A Study on the Economic Sustainability of Local Coffee Production in the Philippines
DOI:
https://doi.org/10.8888/ijospl.v2i5.76Keywords:
economic sustainability, local coffee production, coffee consumption, coffee industryAbstract
The coffee has been a major source of income for centuries now, it sure does contribute to the country’s productivity, specifically agricultural sectors. This study seeks to identify whether the local coffee production can keep up with the rising demand for coffee in the Philippines. The country's local coffee production is examined to know whether it will be a sustainable source for the country's coffee industry in the long-run and whether its production would be a good investment for several companies. This study determines the impact of local coffee consumption to the shortage of local coffee beans and surplus in the demand for coffee in the country. Furthermore, by using a time series regression analysis, the study determines whether the local coffee production has positive or negative effects on each variable. Using the gathered data from different academic references, this study identified the relationship of the local coffee production among each variable.
Downloads
References
Albaji, M., Golabi, M., Hooshmand, A. and Ahmadee, M., 2016. Investigation of Surface, Sprinkler and Drip Irrigation Methods Using GIS. [online] Journals.ju.edu.jo. Available at: https://journals.ju.edu.jo/JJAS/article/viewFile/5799/5121?target=_blank
Amarasinghe, U. A., Hoanh, C. T., D’haeze, D., & Hung, T. Q. (2015). Toward sustainable coffee production in Vietnam: More coffee with less water. Agricultural Systems, 136, 96–105. https://doi.org/10.1016/j.agsy.2015.02.008
Andrade, A. D., Araújo e Silva Ferraz, G., Machado de Barros, M., De Oliveira Faria, R., Moreira da Silva, F., Sarri, D., & Vieri, M. (2020). Characterization of the Transverse Distribution of Fertilizer in Coffee Plantations. Agronomy, 10(4), 601. https://doi.org/10.3390/agronomy10040601
Ang, P. (2011). Philippine Coffee Situation and Outlook. Retrieved from: https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Coffee%20Annual_Manila_Philippines_4-26-2011.pdf
Arifin, B., 2013. On the Competitiveness and Sustainability of the Indonesian Agricultural Export Commodities. [online] Repository.lppm.unila.ac.id. Available at: http://repository.lppm.unila.ac.id/8432/1/6.pdf
Atif, R., Haiyun, L. and Mahmood, H., 2016. Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model. The Journal of International Trade & Economic Development, [online] 26(3), pp.257-276. Available at: https://doi.org/10.1080/09638199.2016.1243724
Bamber, P., Daly, J., Gereffi, G. The Philippines in the Coffee Value Chain (2017). Retrieved from http://industry.gov.ph/wp-content/uploads/2017/08/The-Philippines-in-the-Coffee-Global-Value-Chain.pdf
Bhalage, P., Jadia, B. and Sangale, S., 2015. Case Studies of Innovative Irrigation Management Techniques. Aquatic Procedia, [online] 4, pp.1197-1202. Available at: https://www.sciencedirect.com/science/article/pii/S2214241X15001534
Briones, Roehlano M. (2013) : Philippine Agriculture to 2020: Threats and Opportunities from Global Trade, PIDS Discussion Paper Series, No. 2013-14, Philippine Institute for Development Studies (PIDS), Makati City https://www.econstor.eu/bitstream/10419/126919/1/pidsdps1314.pdf
Briones, R. M. (2014). EconStor: The Role of Mineral Fertilizers in Transforming Philippine Agriculture. Http://Hdl.Handle.Net/10419/126980. https://www.econstor.eu/handle/10419/126980
