Page 303 - Social Enterprise A New Business Paradigm for Thailand

Chapter 10

Social Enterprises in Thailand’s Coffee Supply Chain

In Thailand, coffee is produced by a wide range of businesses and social enterprises, including
Akha Ama Coffee, Hillkoff Company, MiVana’s organic coffee project, the Royal Project, Doi
Kham, CP’s initiative in Sappakhun, Nan Province, and OR’s project in Pang Khon, Chiang Rai.
Some of these are formally registered as social enterprises, while others are not. Except for the
Royal Project and OR, most are small-scale operations that must compete with large domestic
and international coffee chains. Since opening a coffee shop generally does not always require

substantial capital, the industry presents low barriers to entry and exit. As a result, it has
attracted both major players and small-scale operators, including an increasing number of social
enterprises.

At the upstream end of the supply chain, coffee production depends heavily on smallholder
farmers working in ecologically sensitive areas, particularly in the highlands of northern
Thailand, where coffee farms often overlap with forest and conservation zones. The coffee
industry has both positive and negative effects on natural resources and the environment. On
the positive side, it supports watershed forest conservation and promotes the use of coffee

byproducts, such as the exocarp (outer skin) and mesocarp (pulp), for alternative products. On
the negative side, it generates waste, such as disposable cups, and poses environmental
management challenges. Socially, coffee also plays an important role in improving the quality
of life for various highland ethnic groups and marginalized communities, including incarcerated
individuals, children with autism, people with hearing impairments, and the elderly. These
characteristics make coffee a particularly compelling sector for examining how social
enterprises operate, both in terms of income distribution across the supply chain and in

understanding what motivates them to engage with the industry.

Globally, coffee is a highly traded commodity with an estimated market value of at least USD
116 billion. In 2023, the total area devoted to coffee cultivation worldwide was 76.16 million rai
(12.19 million hectares), ranking 32nd among 169 agricultural crops. Production of green coffee
beans reached 11.06 million tons, placing it 87th out of 221 agricultural commodities by volume
(FAO, 2025). The global coffee trade, including imports and exports, was valued at
approximately USD 130 billion in 2023, ranking 52nd among 97 major product categories at the
two-digit classification level (International Trade Centre, 2025).

In Thailand, although coffee has been consumed since the Ayutthaya period, it was not until
the reign of King Rama V that the crop began to be cultivated for export. By 2023, Thailand

ranked 27th globally in coffee cultivation area, with nearly 30,000 farming households engaged
in growing coffee. Over 90 percent of production occurs in the northern region, primarily
Arabica, while the southern region grows mostly Robusta. Despite this, domestic production
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