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The Applicant Series #15: Business Case

The Applicant Series showcases works done by hopeful writers who have applied with inkmypapers over the years. The results and comments will be provided first, followed by the actual essay/report written by the applicant

Applicant’s Results: Passed

Title: The Business Case For Coffee. A dissertation/business report on the case for coffee

Comment: This is done by one of our applicants and it is very well done instead. Due to confidentiality issue, we cannot show the entire piece and the below is just a part of the executive summary. As it is an executive summary, you will not see any in-text citations.

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Coffee is positioned as the second most traded commodity in the world market next to petroleum oil and the second most drank beverage. The huge and growing demand, as well as the shortage of supply for coffee, in both domestic and export markets make this tree crop an attractive investment option. There are also private sector movers with the technical expertise on coffee production and marketing that prove coffee as a viable business venture. The suitability in terms of agro-climatic conditions, short gestation period, low cost for maintenance, and its potential to provide employment and income opportunities both at lowlands and highlands further give reasons to invest in coffee.

This study used primary and secondary data, including key informant interviews with players located in the study areas. The areas include Tagbina, Surigao del Sur; Dalwangan, Malaybalay, Bukidnon; and Davao. Secondary data were gathered from government agencies such as the Bureau of Agricultural Statistics (BAS), National Statistics Office (NSO), and Provincial/Regional Agricultural Planning and Development Offices; and international organizations such as the International Coffee Organization (ICO), United States Department of Agriculture (USDA), as well as internet searches.


A study on the overall situation of the coffee industry on global and local perspectives, and the inclusive business models on coffee of three private sector movers namely Nestlé Philippines, Inc., Rocky Mountain Arabica Coffee Company (RMACC), and Coffee for Peace (CFP) were conducted to provide a basis for the conceptualization of IB agribusiness projects. This study was funded by Advancing Philippine Competitiveness Project (COMPETE), which is part of the United States Agency for International Development.

The principal objective of the study is to develop an implementable and replicable investment proposals on coffee. Specifically, the study aims to do the following:

  • provide a situational assessment of the cacao industry
  • develop a business case for cacao
  • recommend implementation plans


World Setting There is a four percent improvement per annum in production from 104 million (M) 60-kilogram (kg) bags (6.2 M tons) in 2003 to 145 M bags (8.7 M tons) in 2012 due to improved production in countries like Brazil and Colombia. Among the many varieties of coffee, Arabica accounts for about 70 percent of global output and Robusta with about 30 percent. In 2003 to 2012, both of these varieties showed significant increases in production.

In the same ten-year period, coffee bean exports increased by three percent per annum, with average of 96.3 M bags per year. Brazil, Vietnam, Indonesia, Colombia, and Honduras are the key coffee bean producers and exporters; which accounted for 77 percent of total exports in 2012. On the other hand, there is also an increase in imports by two percent annually from 2003 to 2012; with USA, Germany, Italy, Japan, and France as leading importers.

As exports and imports figures improve, consumption also rose by two percent in 2012 and is expected to continue to increase. However, world net supply of green coffee bean fell down during the said period. There is also a fluctuation in the overall monthly prices of coffee despite the increase of 15 percent in the prices of Arabica and Robusta.


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