Vietnam is the world's top exporter of Robusta coffee, earning nearly US$4.2 billion of export revenue in 2023. If switching to carbon emission reduction production, the income of coffee farmers could double.
Farmers and businesses cooperate to produce coffee with reduced emissions to adapt to global trends. Photo: Nguyen Hue
On Pun Hill in Huong Phung (Huong Hoa district in the central province of Quang Tri), Director of the Pun Coffee Company Limited Ms. Luong Ngoc Tram showed VietNamNet nearly 200 hectares of coffee that are being cultivated in a natural direction with reduced greenhouse gas emissions.
According to Tram, the coffee industry emits a lot of CO2, causing the greenhouse effect and global warming. Therefore, businesses must be responsible to society and join hands to improve the environment. This is why Pun Coffee started the project "bringing forests to coffee gardens" since 2021, aiming to establish a biodiversity structure on its coffee hills.
The production of coffee with reduced emissions towards selling carbon credits has taken its first steps. However, farming in a natural and biodiversity direction helps increase the quality of coffee when 100% of harvested coffee beans ripen, and farmers can sell their products at higher prices.
Tram revealed that some of Pun Coffee's partners sold carbon credits for $5-7 depending on the area and the level of environmental improvement. Pun Coffee is following the instructions of large roasters abroad, who are experienced in this field. Partners also encouraged Pun Coffee to pursue this trend.
A report on Nestle group’s NESCAFÉ Plan 2030 program shows that increasing the application of regenerative agricultural farming methods helps improve productivity and reduce greenhouse gas emissions.
This program is implemented in the Central Highlands by Nestle, in cooperation with the Ministry of Agriculture and Rural Development. Applying regenerative agricultural farming methods helped reduce 15-20% of greenhouse gas emissions per 1kg of coffee in 2023, according to the report.
Moreover, thanks to applying regenerative agricultural coffee farming methods, farmers saved up to 40% of irrigation water, reduced 20% of chemical fertilizers and pesticides, and increased coffee productivity by 5-15%. Accordingly, farmers' income increased sharply by 30-100% compared to traditional farming.
Vietnam is the second largest coffee producer and exporter in the world and the world's largest exporter of Robusta coffee. Vietnam’s coffee export turnover has increased sharply in recent years, reaching nearly $4.2 billion in 2023. The figure is expected to hit $5 billion this year - a historical record.
However, the coffee industry is facing many challenges, especially environmental issues. According to studies, producing one ton of coffee will emit over 3 tons of carbon into the environment. Therefore, low-emission coffee, or more precisely, reducing carbon emissions in coffee production, is committed to and prioritized by major coffee chains around the world.
Many markets apply carbon emission reduction standards
In thix context, Simexco Dak Lak Company has cooperated with 40,000 coffee farmers to reduce carbon emissions. As a result, the company’s coffee growing areas in Krong Nang district (Dak Lak province) have lower emissions than other farming areas thanks to good policies prohibiting the use of unauthorized pesticides, utilizing agricultural waste and by-products for reinvestment.
Simexco is expanding this model to seven other districts in Dak Nong and Gia Lai provinces. The goal is that by 2025, the company's coffee growing areas will reduce irrigation water by 25% and pesticides by 15%, and increase coffee growers' income by30%.
Mr. Le Thanh Son, Sales Director of Simexco Dak Lak, said that Vietnam's coffee exports depend heavily on the European market. Currently, 60% of Vietnam’s coffee output is exported to this market. However, Europe's requirements are increasingly strict, especially for the criteria of anti-deforestation and carbon-free coffee.
Regarding carbon-free regulations, Son said that by 2035 and 2050, products are required to no longer emit carbon. At that time, coffee products and all other agricultural products of Vietnam must meet this criterion.
Notably, many markets such as Japan, Korea, the US, also apply the same standards as the EU. If Vietnam fails to meet them, Vietnamese coffee will not be eligible for export to these markets.
In fact, some businesses are prioritizing purchasing low-emission coffee from suppliers in Vietnam. For example, JDE Peet's has set a goal that by 2025, 100% of the coffee purchased is produced responsibly. By 2030, it will contribute to reducing greenhouse gas emissions by 30% for all activities, from its factory system globally.
Many sustainable coffee growing models in Vietnam have been able to reduce carbon emissions by half. Experts say that people and businesses must adapt to market pressure, and the pressure of the business itself when supplying goods to the global supply chain.
Now it is no longer a choice of "do or not do", but is a must. When it is implemented well, Vietnamese coffee will increase its value in the eyes of the world's major coffee buyers.
Vietnamnet.vn
Podcast
.svg){kind=icon}
