OR’s SDG = Small-Diversified-Green policy boosts economic growth and sustainability in Thailand through coffee cultivation
The mission for most large organisations, both in Thailand and globally, is to achieve a reduction in carbon footprints by 2030—just 6 years away. Thailand faces numerous critical challenges in its pursuit of success. However, the key issue it needs to address to move forward involves social development, where “small people” (individuals from small communities) are expected to drive economic growth through rapid solutions supported by large organisations in Thailand.
During Thailand’s economic recovery, the tourism sector is anticipated to be a major driver of the country’s GDP in 2024, with at least 30 million inbound arrivals from overseas and domestic travels. Small communities and locals are recognised as assets in driving prosperity, given the potential growth in hospitality, transportation, and retail businesses.
Aligned with the UN SDGs, PTT Oil and Retail Business (OR), a subsidiary of PTT operating in oil and retail, has, since 2018, embarked on a policy to propel national economic growth through sustainable practices in oil, retail, and related businesses.
Acknowledging that a significant portion of Thailand’s population is unaware of the environmental crisis, and a UNICEF report finds children in Thailand at ‘high risk’ from climate change and environmental degradation, OR has devised a strategic policy emphasising Small, Diversified, and Green (SDG) to enhance the quality of life among underprivileged and small communities in Thailand. One of OR’s initiatives to raise awareness and generate income is its coffee shop chain, “Café Amazon,” which expanded to over 4,100 domestic outlets as of 2023.
SUSTAINABLE COFFEE CULTIVATION AND ECONOMIC EMPOWERMENT
In January 2024, OR is progressing towards the sustainable coffee planting promotion under the “market-led” production framework in collaboration with Ministry of Agriculture and Cooperatives to enhance knowledge and skills in growing premium quality coffee and agro plants to supply the market, enabling certain production and stable income. Furthermore, the project is set to help increasing efficiency in growing coffee to yield the production and quality standard on par with the global standards and deliver the local identity through the coffee’s unique flavour while promoting ecological farming practices.
To support the rising coffee supply, OR led by CEO Disathat Panyarachun along with Chintapun Dansubutra, Independent Director /Chairman of the Corporate Governance and Sustainability Committee / Director of the Audit Committee; Tawatchai Cheevanon, Independent Director / Director of the Corporate Governance and Sustainability Committee / Director of the Nomination and Remuneration; Prof. Dr. Bundhit Eua-Arporn, Independent Director / Chairman of the Nomination and Remuneration Committee / Director of the Audit Committee; Komol Buaket, Director /Director of the Corporate Governance and Sustainability Committee; and executive board members, visited prospective cultivation sites in Thailand’s Northern region. Nan province, known for its high poverty rate, was selected for sustainable coffee farming, specifically in the villages of Ban Pangyang and Ban Khun Goon in Pua District.
Farmers in these areas primarily grow corn and vegetables as their main source of income, with melons providing a secondary income. Since 2013, nearly half the village farmers have attempted to grow coffee. However, due to water shortages during the drought season and a lack of coffee cultivation knowledge, there are only approximately 3,500 coffee trees in the area, yielding about 2,000 kilogrammes of coffee cherries (or roughly 350 kilogrammes of coffee beans). Unfortunately, coffee farmers have struggled due to the lack of a stable market demand.
Following the company’s vision of “Empowering All toward Inclusive Growth,” OR has enabled growth opportunities through various community projects. Starting in September 2023, local farmers in Pua District have been supported by OR and the Ministry of Agriculture and Cooperatives in promoting and developing high-quality coffee farming. This initiative has transformed and expanded existing watersheds and degraded cultivation areas, tripling profits from growing Arabica per rai and stabilising market demand, thereby ensuring a stable income for farmers. As for the crop yields, OR is projected to purchase the coffee cherries from the pioneering areas in Nan. Support for farmers in Ban Pangyang and Ban Khun Goon includes providing two coffee seedling plants, two coffee drying plants, and water pipe systems to encourage coffee cultivation. By the end of the 5-year sustainable farming initiative, it aims to eradicate poor farming practices in the region.
ENHANCING COMMUNITY WELFARE AND ENVIRONMENTAL AWARENESS
In addition to green farming practices, OR is extending support to local schools in Nan as part of the “Yak Lak Yim” campaign, the waste separation and recycling project, now in its third year, aims to foster environmental preservation awareness among the public. During OR executives’ visit, teachers, students, and staff were given the “Yak Lak Yim” rubbish bin to promote green attitude and behavioural changes, realising the critical need to separate wastes before recycling process.
Daroonwittaya Tedsaban Muang Nan (Bansuantan) School, with 218 students, is making strides in waste management through recycling. Supported by OR’s Green policy, students learn innovative waste separation and recycling methods, generating income from waste. Daroonwittaya School is thus championed as an advocate for extending OR’s project to broader community, societal, and national levels.
OR’s support extends to donating educational equipment and daily groceries to Pangyang School, located near the coffee plantation promotion project area, to ensure 59 students receive equal learning opportunities. This enhanced academic support lays a strong foundation for knowledge and opens up career opportunities in high-demand sectors, including high-tech industries, the processed food industry, transportation, and tourism.
While Nan may not be widely known among international tourists, this small town is rich in cultural heritage and economic potential. Café Amazon’s Ban Khun Luang branch is one of the coffee premises in Thailand designed to exhibit Nan identity through its architecture.
Another notable stop in Nan is the PTT Station Du Tai branch, which showcases architecture influenced by Tai Lue residences and modern Aluminium Composite. This station serves as a rest area for customers from surrounding communities and the Mueang District, with significant monthly sales.
OR believes in the dynamic power of people to drive economic success and achieve the Net Zero goal by 2054. Committed to improving lives through enhanced quality of life, OR is dedicated to fostering a low-carbon society with high income growth through its Small-Diversified-Green policy.
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