Bruno, I. P., Unkovich, M. J., Bortolotto, R. P., Bacchi, O. O., Dourado-Neto, D., & Reichardt, K. (2011). Fertilizer nitrogen in fertigated coffee crop: Absorption changes in plant compartments over time. Field Crops Research, 124(3), 369–377. https://doi.org/10.1016/j.fcr.2011.07.004
Chengappa, P. G., & Devika, C. M. (2016). Climate Variability Concerns for the Future of Coffee in India: An Exploratory Study. International Journal of Environment, Agriculture and Biotechnology, 1(4), 819–826. https://doi.org/10.22161/ijeab/1.4.27
De Lima, L. M., de Pellegrini Elias, L., e Silva, M. M. C. D., da Silva, K. V., & Pacheco, A. S. V. (2020). Behavioral aspects of the coffee consumer in different countries: The case of Brazil. Coffee Consumption and Industry Strategies in Brazil, 321–341. https://doi.org/10.1016/b978-0-12-814721-4.00016-0
De Oliveira Aparecido, L. E., de Souza Rolim, G., Camargo Lamparelli, R. A., de Souza, P. S., & dos Santos, E. R. (2017). Agrometeorological Models for Forecasting Coffee Yield. Agronomy Journal, 109(1), 249–258. https://doi.org/10.2134/agronj2016.03.0166
Du, T., Kang, S., Zhang, J., & Davies, W. J. (2015). Deficit irrigation and sustainable water-resource strategies in agriculture for China’s food security. Journal of Experimental Botany, 66(8), 2253–2269. https://doi.org/10.1093/jxb/erv034
Dzung, N. A., Dzung, T. T., & Khanh, V. T. P. (2013). Evaluation of Coffee Husk Compost for Improving Soil Fertility and Sustainable Coffee Production in Rural Central Highland of Vietnam. Evaluation of Coffee Husk Compost for Improving Soil Fertility and Sustainable Coffee Production in Rural Central Highland of Vietnam, 3(4), 77–82. https://doi.org/10.5923/j.re.20130304.03
Gilani, S.W. (2015). The Impact of Agricultural Imports and Exports on Agricultural Productivity. Journal of economics and sustainable development, 6, 109-116. Retrieved from https://www.semanticscholar.org/paper/The-Impact-of-Agricultural-Imports-and-Exports-on-Gilani/2c0829cce2fa67778e8b1e00698daf50386d500e
Gilchor P. Cubillo. (2016). Analysis of Coffee-Based Cropping Systems in Upland Cavite, Philippines Toward Improved Sustainability. Journal of US-China Public Administration, 13(6). https://doi.org/10.17265/1548-6591/2016.06.004
Haile, M., & Hee Kang, W. (2020). The Harvest and Post-Harvest Management Practices’ Impact on Coffee Quality. Coffee - Production and Research. Published. https://doi.org/10.5772/intechopen.89224
Hung Anh, N.; Bokelmann, W.; Thi Nga, D.; Van Minh, N. Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam. Economies 2019, 7, 66. https://doi.org/10.3390/economies7030066
ICO (International Coffee Organization). (2021). International Coffee Organization trade statistics. Retrieved from https://www.ico.org/historical/1990%20onwards/PDF/1b-domestic-consumption.pdf
ICO (International Coffee Organization). (2021). International Coffee Organization trade statistics. Retrieved from https://www.ico.org/historical/1990%20onwards/PDF/1a-total-production.pdf
Kavianand, G., Nivas, V. M., Kiruthika, R., & Lalitha, S. (2016). Smart drip irrigation system for sustainable agriculture. 2016 IEEE Technological Innovations in ICT for Agriculture and Rural Development (TIAR). Published. https://doi.org/10.1109/tiar.2016.7801206
Ktori, R., Kamaterou, P., & Zabaniotou, A. (2018b). Spent coffee grounds valorization through pyrolysis for energy and materials production in the concept of circular economy. Materials Today: Proceedings, 5(14), 27582–27588. https://doi.org/10.1016/j.matpr.2018.09.078
Lee, J., Nadolnyak, D., & Hartarska, V. (2012). Impact of Climate Change on Agricultural Production in Asian Countries: Evidence from Panel Study. Impact of Climate Change on Agricultural Production in Asian Countries: Evidence from Panel Study. Published. https://www.researchgate.net/publication/241751594_Impact_of_Climate_Change_on_Agricultural_Production_in_Asian_Countries_Evidence_from_Panel_Study
