Thesis (BS Agribusiness Economics) University of the Philippines Mindanao, 2024

Specialty coffee is an emerging trend in the global coffee industry, driving advancement in production, processing, and ethical practices. In the Philippines, this trend presents an avenue for the growth of the Philippine coffee sector and offers a significant market opportunity for coffee farmers, especially those aiming to increase their income from coffee farming. Data from 120 coffee enterprises in Davao City, gathered through random sampling and analyzed using Multinomial Logistic Regression was used to determine the factors influencing the purchase of specialty coffee. Results revealed that firms who continue to purchase specialty coffee are sole proprietorships, micro-sized, and led by younger decision-makers. Furthermore, firms that discontinue their purchase of specialty coffee are partnerships with low monthly gross sales, do not roast their own coffee beans, and have decision-makers with lower levels of education. Finally, firms do not employ a Q-grader, and are led by older decision-makers. Qualitative insights reveal that a specialty coffee enterprise purchases specialty coffee to innovate new flavor and aroma profiles while emphasizing the symbolic attributes of their coffee beverages, such as single origin and traceability. To achieve this, they establish a direct-trade relationship with coffee producers, use artisanal brewing methods, and rely on the expertise of a Q-grader for sourcing coffee beans. Based on these findings, it is recommended to increase the accessibility of q-grading programs, facilitate producers’ access to networks through localized coffee expositions, and increase training opportunities for youth. For future research, it is recommended to identify the challenges encountered by specialty coffee producers when marketing to coffee enterprises and propose strategies to improve their access to this market.