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Will EU anti-deforestation rules create more barriers for the coffee industry?

Báo Đắk NôngBáo Đắk Nông02/06/2023


Ms. Tran Thi Quynh Chi, Director of the Asian Landscape Region, IDH Organization, said that the coffee growing area in Vietnam is actually legal, not grown on land due to deforestation or forest degradation, but in reality, proving the origin according to regulations is not easy.

On the afternoon of May 31, Minister Le Minh Hoan chaired a meeting with industry associations on the new EU Regulation on deforestation prevention.

At the meeting, Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee - Cocoa Association, said that the EU's new anti-deforestation regulations require companies to ensure that products sold in the European Union (EU) do not lead to deforestation and forest degradation.

Products subject to the new regulation include coffee, palm oil, soy, timber, livestock, cocoa, rubber (including derivative products containing, fed on or derived from products produced on land originating from deforestation and forest degradation) from countries entering the EU after 31 December 2020. Products in the above groups of goods if related to deforestation will be banned from import into the EU.

The new regulation will introduce new mandatory requirements by the end of 2024. There is not much time left to officially implement the bill banning the import of deforestation-related items from European countries, so Vietnam must step up the dissemination and enforcement of the above regulation.

According to Mr. Nguyen Nam Hai, coffee is an export item to the EU in large and stable quantities, currently accounting for about 42% of Vietnam's annual coffee export output.

To stabilize and not fluctuate the market share of coffee exports to the EU, the Vietnamese coffee industry needs to comply with the regulations against deforestation and forest degradation approved by the European Council and effective from May 16, 2023.

Ms. Tran Thi Quynh Chi, Director of the Asian Landscape Region, Sustainable Trade Initiative (IDH) said that Vietnam currently has about 1.3 million coffee growing households, most of which are only 0.5 hectares or less in 11 coffee growing provinces.

This area is actually legal, not planted on land due to deforestation or forest degradation, but in reality, proving the origin according to regulations is not easy.

Ms. Quynh Chi proposed that the Ministry of Agriculture and Rural Development , specialized agencies and companies provide technical support data to build a database on forest protection monitoring and planted forest data.

Concluding the meeting, Minister Le Minh Hoan said that the EU's regulations on combating deforestation and forest degradation for agricultural production, including coffee, are both a challenge and an opportunity for us to restructure agricultural products, proving to the world that Vietnam is truly growing green.

Besides, requirements for traceability and transparency of agricultural product origin are inevitable demands from the market, including the EU market.

Minister Le Minh Hoan requested the Department of International Cooperation (Ministry of Agriculture and Rural Development) to promptly submit to the Minister an action framework to implement this EU regulation; requested the Ministry's advisory agencies to adjust the action framework, consult with associations and industries to soon have an implementation program in line with the new European regulations.

Within the action framework, it is necessary to promote communication so that authorities and farmers clearly understand EU regulations on combating deforestation and forest degradation in agricultural production, including coffee; clearly define the responsibilities of the Ministry of Agriculture and Rural Development, authorities at all levels and people to implement EU regulations.

“We must change ourselves to build brands and quality of agricultural products, including coffee products in particular,” Minister Le Minh Hoan emphasized.



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