Coffee/Punthai Coffee

Editorial staff

PTG Energy Group, a local oil retailer, has signed Memorandum of Understanding (MoU) with partners to promote the cultivation of Arabica coffee in local areas as a part of securing the future expansion of its Punthai Coffee brand.

Its partners include Mae Fah Luang Foundation under Royal Patronage, a private non-profit organization, the Royal Forest Department and Bank for Agriculture and Agricultural Cooperatives (BAAC).

Pitak Ratchakitprakarn, chief executive officer of SET-listed PTG Energy Plc, the operator of PT petrol stations, said this collaboration will help encourage Arabica coffee farming among local farmers. To do so, PTG will purchase coffee beans from local farmers at fair price that is in line with global market price, to use at PTG’s Punthai coffee chain.

Mae Fah Luang Foundation will share knowledge on sustainable coffee farming practices to coffee farmers to enhance crop production and improve coffee quality. This initiative will help increase the income of coffee farmers and improve their quality of life.

Under the collaboration, it expects to develop 30,000 rais for Arabica coffee plantations within the next five years, starting from Chiangrai, Chiang Mai and Mae Hong Son provinces before expanding to other provinces.

PTG, Mae Fah Luang Foundation, and the Royal Forest Department will provide educational and training programs for coffee farmers to increase both the quantity and quality of coffee production as well as promoting long-term sustainability, while BAAC will support loans for farmers.

In addition, the signing of this MoU, it helps fulfill PTG’s vision to use coffee beans supplied from local farmers at Panthai coffee chains.

‘’Having a stable source of Arabica coffee bean supply makes us more confident to secure the future growth of Punthai coffee shops, which is expected to reach 4,500 outlets in 2070,’’ Rangsan Puangprang, PTG’s chief finance and sustainability, said.

Currently, there are 1,028 Punthai coffee shops nationwide. Of the total, 70% belongs to its own and the remaining 30% is under franchise system. Punthai coffee shop under franchise operation is expected to increase to 40%. The total number of its chain is expected to reach 1,400 shops by the end of this year and will increase to 2,400 shops next year. Thailand’s coffee market is expected to be worth 40 billion baht. Of the total, 50-60% is consumed domestically and the remaining is for others.

Per capital consumption of coffee in Thailand is 365 cups per year, up from 100 cups in the old days. US people drink 400-500 cups per year while 600 cups in Japan.

In addition, PTG plans to spend about 6-7 billion baht to expand its business next year, including opening of new petrol stations, new coffee shop openings, renovating its existing petrol stations, opening new Subway sandwich restaurant, and expanding its new business.