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Hilltribe Organics

Hilltribe Organics (HTO) triples farmers’ income by contracting them to set up free-range, organic chicken farms.

Facts

Investee Hilltribe Organics (HTO), founded 2013
Location Thailand
Sector Agriculture
Funding start 2014
Funding type Equity

 

Impact

Context

The hilltribe communities of Northern Thailand remain one of the most disadvantaged groups in the country. They comprise ~1m people living on USD ~5 a day per household vs. the Thai average of USD ~25. They are often not recognized by the Thai government, and it is estimated that 20-30% lack Thai citizenship. As a result, they lack access to public services such as healthcare and formal education, and are vulnerable to land ownership disputes, trafficking and exploitation.

Solution

  • HTO contracts hilltribe farmers to set up and run free-range, organic chicken farms for egg production, thus sustainably tripling their income
  • The company supplies all the necessary inputs free of charge (organic chickens, organic feed, farmer training), buys back the eggs at a fixed price and sells them through various distribution channels in Thailand e.g. organic supermarkets, restaurants, high-end hotels
  • 1% of revenue goes into a Village Development Fund used to sponsor community development projects in critical areas (e.g. infrastructure, health, education, citizenship assistance, etc.).

Impact depth

HTO provides year-round incremental income of USD ~300 per month per farming family, approximately tripling the family’s income. By promoting organic farming, HTO reduces the use of chemical fertilizers and pesticides in the Chiang Rai region, contributing to long term soil and water health.

HTO contributes to:

  • Increased household income: Incremental income of USD ~300 per month per family
  • Long term sustainability: Improved farmer and consumer health through organic products
  • Social cohesion: Reduced pressure to migrate for economic reasons, thus improving social cohesion
  • Increased opportunities: Potential to attain Thai citizenship through the support of the Village Fund
  • Empowerment: Participation in decision-making over Village Fund usage

 

Impact Reach 2014 2015 2016 2017 2018
# of farmer families 24 34 44 50 52
Incremental income (USD '000s) 55 81 131 134 124
# of individuals reached 120 170 220 250 260

SDGs

By investing in Hilltribe Organics, we align with and contribute to six of the United Nations’ Sustainable Development Goals.