Vietnam's coffee industry, long considered one of the nations agricultural backbones, is now grappling with significant challenges as environmental concerns mount. Coffee, which makes up over 35% of the agricultural land use structure in Dak Nong province, continues to significantly contribute to household income. Yet, these contributions are now shadowed by rising labor costs and shortages leading to the increased use of harmful herbicides and chemical pesticides.
This trend of utilizing chemical aids for coffee cultivation has escalated over recent years. Farmers, struggling to manage rising operational costs, have turned to these products, which, unfortunately, jeopardize the ecological health of the region. The effects are dire — from pollution of local water sources to adverse impacts on human health. Alarmingly, instances have been documented where pesticide residue levels exceeded permissible limits for exported coffee. This scenario not only affects the local environment but threatens Vietnam's standing as one of the world's largest coffee exporters.
Recognizing these pressing issues, the Global Coffee Platform (GCP) convened key industry players in mid-2020. Companies such as Nestlé, JDE Peet’s, and Lavazza Foundation, among others, joined forces with local authorities to push for sustainable agricultural practices and to advocate for policy changes. By addressing the urgent need for compliance with Maximum Residue Level (MRL) standards, the coalition aims to protect Vietnam’s supply chain and bolster its export capabilities. Phùng Đức Tiến, Deputy Minister of Agriculture and Rural Development, noted, "Exports are expected to exceed 70 billion USD this year," indicating positive projections for agricultural exports, including coffee.
February 2025 has marked another noteworthy month for Vietnam's agricultural sector, with exports reaching 4.4 billion USD, marking a remarkable 37% increase compared to the previous year. Despite the current struggles faced by the coffee industry, its value skyrocketed to 1.58 billion USD this month alone, reflecting a growth of 26% even with a considerable decline of 28% in export volume. If the predictions hold true, coffee exports could potentially reach 6 billion USD by the end of the year, surpassing last year's record of 5.62 billion USD.
Alongside coffee, other products such as pepper, seafood, wood, rubber, and wood products are experiencing similar growth, juxtaposed sharply against declines seen in some sectors. Notably, vegetable and rice exports have seen decreases of 11% and 13% respectively, leading to renewed discussions on strategies to maintain Vietnam's agricultural edge. The average export price of rice stood at 553 USD per ton, with the aim of exporting over nine million tons this year remaining firmly intact.
Environmental sustainability concerns are not just limited to farming practices; they extend to waste management within the coffee production sphere. The improper disposal of agricultural waste, such as packaging and hazardous residues, has led to increased advocacy for eco-friendly disposal methods. Various stakeholders are emphasizing the need for increased involvement and stricter regulations on waste management to minimize the ecological footprint. While efforts to implement needs-based practices are underway, achieving substantial change will require persistent collaboration among governmental bodies, coffee producers, and environmental organizations.
The question remains: how will Vietnam balance its fiscal goals with the pressing need for sustainable practices? A representative of the GCP underscored, "The use of herbicides and unbalanced fertilizers significantly impacts the coffee industry," drawing attention to the need for responsible agricultural input usage. The challenges highlighted during roundtable discussions reveal the complexity of transforming established practices within the coffee sector—a process requiring time and collective effort.
With coffee occupying the third position nationwide and regionally among the largest producers following Dak Lak and Lam Dong provinces, Dak Nong is under pressure to innovate and adapt. The region’s coffee plantations stretch across 143,000 hectares, yielding over 360,027 tons per crop. This substantial output exemplifies the importance of sustainable practices not only for meeting international standards but inevitable for securing the long-term viability of Vietnam's coffee industry.
To navigate these challenges, relevant parties, including VCCB (Vietnam Coffee Coordination Board) and VICOFA (Vietnam Coffee and Cocoa Association), are proactively working alongside the GCP to formulate strategic responses to the industry's current challenges. Effective measures will center around encouraging responsible practices, enhancing quality standards, and ensuring waste is handled appropriately to support the sustainability of coffee cultivation.
Moving forward, it is clear: achieving higher export targets will necessitate the integration of sustainable practices throughout the coffee supply chain. A collective commitment to environmental stewardship could position Vietnam favorably within market landscapes, thereby safeguarding the livelihood of the coffee producers and the ecosystems upon which they rely. The key to success lies not only in expected monetary gains but balancing them with responsible farming practices to create a resilient agricultural framework.