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Yes, you heard it right about the droppings. But hold on a second, it's not really the droppings that are made into coffee---it's the coffee beans that are found in the droppings. Farmers near Mt. Malarayat in Batangas province in the Philippines have been making coffee from such beans for a long time.
Apparently, coffee beans that go through the digestive tract of the civet cat gives it a distinct musky-sweet flavor which makes it very rare and expensive. Already a popular product in Indonesia, the Philippines may soon market the product for export. Only 500 grams are produced every year and roasted beans sell for $115 for a kilogram. The photo is from http://news.bbc.co.uk/2/hi/asia-pacific/4896230.stm
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