Lao: AIDC, PTT Group partner in development of agroforestry coffee plantation

Mr Pheutsapha Phoummasak (right) shakes hands with Mr Disathat Panyarachun.Vientiane Times | 11 January 2024

AIDC, PTT Group partner in development of agroforestry coffee plantation

Asia Investment, Development and Construction Sole Co., Ltd. (AIDC) and the PTT Group including PTT Oil and Retail Business Public Company Limited (OR), PTT Public Company Limited (PTT) and PTT (Lao) Company Limited signed a Memorandum of Understanding (MOU) in Bangkok, Thailand, on support for the Agroforestry Coffee Plantation in Laos.

The aim of the partnership is to provide coffee farmers with a more productive and sustainable place to grow the crop. 

The agreement was signed between the President of AIDC, Mr Pheutsapha Phoummasak, and representatives of OR, PTT and PTT (Lao), witnessed by the CEO of OR, Mr Disathat Panyarachun, and other individuals.

AIDC currently operates a 356-hectare coffee farm on the Bolaven Plateau in Pakxong district, Champassak province, at an altitude of about 1,200 metres. The area is rich in fertile volcanic soil which gives the coffee crop a special flavour and high quality.
AIDC oversees the whole coffee production process from planting until the cherries are harvested, and continues to exercise a high level of quality control through the processing of green beans for export. One of AIDC’s business partners is PTT (Lao) Co., Ltd. which operates the Café Amazon in Laos with 89 outlets and is one of subsidiary companies of OR which manages the Café Amazon in Thailand and other countries, with more than 4,000 outlets.

The new partnership will create the development of a sustainable coffee plantation that is viewed as a prototype project in agroforestry in Laos, with trees to be planted in shady areas of the plantation owned by AIDC.

Specifically, AIDC will invest in agroforestry and the management of the area with the aim of producing high-quality coffee and PTT (Lao) will buy the green beans under Café Amazon standard.

In addition, the PTT has experience in the sale and purchase of carbon credit and plan to create carbon credit from the plantation to add value to the production process.
The sale of carbon credit accumulated from the efficient operation of the plantation will help to achieve Carbon Neutrality and Net Zero Carbon targets and add value to the coffee crop.

The success of the project will be an important beginning in the partnership between AIDC and the PTT Group. This cooperation hopes to create a more sustainable coffee plantation on the Bolaven Plateau covering the size of 48,000 hectares, which will open up more opportunities for the accumulation sale of carbon credit.

During the signing ceremony, the parties discussed various aspects of cooperation, including trade in petrol, earning carbon credit from forestry, and the export of coffee, all of which will contribute to the sustainable growth of the Lao economy.  

Mr Pheutsapha Phoummasak and representatives of the PTT Group in Bangkok, Thailand, on January 5. --Photo AIDC    AIDC Coffee.

By Times Reporters
 (Latest Update January 11, 2024)
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