Li, S. (2012). Application of the Internet of Things Technology in Precision Agriculture IRrigation Systems. 2012 International Conference on Computer Science and Service System. Published. https://doi.org/10.1109/csss.2012.256
Li, Y., Zhang, W., Ma, L., Huang, G., Oenema, O., Zhang, F., & Dou, Z. (2013). An Analysis of China’s Fertilizer Policies: Impacts on the Industry, Food Security, and the Environment. Journal of Environmental Quality, 42(4), 972–981. https://doi.org/10.2134/jeq2012.0465
Liu, X., Qi, Y., Li, F., Yang, Q., & Yu, L. (2018). Impacts of regulated deficit irrigation on yield, quality and water use efficiency of Arabica coffee under different shading levels in dry and hot regions of southwest China. Agricultural Water Management, 204, 292–300. https://doi.org/10.1016/j.agwat.2018.04.024
Lu, J., Carbone, G. J., Huang, X., Lackstrom, K., & Gao, P. (2020). Mapping the sensitivity of agriculture to drought and estimating the effect of irrigation in the United States, 1950–2016. Agricultural and Forest Meteorology, 292–293(293), 108124. https://doi.org/10.1016/j.agrformet.2020.108124
Mariko, I. (2018). Coffee Production in the Asia-Pacific Region : The Establishment of a Japanese Diasporic Network in the Early 20th Century. Journal of International Economic Studies, 32, 75–88. https://ci.nii.ac.jp/naid/120006469669/
Matsumoto, T., & Yamano, T. (2011). The Impacts of Fertilizer Credit on Crop Production and Income in Ethiopia. Emerging Development of Agriculture in East Africa, 59–72. https://doi.org/10.1007/978-94-007-1201-0_4
Megersa, G., & Abdulahl, J. (2015). Irrigation system in Israel: A review. International Journal of Water Resources and Environmental Engineering, 7(3), 29–37. https://doi.org/10.5897/ijwree2014.0556
Mihailovic, B., Cvijanovic, D., Milojevic, I. and Filipovic, M., 2014. The role of irrigation in development of agriculture in Srem district. Ekonomika poljoprivrede, 61(4), pp.989-1004. https://cyberleninka.ru/article/n/the-role-of-irrigation-in-development-of-agriculture-in-srem-district
Murindahabi T., Li Q., Nisingizwe E., Ekanayake E.M.B.P. (2019): Do coffee exports have impact on long-term economic growth of countries? Agric. Econ. – Czech, 65: 385-393. Retrieved from: https://doi.org/10.17221/283/2018-AGRICECON
Navarro-Hellín, H., Martínez-del-Rincon, J., Domingo-Miguel, R., Soto-Valles, F., & Torres-Sánchez, R. (2016). A decision support system for managing irrigation in agriculture. Computers and Electronics in Agriculture, 124, 121–131. https://doi.org/10.1016/j.compag.2016.04.003
Nuddin, A., Reskiana, R., Arman, A., Yusuf, S., Nuringsih, N., Arsyad, M., Bustan, A., & Laapo, A. (2019). Designing New Strategy for Enhancing Robusta Coffee Production: An Application of Interpretative Structural Modeling. International Journal of Agriculture System, 6(2), 156. https://doi.org/10.20956/ijas.v6i2.1690
Olayide, O. E., Tetteh, I. K., & Popoola, L. (2016). Differential impacts of rainfall and irrigation on agricultural production in Nigeria: Any lessons for climate-smart agriculture? Agricultural Water Management, 178, 30–36. https://doi.org/10.1016/j.agwat.2016.08.034
Oliveira, M. D. F., Gomes da Silva, F., Ferreira, S., Teixeira, M., Damásio, H., Ferreira, A. D., & Gonçalves, J. M. (2019). Innovations in Sustainable Agriculture: Case Study of Lis Valley Irrigation District, Portugal. Sustainability, 11(2), 331. https://doi.org/10.3390/su11020331
