- UNCTAD is supporting sustainable arabica coffee in Lao PDR, Thailand and Viet Nam to strengthen exports, improve livelihoods and protect ecosystems as global markets demand greener production.
GENEVA, Switzerland – Every morning, millions of people reach for a cup of coffee. Behind each cup lies a growing challenge: how to meet global demand without accelerating deforestation, biodiversity loss and pressure on rural communities.
For coffee-producing developing countries, this is not only an environmental issue. It is increasingly an economic one.
Globally, exports of biodiversity-based products reached $3.78 trillion in 2024, underlining how deeply nature is already embedded in the world economy. Food and beverage products account for a major share of that trade, making coffee a concrete example of how biodiversity, livelihoods and exports intersect.
Coffee at the centre of the biodiversity challenge
Conventional monoculture coffee farming can reduce tree cover, deteriorate soils and put pressure on ecosystems. Sustainable arabica coffee systems based on agroforestry offer a different path.
By integrating native trees alongside coffee plants, agroforestry can support pollination, improve soil health, and strengthen resilience to pest and extreme weather. These benefits can strengthen yields, reduce risks and help conserve biodiversity.
The benefits also go beyond the farm. Biodiversity-friendly coffee production can create new opportunities for rural livelihoods, women and local communities, while helping producers respond to stricter market requirements.
Turning sustainability into export value
With support from the UN Development Account, UNCTAD is working with public and private stakeholders in Lao PDR, Thailand and Viet Nam to strengthen sustainable arabica coffee exports and improve traceability systems.
The economic potential is already visible. According to UNCTAD’s Trade and Biodiversity database, Thailand’s biodiversity-based exports in coffee and coffee preparations reached about $154 million in 2024, growing 22.3% from 2023. This points to rising demand and opportunities for greater value addition in producing countries.
“Agroforestry offers Lao PDR an important pathway to achieve economic growth while preserving biodiversity and strengthening climate resilience,” said Vithoun Sithimorlada, deputy director general, department of MSMEs promotion, ministry of industry and commerce of Lao PDR. “Sustainable arabica coffee production not only creates income opportunities for rural communities, but also encourages the protection of forests and ecosystems for future generations.”
Women at the centre of local change
The project places emphasis on local female farmers, who play a major role in arabica coffee production and processing.
During a fact-finding mission to Xiangkhouang province in Lao PDR in March 2026, UNCTAD visited a coffee processing facility staffed entirely by women who are now working to establish a cooperative. Local authorities see the initiative as an example for other communities seeking to create income opportunities through sustainable coffee production.
“The experience of coffee farmers in Xiangkhouang province demonstrates the strong potential of arabica coffee to support sustainable local development in the northern regions of Lao PDR,” said Sonephet Sihapanya, deputy director of division, department of MSMEs promotion, ministry of industry and commerce of Lao PDR.
“Coffee agroforestry can create employment, empower women, and provide new economic opportunities for rural communities while preserving biodiversity.”
A wider lesson for green trade
For UNCTAD, the lesson goes beyond coffee. Trade can either contribute to biodiversity loss or help make sustainable use of nature a source of sustainable livelihood. Biodiversity action cannot stop at conservation. It must also shape how economies produce, trade and create value from nature and who capture profits.
As developing countries face climate pressures, stricter market rules and the need to diversify exports, biodiversity-based value chains such as sustainable coffee can offer a path toward more resilient economies, healthier ecosystems and more inclusive growth.
The challenge is to ensure that greener trade becomes a bridge to better livelihoods and stronger biodiversity protection, not another barrier for small producers.
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