Cadiz to build coffee processing plant through Aboitiz CSR fund

SHARE THIS STORY
TWEET IT
Email

• GILBERT P. BAYORAN

The Cadiz city government in Negros Occidental is set to use the corporate social responsibility (CSR) fund of AboitizPower to build a coffee processing plant, a key component of its ambitious program to develop a sustainable coffee industry in the city’s upland communities.

Mayor Salvador Escalante Jr. said on Friday, July 24 the project will support the city’s target of expanding its coffee plantations to 1,000 hectares, or about one million coffee trees, within the next four years in Barangay V.F. Gustilo.

“We have already started planting 250,000 coffee trees covering 250 hectares, and this processing plant signifies the seriousness of the Cadiz City government and our private partners in pursuing this dream,” Escalante said.

On Friday, Aboitiz Renewables broke ground for its 239-MWp Luna Solar and 65-MW Battery Energy Storage Project in Barangay Luna.

The mayor said the processing facility, estimated to cost between P15 million and P20 million, will be financed through Aboitiz Power’s CSR program after he proposed the project as a more sustainable alternative to the company’s traditional feeding initiatives.

“I lobbied this project to Aboitiz. Instead of the usual feeding program, since the city already has an ongoing feeding program, I suggested a livelihood project that would create long-term benefits. They agreed, especially since Barangay V. F. Gustilo is the center of our coffee plantations,” Escalante said.

He lauded Aboitiz Power for partnering with the city government and sharing its resources to help realize the project.

More than 1,400 coffee farmers, representing about 1,500 families, are expected to benefit from the program, equivalent to about 10 to 15 percent of Cadiz City’s population, the mayor said.

“This is a sustainable investment that will help curb hunger in the hinterlands of our city,” Escalante said.

The coffee farms are being established in estate lands managed through the Department of Environment and Natural Resources’ Protected Area Community-Based Resource Management Agreement program, allowing qualified occupants to legally cultivate coffee through tenurial instruments.

Escalante said coffee was chosen because it complements the city’s reforestation efforts.

“Coffee is a tree crop. If we only plant timber trees, they will eventually be cut after five to 10 years, defeating the purpose of reforestation. With coffee, farmers harvest the beans without cutting the trees while the shade trees remain protected,” he explained.

The city government has been providing free seedlings, fertilizers, soil conditioners, technology and other farm inputs while farmers contribute labor and land.

The Department of Labor and Employment, through its Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program, has also supported the initiative by providing wages to participating farmers.

“Instead of clearing grass along the roads, TUPAD beneficiaries are working in the mountains, helping establish the coffee plantations while earning an income,” Escalante said.

Once completed, ownership of the processing plant will be transferred to the farmers, who will operate the facility and market their own products.

“Our business model is simple. Farmers cultivate the coffee, the government provides support, Aboitiz and other partners help build the processing facility, then the farmers themselves process and sell the coffee. We want to eliminate the middlemen so farmers will enjoy the full benefits,” he said.

At present, the city government buys red coffee cherries from farmers at P50 per kilogram.

Escalante said the city has also sent delegations to Vietnam, Brazil, Indonesia and Japan to study coffee production, processing, and marketing practices.

The city government is already producing its own Nakar Highlands Coffee, which the mayor hopes will become a flagship product of Cadiz.

Escalante said the coffee program comes at an opportune time as sugar farmers continue to face challenges from the red-striped soft scale insect (RSSI) infestation.

“Crop rotation is one of the recommended responses to RSSI, aside from chemical and biological control. Hopefully, coffee will provide our farmers with another sustainable source of livelihood,” the mayor added. | GPB