Value creation in coffee cultivation

The approximately 400,000 Karen people in Thailand belong to a group of related ethnic minorities and are considered mountain peoples. They live north of Chiang Mai near the border to Myanmar. They are self-sufficient, working as rice farmers, craftsmen, in the timber industry, or in elephant breeding, often at or below the poverty line. Many of the farmers also plant and harvest coffee; the highlands offer good conditions for growing Arabica coffee plants. But they have problems selling their harvest at reasonable prices. The financial thresholds for participating in the value chain in the complex process of processing coffee are high, and the often chronic debt burden forces farmers to sell their harvest quickly below fair market value.

Our local project partner, the Raintree Foundation in Chiang Mai, has been supporting Karen families for years in creating a sustainable market for their coffee harvest. It helps farmers organize themselves into village cooperatives for cultivation, harvesting, and distribution, and coordinates and advises on issues such as seeds, fertilizers, storage, quality control, and marketing.

The aim of the joint project is to develop and establish a comprehensive regional coffee production chain with modern facilities. Our project partner provides premises, personnel, and expertise; we finance machinery, training, and education for the people.

The project secures a reliable source of income for Karen families by purchasing their coffee harvest directly at fair prices and strengthens their economic independence through a variety of practical training courses in sustainable agriculture and business management. Children and young people receive solid, practical training in all areas of the coffee industry along the entire value chain: cultivation, sorting, hulling, storage, roasting, packaging, and distribution.

All proceeds from the project are reinvested in the social programs of the Raintree Foundation. The focus is on several children's homes and sponsorship programs, which now care for around 300 children.