This document discusses how a foundation in Thailand called CLUMP helps over 1,000 smallholder indigenous farmers practice organic coffee farming. Through direct marketing, the farmers receive a 15-25% price premium for their organic coffee cherries. The coffee is then processed and sold under the LIFE Coffee brand. This approach has improved farmers' income while promoting more sustainable agriculture, community development, and environmental protection.

1. ORGANIC ARABICA COFFEE
AGRO-ECOLOGY PRACTICETHROUGH DIRECT MARKETING
BY SMALLHOLDER INDIGENOUS FARMERS INTHAILAND
Thirach Rungruangkanokkul
Executive Director
Agricultural and Food Marketing Association
for Asia and the Pacific(AFMA)
Thirach.R@AfmaAsia.Org

2. 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

3. 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

4. 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

5. MARKET ACCESS THROUGH DIRECT MARKETING
INCREASING IMPORTANT ROLE IN SUSTAINABLEVALUE 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.

7. 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.

8. 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:

9. 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

10. 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

11. 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.

12. 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.

13. Q & A