When the pandemic forced businesses to close, it opened an opportunity for Davao’s street coffee culture to start brewing. Pop-up kiosks and mobile cafés emerged, with local baristas and young entrepreneurs sourcing coffee beans locally to satisfy the communities’ appetite for caffeine.
Entrepreneurs like John Ray “Biboy” Plaza, Jayson Nadela, and Psalm Cadiente seized this opportunity to grow their passion for coffee into something more. Biboy’s Kapeweños centers its menu offerings to promote the region’s artisan and specialty coffee, Jayson’s Brewfresco offers customers an immersive experience of the coffee making process, and Psalm’s journey from losing his job to opening The Brewing Cab underscores the resilient and entrepreneurial spirit of Dabawenyos.
NAVIGATING CHALLENGES IN THE COFFEE VALUE CHAIN
However, local entrepreneurs soon found that making a living out of their love for local coffee came with a host of problems. The growing popularity of Davao’s coffee beans, particularly the ones grown in Mt. Apo, meant competing for supplies with large businesses.Because these large businesses buy in bulk and offer better prices, farmers tend to sell their coffee beans to them, leaving little to no supply for small business owners like Biboy, Jayson, and Psalm.
This shift has altered the dynamics of the local coffee scene in Davao, forcing small businesses to compete for supplies at higher prices. Roasters like Biboy have to climb Mt. Apo to negotiate with the farmers in the hopes of enough coffee beans to sustain their business.
“We understand the farmers because they are also chasing opportunities for themselves. We need to empower them and give them what they deserve. That's why we prefer to go there directly so we can pay the farmers immediately,” shared Biboy.
Coffee shop owners are concerned that scarcity in supply puts a strain on the coffee culture that they have been trying to cultivate for years. During times like this, Jayson finds that it is important to maintain a transparent relationship with customers. “Since we already have loyal customers, we inform them that we cannot serve pure local coffee. It is tough everytime coffee is unavailable, we can only serve iced tea and calamansi juice.”
They hope that concerned agencies will look at this growing problem and do something to regulate the supplies and give small coffee businesses, who are also vital to the growth of local economies, to grow and continue opening their doors to customers . For this to happen, they believe that farmers must be given support so they can meet the demands of the market.
A SENSE OF COMMUNITY
Davao’s coffee culture is best characterized by their sense of community rooted in appreciation of each other’s work and supporting one another in rising above challenges.
“We are all linked together so there should be a cycle of support for all, from the farmers, roasters, to baristas,” shared Psalm.
Biboy, Jayson, and Psalm all agree that building genuine relationships with farmers beyond the transactional level matters. Small business owners like them do this by providing inputs in the form of fertilizers and sacks that farmers can use to package their produce.
“When farmers are thriving, roasters and business owners will also benefit from it. When we get enough supplies, I don’t keep all the beans to myself. I share them with others,” shared Biboy.
Seeing their plight, they think assuring farmers that they can rely on small businesses to buy their produce is a great source of relief. Transparency and becoming a reliable suki or a regular buyer helps business owners secure their beans and maintain their relationships in the market. Paying in a timely manner is also one of the ways they lock trust.
”What we do is for art and passion, we’re really here for them. It means we will not abandon them during times when they can't produce enough coffee beans,” shared Jayson.
Support in the form of knowledge sharing is also at the heart of the coffee scene. Expert roasters like Biboy provide mentorship to other aspiring entrepreneurs to help them hone their skills in coffee making. For him, supporting other businesses is crucial as it leads to collective growth of the whole coffee industry.
“If I do not have what the customers are looking for, I recommend them to someone else. That’s how we connect with other barista owners of pop-up coffee shops. We would endorse each other,” said Biboy.
Meanwhile, Jayson relies on roasters who calibrate coffee beans. Since he doesn’t have direct contact with coffee farmers, this helps him ensure quality beans for his business. “I have constant loyalty to my suppliers, I’d rather not sell coffee than betray them. It’s a small industry, everyone knows everyone.”
THE FUTURE OF THE COFFEE INDUSTRY
Exploring strategies where agribusinesses can take the lead in creating a more inclusive value chain can create an equitable and enabling environment, for all actors in the value chain, especially for smallholder farmers. Initiatives like the Inclusive Value Chain Philippines (IVC PH) Project that focused on a comprehensive understanding of the ‘inclusion,’ by studying the conditions and roles of various value chain actors offer hope for a more inclusive agricultural value chain across smallholder farming systems in the Philippines.
Funded by the Australian Centre for International Agricultural Research and implemented by the Commonwealth Scientific and Industrial Research Organisation in coordination 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, and the Philippines Partnership for Sustainable Agriculture, the IVC PH Project is aiming to improve the design, implementation and adoption of inclusive value chains and create a conducive environment for smallholder farmers, enabling their participation and benefitting from value chains to fulfill their aspirations and needs.
Through Focus Group Discussions, the project provided a platform for coffee players like Biboy, Jayson, and Psalm to share their insights on challenges and opportunities within the sector, gain a deeper understanding of inclusion, and identify ways to increase support for the coffee industry. Their stories align with the initial findings of the project’s Inclusive Coffee Value Chain Analysis in Sultan Kudarat which unveiled opportunities for value chain actors to engage in decision-making, such as negotiating quality, price, and supply volume throughout the chain. The project also highlighted the need for inclusive growth models not only within the coffee industry but also across various agricultural value chains in the country.
As consumers have become more sophisticated and knowledgeable, there is a growing demand for high quality coffee and better services. Realizing that they are inextricably intertwined in the complex value chain, coffee players like Biboy, Jayson, and Psalm understand that supporting each other as they navigate the challenges is a way for local business owners to adapt and set the tone of the coffee industry and the future of coffee makers in the region.
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