farmers in the marfueting Of their coffee produee;
j. To design and implement an industry monitoring and infomation System;
k. To undertake coffee  industry manpower development;
I. To assist famers in souroing funds for coffee production;
in. To conduct regular consultations with the coffee fanners, growers, and all other
sectors involved in the coffee industry;
n.  To  design  and  administer  a  package  of incentives  to  promote  private  sector
investments in the coffee industry;
o. To develop the export potendals of coffee; and
p.  h general to undertake all other functions as may be necessary to ensure the
success of the coffee industry and promote the interests of small coffee farmers
Section 7. Powers. - The NCDA shall have the following powers:
1 . To administer and regulate the coffee industry in the Philippines;
2. To incur any obligation or enter into contract with any person, material orjuridical,
domestic  or  foreign,  essential  to  the  proper adrinistration  of its  affijrs  and  the
accomplishment of its purposes and objectives;
3.  To  own, purchase,  lease, moftgnge,  encumber or otherwise  diapose of real  and
personal prpperty in accordance with its purposes and objectives;
4. To accept and receive financial and other stxpott from private and other sources
for the developmezit and promotion of the coffee industry;
5. To promulgate and enforoe rules and regulations on the production of coffee;


6. To impose administrative sanctions for violation of the rules and regulations issued
by the NCDA;
7. To estabhish, operate and maintain testing and expchmental stations;
8.   To   accredit  associntious/confedenatious  of  coffee  farmers,   growers,  traders,
exporters and other associations involved with the coffee industry; and
9. To undertake measures to ensure that small farmers receive a fair price for their
produce.
Section 8. 77le Go»emrfuig LBoard a/aha JVCDL4. - The NCDA shall be governed by a
Boan4 composed as follows:
a. Seeretary of Agriculture, as er-o#cz.a Chainan;
b. Secretary of Thade and hdustry;
c. Secretary of Agrarian Reform;
d. Executive "rector
e.   Director,   Philippine   Council   for  Agriculture   and  Resources  Research   and
Development;
f.  One  (1)  representative from among the  government financial institutions  to be
appointed  by  the  President  of the  Philippines  upon  the  recommendation  of the
Seertry of Agricultue;
9. 'Ihiee (3) representatives from the coffee farmers associations to be appointed by
the  Ptesident  of  the  Philippines  upon  the  recommendation  of  their  respective
confedantions in Luzon, Visayas and Mindanao duly accredited by the NCDA
SECTION 9 . Creation of the Regionallzed Coffee Commission-h order for the
NCDA to have an efficient and maxinized management productivity, there shall be a coffee
commission in each region identified as coffee producing region by the Governing Board.
The  primary fimchon of the Regivnalfzed Coffee Commission is to implement the programs
formulated by the Executive Director and approved by the Governing Board.
SECTION 10. Composition of the Regional Coffee Commission- Each Regional
Coffee  Commission  shall  be  composed  of    a  Regional  Director  and tvro  (2)  Assistant
Regioml Directors who shall be appointed by the Govening Board.
The Executive Director and the menders of the Board, except for the representatives
Of the coffee fazmers associntious and the ei; ojfficz.a menders, shall be appointed by the
President of the Philippines to serve for a ten of six (6) years, unless sooner separated from
service due to death, voluntary resigna:tion or removal for cause. h case of death, resignation
or removal  for  cause.  their replacements  chall  serve  only  the  unexpired portion  of the
reapective terus. No person shall be appointed as a member of the Board unless the pdson is


a Filipino citizen, of good moral character, of proven probity and integrity, and with at least
ten (10) years relevant worldng experience, preferably in the field of coffee management or
public adnhistration.
The members of the Board, except the er qgrcz.a members, shall each receive a per
dz.em allowance at rates to be detemrined by the Department Of Budget and Management in
accordance with existing rules and regulations: J7ovide4 however, That the total per dz.en
allowance collected each month shall not exceed the equivalent of four (4) meetings unless
and until the President of the Philippines has fixed a higher rate for the per dz.en allowance
for the members of the Board, such allowance chall not be more than Ten thousand pesos
Q'hp 10,000.00) for every Board meeting.
SEC.11. Ongml.givfo» gnd P]Ep:sonzre/. -The Board of Directors of the NCDA shall
provide for its organization and staff. The Board shall appoint and fix the rrmuneration and
other  emolunents  of its  officers  and  employees  in  accordance  with  existing  laws  on
conpration and position classification. The Board shall have exclusive and final authority
to promote, transfer, assign, reassign, or remove offices of the NCDA, any provision of
existhg  law  to  the  contrary  notwithstanding.  The  Executive  Director  shall  execute  the
decisions of the Board.
The officers and employees of the NCDA, including all members of the Board, shall
notengagedirectlyorindirectlyinparisanNCDAshallberrmovedorsuapendedexcaptfor
cause, as provided by civil service niles and regulatons.
Section 12. Poners flrmJ/b»cfous a/the IBoond -The Governing Board shall act as
the poHey making body of NCDA to formulate policies, promulgate regulations and prescribe
rules to attain NCDA"s purposes and objectives.
Section 13. I+ip7»«/gindou a/ "4es dr»d nqgrzz4fronsL  -The Govendng Board shall
promulgate n]les and regulations for the full inplemen:tation of this Act within ninety (90)
days of its effectivity. Such rules and regulations shall take effect upon publication in the
Official Gazette or in   a newspaper of general  cirwhtion and shall be amended by the
Governing Board from time to time as it may deem apprqpriate.
Scadfro J4. 4zrprmprindha&- The amount necessary for the ixplementation of this
Act chall be changed to the current year's apprapriatious of the Daparfuent of Agriculture.
'fl]ereafter, such sum as may be necessary for the continued inplementation of this Act  shall
be included in the annua General Appxppriatious Act
SEC770IV J5. Rapcnd.ng Chq[us&- All laws, executive orders, presidential decrees,
rules and regulations, and other issuances contrary to or inconsistent with the provisions of
this Act are hereby repealed, modified, superseded, or amended accordingly.
SEC770rv Z6, Sdyoua&fty exq[ngfa-If any portion or provision of this Act shall be
uncoustitutional or invalid, the other provisions not otherwise affected shall remain in force
and effgiv.


SEC77iorv J6,  Effz!Oflrty.-  This  Act  shall  take  effect  fifteen  (15)  days  after  its
publicationintheOfficialGazetteoranewapaperofgenenlcfroulation.
Approved,