ICA-AP has collaborated with CARE France, CARE International in Lao PDR, Haliéus, Sekong Provincial and Forestry Office (SPFO), Sekong Provincial Chamber of Commerce and Industry (SPCCI) and 4Form to form a consortium that will implement the recently launched project SuPER WE Coffee - Sustainable Production and Ethic Responsible & Women Empowered Coffee value chains in Lao PDR. The implementation period officially started on 1 March 2022 as per the Grant contract signed with the European Commission.
The project valued at 2 million euros will be led by CARE France, with support from other collaborators. A preliminary meeting was organised between all the partners and associates on 11 February 2022.
The project supports the development of a green, low-carbon, resource-efficient and more circular economy, and contribute to poverty reduction. It focuses on improving the economic profitability, efficiency and sustainability of intensified coffee production by smallholder farmers. Coffee in Laos being a commodity with high potential for poverty reduction and climate change resilience of rural groups. It will develop and adopt less polluting and more resource-efficient and circular products, processes and services by Micro, Small and Medium Enterprises (MSMEs) allowing their integration to global greener value and supply chains.
Globally, coffee is the single most important commodity with an estimated 25 million coffee-growers worldwide. The speciality coffee market is increasing 25% per annum, at a rate of 400,000Mt. At present, there are no countries that can increase the capacity of speciality coffee production to meet this demand. This gap in the supply to meet demand presents the greatest opportunity for value capture for the Dakcheung coffee producers of Lao PDR. The country is in a period of dynamic change and rapid economic growth, aiming to graduate from Least Developed Country (LDC) status by 2026. Much of the progress relies on increased foreign direct investment and the country’s transformation into a regional provider of natural resources (cash crops among others).
The project will directly target 400 coffee farmers in 15 target villages within the district of Dakcheung. 12,000 people in the district (approximately half the population of the district), whose economy is dependent on coffee production will significantly increase their income opportunities, reduce the risks connected to unsustainable agricultural and manufacturing practices, and increase their resilience to climate change. At the national level, as a result of replication and dissemination events with government ministries and stakeholders, the project is expected to benefit 20,000 smallholder families making a living from selling coffee beans, and more than 300,000 people engaged in jobs linked to the coffee industry.
ICA-AP regional office worked closely on the concept note and proposal of the project along with several partners of the consortium over the period 2020-21. During the project implementation, ICA-AP will contribute to strengthening cooperative–principle-based organizations and networks of coffee producers. It will also support women local producers’ groups and cooperatives in linking up with the local and international market. Lastly, it will work to ensure the Dakcheung model and practices are disseminated for replication at the national level and investment supporting mechanisms are well designed.
Presently, CARE is arranging the preliminary steps concerning the negotiations in signing the Memorandum of Understanding with the Government of Lao PDR, which is necessary to start any field activity. The field activities (including a kick-off meeting) are expected to begin implementation in May/ June 2022.
