Which Vietnamese company is pioneering the development of a coffee production area that complies with the EUDR?

DNHN - The EUDR requirement is a strong warning that consumer markets take the environmental protection actions of the producing country very seriously.

On the afternoon of April 25, Dak Lak Import-Export 2-9 Company Limited (Simexco Dak Lak) - a unit under the Dak Lak Provincial Party Committee - solemnly held a ceremony to announce the pioneering enterprise in building a coffee production area that complies with the EUDR. This event demonstrates Simexco Dak Lak’s strong commitment to ensuring sustainable coffee production, in compliance with the European Union’s Regulation on Deforestation-Free and Forest Degradation-Free Products (EUDR). Thereby, contributing to environmental protection and enhancing the value of Dak Lak coffee products in the international market.

The ceremony was attended by representatives of the Ministry of Agriculture and Rural Development, the Vietnam Coffee and Cocoa Association, leaders of the Dak Lak Provincial People’s Committee and departments and agencies of Dak Lak province; non-governmental organisations and corporations, companies, cooperatives, purchasing agents and farmers in Simexco Dak Lak’s 15-year sustainable linkage chain.

With the orientation of not only being a trading enterprise but also a solid pillar in the agricultural economy of the Central Highlands, 15 years ago, in 2009, Simexco Dak Lak pioneered the implementation of many sustainable programs, such as landscape management, quality certification, and carbon-reduced coffee production. In particular, the unit has invested in coffee production areas that strictly adhere to EUDR standards. To date, Simexco Dak Lak has developed a raw material area of over 50,000 hectares, cooperating with 40,000 farming households to produce over 100,000 tons of sustainable coffee.

Vietnam is the most important Robusta coffee producer in the global supply chain and Simexco Dak Lak is a major exporter in Vietnam, so the company is very focused on demonstrating that the Vietnamese coffee industry meets the EUDR standard well, as the European coffee market consumes up to 40% of Vietnam’s output. With the great efforts of Simexco Dak Lak and the support of the government, partners, and organisations, Simexco Dak Lak is now the first unit to be recognised as having the world’s first two raw material areas that meet EUDR standards. Dak Lak is the first province in Vietnam to be certified, affirming the locality’s position in the global coffee supply chain.

At the ceremony, Mr Le Duc Huy - General Director of Simexco Dak Lak shared: We are very honored to be awarded 2 certificates from the 4C organisation for 2 growing areas that meet EUDR standards with nearly 8,000 farmers, 9,500 hectares of coffee and an output of over 35,000 tons. To achieve these results, Simexco Dak Lak has always recognised the importance of working closely with stakeholders. Not stopping there, Simexco Dak Lak is still urgently working with Buon Ma Thuot city and Krong Nang, Cu Mgar, Cu Kuin, Buon Ho, and Krong Ana districts with a total of nearly 80,000 farming households, 100,000 hectares and 300,000 tons of coffee to check compliance with EUDR regulations in the third quarter of 2024.

The EUDR requirement is a strong warning that consumer markets take the environmental protection actions of the producing country very seriously. The coffee products currently produced not only have to meet quality standards but also have to ensure the landscape and environmental protection factors… In the context of increasingly severe climate change, Simexco Dak Lak has been and is proactively implementing measures to minimise carbon throughout the production process. Simexco Dak Lak is committed to continuing its efforts with farmers to pioneer sustainable development and environmental protection initiatives. Currently, Simexco Dak Lak has built a raw material area 2030 of 5,000 hectares that will balance emissions and 1,000 hectares that can sell carbon credits, etc.

Speaking on the happy day of Simexco Dak Lak, Mr Nguyen Thien Van - Vice Chairman of Dak Lak Provincial People’s Committee affirmed that the Provincial People’s Committee highly appreciates the efforts of Simexco Dak Lak over the past decades. Simexco Dak Lak has been and is contributing to raising the position of Dak Lak’s agricultural products in particular and the whole country’s in general in the international market. This event marks an important “message” to businesses and farming households in and outside the province that the requirements of the market and partners are orders for producers to try their best to fulfil.

Mr Nguyen Thien Van also added: On May 16, 2023, the European Parliament passed the “Anti-Deforestation and Forest Degradation” Bill, with strict regulations on managing the import of goods and products related to deforestation and forest degradation, applicable from December 2024. The bill sets out mandatory due diligence rules for companies wishing to place products in seven sectors, including soybeans, beef, palm oil, timber, cocoa, coffee and rubber, on the European market, demonstrating that the products are not linked to deforestation and forest degradation after December 31, 2020, and must comply with all applicable laws in force in the country of production. The bill also requires companies to collect geographic information and precise GPS positioning on the agricultural land where the commodities they produce are located so that they can be inspected for compliance with the regulations set out in the bill. Therefore, to meet the strict requirements of the market, especially the European region, Simexco Dak Lak must aim to build a sustainable raw material area, a production line that meets the standards certified by competent authorities to bring local agricultural products continue to have a foothold in the international market.

Nguyen Hieu