As planned, on April 25, 2024, Dak Lak 2-9 Import-Export One Member Co., Ltd. (Simexco) will hold a ceremony to announce the EUDR-compliant coffee production area.
In recent years, the Vietnamese coffee industry in general and Dak Lak in particular have been facing many difficulties and challenges such as small, fragmented, unfocused cultivation areas, high input material prices, aging farmers, climate change, etc.
Besides, market requirements are increasingly strict, coffee production is no longer simply about creating delicious, quality products but also comes with the responsibility of protecting the environment.
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| The Deforestation-Free Coffee Production Program that meets European requirements is implemented by Simexco in cooperation with 4C on a scale of 9,000 households and 11,000 hectares. |
In line with Europe's new requirements for deforestation-free goods, the bill requires a ban on the import of agricultural products produced on land that causes deforestation and forest degradation after December 31, 2020.
Dak Lak 2-9 Import-Export One Member Co., Ltd. (Simexco) has implemented a sustainable certification program since 2009. This includes a coffee production program that complies with the common code of conduct for the coffee community (4C certification), Rainforest Alliance certification (sustainable agriculture standards certification), and Fairtrade certification (fair trade standards certification). This ensures that coffee is produced without causing damage to important forests.
Simexco believes that implementing the EUDR program is not only a legal obligation but also an important part of the company's long-term strategy to protect the environment, build reputation and enhance sustainable economic and social benefits.
In particular, in adapting to EUDR, Simexco is proud to be a pioneer. Accordingly, the enterprise has cooperated with Unit 4C (4C is the abbreviation of “Common Code of the Coffee Community” and this is a global certification system for sustainable coffee growing and production. The goal of 4C is to achieve sustainability in the entire coffee industry.) from the early days when Unit 4C started the sustainability certification program in Vietnam.
Specifically, the deforestation-free coffee production program that meets European requirements, implemented by Simexco in cooperation with the 4C Unit on a scale of 9,000 households and 11,000 hectares, has demonstrated the interventions of the sustainable programs that Simexco has strived to form. Accordingly, the analysis results of the GRAS map show that 100% of the 4C coffee area does not overlap with forest land.
"Simexco is ready with all resources to meet the new requirements of Europe" , Mr. Le Duc Huy - General Director of Simexco - shared and said, we hope that this will also be the premise and motivation to expand the scale to areas in the Company's sustainable chain. Simexco believes that with the efforts of all partners and stakeholders, together we will make "Vietnam a pioneer country to meet the requirements of Europe on coffee production without causing deforestation and forest degradation - EUDR".
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| Efforts to make Vietnam a pioneer in deforestation-free coffee production |
According to data from the General Department of Customs, in the first quarter of 2024, Vietnam's coffee export volume reached 585,696 tons, up 5.9% over the same period in 2023; turnover reached nearly 1.93 billion USD, up sharply by 56.7%.
Vietnam has 700,000 hectares of coffee, but the actual number of hectares is still unknown. Climate change is having a strong impact on global coffee production, especially in Vietnam where El Nino causes drought, greatly affecting the productivity and output of coffee in coffee growing areas. On the other hand, due to the low price of coffee over many years, some coffee growing areas have switched to other crops with higher economic value, greatly affecting the area of this crop.
According to Mr. Nguyen Nam Hai - Chairman of the Vietnam Coffee - Cocoa Association, we have an advantage that from January 1, 2025, all coffee grown on deforested land will not be able to enter the European market. Vietnam is considered the country with the safest rate of coffee exports to Europe. The problem of the Vietnamese coffee industry today is how to stabilize the area and output.
“We have started selling the first batch of products to Europe with a record of no deforestation and have been evaluated quite well. Obviously, this is an advantage that not every country can achieve,” Mr. Nguyen Nam Hai emphasized.
According to Dr. Nguyen Trong Cuong - Department of Forestry (Ministry of Agriculture and Rural Development), in order for coffee trees to meet EUDR regulations, it is necessary to establish a forest database for the EU to use. Establish forest boundaries and forest developments to serve as a basis for industries to prove that products meet the requirements of not causing deforestation and traceability of products. Develop forest maps and data, maps of production areas according to the time frame prescribed by EUDR. In particular, the coffee industry needs to establish a system to trace product origins from farms to local agents.
Ms. Vanúsia Nogueira - Executive Director of the International Coffee Organization (ICO) - said that to determine that coffee growing land does not violate the EUDR, Vietnam needs to map out coffee growing areas, and needs to know each producer in that area.
For the sustainable development of the Vietnamese coffee industry, Ms. Vanúsia Nogueira also recommends that management agencies pay attention to current developments in Europe. Learn and comply with regulations to meet appropriate environmental protection standards from the perspective of EU society. It is best for Vietnamese businesses to find their own way to prove that their products are stable and meet the requirements and limits of EU standards.
According to the European Coffee Federation, the European Union has the highest per capita coffee consumption in the world, although consumption varies across member markets. The European coffee market size is estimated to reach $47.88 billion in 2024 and is forecast to reach $58.14 billion in 2029, growing at an average rate of 3.96% during the period 2024-2029. Coffee is one of the most popular drinks in Western Europe due to its deep cultural roots and widespread use in the daily lives of consumers. In addition, the demand for coffee is also increasing in the region due to the opening of new coffee shops, the growth of coffee shop chains and the increasing number of coffee machine buyers. Therefore, Europe is considered a potential market that any coffee producing country wants to exploit. In 2023, the EU imported 652 thousand tons of coffee from Vietnam, worth 1.53 billion EUR (equivalent to 1.66 billion USD), down 1.4% in volume and 0.02% in value compared to 2022. Vietnam's coffee market share in the EU's total imports from the world increased from 14.85% in 2022 to 16.08% in 2023. Similarly, Vietnam's coffee market share in the EU's total imports from the extra-bloc market increased from 21.69% in 2022 to 23.75% in 2023. |
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