Vietnamese coffee exports face challenges because the EU changing import regulations

DNHN - New EU regulations contribute to the reduction of deforestation. Therefore, coffee exporters must ensure that their coffee is not sourced from a region whose forests are deforested or degraded.

According to information provided by Ms. Nguyen Thi Hoang Thuy - commercial counselor at, Vietnam Trade Office in Sweden, many new regulations governing environmental protection and user safety will be introduced shortly because the Nordic countries are particularly interested in this issue.

In December 2022, to implement the Biodiversity Strategy to 2030, the EU reached an accord to prohibit the import of certain products if they are deemed to contribute to deforestation. Under the new law, palm oil, cattle, legumes, coffee, cocoa, timber, and rubber, which are identified as deforestation generators if they are sourced from forest lands destroyed after December 2020, are prohibited. Importing companies will be required to demonstrate that their products are not linked to deforestation and to provide accurate information about the product's country of origin.

Therefore, exporters must ensure that their coffee is not sourced from a region with degraded or degraded forests. Then and only then can coffee be exported to the European Union (EU) and the Nordic nations in particular.

Specifically, the sale of coffee grown on deforested or degraded land has been prohibited as of January 31, 2020. The most recent iteration of EU regulation mandates that coffee companies in the EU acquire the coordinates of the coffee-producing property. This information can be combined with satellite monitoring instruments. These tools assess compliance with regulatory requirements by businesses and identify areas at risk of land degradation and deforestation.

Additionally, the proposition necessitates designating coffee-producing nations as low-risk or high-risk. Coffee from high-risk regions must adhere to stricter due diligence standards than coffee from low-risk regions.

Also according to the Vietnam Trade Office in Sweden, the incorporation of digital technology is crucial in the context of policy changes to satisfy the forthcoming regulation of non-deforestation products.

In addition, enhancing traceability is a crucial aspect of this regulation. If coffee producers and exporters are to remain competitive in the EU market, data capture is required at every step of the supply chain. To assure traceability in the coffee supply chain, supply chain participants must record data each time ownership of a coffee bean changes hands. In addition to the geographical coordinates of the production area, additional categories of information should be reported. Including the number of manufacturers per batch, for instance; Quantity and purity of coffee beans; forecast of productivity.

Various digital instruments may be utilized by manufacturers to capture geolocation data. These tools include applications that use a mobile device's GPS to plot walking coordinates; Drones can map by capturing aerial photographs; More sophisticated platforms enable the delineation of these regions from existing maps and satellite imagery. Each of these options presents unique obstacles and opportunities. Access to technology, infrastructure, knowledge, and budget will determine the best strategy.

In addition, digital knowledge and capacity must be enhanced. All of the aforementioned data needs to enhance the significance of digitization in the coffee supply chain. Exporters interested in utilizing digital solutions must comprehend which digital tools can be used to capture location and traceability data; ascertain whether a business has sufficient knowledge to use these tools, or whether it may require assistance to use certain tools. Identify key activities to execute the digitization plan, monitor results, and prepare for scaling at the same time.

Ngoc Phi (TH)