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Raising a Village, One Cup at a Time

John M. Darch CEO Doi Chaang Vancouver, Canada, Thai general manager Sandra Bunmusik, John A. Darch CFO Doi Chaang Vancouver, Canada and Wicha Promyong, president Doi Chaang Chiang Rai, Thailand

 

For more than three decades, I have been involved with numerous natural resource projects in North America, Africa and Asia, meeting many interesting (and sometimes unsavoury) people. None, however, compare with the intriguing and friendly Thais. Like most Western entrepreneurs in Thailand, I was mostly involved with the established business society. It was not until 2006 when my Thai friend Ponprapa Bunmusik introduced me to the Akha hill tribe people of Doi Chaang near Chiang Rai and I spent time with them that I began to understand their struggle for dignity and their desire to be more than a tourist attraction.

Their story seemed incredulous: a hill tribe living in Doi Chaang Village (primarily of Akha heritage) had, through sheer determination and dedication, created a viable business cultivating an outstanding quality coffee. I was surprised that coffee was even grown in Thailand, never mind that it was being achieved with no government assistance or donations.

Thailand’s Doi Chaang Coffee has gotten some good television coverage over the last few months in Canada. Global TV sent a crew here to make a documentary about the project.

I learned that the villagers wanted to expand their business internationally and my friend wondered if I would be interested in another Thai business venture. I agreed to meet them out of politeness and was introduced to Khun Wicha Promyong, the man responsible for leading the Akha tribe in their quest to be self-sufficient. Wicha, a former world-travelled entrepreneur, comes from southern Thailand and having enjoyed the privileges of education, healthcare and wealth, he gave all of it up more than 30 years ago to live and travel with Thailand’s hill tribes. His home is now with “his people,” the Akha hill tribe in Doi Chaang village and his “mission” is to help them have dignity and to become self-sustaining.

When we met in Bangkok, Wicha explained how the many hill tribes originally migrated from southwestern China, eventually settling in scattered, isolated communities in the mountainous regions of Laos, Vietnam and Northern Thailand. Apparently, at one time, the hill tribes of Northern Thailand sustained themselves through slash and burn horticulture, but the increased population of the last century depleted the land and many of the hill tribes resorted to cultivating opium for survival.

Rich in culture and tradition, shrouded in myth and legend, the Akha people have no official written language, but maintain a detailed, oral history and live life according to the “Akha Way,” a spiritual, moral and social philosophy that governs behaviour and emphasizes strong ties to land and family. Yet, of all the hill tribes, few were as downtrodden, shunned or as impoverished as the Akha people.

The growers of Doi Chang harvest coffee cherries from November to March

Arriving at Doi Chaang village (literal translation: Elephant Mountain), I was expecting the familiar destitute village that had become the symbol of the typical hill tribe community. However, here was an energetic farming community, complete with rudimentary electricity, running water, a school and a medical clinic. Some 20 years ago, in the hope of steering hill tribes away from cultivating opium, His Majesty the King of Thailand directed the farmers be given coffee plants. Sadly, because the farmers were acting independently and were inexperienced in business practice, their lives barely improved. To sell his beans, each farmer had to transport them some 70 kilometres to Chiang Rai, the nearest city, where the international coffee dealers kept the farmers divided and paid them minimal prices. In frustration, the Akha villagers turned to Wicha, who lived in Chiang Rai, for help. As a first step, Wicha encouraged all the Doi Chaang farmers to become a co-operative, thereby making it impossible for the coffee dealers to play one family against another. His next focus was educating the farmers in the importance of quality and productivity. In just over six years, this once small, isolated, poor village was transformed.

In my meeting with Wicha, he pointed out where clear-cut sections from past farming practice are now being reforested with a variety of trees, bushes and plants. The reforestation supports the production of various crops, which not only provide food, but are also sold to help support and diversify the village’s economy. This cultivation method maintains soil quality, as the canopy protects against the sun and the rain and eliminates the need for continuous weeding and the use of harmful chemicals. The result is rich, fertile soil that sustains diverse crop production for present and future generations.

