An interesting model that had emerged in Asia was Bolaven Farms, in Laos. This firm’s coffee supply
chain was completely integrated, from planting the seeds, harvesting the crop, processing the beans,
roasting them and marketing the branded product to wholesale and retail customers. Senior management
estimated that at least four tiers in the supply chain could be removed, leaving more profits to share withfarmers. Established in 2007 by a group of local entrepreneurs, the company had leased 67 hectares from
the Laos government in a plateau that was known for growing high-quality coffee. (Establishing a coffee
plantation with a 30-year lease for the land was estimated to cost about $13,000 per hectare.29) Only 40
hectares had been allotted for coffee cultivation, with the remainder to be used for livestock and other
crops, and for housing for the employees and their families. The first crop was expected in 2011, as coffee
plants required roughly four years to mature, after which harvests were expected twice annually