Article 3: Remarkable progress | Industry and Trade Newspaper

As Central Highlands agricultural products are facing challenges from the EU Deforestation Regulation (EUDR), a number of pioneering enterprises have been making a strong mark in the sustainable supply chain, opening the door to this demanding market. Not only meeting strict standards on transparency of origin and not causing harm to forests, they have also become typical models, leading Central Highlands agricultural products to overcome barriers to conquer the international market.

The locomotives bringing Central Highlands agricultural products "overseas"

Although the EU Deforestation Regulation (EUDR) is considered a technical barrier to agricultural exports, there have been remarkable advances in the Central Highlands. Some businesses have proactively transformed, invested in technology, and changed their production mindset to pursue a sustainable model. They have not only met the requirements of the EUDR but have also gradually affirmed the position of Vietnamese goods in the European market.

One of the names that is paving the way for Gia Lai agricultural products to reach deeper into the EU market is Vinh Hiep Company Limited. In the 2023-2024 crop year, this company has risen to become the leading coffee exporter in the country with an export turnover of 520 million USD. The company's coffee products have been exported to 58 countries around the world .

Organic coffee farming model

Mr. Thai Nhu Hiep, Chairman of the Board of Members and Director of Vinh Hiep Company Limited, said: "Each year, Vinh Hiep exports about 160,000 tons of coffee to 58 countries around the world, of which the European market accounts for about 60%. Vinh Hiep sets its mission as a pioneer in organic agriculture , bringing Vietnamese agricultural products to a new level by meeting the strict standards of the most demanding markets in the world. To enter the European market, Vinh Hiep has built a sustainable coffee production network according to international market standards, especially in compliance with EUDR regulations. The products made now are no longer selling products, but we are selling with responsibility, which is improving quality, environment, and governance. This forces farmers to make positive changes to production with quality, technical standards, animal and plant quarantine measures, and clear origin".

According to Mr. Thai Nhu Hiep, the company's main agricultural products include green coffee, roasted and ground coffee, instant coffee and pepper. With a transparent geographical indication and traceability system, Vinh Hiep's coffee products not only affirm their quality but also enhance the competitiveness of Vietnamese Robusta coffee in the international market.

As of 2024, the company has cooperated and linked with more than 15,000 farming households, building a sustainable coffee production linkage model, applying international standards such as Organic, 4C and Rainforest Alliance. Product consumption policies, organizing training on sustainable coffee cultivation and care techniques have helped increase labor productivity, improve people's lives and ensure the quality of output products meets international standards.

Not only is it a coffee brand with a strong identity, Ngon Avatar is also a journey to build sustainable values ​​with clean agriculture.

Ngon Avatar Company Limited or Tam Ba Production and Service Company Limited are also typical examples of pursuing the mission of organic coffee farming in Gia Lai .

Mr. Van Quoc Viet, Director of Ngon Avatar LLC shared: Not only is it a coffee brand imbued with the identity of the mountainous town of Pleiku (Gia Lai), Ngon Avatar is also a journey to build sustainable values ​​with clean agriculture and the belief that Gia Lai Robusta coffee beans will help Vietnamese agriculture develop and reach further.

Each coffee bean harvested is grown organically on Quoc Viet's own 20-hectare farm. Not only that, he also built a closed process from planting to finishing the product. From coffee growing culture, raw material processing, roasting and processing, sales, establishing a coffee culture space, and quality management.

Meanwhile, Mr. Luu Vinh Quang, Deputy Director of Tam Ba Production and Service Company Limited, said: In the past 3 years, from a 200-hectare raw material area produced according to organic processes, the company has begun to focus on processing high-quality coffee to increase product value and seek export markets, including the European market. In addition, the company always focuses on applying green production models to fulfill its commitment to reducing emissions and combating climate change. The company proactively uses renewable energy and environmentally friendly technology in production activities, aiming for a sustainable coffee industry.

“We closely monitor all stages from planting to care, harvesting, processing and packaging. The advantages of organic agriculture over traditional agriculture are sustainability, environmental protection and biodiversity. In particular, certified organic products will have much higher value. Organic coffee has many advantages in penetrating demanding markets such as Europe,” said Mr. Luu Vinh Quang.

For Dak Lak, compliance with EUDR is not only a challenge but also an opportunity for the coffee industry, the province's key export industry, to enhance its reputation, value and position in the international market. Therefore, Dak Lak has quickly implemented solutions to adapt to EUDR, piloting in 8 districts, towns and cities, including: Krong Nang, Cu M'gar, Buon Don, Ea H'leo, Krong Ana, Cu Kuin, Buon Ho town and Buon Ma Thuot city, supported by Dak Lak 2/9 Import-Export Company Limited (Simexco DakLak) in coordination with IDH and JDE Peet's, from October 2023 to December 2024.

This will form the basis for building a data system for the Vietnamese coffee industry, national data and a mechanism for sharing feedback with the European Union (EU). This is also the premise for expanding to other coffee growing localities in the province.

After more than a year of implementation, 25,416 coffee farmers have participated, with an area of ​​26,961 hectares, and an output of 89,085 tons meeting EUDR. In April 2024, Simexco DakLak was the first unit in the world to be granted two 4C-EUDR certificates meeting EUDR standards. At the same time, it pioneered the construction of the EUDR app to adapt to new EU regulations.

Every year, Simexco DakLak exports a large amount of coffee, from 50,000-70,000 tons to the European market.

