In Dak Lak, Vietnam's coffee capital, adapting to the European Union Deforestation Regulation (EUDR) has been identified as a strategic priority. Accordingly, the province is accelerating the development of transparent coffee production areas to strengthen the competitiveness of Dak Lak coffee across global supply chains.

The Cu Sue 2-9 Sustainable Agriculture Cooperative in Quang Phu commune meeting EUDR standards for coffee production.

Meeting EUDR requirements initially presented a significant challenge for Dak Lak, which has approximately 217,000 hectares of coffee plantations, with nearly 90% cultivated by smallholder farmers.

In response, Dak Lak has worked closely with non-governmental organisations and enterprises to accelerate the digitalisation of cultivation area data across the provincial coffee-growing regions.

According to comrade Nguyen Thien Van, PPC Vice Chairman, the EUDR has a significant impact on the provincial coffee export value to the European market. Over the past several years, Dak Lak has proactively piloted an EUDR-compliant database across three former districts. To date, surveys and data collection have covered 86,339 hectares of coffee plantations, accounting for nearly 40% of the provincial coffee cultivation area. The initiative is progressively integrating forest spatial data with polygon-based farm boundary data for individual farming households.

Alongside local enterprises such as Simexco Daklak, which has already updated digital mapping for more than 48,000 farming households, multinational corporations have also intensified their efforts. To date, Nestlé Vietnam's Nescafé Plan has compiled a database containing more than 40,000 polygons, covering key coffee-growing areas in Dak Nong, Lam Dong, Dak Lak and Gia Lai.

According to Mr. Pham Phu Ngoc, Head of Nestlé Vietnam's Central Highlands Branch and Director of the Nescafé Plan Vietnam, Nestlé regards EUDR not merely as a mandatory legal requirement but also as an opportunity to enhance supply chain transparency, increase the value of Vietnamese coffee beans, while strengthening the sector's competitiveness.

Keeping pace with the European Commission's updates

Beyond meeting traceability requirements, developing transparent production areas is closely linked to reducing emissions coupled with advancing regenerative agriculture.

Within linked production areas, farmers receive training in low-emission cultivation techniques. By complying with international standards and demonstrating that production does not contribute to deforestation, coffee produced within these supply chains is purchased by international partners at prices 10 - 20% higher than conventional products.

Simexco Daklak's coffee production areas complying with EUDR standards.

Thanks to the proactive efforts of provincial authorities, enterprises alongside cooperatives, Dak Lak's coffee sector is steadily reinforcing its standing as Vietnam's coffee capital in international markets. Simexco Daklak is a notable example. It became the first enterprise in Vietnam and worldwide to receive two 4C-EUDR Certifications from the 4C Association, covering a certified area of 9,437 hectares. The company is now expanding support for 50,000 farmers engaged in sustainable, low-carbon as well as EUDR-compliant coffee production.

Under its roadmap, Dak Lak aims to establish approximately 150,000 hectares of EUDR-compliant coffee-growing areas. The province is continuing to coordinate with the Department of Crop Production and Plant Protection, together with organisations and enterprises, to further develop databases related to forestry planning.

According to the Ministry of Agriculture and Environment, compliance with EUDR requires enterprises to strengthen linkages with production areas, expand sustainably certified coffee production, accelerate digital mapping, establish traceability down to individual farming households, as well as keep pace with the European Commission's latest updates. These efforts will reinforce the reputation of Vietnamese agricultural products while accelerating the transition from conventional agricultural production towards a green, transparent and responsible agricultural economy.

Translated by KHUONG THAO