Coffee

General information

Viet Nam is the second largest coffee producer in the world and boasts high levels of productivity. However, the country's coffee sector is declining in yields due to looming climate threats and aging farms. The majority of coffee comes from the Robusta coffee species, which commands lower prices and is mainly exported in bulk, raw form. 

Despite many achievements in the past, the coffee sector still faces the following limitations:

• Small-scale and dispersed production by households, the level of intensive farming is not uniform, especially the overuse of inputs such as irrigation water, fertilizers and pesticides.
• The practice of sustainable cultivation, pre-processing and preservation by the household has been improved but still limited, especially in the context of the current situation when most enterprises have paid high price for certified coffee.
• The direct connection between producers and the market is limited, too many middlemen
• Investments in deep processing industries remain weak
• The quality of export coffee is not high, mainly raw materials.

Organization structure and objectives:

The PPP TF on Coffee was established in May 2010 under the co-chairmanship of the Department of Crop Production and Nestle Vietnam. It has over 30 members, operating on a pre-competition basis, aiming to develop coffee value chains to improve quality, added value and sustainable development of coffee and higher income for farmers. The PPP TF on Coffeee aims to make Viet Nam the recognized reference for Robusta coffee by sustainably improving the quality of yields and helping farmers adapt to climate change.

Key outcomes:

Over the past few years, the PPP TF on Coffee has made great strides and achieved remarkable results in support of sustainable coffee development and its programs and projects such as coffee replantation. The PPP TF on Coffee guides farmers on good production practices, quality, productivity, and environmental and economic sustainability for producers. Farmer groups are formed to effectively exploit the market, improve their knowledge of technology, and link up with financial institutions and purchasing companies. These activities bring tangible benefits for farmers, increase their profitability and contribute to reducing greenhouse gas emissions.

From 2010 to date, the group has implemented a total of 256 model gardens and three PPP cooperatives in four provinces (Dak Lak, Dak Nong, Lam Dong and Gia Lai). Under the model, it has conducted ToT training courses for 65 leaders, representing 12,004 farmers in 4 provinces to share experiences, solve difficulties and strengthen the capacity of the extension network; Organized 1,200 farmer field schools for farmers in 4 provinces. It is estimated that the area of ​​coffee and the number of coffee growers benefited from the program's technical assistance activities amounted to 130 thousand hectares (20% of the country's total coffee area), and nearly 250 thousand people (out of over 500 thousand coffee farmers). The productivity of coffee models increased by 12% between 2010 and 2014 and increased by more than 17% between 2015 and 2016. The average income (in 5 years) of coffee growers increased by about 14% %. The PPP model also helps to increase the size of the fruit and the cultivation method helps to make the coffee healthier. The model helps to reduce greenhouse gas emissions by using a reasonable amount of fertilizer.

Members

MARD – Department of Crop Production (DCP)

NestléVietNamLtd.

4CAssociation/theGlobalCoffee Platform

AgriMediaJSC

Baconco Co., Ltd.

Bayer Viet Nam Ltd.

BASF Viet Nam Ltd.

BinhDien Fertilizer JSC  

COEX Coffee International Inc.

Dakman Viet Nam Ltd.

Atlantic Commodities Viet Nam Ltd. (ECOM Trading)

EDEConsulting

Enveritas

Farmer associations in Daklak and Lam Dong provinces

IDH, the Sustainable Trade Initiative Intimex Group JSC

International Finance Corporation (IFC)

Jacobs Douwe Egberts (JDE)

Louis Dreyfus Commodities Viet Nam Co. Ltd.

MARD–Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD)

MARD–National Agricultural Extension Center (NAEC)

Ned Coffee Viet Nam Co., Ltd.

Olam Viet Nam Co.,Ltd.

PetroViet Nam Fertilizerand ChemicalsCorporation (PVFCCo)

Provincial Agricultural Extension Centers and Provincial People’s Committees of Dak Lak, DakNong, GiaLai and Lam Dong provinces

RainforestAlliance

SNV Netherlands Development Organization

Syngenta Viet Nam Ltd.

Western Highlands Agro-Forestry Scientific andTechnical Institute (WASI)

Yara Viet Nam Ltd.