NABUNTURAN, Davao de Oro — The Department of Agriculture in Davao Region and private sector partners signed a Memorandum of Agreement on October 1, 2026, to strengthen coffee farm productivity and market linkage. The signing took place during the Regional Coffee Expo 2026 at Café Noventa.
A Partnership Rooted in Global Exposure
DA-11 Regional Executive Director Macario Gonzaga signed the agreement alongside Jan Romeo Verueco of Verueco Ventures Corporation and Teofilo Coffee Company, Joey Marcelo of Elevate Foods Group Corporation, Jovannie Mondaya of Kuya Gio Coffee Farm, and Shosi Mari Larido of Pedings Coffee Farm.
The partnership traces its origins to DA-11's participation in the Specialty Coffee Expo 2025 in Houston, Texas. Initial discussions with Teofilo Coffee Company explored opportunities to strengthen the Philippine coffee industry, particularly in positioning Davao Region coffee for international markets.
Over seven months, the parties engaged in negotiations and online consultations to develop the investment framework. The Agribusiness and Marketing Assistance Division of DA-11 facilitated these discussions, ensuring that farmer interests remained central to the final agreement.
Direct Investment for Five Hectares
Under the agreement, five hectares of coffee farms will receive investments from Verueco Ventures and Teofilo Coffee Company totaling ₱1.96 million. This includes ₱1.15 million for Larido's two-hectare farm and ₱805,000 for Mondaya's three-hectare property.
The funds will cover production support, labor, and annual farm expenses based on approved work plans. This direct capital injection relieves smallholder farmers of heavy upfront costs and financial risk, allowing them to focus on improving crop quality and yield.
Participating farms gain resources to sustain and improve operations without shouldering the entire financial burden. The structured approach ensures that investments translate into measurable improvements in productivity and bean quality, shifting production toward premium specialty grades.
Opening Doors to Global Markets
Partnering with US-based specialty coffee distributors creates a direct export pipeline for Davao farmers. This allows them to bypass intermediaries and command higher farmgate prices for their beans. Teofilo Coffee Company's involvement provides access to international consumers seeking traceable, high-quality coffee.
The agreement also emphasizes farm rehabilitation and yield improvement. Work plans focus on restoring existing farms, enhancing bean quality, and positioning Davao de Oro as a premier specialty coffee origin. These efforts aim to elevate the region's standing in the global coffee industry.
A Replicable Model for Rural Development
The partnership combines government support with private capital and international buyers, establishing a blueprint for future investments. Similar agreements could expand across Davao del Sur and other provinces, boosting rural employment and agricultural income.
By linking farmers directly with the private sector, the MOA reduces dependency on middlemen and creates a more equitable value chain. The model demonstrates how public-private collaboration can drive sustainable growth in the agricultural sector.
The agreement marks a concrete step toward improving farm productivity, coffee quality, and market access across the Davao Region. It signals growing confidence in the region's ability to produce world-class coffee while supporting the livelihoods of local growers.
