Demand for coffee, cacao, VCO on the rise in Canada

Filipino exporters are encouraged to take advantage of the rising demand of coffee, cacao, and coconut based products in Canada.

Canadian Chamber of Commerce in the Philippines (CanCham) president Julian Payne said that aside from the increasing number of Filipinos residing in Canada who constantly demand for Philippine-made products, Canadian nationals are also starting to appreciate products from the Philippines particularly coffee, cacao (or chocolates made of cacao), and Coconut virgin oil.

“We don’t grow coconuts in Canada,” Payne said stressing that the awareness of Canadian market in health and beauty benefits of VCO pushed this sharp demand requirement.

Philippine produced cacao also has different qualities than those in the world market, and Canadian consumers are starting to notice and appreciate the Philippine-made products. This signals the rise of Cacao-made chocolate products from the Philippines.

Likewise, coffee grown from the Philippines is also gaining popularity among Canadian consumers, added Payne.

“Coffee is a big market in Canada,” added.

If taken advantaged by Filipino farmers and processors, exports to Canada is expected to grow exponentially, even with just these three products.

At present, the Philippines’ exports to Canada is very low, Payne said, it may be because trade partnership history between the two countries started only after World War 2, it’s not as solid and long as United States and Europe.

Despite its competitive advantage, the Philippine cacao production at present only stands at 10,000 MT to 12,000 MT from the 20,000 to 25,000 hectares (ha) of land planted with cacao per industry estimate.

The Philippines is still an importer of cocoa products such as chocolate, cocoa powder, cocoa beans, and cocoa butter, even if it is said to be the first country in Asia that planted cacao.

The Philippines, which lies on the so-called “coffee belt,” has favorable climatic conditions to grow all four varieties of coffee, namely Robusta, Arabica, Excelsa, and Liberica throughout the country. The largest coffee producing regions in the country are based in Mindanao – Soccsksargen, the Autonomous Region in Muslim Mindanao, and Davao.

In 2015, producers of VCO earned $151.7 million (about P6.9 billion) in export receipts, up 44 percent from $105.2 million in 2014, according to the United Coconut Associations of the Philippines.

Top destination for VCO shipments was United States with 21,329 tons or 59 percent of total volume.

Other big buyers were the Netherlands, Canada, Germany, Japan, Belgium, United Kingdom, South Korea, and Australia.