ORGANIC ARABICA COFFEE AGRO-ECOLOGY PRACTICE THROUGH DIRECT MARKETING

BY SMALLHOLDER INDIGENOUS FARMERS IN THAILAND

Thirach Rungruangkanokkul

Executive Director

Agricultural and Food Marketing Association

for Asia and the Pacific(AFMA)

Thirach.R@AfmaAsia.Org

ABSTRACT

Small farmers have been facing many challenges to develop and deliver their safe-food to

consumers including:

I. capacity for good agro-ecological practice and market access

II. negative chemical effects from neighboring contaminated farms

III. relatively low and fluctuate crop prices in partial value chain

IV. limited negotiating power and time constraint

V. high individual logistic management cost

VI. management and marketing cost

VII. limited manpower

ABSTRACT (2)

more visible and more demand of good agro-ecological practice

create good practiced produces through brand promise

gain more reasonable market price and ability to communicate directly to consumers

perform more important role in sustainable value chain

INTRODUCTION

The Communal Life of Love and Unity of the

Mountain People (CLUMP foundation)

- 1,144 smallholder indigenous farming

families

- growing Arabica coffee under the shade of

high altitude rain forests

- Organic system for biodiversity and sustainability

MARKET ACCESS THROUGH DIRECT MARKETING INCREASING IMPORTANT ROLE IN SUSTAINABLE VALUE CHAIN

Product development: The first 4 P’s with Agro-

Ecological practice

Organic coffee cherries are procured with

15-25% price premium to the indigenous

small farmers.

Every single coffee cherry is hand-picked,

roasted and grounded by manually honey-

processed.

MEASURABLE BENEFITS FOR THE MEMBERS

Positive Effects: Quantitive indicators

During 2014-2015 total of 1,144 families

Improved the green coffee bean price of at least THB 5.0 per kilo (USD 0.143) to network

members.

CLUMP foundation beneficiaries were gradually increased in 2015.

ORGANIC CERTIFICATION AND BRAND PROMISES

Environmental benefits

Economic benefits

Social benefits

1) To create visibility through organic learning

- implementing - and certifying.

2) To better understand the benefit of

organic farming in 3 key areas:

The freshly picked coffee cherries are perishable while

turning coffee cherries to green beans and ready to

drink roasted coffee have added value with longer shelf life

Price strategy

Product differentiation and brand creation

Unique characteristic at more affordable

prices

Higher brand communication and logistic

cost

Channel of Distribution

Supply green beans to institution buyers

and international roasters

Retail 'LIFE Coffee' through retail outlets

and e-commerce

Ready to drink through own retail outlets

Non financial Immediate benefits:

Preserve the existing rain forest

Strengthen the community bond

Knowledge development

Awaken the sense of belonging to the need

to co-exist happily with nature

Long term nonfinancial benefits:

Re-foresting the barren land

Witness and sustain the values of holistic

living among mountain peoples.

Modify and apply traditional life style fitting

to the fast changing mainstream

development.

Nature will regain its resources and

prosperity.

CONCLUSION

Market development to support

smallholder farmers

Lower the overhead cost while increase

market access through direct marketing

and cooperatives

Agro-ecological practices with 3

sustainable pillars including economic, social, and environment.

Q & A