At the "Enhancing Value, Ensuring Compliance, and Promoting Green Growth in the Coffee and Cocoa Sector" workshop, organized by the 4C International Organization in collaboration with the Vietnam Coffee-Cocoa Association (VICOFA) on 17/9 in Ho Chi Minh City, Mr. Bach Thanh Tuan, VICOFA Vice Chairman, announced that the coffee industry's export turnover is projected to reach approximately 9 billion USD in 2025. A key aspect of this growth is the EU Deforestation Regulation (EUDR), which mandates data origin transparency. According to Mr. Cyril Loisel, First Secretary of the EU Delegation to Vietnam, the regulation aims to prevent deforestation-linked commodities from entering the EU market. It is set to apply from 30/12 for large and medium-sized businesses, and from 30/6/2027 for small businesses.

Mr. Pham Phu Ngoc speaks at the event. *Photo: Nestle Vietnam*

Assessing the EUDR's impact, Mr. Pham Phu Ngoc, Agriculture Director of Nestle Vietnam and Head of the company's representative office in the Central Highlands, highlighted that the regulation's greatest challenge lies in proving the legal origin and geographical coordinates of each farm plot. To meet this requirement, Mr. Ngoc explained that businesses must manage a closed supply chain, from farmers and intermediate traders to processing plants. He emphasized, "Businesses that prepare early with cultivation area data will have a greater advantage in maintaining their export market share to Europe."

Drawing from the implementation of the Nescafe Plan in Vietnam since 2011, a Nestle representative stated that the company has partnered with over 23,000 farming households in the Central Highlands provinces to build a digital data system. To help farmers adapt to EUDR requirements, Nestle and its partners cover the costs of mapping cultivation land boundaries, integrate management software, and assist with international certification procedures. The company representative noted that digitizing farm data requires direct farmer participation, necessitating that businesses combine origin control with technical transfer to clearly demonstrate economic benefits to farmers.

Nescafe Plan technical staff guide farmers in soil improvement practices at a coffee farm. *Photo: Nestle Vietnam*

In the cultivation phase, Mr. Pham Phu Ngoc stated that Nestle guides farmers towards a regenerative agriculture model. The company instructs farmers to measure irrigation water, calculate fertilizer based on actual crop needs, and prioritize biological solutions to minimize chemicals. Additionally, Nestle encourages intercropping pepper and macadamia nuts in coffee farms. According to Nestle's assessment, this intercropping method not only helps retain soil moisture and protect biodiversity in line with green standards, but also creates additional income, helping coffee growers diversify risk when agricultural product prices fluctuate.

Beyond raw material management, a Nestle representative identified investment in deep processing technology as a key factor in increasing the commercial value of coffee after meeting technical standards. The company has disbursed nearly 580 million USD into high-quality coffee processing facilities in Vietnam to export finished products to nearly 40 markets. Last August, the company launched a glass jar instant coffee packaging line with a capacity of 350,000 jars daily, serving 11 countries. The company representative believes that operating simultaneously for multiple export markets demands consistent quality control processes and high flexibility in packaging.

From Nestle's perspective, complying with international regulations like EUDR requires long-term investment and synchronized coordination among all links in the supply chain. The company views the technical barriers of import markets as a foundation for producers to restructure cultivation areas, enhance data management capabilities, and transition to more sustainable farming models.

Thanh Thu