Agroforestry Project for Sustainable Agriculture to Launch in Laos

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Lao coffee beans (Photo: CPC).

A new agroforestry coffee plantation project dedicated to fostering sustainable agriculture and environmental conservation is poised to take root in Laos. The project aims to create a prototype coffee plantation for local coffee farmers by implementing the agroforestry rotation system.

Asia Investment Development and Construction Sole.Co.Ltd. (AIDC) and the Petroleum Authority of Thailand state enterprise (PTT Group) officially signed a memorandum of understanding (MOU) on January 5 in Bangkok, Thailand.

This collaboration aims to study and implement an agricultural rotation system (agroforestry) for sustainable coffee cultivation in a prototype project in Laos. The approach involves integrating trees for shading within AIDC’s coffee growing area, thereby fostering environmental sustainability.

AIDC currently manages 356 hectares of coffee plantations situated on the plateau in Pak Chan District, Champasak Province, at an elevation of 1,200 meters above sea level. The distinctive volcanic soil in this region contributes to the production of high-quality coffee. 

There, AIDC oversees a production and processing plant that maintains quality control from planting to cherry and green bean products, exporting them to clients globally. The Amazon Coffee brand, with 89 branches in Laos and over 4,000 branches both in Thailand and abroad, is also managed by AIDC and owned by PTT Public Company Limited.

Meanwhile, PTT, renowned for its expertise in carbon credit trading both domestically and internationally, will contribute by registering carbon credits generated from the project. This initiative aligns with the shared goals of both companies to achieve carbon neutrality and net zero carbon. The resulting carbon credits will not only contribute to environmental conservation but also enhance the market value of the coffee plantations in the international arena.

With over 48,000 hectares of coffee cultivation potential in the plateau area, the partners envision generating substantial carbon credits while contributing to the economic development of Laos. Discussions during the signing ceremony also highlighted potential cooperation in various areas, including fuel, carbon credits from forests, and the export of coffee, all aimed at fostering sustainable growth for the Lao economy.