Climate pressures mount on Vietnam s coffee sector
Despite being the world s second largest coffee producer and leading robusta supplier Vietnam is facing mounting pressure from climate change declining soil health and water stress which directly affects productivity and the livelihoods of millions of farming households
Climate pressures are mounting on Vietnam's coffee sector, as highlighted by Nestlé Vietnam's CEO Binu Jacob at the Shaping the Future discussion session during the Fortune Southeast Asia 500 Summit on November 3. Jacob emphasized that addressing these challenges requires a multifaceted approach, combining suitable coffee varieties, soil conditions, water management, and sharing knowledge among farming households to improve production efficiency.
Nestlé has been actively involved in developing coffee varieties suited to local soil conditions in the Central Highlands, partnering with the Western Highlands Agriculture and Forestry Science Institute (WASI) to research disease-resistant varieties that require less water and pesticides. These efforts are complemented by a tissue culture technique that allows a single coffee leaf to produce around 2,000 seedlings, enabling large-scale propagation over the past 15 years.
To ensure a stable coffee supply, Nestlé emphasizes the importance of restoring the health of ageing plantations and managing water resources through regenerative farming practices. This approach not only reduces water and pesticide usage but can also enhance economic returns without compromising yields. Nestlé's regenerative agriculture model in Vietnam includes crop diversification on the same plots of land, encouraging farmers to intercrop pepper, avocados, and other fruit trees.
This practice not only optimizes land use and generates additional income but also improves soil health and contributes to sustainable farming systems.
Jacob notes that transitioning to sustainable farming practices, such as regenerative agriculture, requires time and patience. It calls for long-term collaboration between businesses, government agencies, and farmers. Vietnam's coffee industry, traditionally known for supplying low-cost coffee, must now invest in upgrading its value chain to meet the rising quality and sustainability standards in international markets.
This transformation presents an opportunity for smallholder farmers to improve their competitiveness and develop products that align with evolving market requirements.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
