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Republic of the Philippines f ARCEIVES oS
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NINETEENTH CONGRESS 4 fed. &i
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First Regular Session

HOUSE BILL NO. _ 3552 _

Introduced by Representative Lex Anthony Cris A. Colada

EXPLANATORY NOTE.

We are a nation of coffee drinkers. It is an undeniable fact that coffee has become a
staple beverage among Filipinos. From consumer drinks from your favourite coffee shop
chain, to high-class brews from specialty stores, to 3-in-1 coffee mixes sold by the packet ~
the demand for coffee bisects the class divide and coffee drinkers come from all over the
economic spectrum.

In a research study from Kantar Worldpanel Philippines, a company specializing in
consumer knowledge and insights based on continuous consumer panels, it was found out
that Filipinos shifted from being moderate to heavy coffee drinkers. Filipinos are buying
coffee products close to twice a week, or about 81 times a year, spending an average of P22
per shopping trip. Heavy coffee buyers, on the other hand, buy close to thrice a week, or
126 times in a year, spending an average of P28 per shopping trip. Tracking the shopping
behavior of 3,000 households across the country from June 2014 to June 2016, it was
discovered that 30% of beverage allowance is spent on coffee.

For being a nation filled with coffee drinkers, it is saddening to know that the local
coffee industry, from coffee growers, processors and traders, is in such a sorry state. The
Philippines produces around 30,000 metric tons of coffee per year but local demand is for
100,000 metric tons. Local supply cannot fulfil local demand that we have to import coffee
just to meet it. Our coffee production ranks us 110th in the world in terms of output. For
comparison, our South East Asian neighbor, Vietnam, ranks 2nd. The last time the
Philippines was a leader in the coffee industry was when we were stil under Spanish control
—we were the 4" biggest exporter of coffee beans in 1880.

This bill seeks to revitalize our coffee industry, especially when it comes to export, by
creating the National Coffee Board that will take charge of developing programs and
instituting industry-wide improvements that would benefit farmers, processors, traders,
consumers, and other industry partners.

{n view of the forgoing, the passage of this bill is earnestly sought.

LEX ANTHONY CRIS A. COLADA

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLNG,__3552 _

Introduced by Representative Lex Anthony Cris A. Colada

AN ACT
ESTABLISHING A NATIONAL PROGRAM FOR THE COFFEE INDUSTRY
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. 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, hereinatter 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;


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One (1) representative from the League of Municipalities where coffee is
primarily grown;

One (1) representative from an Non-Governmental Organization (NGO)
working on coffee production, research and development, processing or
promotion:

One (1) representative from coffee growers;

One (1) representative from coffee traders; and

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, shail

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;

. Organize systematic programs that could improve coffee production including

the development of effective production systems;
Promote the coffee industry to investors;

Provide technical assistance on planting systems and rehabilitation of farms;
Develop efficient and productive processing technologies for coffee beans;
Allow and facilitate the establishment of credit programs in government banks
for coffee farmers;

Conduct research and other scientific studies on coffee;

Establish and maintain a germplasm collection and gene bank for coffee;

Provide marketing and promotions of coffee for domestic and export markets;


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j. Classify coffee as a high value crop;

k, Establish a coffee processing facilities for farmers and farmer's organizations;
and

|. 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
(PhpS0,000.000.00) 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 helod invalid
or unconsitutional, 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) newspaper of general
circulation.

Approved,