Page 56 - Agricultural innovation

CPC can be reflected through Lao Best Coffee Exporter 2012 for best price and quality awarded by the
Ministry of Industry and Commerce, Certificate of Fairtrade and Organic products. This certificate is
an important trademark bringing the products of CPC into the global market.

5.2.2. Model development
Bolaven Plateaus Coffee Producer Cooperative (CPC) is established in 2007 with the support of the
Ministry of Agriculture and Forestry and the French Development Agency (AFD). It was first named
the Association of Coffee Producer Group in Bolaven Plateau, then the name of this association was
changed to Bolaven Plateau Coffee Producer Cooperative in 2014. Presently, CPC employs around
36 staff. There are more than 1,800 household members from 55 villages across three provinces,
Champasack, Saravan, and Sekong.
The achievement of Bolaven Plateau Coffee Producer Cooperative (CPC) can be found in many
aspects. Inclusive development is recognized as a strong point of CPC. All members can directly vote
for their representative through the official election. The board of administration and inspection
committees is regularly elected every three years. Members of the committee represent farmers in
making decisions related to planning, managing the organization, sharing benefits, and determining
the direction of organization development. Therefore, it can be said that coffee farmers involve in all
levels of administration hierarchy, this make Bolaven Plateau CPC a real organization of farmers.
Bolaven Plateau Coffee Producer Cooperative pays careful attention to every process of production
to ensure the quality of coffee. CPC provides its members with technical assistance in all aspects
of production, selecting seeds, planting, taking care of, utilizing organic fertilizer, and harvesting.
Moreover, CPC invested in primary infrastructure such as building one processing plant and an organic
fertilizer plant. Currently, there are around 39 collective wet processing centers across communities
where CPC members live. Farmers bring freshly harvested red coffee into the wet process (pulping and
fermenting process) with a strict set of specifications that enables them to get high-quality coffee. This
wet process is an important technique that greatly enhances the organoleptic qualities of Arabica.
Bolaven Plateau Coffee Producer Cooperative always cares about sustainable production. Farmers
are supported to produce organic coffee. Presently, the area of organic coffee production covers more
than 4,000 hectares. Production with organic inputs is not only friendly to the environment and
farmers’ health, but it is also an effective way to make CPC products worth a higher price. Moreover,
promoting the application of integrated crop-forestry production is considered a successful innovation
of CPC. Farmers are encouraged to grow coffee with other types of local plants which support the
growth of coffee trees and lower the cost of production. The integrated crop-forestry system does not
only increase productivity, but it also enhances farmers’ adaptive capability and makes their coffee
production resilient to climate change.

5.2.3. Opportunities and challenges
Farmers, who are members of CPC, gain direct benefits from the growth of the Bolaven Plateau Coffee
Producer Cooperative. The benefit that coffee farmers gain from being the CPC is a significant increase
in their household income. The Certificates of Fairtrade and Organic can guarantee the minimum
price which is higher than general market price by around 45 percent over the last five years.
Some of CPC’s income and profit are allocated to invest in the infrastructure of members’
communities. The CPC invested in building more than 11 schools, drilling 15 groundwaters, donating
more than 220 water filters for 42 schools, building a health dispensary, and donating medical
equipment for hospitals in Champasack provinces. These significantly contribute to improving the
living standard of farmers and their communities.

Agricultural Innovation Review in CLV Countries 49