1. food and drink
2. beverages
3. non alcoholic beverages
4. coffee and tea

“Fairtrade has made a huge impact in our community with benefits for every family, not just the
coffee grower. Now we have hope for a better future.”
Highlands Organic Agricultural Cooperative (HOAC)
Coffee
Papua New Guinea
2897
2005
2600
Daniel Kinne is a coffee farmer, chairman, and a founding
member of the Highland Organic Agricultural Cooperative
(HOAC) in Papua New Guinea.
“We like Fairtrade because it allows us to benefit from a better
price while taking care of our families. We can now build a
school with the premium, while the government does nothing
for us. Our primary objective is to help producers sell their
coffee, improve quality, develop organic production and make
a real difference to the life of the clan. ” Daniel Kinne
HOAC is an association of 2,600 organic coffee growers located in remote regions of the Eastern
Highlands Province of Papua New Guinea. It is estimated that between 50,000 to 60,000 people in the
community benefit from the association.
HOAC’s production levels have been increasing significantly each year, starting from 200 tons of green
beans in 2005 to 1020 in 2013. HOAC earned NZD$606,000 through the Fairtrade Premium in 2013
Economic:
Road access
A challenge facing the community of HOAC is poor road access, making it difficult for producers to trade
their produce. A proportion of HOAC's Fairtrade Premium was allocated to the improvement of the local
roads and to cover the cost of the petrol to run the grading machines. This has improved access to
market and hence improved business for small coffee farmers, and permitted better access to education
and health services for locals. The maintenance of the roads is done by local residents that live along and
near to the roads, providing them with much needed paid work.
Production and quality improvements
HOAC have established a resource centre, managed by the
cooperative, where the farmers are trained in agro forestry production
techniques and crop diversification.
Over 400 Coffee pulpers have been distributed to HOAC members
over the last few years which enables farmers to process their coffee
more efficiently reducing spoilage and waste and improving quality.
This means farmers can sell more of their coffee at higher prices
Social:
Water
Through the Fairtrade Premium, HOAC have funded a water supply
project for the community. Water is now being piped directly from
the source in the hills behind the village. Currently there is one tap
for every 3 houses, but the community plans to eventually extend
the supply directly to each household. HOAC are now carrying out
a needs assessment with other communities for similar water
projects.
Education
The Okapa region has often been overlooked by government for basic
health and education services due to its remote location. HOAC have
invested Fairtrade Premium into purchasing textbooks and desks for
community schools as well as building four permanent elementary
schools for the surrounding region. The cooperative also purchased
new beds, mattresses and essential medicines to four health centres
and aid posts.
Challenges the cooperative faces include:
1. Impact of climate change
2. Remote location
3. Lack of infrastructure – including transportation, roads, and communication.
In the future, HOAC plan to use the Premium to:
1. Improve illiteracy among adult members of the association.
2. Improve accessibility of health centres and hospitals.
3. Purchase a disused mill in a neighbouring district to start milling their coffee ready for export.
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