Davao’s coffee culture has been thriving in recent years. Even with local coffee shops closing during the COVID-19 pandemic, small business owners were able to craft innovative ways to keep the local beans brewing. Davao’s emerging street coffee culture began when baristas, after losing their jobs with the closure of the coffee shops, opened their own pop-up coffee kiosks in their communities. Using the local beans, they highlighted the region’s artisan and specialty coffee.

“A lot of people were drawn by the whole process. We show them the proper way of preparing and brewing the coffee. We give them a taste of what good coffee tastes like. The final touch to good coffee is to educate consumers on the art of coffee making,” shared John Rey “Biboy” Plaza who founded Kapeweños Speciality Coffee.

Davao contributes 16% or 5,840 tons of green coffee beans and is one of the top coffee producing regions in the Philippines1. But despite these numbers, Davao’s coffee industry is unable to meet the continuously growing demand for coffee. In 2020 to 2021, there was a massive increase in the total consumption of coffee in the Philippines reaching 3.3 million of 60kilogram bags2. With its quality coffee, small businesses agree that there is so much potential for Davao's coffee industry to boom and compete in the international scene. A good ecosystem of support among value chain actors gives hope for a more inclusive and thriving coffee value chain.

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Before Kapeweños, Biboy had been working in the coffee industry for almost 15 years as a head barista, a roaster, and a delivery man. When Biboy started Kapeweños, he turned his motorcycle into a cafe on wheels, brewing coffee beans sourced from the foothills of Mt. Apo.Today, Kapeweños proudly operates two physical stores in Davao. Kapeweños is a testament to Biboy’s passion for coffee that goes beyond the need for profit, but is driven by his desire to keep local coffee alive. Biboy shares that the name Kapeweños is a play with words that combines kape (coffee) and Dabawenyo (a local from Davao).

“We need to keep in mind that the farmers are the foundation of this business. With all the challenges the coffee industry is facing right now, we really need to prioritize helping them. For small entrepreneurs like myself, there's really nothing I can do but to empower them by giving them the compensation they deserve for the coffee beans they worked hard for,” Biboy shared.

Meanwhile, Brewfresco founder Jayson Nadela’s interest in coffee began as a hobby. He started Brewfresco with his wife. Best known for their artisan coffee, customers get the full experience of engaging in the coffee making process at their coffee bar.

“Kapeweños is one of the street coffee shops that I follow. I saw that they market by showcasing how they create coffee. We realized that it’s possible and got inspired by their work,” said Jayson. For Jayson, the love of coffee goes beyond the experience of tasting, it’s a craft. This is why Brewfresco values educating their customers about the local coffee and encouraging them to support local coffee farmers.

“Our local coffee is really the best I have tasted. The taste of chocolate, the aroma, it’s something to be proud of. Before we hand the coffee to the customer, we inform them what to expect. We say, the coffee has this taste and aroma. Then, ma’am/sir you also need to stir it.”

On the other hand,young entrepreneur Psalm Cadiente sees coffee shops as a pharmacy outlet, providing consumers with relevant information needed to make a purchase. Like pharmacists who know which medicine is appropriate for certain conditions, Psalm believes that baristas and business owners should know their beans to cater to consumers’ preferences.

Losing his job at the height of the pandemic, Psalm found himself unable to support his education and dropped out of school. He learned about the sprouting pop up coffee shops in Davao and decided to give it a try. This interest did not come as a surprise as Psalm’s father was also a coffee farmer.

Using a manual brewer that he purchased online, he taught himself the different ways of making coffee. With patience and passion, he believes anyone can learn the craft. After months of practice, he opened The Brewing Cab using his remaining savings.

“At first it was just all about the taste. Then I started to become engrossed in the whole process, figuring out the right temperature, acidity, and all the different elements to truly create good coffee.”

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The Coffee Industry in Davao has witnessed significant challenges despite the growing popularity of its premium-quality beans. Large businesses have taken an interest in purchasing beans in bulk at better prices, leaving limited supply for small business owners like Biboy, Jayson, and Psalm. The challenge in securing supply has put a strain on the coffee culture that local businesses have been cultivating for years. They hope for government interventions that regulate the supply of coffee beans and emphasize the need for fair distribution considering the local coffee’s international appeal.

One thing is clear, there is a need for models of inclusive growth that provide and improve livelihood opportunities for diverse actors in the agri-value chains, including our coffee entrepreneurs in Davao. An opportunity exists to explore strategies wherein agribusinesses take the lead in creating and developing inclusive value chains that encourage participation and equity for smallholder enterprises while ensuring a win-win situation for all.

The Inclusive Value Chain Philippines Project is a four-year initiative funded by the Australian Centre for International Agricultural Research and implemented by Commonwealth Scientific and Industrial Research Organisation in partnership with Foodlink Advocacy Co-operative, University of the Philippines Mindanao, Visayas State University, University of the Philippines Los Baños, Australian National University, the University of Queensland, the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development, and the Philippines Partnership for Sustainable Agriculture. The project aims to enhance the design and implementation of Inclusive Value chain in smallholder farming systems in the Philippines. Its goal is to create a conducive environment for smallholder farmers, enabling their participation and benefitting from value chains to fulfill their aspirations and needs. The project engaged the coffee sector through a participatory farming system profiling to understand how different value chain actors define inclusion and identify opportunities to co-design interventions that benefit all stakeholders involved. With its rich flavors and unique qualities, Davao’s coffee industry has the potential to become a booming industry that can provide opportunities to many Dabawenyos. The dedication of entrepreneurs like Biboy, Jayson, and Psalm, coupled with initiatives like the IVC PH Project brings hope for the future of the region’s coffee culture. By continuing to support local farmers and business, we can contribute to the growth of a vibrant and inclusive coffee industry not only in Davao but throughout the entire Philippines.

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