SAGADA, the Philippines ? Goad Sibayan went prospecting recently in the remote Philippine highlands here known as the Cordillera. He clambered up and then down a narrow, rocky footpath that snaked around some hills .

Reaching a valley where coffee trees were growing abundantly, he scanned the undergrowth where he knew the animals would relax after picking the most delicious coffee cherries with their claws and feasting on them . His eyes settled on a light, brownish clump atop a rock. He held it in his right palm and, gently slipping it into a little black pouch, whispered:

“Gold!”

Not quite. But Mr. Sibayan’s prize was the equivalent in the world of rarefied coffees: dung containing the world’s most expensive coffee beans.

Costing hundreds of dollars a kilo, these beans are found in the droppings of the civet, a nocturnal, furry, long-tailed catlike animal that prowls Southeast Asia’s coffee-growing lands for the tastiest, ripest coffee cherries. The civet eventually excretes the hard, indigestible innards of the fruit - essentially, incipient coffee beans - though only after they have been fermented in the animal’s stomach acids and enzymes to produce a brew described as smooth, chocolaty and devoid of any bitter aftertaste.

As connoisseurs in the United States, Europe and East Asia have discovered civet coffee in recent years, growing demand is fueling a gold rush in the Philippines and Indonesia, the countries with the largest civet populations. Harvesters are scouring forest floors in the Philippines, where civet coffee has emerged as a new business. In Indonesia, enterprising individuals are capturing civets and setting up minifarms, often in their backyards.

Given the money at stake, fake and low-grade civet coffee beans are also flooding the market.

“Because of its increasing popularity, there is more civet coffee than ever, but I don’t trust the quality” said Rudy Widjaja, 68, whose 131-year-old family-owned coffee store in Jakarta, Warung Tinggi, is considered Indonesia’s oldest.

Competition is touching off fierce debates. What is real civet coffee, anyway? Does the civet’s choice of beans make the coffee? Or is it the beans’ journey through the animal’s digestive tract? Can the aroma, fragrance and taste of beans from the droppings of a caged civet be as tasty as those from its wild cousin?

Vie Reyes, whose Manila-based company, Bote Central, entered the civet coffee business five years ago, said she bought only from harvesters of the wild kind. Ms. Reyes exports to distributors overseas - Japan and South Korea are her biggest markets - and also directly sells kilo bags for $500.

In Indonesia, a shrinking civet population is creating obstacles for those hoping to ride the civet coffee boom. Civet coffee has long been centered in the western island of Sumatra, where a growing human population, economic development and deforestation have eroded their habitats.

Mr. Widjaja, the Jakarta store owner, said that the Dutch, who ruled Indonesia for more than three centuries, and Japanese soldiers, who occupied the country during World War II, were the most die-hard drinkers of civet coffee. But the coffee all but disappeared after the late 1950s, he said, and resurfaced on the market only after its reputation began spreading overseas. After he began fielding inquiries in 2007 from interested buyers in the United States, Japan and Taiwan, he secured a regular supply of wild civet coffee and began selling it only last year - at $300 a kilo.

In Liwa, a small town in southwestern Sumatra, more than 30 families were involved in civet coffee.

Mega Kurniawan, 28, entered the business two years ago by setting up shop in the backyard of his family home. He had already expanded to three other locations and was now in civets full time. With a total of 102 civets, he gathered about 250 kilos of beans a month.

During the day, Mr. Kurniawan’s civets slept inside their small wooden cages before growing active at dusk. At night, the animals ate from fresh plates of coffee cherries, replenished every two hours, or paced back and forth at a caffeinated clip.

Though caged, the civets ate only about half of the beans placed before them, choosing only the best specimens, Mr. Kurniawan insisted. He dismissed connoisseurs’ criticism that stress felt by the caged animals invariably affected the taste of the beans.

“It’s the same,” he said, acknowledging, however, that some buyers preferred wild civet coffee. “Maybe it’s the prestige.”


By NORIMITSU ONISHI


KEMAL JUFRI FOR THE NEW YORK TIMES
Civets in Liwa, in Sumatra, eat coffee cherries. Their droppings contain fermented coffee beans.