AN ANALYSIS OF SUSTAINABILITY INDICATORS ON A THAI ARABICA COFFEE VALUE CHAIN

Main Article Content

Lu’lu’atul Fatehah Apichaya Lilavanichakul Parthana Parthanadee

Abstract

         This study aims to increase competitive advantage of Thai Arabica coffee by improving its value chain performance towards sustainability perspective including economic, social, and environmental aspects. Data were collected from key players along the supply chain by face-to-face interviewing using a semi-structured interview form. Results of this study show that in the social aspect, information and material flow along the chain are satisfactorily effective, while relationship between key players especially in downstream part is relatively weak. In addition, the interview results show that the Arabica coffee promotion efforts done by the manufacturers has created positive impacts on communities. In the economic aspect, it is found that the added value gained by the franchisees is the largest at 88%, while that of the coffee growers’ ranges from only 2.2% in the franchising channel to 17.4% in the export channel, with the average added value at 8.5%. In the environmental aspect which is assessed by the product’s carbon footprint released during coffee growing, processing, and distributing stages as the direct emissions from the use of fertilizer, electricity, and fossil fuels, calculation results show that the coffee grower activities including cultivation and coffee cherries transport have the largest Global Warming Potential (GWP) contribution, with the calculated total GWP value of 1 kg of roasted coffee bean being 3.3 kg CO2e. Findings from this study reveal that there still are potentials to improve sustainability performance of this Thai Arabica coffee value chain.

Keywords

Article Details

How to Cite
Fatehah, L., Lilavanichakul, A., & Parthanadee, P. (2019). AN ANALYSIS OF SUSTAINABILITY INDICATORS ON A THAI ARABICA COFFEE VALUE CHAIN. Panyapiwat Journal, 11(1), 139-154. Retrieved from https://www.tci-thaijo.org/index.php/pimjournal/article/view/185989
Section
Research Article

References

Brander, M., Sood, A., Wylie, C., Haughton, A. & Lovell, J. (2011). Technical paper: electricity-specifc emission factors for grid electricity. Retrieved July 18, 2017, from https://ecometrica.com/assets/Electricity-specifc-emission-factors-for-grid-electricity.pdf
British Standards Institutions (bsi). (2011). PAS 2050. Retrieved March 5, 2018, from https://shop.bsigroup.com/Browse-By-Subject/Environmental-Management-and-Sustainability/PAS-2050/
Brommer, E., Stratmann, B. & Quack, D. (2011). Environmental impacts of different methods of coffee preparation. International Journal of Consumer Studies, 35(2), 212-220.
Clark, J. H. (2002). Handbook of Green Chemistry and Technology. London: Blackwell Science. European Environment Agency (EEA). (2016). EMEP/EEA Air Pollutant Emission Inventory Guidebook 2016. Retrieved June 23, 2017, from https://www.eea.europa.eu/publications/emep-eeaguidebook-2016
Fearne, A., Martinez, M. G. & Dent, B. (2012). Dimensions of sustainable value chains: implications
for value chain analysis. Supply Chain Management: An International Journal, 17(6), 575-581.
Franchetti, M. J. & Apul, D. (2012). Carbon Foot Print Analysis: Concepts, Methods, Implementation, and Case Studies. London: CRC Press.
Hassard, H. A., Couch, M. H., Techa-erawan, T. & McLellan, B. C. (2014). Product carbon footprint and energy analysis of alternative coffee products in Japan. Journal of Cleaner Production, 73, 310-321.
Intergovernmental Panel on Climate Change (IPCC). (2006). Chapter 11: N2O Emissions from Managed Soils, and CO2 Emissions from Lime and Urea Application. Retrieved July 20, 2017, from https://www.ipcc-nggip.iges.or.jp/public/2006gl/vol4.html
International Trade Centre (ITC). (2012). Product Carbon Footprinting Standards in the Agri-Food Sector (Technical Paper). Geneva: ITC.
Killian, B., Rivera, L., Soto, M. & Navichoc, D. (2013). Carbon footprint across the coffee supply chain: the case of Costa Rican coffee. Journal of Agricultural Science and Technology B, 3(3), 151-170.
Kneafsey, M., Venn, L., Schmutz, U., Balázs, B., Trenchard, L., Eyden-Wood, T., Bos, E., Sutton, G. & Blackett, M. (2013). Short Food Supply Chains and Local Food Systems in the EU: A State of Play of Their Socio-Economic Characteristics. Luxembourg: Publications Offce of the European Union.
Labuschagne, C., Brent, A. C. & van Erck, R. P. G. (2005). Assessing the sustainability performances of industries. Journal of Cleaner Production, 13(4), 373-385.
Murphy, M. & Dowding, T. J. (2011). The Coffee Bean: A Value Chain and Sustainability Initiatives Analysis. Retrieved July 21, 2018, from https://global.business.uconn.edu/wp-content/uploads/sites/1931/2017/01/The-Coffee-Bean.pdf
Narayan, D. & Pritchett, L. (1999). Cents and Sociability: Household Income and Social Capital in Rural Tanzania. Economic Development and Cultural Change, 47(4), 871-897.
Noponen, M. R. A., Edward-Jones, G., Haggar, J. P., Soto, G., Attarzadeh, N. & Healey, J. R. (2012). Greenhouse gas emissions in coffee grown with differing input levels under conventional and organic management. Agriculture, Ecosystems, and Environment, 151, 6-15.
Noponen, M. R. A., Haggar, J. P., Edwards-Jones, G. & Healey, J. R. (2013). Intensifcation of coffee systems can increase the effectiveness of REDD mechanisms. Agricultural Systems, 119, 1-9.
Okoko, A., Reinhard, J., Von Dach, S. W., Zah, R., Kiteme, B., Owuor, S. & Ehrensperger, A. (2017). The carbon footprints of alternative value chains for biomass energy for cooking in Kenya and Tanzania. Sustainable Energy Technologies and Assessments, 22, 124-133.
Panmanee, C. & Keereekeaw, A. (2014). Guidelines on Improvement of Organic Arabica Coffee Farmers Potential in the Northern of Thailand: The Applications of Value Chain Concept. Chiang Mai: Maejo University. [in Thai]
Porter, M. (1985). Competitive advantage: creating and sustaining superior performance with new introduction. New York: Free Press.
Salomone, R. (2003). Life cycle assessment applied to coffee production: investigating environmental impacts to aid decision making for improvements at company level. Food, Agriculture & Environment, 1(2), 295-300.
Sampanpanish, P. (2012). Use of organic fertilizer on paddy felds to reduce greenhouse gases. ScienceAsia, 38(4), 323-330.
Tan, J. & Zaelani, S. (2009). Green value chain in the context of sustainability development and sustainable competitive advantage. Global Journal of Environmental Research, 3(3), 234-245.
The Donor Committee for Enterprise Development (DCED). (2012). Green Value Chains to Promote Green Growth. Retrieved June 22, 2017, from https://www.enterprise-development.org/wpcontent/uploads/Green_Value_Chains_to_Promote_Green_Growth.pdf
Yamane, T. (1967). Elementary sampling theory. New Jersey, USA: Prentice Hall Englewood Cliffs.