I couldn’t help but feel somewhat guilty. My own business ventures have been in natural resource development where the resources are eventually depleted, projects with a finite life that has inevitable consequences for employees and their families. I was now presented with a business that could expand without depleting resources or exploiting workers and their families. So what did the people want with me? Wicha didn’t ask me for money and I didn’t offer. Instead, he wanted a business relationship for his people. As I learned, Doi Chaang’s success was such that production had exceeded demand in Thailand, and Wicha, forever the visionary, wanted me to introduce their coffee to the North American market. There were two conditions: to ensure the villagers’ self-esteem, their coffee had to be sold under the name Doi Chaang (Elephant Mountain) and the label had to bear the words “single-origin.”

L to R: Brother Wicha, Doi Chaang village leader Piko Saedoo, John M. Darch

It is important to understand that these people do not want charity, but a fair price for their coffee. The Akha farmers told me they want people to buy their coffee for the “quality,” not out of sympathy, as beyond improving their lifestyle; the most important thing to these people is respect and recognition of their achievements.

Wicha told me that international investors and coffee buyers constantly approach these people, looking to invest and control their coffee production. Their intent is to blend the beans with other coffees and market them under a different name because “Doi Chaang” sounds too ethnic. The potential buyers argue that they must have control and that it would be too expensive and difficult to market internationally a single-origin, Arabica coffee from Thailand, essentially unknown outside Asia.

I was captivated and immediately contacted Wayne Fallis, a colleague in Canada with extensive experience in food exporting and importing. I convinced him that I had found a project that would offer more than a financial return. We then sought the opinion of Calgary-based, Shawn MacDonald, well known for his extensive knowledge of coffee. MacDonald not only confirmed that Doi Chaang Coffee was a “world class” coffee, but he agreed to join our venture as Roast Master and vice-president of operations. And so we began what is probably a unique business arrangement in the coffee world. The farmers maintain total ownership and control of their own Thai company and domestic sales. In addition, they would also have a “carried” 50 percent interest in the Vancouver and Calgary based Canadian company, Doi Chaang Coffee Company, created to roast and distribute Doi Chaang coffee in North America. My colleague and I agreed to personally provide 100 percent of the finance required for all aspects of the Canadian operation leaving the hill tribe to focus on production, quality control and expansion.

This structure provides the hill tribe people with a no-lose business arrangement. We buy the green beans from the farmers, for cash, at a price in excess of the recommended price, which gives them an immediate profit and the ability to continue their coffee production. And because of the ownership in Doi Chaang Coffee Company, they also receive 50 percent of the Canadian company’s profits without any cost to them.

I am proud of how the Akha farmers use their coffee revenues to improve the standard of living for their community and the quality of their coffee. Having been isolated and impoverished for so long, they are now recognized and praised for their achievements, held up by Thailand officials as a “role model” for other hill tribe communities. In 2007, the farmers demonstrated their commitment to their community by building the Doi Chaang Coffee Academy, at their own expense. All hill tribe farmers may attend at no cost to learn about co-operative business practices, diverse crop production, quality control and sustainable agriculture. The farmers are also taught personal money management skills and the importance of education and healthcare. The ultimate goal is for the hill tribes to be accepted and welcomed as productive, contributing members of Thai society.

I am determined to make Doi Chaang Coffee a success in North America because I strongly believe that this is an alternative and viable way of doing business with the coffee farmers. I believe in the Akha hill tribe’s courage to persevere and I believe in their determination to better themselves and take control of their own future. I believe in their children, their community, their potential and their ability to sustain and grow their own business without any negative impact on their culture, community or environment.

By John Darch chairman of Doi Chaang Coffee in Canada.www.doichaangcoffee.com

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Posted by on Oct 27 2011. Filed under Stories about Chiangrai. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
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