Pascucci, F. (2018). The export competitiveness of Italian coffee roasting industry. British Food Journal, 120(7), 1529–1546. https://doi.org/10.1108/bfj-05-2017-0306
Perez, N., Rosegrant, M. W., & Inocencio, A. (2018). Philippine Irrigation Investment Under Climate Change: Scenarios, Economic Returns, and Impacts on Food Security. DLSU Business & Economics Review, 28(1), 121–146. https://dlsu-ber.com/philippine-irrigation-investment-under-climate-change-scenarios-economic-returns-and-impacts-on-food-security/
Philippine Statistics Authority (PSA). (2018). Crops Statistics of the Philippines 2013-2017. Retrieved from https://www.psa.gov.ph/sites/default/files/Crops%20Statistics%20of%20the%20Philippines%202013-2017.pdf
Regoniel, P. (2020, October 28). Quantitative Research Design: 4 Common Ways to Gather Your Data Efficiently. Research-Based Articles. https://simplyeducate.me/2020/10/15/quantitative-research-design/
Reinecke, J., Manning, S., & von Hagen, O. (2012). The Emergence of a Standards Market: Multiplicity of Sustainability Standards in the Global Coffee Industry. Organization Studies, 33(5–6), 791–814. https://doi.org/10.1177/0170840612443629
Rinaldi, M., & He, Z. (2014). Decision Support Systems to Manage Irrigation in Agriculture. Advances in Agronomy, 123, 229–279. https://doi.org/10.1016/b978-0-12-420225-2.00006-6
Saccon, P. (2018). Water for agriculture, irrigation management. Applied Soil Ecology, 123, 793–796. https://doi.org/10.1016/j.apsoil.2017.10.037
Samoggia, A. & Riedel, B. (2018), Coffee consumption and purchasing behavior review: Insights for further research. (2018, October 1). ScienceDirect. https://www.sciencedirect.com/science/article/abs/pii/S0195666318305142
Sauer, T., Havlík, P., Schneider, U. A., Schmid, E., Kindermann, G., & Obersteiner, M. (2010). Agriculture and resource availability in a changing world: The role of irrigation. Water Resources Research, 46(6). https://doi.org/10.1029/2009wr007729
Sousa, A., & Da Costa, T. (2015). Usual coffee intake in Brazil: Results from the National Dietary Survey 2008–9. British Journal of Nutrition, 113(10), 1615-1620. doi:10.1017/S0007114515000835
Tan, G.N.D. A Business-Model Approach on Strategic Flexibility of Firms in a Shifting Value Chain: The Case of Coffee Processors in Amadeo and Silang, Cavite, Philippines. Glob J Flex Syst Manag 22, 17–28 (2021). https://doi.org/10.1007/s40171-020-00255-5
Tedeshci, G. & Carlson, J. (2011). Beyond the Subsidy: Coyotes, Credit and Fair Trade Coffee. Published. https://10.4236/oalib.1102727
Tumanan, M. A. R., & Lansangan, J. R. G. (2012). More than just a cuppa coffee: A multi-dimensional approach towards analyzing the factors that define place attachment. International Journal of Hospitality Management, 31(2), 529–534. https://doi.org/10.1016/j.ijhm.2011.07.012
Velasco-Muñoz, J. F., Aznar-Sánchez, J. A., Batlles-delaFuente, A., & Fidelibus, M. D. (2019). Sustainable Irrigation in Agriculture: An Analysis of Global Research. Water, 11(9), 1758. https://doi.org/10.3390/w11091758
Volsi, B., Telles, T. S., Caldarelli, C. E., & Camara, M. R. G. D. (2019). The dynamics of coffee production in Brazil. PLOS ONE, 14(7), e0219742. https://doi.org/10.1371/journal.pone.0219742
Wang, T. C. (2017). Evaluation of Grey Forecasting Method of Total Domestic Coffee Consumption in Indonesia. International Journal of Business and Economics Research, 6(4), 67. https://doi.org/10.11648/j.ijber.20170604.15
Watson, R. (2015). Quantitative research. Nursing Standard, 29(31), 44–48. https://doi.org/10.7748/ns.29.31.44.e8681
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 INTERNATIONAL JOURNAL OF SOCIAL, POLICY AND LAW
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.