Announcing our Second leveraged Investment into the Pacific with Tanna Coffee

April 19, 2017

TDi are proud and excited to announce the second investment that we enabled into the Pacific. Following months of working closely with various partners across the region including DFAT and Pacific Trade & Invest, we are pleased to announce that we have leveraged $656,000 in investment capital,  for a business making a real difference to peoples’ lives in the South Pacific.

In 2015, Cyclone Pam devastated many of Vanuatu’s 84 islands. One island, called Tanna, suffered the full force of the storm, and the coffee-growing hub, comprised of 750,000 plants, was almost completely flattened. This left nearly 500 of Tanna’s local farmers and their families without any source of income.

The collective of coffee farmers work with the enterprise Tanna Coffee to produce some of the rarest single-origin blend on the planet. The coffee plants on Tanna grow in volcanic soil, 400 metres above sea level, giving the coffee a unique flavour. Coffee also makes up majority of the profitable agriculture on the island and is the primary source of livelihood for a large portion of the population. It was vital that this industry survive the storm and be rejuvenated.

“In the long term, a sustainable economy in Vanuatu will reduce the nation’s reliance on foreign aid, including the $62.5 million [1]  in aid that the country is estimated to receive from DFAT this financial year”.

— Anthea Smits, Deputy CEO at TDi

 

When DFAT approached TDi about working in the Pacific to discover what doing good and making money looked like in a developing context, we took up the opportunity and the challenge willingly. Our Pacific team, comprised of Anthea Smits and Anna Moegerlein, have been working with Tanna Coffee over the last year to help regenerate the business, set them up for long-term sustainability and to help them have a greater impact on Vanuatu’s local economy. We also helped to leverage their investment.

The majority of the investment will be utilised to rehabilitate the crops that were damaged by Cyclone Pam, and redeveloping 200 hectares of land. This will help to increase Tanna Coffee’s annual production from 100 tonne to 250 tonne and the land will be equally distributed among 200 local farmers. Ultimately, when you consider the income that will be directed back into the community, this investment will help to improve the lives of more than 5,000 people, 16% of Tanna’s population.

 

“We have trained and empowered all the farmers to become self-sufficient individuals and we now pay them up to 270vatu (AUD 3.20) per kg for their sun-dried coffee parchment (up from AUD 25c), providing an enormous back-flow direct into the community”

– Terry Adlington, Managing Director at Tanna Coff

 

Managing Director Terry Adlington adds, “We have worked with TDi on an overall plan for sustainable growth to increase coffee production… and anticipate farmers’ incomes to increase by 20% as a result of the investment, which will increase peoples’ livelihoods and improve their ability to afford consistent education for their children.”
We are immensely proud of the growth and development that the team at Tanna Coffee has achieved over the past year. It is incredible to see local farmers being empowered through industry and sustainable business. We are so excited by this model of business and its capacity to both do good and make money for communities in developing regions.

“This is groundbreaking for the Pacific Islands, and has the potential to help Tanna Island achieve long-term trade independence and a sustainable economy”.

— Caleb Jarvis, Australian Trade Commissioner for the Pacific

 

Tanna Coffee is currently stocked in most of Vanuatu’s premium resorts, restaurants and cafés, along with Air Vanuatu and Au Bon Marche Supermarkets, as well as providing strong regional sales to Fiji, Samoa, Australia and New Zealand.

 

Remember when an Oscar-nominated film was made on Tanna island? We caught up with the directors, check it out here. This is our second investment in the Pacific, check out the work we did with Samoa Coconut Cluster here.

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