The first firm to introduce a coffee production complying with EUDR

Simexco DakLak Co., Ltd., an import-export company located in Dak Lak province, conducted a ceremony on April 25 to announce the establishment of a pioneering coffee-producing region in Dak Lak that meets EUDR criteria.

According to Simexco DakLak, the company is currently working with the IDH organization to update data and implement activities to achieve EUDR compliance for coffee production areas in six regions, including Buon Ma Thuot City, Buon Ho Town, Krong Nang District, Cu Mgar District, Cu Kuin District, and Krong Ana District, which totals nearly 82 thousand households, 106 hectares, and 300,000 tons.

Simexco DakLak has been approved for EUDR compliance for 4,957 farmers over 5,375 hectares in the connected region.

According to Mr. Thai Anh Tuan, Deputy General Director of Simexco DakLak, the firm has been a pioneer in building production ties with farmers over the last 15 years. Currently, the firm operates a large-scale production linkage system that meets sustainable requirements, comprising up to 40,000 growers and 48,000 hectares of coffee.

Simexco DakLak has been implementing sustainable certification schemes, including Rainforest Alliance, 4C, and Fairtrade, since 2009. These guidelines provide requirements for environmental preservation and forest resource conservation. Implementing large-scale production initiatives, together with resource conservation and social welfare, has helped to promote excellent agricultural practices and ethical coffee production.

"There are now more hurdles and stiffer standards for coffee import markets. The most recent is the European Union's forest destruction prevention laws (EUDR). Simexco DakLak performed inspections based on current EU rules and Vietnam's forest classification laws and discovered no coffee farms associated with the firm that were causing deforestation. Simexco is proud to be a pioneer in efforts to adapt to EUDR," Mr. Tuan said.

Mr. Le Duc Huy, General Director of Simexco DakLak, indicated that the European coffee market consumes up to 40% of Vietnam's coffee production.

According to Mr. Huy, Simexco DakLak has conducted surveys and gathered data from coffee-growing districts from June 2023, after the implementation of EUDR criteria. After only ten months of implementation, two coffee-growing districts certified with 4C fulfilled EUDR criteria, involving approximately 8,000 growers, covering 9,500 hectares, and producing more than 35,000 tons.

"We have just certified the raw material locations, therefore we want a lot of data from the European importing market.

Through the memorandums of understanding, we will soon acquire the required information to test the initial set of shipments that adhere to the standards by 2024. 

Simexco DakLak is collaborating with localities to build areas that meet EUDR standards, with nearly 80 thousand households, 100 thousand hectares, and 300 thousand tons of production output. The first batch of shipments will be trialed in 2024. These areas will be certified to meet EUDR standards by the third quarter of 2024," Mr. Huy remarked.

The General Director of Simexco DakLak feels that the EUDR requirement serves as a strong reminder to the growing environmentally sensitive consumer market about the producing country's environmental preservation measures.

"Products manufactured nowadays must not only fulfill quality requirements, but also consider landscape aspects and environmental preservation. Simexco DakLak is committed to maintaining its collaboration with pioneering manufacturers on projects for sustainable development and environmental preservation. Specifically, we are developing a 5,000-hectare coffee raw material region by 2030 to fulfill greenhouse gas emission balancing standards, with 1,000 hectares eligible for carbon credits. Sustainable farming and environmental protection will help farmers earn more money," Mr. Huy noted.

Speaking during the occasion, Mr. Nguyen Thien Van, Vice Chairman of the Dak Lak Provincial People's Committee, remarked that this is more than simply an announcement; it is a message to enterprises, governmental agencies, and coffee-producing farmers. Simexco DakLak is a pioneer in developing raw material regions that fulfill EUDR criteria in order to react to customer-imposed technological constraints.

"How can each batch not only be transported to Europe, but also not include coffee beans sourced from forest land in other markets? Entities need to raise member management knowledge across the value chain. It is anticipated that in the future, Simexco DakLak and other firms would actively assist in implementing EUDR rules. Mr. Nguyen Thien Van stressed that this would not only bolster confidence with European consumers, but will also protect the rights and interests of industry players.