DATO: From uncertain harvests to more stable livelihoods

In Dak To district, Kon Tum province, many smallholder households—around 70% from ethnic minority groups—have relied on low-value crops like cassava and maize. These crops are familiar and relatively low-risk, but they generate limited income and can contribute to declining soil quality over time, making it harder for families to improve productivity and resilience.

The challenge is not just what farmers grow, but the system around them. Without reliable buyers, affordable finance, and practical training, farmers have little bargaining power and often sell into informal channels at fluctuating prices. That vulnerability makes it difficult to plan ahead or invest in the farm, and climate pressures only deepen the uncertainty.

For women, the constraints are even tighter. In remote areas, paid work and skills development opportunities are scarce. Yet women often carry a significant share of farming and household responsibilities.

DATO (Highland Herbs Company Limited), set out to change the odds by building a full value chain that linking inputs, education, processing, and markets into one system that farmers can rely on. The shift starts with crop choice. DATO supports farmers to move from low-return staples to higher-value spices and medicinal herbs such as ginger, turmeric, and chili. These crops are better suited to the region and can deliver higher returns, if farmers can access the right markets.

That “if” is where the model comes in.. DATO signs off-take contracts with farmers, guaranteeing to buy their harvest at prices 10–15% above local market levels. For families used to uncertainty, that predictability is often the difference between coping and planning. To make the transition possible, DATO provides more than a contract. Farmers receive free seedlings for their first crop and regular, hands-on training in sustainable farming techniques. The training is designed to help farmers not only follow instructions, but also understand why practices matter for quality, sustainability, and market access.

Equally important, DATO operates its own processing facility close to the farming communities. Here, crops are washed, dried, and prepared for sale to traders and export markets. This reduces transport losses, safeguarding quality, and creating jobs in the community. This integrated approach, which links production, processing, and markets, helps farmers capture more value from their work.

Alongside developing sustainable farming models, DATO is committed to empowering women, especially from ethnic minority communities. It runs gender awareness and equality sessions alongside practical capacity-building workshops, helping women build confidence, skills, and leadership in farming and household decisions. And it backs that learning with paid opportunity. During the export ginger harvest season, DATO creates jobs for 50–70 women, offering income close to home and a direct role in a professional value chain. By pairing training with paid roles, DATO helps turn women’s participation into long-term economic agency—supporting more resilient households and communities.

Scaling a model like this requires capital, especially working capital to buy crops and invest in processing. But for a young business like DATO, local banks were not an option, largely due to collateral requirements.

Rabo Foundation stepped in as the first lender in 2023, providing an investment loan (for the processing facility and equipment) alongside working capital. This support contributed to DATO to building its processing factory and expanding its network of farmers.

The initial working capital loan was fully repaid in 2024, and the business continued to grow. In 2025, Rabo Foundation provided an additional working capital facility, supporting DATO in sourcing more crops, deepening its engagement with farmers, and continuing to invest in inclusive growth.