Trends and Issues of the Coffee Industry of Ifugao: an Empirical Analysis

Jennifer Madonna G. Dait

Abstract: This paper primarily aimed on analyzing the trends and issues affecting the coffee production in Ifugao. The study uses ordinary least squares regression to analyze sustainability variables land area, number of bearing trees and average farm gate price against volume of production from 1990 to 2014. Subsequently, the researcher obtained significant results. It was found out that Land area, Farm gate price and Number of bearing trees were significant. It was also observed that average farm gate price had an indirect relationship with volume of production. This reflects that if average farm gate price increases, volume of production decelerates. These figures show that no established market exists yet for coffee in Ifugao. The proximity effect exhibited by the findings raises the need for economies of scale in dealing with the factors affecting volume of production of coffee in Ifugao. Efforts to strengthen regional trade and integration may be an important strategy to enhance the industry.

Keywords: coffee, land area, bearing trees, regression