In order to meet the strictest import regulations currently for coffee products in the European Union market, Simexco DakLak and EDE Farm Trading and Service Company Limited have signed a long-term cooperation agreement on the commitment to build a raw coffee supply chain to produce MISS EDE brand coffee with full EUDR certification, serving the export of finished coffee products to the EU market from 2025.

Simexco Dak Lak and MISS EDE have agreed to continue their long-term cooperation on the commitment to build a raw coffee supply chain to produce MISS EDE brand coffee with full EUDR certification for the purpose of importing finished coffee products into the EU market from 2025.

Simexco DakLak and EDE Farm Trading and Service Company Limited signed a cooperation agreement to build a coffee supply chain that fully meets EUDR certification.

New step forward for Central Highlands agricultural products

The efforts of pioneering enterprises are clear evidence of the adaptability and innovation of Central Highlands agricultural products in a global context requiring green and sustainable development. However, to create long-term momentum and spread throughout the region, it is necessary to have the support of state management agencies, as well as guidance from experts.

Many opinions say that if we take advantage of the opportunities that EUDR brings, not only will businesses benefit but the local economy will also grow in a more sustainable direction.

According to the representative of the Department of Agriculture and Environment of Dak Lak province, the EUDR regulation will have a direct impact on Vietnam's main export industries. In order to meet the requirements of the EUDR, and at the same time develop agricultural products of the Central Highlands in general and Dak Lak province in particular sustainably and effectively, the province has proposed to promote communication and dissemination of EUDR to all relevant parties such as forest owners, people living near forests, forest edges; farmers, organizations, individuals, coffee processing and trading. Strengthen forest management and protection; promptly inspect, detect, and file cases to handle illegal deforestation cases. In addition, reorganize production according to the industry value chain, including planning and developing large-scale raw material areas, producing goods according to high standards and quality.

When Central Highlands agricultural products penetrate the European market, it will open up great opportunities to reach many other markets.

Mr. Pham Van Binh, Director of the Department of Industry and Trade of Gia Lai, said that in 2024, the province's export turnover will reach 820 million USD (109.3% of the plan, up 20.59% compared to 2023). This is a large growth rate and a bright spot in the activities of the province's Industry and Trade sector. Among about 30 export enterprises in the province, Gia Lai has a number of reputable export enterprises in the market such as Vinh Hiep, Hoa Trang, Tin Thanh Dat, Louis Dreyfu Company Vietnam Trading and Processing Company Limited (FDI enterprise).

“These enterprises all have industrial-scale processing plants and warehouse systems that are invested in upgrading and expanding every year. Investment in technological innovation, focusing on applying advanced technical standards and regulations in production and processing are focused by enterprises to create a source of quality agricultural products, meeting the requirements of European markets. Along with that, the impact of free trade agreements, especially EVFTA, has created opportunities for enterprises to expand export markets,” said Mr. Binh.

However, Mr. Binh also believes that people and businesses must change to adapt to the market. In particular, focusing on farming methods, transparency of origin, expanding scale, and high-tech production processes, so that agricultural products can open doors to demanding markets.

"When Central Highlands agricultural products penetrate the European market, it will open up great opportunities to reach many other markets ," said Mr. Binh.

At the "Workshop on promoting the coffee industry forum to comply with the European Union Deforestation Regulation (EUDR)" held in November 2024 in Dak Nong, Mr. Gonzalo Serrano De La Rosa, Deputy Head of the Cooperation Department, European Union Delegation, assessed that the efforts of Vietnam in general and the Central Highlands in particular in implementing specific measures to meet the standards on agricultural products against deforestation and forest degradation are very timely.

Mr. Gonzalo said that EUDR regulations are both a challenge and an opportunity in the process of developing high-quality agricultural products, clean, organic and sustainable agriculture. Meeting EUDR standards is the basis for increasing trade opportunities for agricultural products of the Central Highlands in world markets in the coming years.

In order to adapt to EUDR, the People's Committees of the Central Highlands provinces have requested departments, branches, sectors and units to promote the dissemination of EUDR regulations. Regularly update documents and texts on mechanisms and policies of the Central Government, ministries, branches and the relevant European Union Commission to promptly share and respond to information with businesses importing goods into the EU market; organize training to improve skills and knowledge on the legality of production and trading of agricultural and forestry products.

Along with that, it is necessary to develop and deploy a traceability solution along the supply chain, linked to geographical coordinates integrating the growing area code of each garden for the industry affected by EUDR. Support the conversion and improvement of livelihoods for farmers, especially ethnic minorities living in interspersed areas, adjacent to forests, remote areas. Continue to affirm that sustainable agricultural and forestry development is a strength, a foundation for long-term stability...

For export enterprises, it is necessary to focus on reorganizing production to improve product quality and value, promote brand building, target reputable export markets, bring products that ensure prestige, meet EUDR to enter major markets in the world.

Agricultural exports in Gia Lai province

The strong transformation of pioneering enterprises has proven that Central Highlands agricultural products can completely overcome the challenge of EUDR to conquer the EU market. Not only meeting strict standards, these enterprises also contribute to changing the perception of sustainable production, opening a new direction for Vietnamese agriculture. In the future, if the cooperation between enterprises, farmers and management agencies continues to be maintained, Central Highlands agricultural products will not only be one of the "agricultural granaries" of Vietnam, but also become a symbol of sustainable agriculture in the international market.

By: Central Highlands Reporters Group

PV Group

Source: https://congthuong.vn/bai-3-nhung-buoc-tien-dang-ghi-nhan-388400.html