Supply Chain Analysis of Civet Coffee

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  • Topic: Kopi Luwak, Asian Palm Civet, Coffea
  • Pages : 5 (1229 words )
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  • Published : February 2, 2013
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Karl Abellanosa

Mary Cris Corpuz

ChristyJean Gempisaw

In partial fulfilment of the requirements for ABE151 under the advisory of

Ms. Exegesis Jedidiah Ebarle

October 2012

INTRODUCTION

A. Background of the Study

Asian Palm Civet (Paradoxurus hermaphrodites), is a small, lithe-bodied, mostly nocturnal mammal native to the tropical Asia and Africa, especially in the tropical forests. These civets, related to the mongoose, are cat-like creatures that feed on sweet coffee berries. The civets, digest the flesh of the coffee cherries but pass the beans inside, leaving their stomach enzymes to go to work on the beans, which adds to the coffee's prized aroma and flavour. Only around 1,000 pounds (450 kg) of civet coffee make it to the market each year, and 1 pound (0.45 kg) can cost up to $600 in some parts of the world and about $100 a cup in others. (Mathai, 2010).

Civet coffee (Kopi luwak) is produced mainly on the islands of Sumatra, Java, Bali, and Sulawesi in the Indonesian Archipelago. It is also produced in the Philippines (where the product is called motit coffee in the Cordillera, kape alamid in Tagalog areas). Kopi luwak is the most expensive coffee in the world, selling for between US$100 and $600 per pound. Civet coffee ranked third from the most expensive coffees in the world. Thus, most of the consumers of this coffee belong to the high income and wealthy group. Source?

The production and export of coffee was once a major industry in the Philippines, which 200 years ago was the fourth largest coffee producing nation. Today, however, the Philippines produce only .012% of the world's coffee supply. This low productivity was due to continous industrialization in areas near urban areas. Source?

Juan, 2012 stated that the Philippines remains a net importer of coffee due to increasing demand which today stands at 65,000 MT. This increasing demand, demands us also to produce more coffee.

A study of Joyce Lacandula regarding the potential demand of civet coffee as new sources of income for farmers, showed that income affects willingness to pay. As determined in this study, the major downside in marketing this productis its high price.

B. Objectives of the Study

The study generally aims to compare the potential demand of Civet Coffee in Davao City and in Cordillera. Specifically, it aims to;

1. Identify the potential demand and marketability of Civet Coffee in Cordillera.

2. Compare the result of the previous study regarding the demand for civet coffee in Davao City and in Cordillera.

C. Scope and Limitations

The study focuses on comparing the potential demand of Civet Coffee here in Davao City and demand for the same coffee in Cordillera Province. The study is limited to the demand of Civet Coffee in Philippine setting only. The researchers used the thesis of Joyce S. Lacandula entitled “Potential Demand for Civet Coffee in Davao City” as a basis for comparison of the demand. The data used by the researchers came from the thesis itself and secondary data collected from the internet.

The researchers was not able to work on the given recommendations of the chosen thesis because of some constraints such as time. Nevertheless, a comparative analysis of potential demand of Civet of Davao and Cordillera Province was undertaken.

D. Significance of the Study

There has been a study regarding the potential demand for Civet Coffee here in Davao City (Lacandula, 2009). However, there has been no study conducted comparing potential demands of the said coffee from other places. This study provides a new potential demand of Civet Coffee and allows us to compare the demands of the two places. Being aware of the different demands of Civet Coffee across places can help us understand the aggregate demand of the product. Comparing these demands can...
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