Minh Nhat Vina Coffee Co., Ltd: Committed to Successfully Building Large- scale Field Model in Dak Nong

Despite officially being in operation for merely two years, Minh Nhat Vina has embarked immediately on building farmers' groups consist of about 2,000 households, with an area of about 3,000 hectares, as a foundation for the implementation of the program of sustainable coffee by the 4C Code of Conduct (the baseline standard for sustainability in the international coffee sector) in collaboration with Nestle Vietnam Co Ltd. The company has participated in the 3 EM project, in association with groups of common interest in coffee and pepper in Dak Mon and Truong Xuan communes to supply high-quality fertilizer and materials for farmers as well as to advise planters on balanced fertilizing methods in order to help them save costs and gain economic benefits, at the same time improving productivity and commodities’ value in the long term.

 

However, for production and business to be able to develop sustainably in an integrated competitive market, helping create a brand for Dak Song province’s exported coffee and pepper and improve the living of local farmers, Minh Nhat Vina has decided to set up a joint project with farmers to apply the large scale field model for coffee and pepper in the province. This project is consistent with the policy of the Party, the State and was approved by the Department of Agriculture and Rural Development of Dak Nong province in an issued document. Currently, the company is rushing to complete the project planning to begin implementation early in the new year 2015.

 

Compared with previous collaboration models, the large scale field model for coffee and pepper plants in Dak Song creates a more comprehensive linkage with farmers, establishing a close connection in agricultural production between the company and farmers. On the other hand, this project will also help the company increase the chain value for local coffee and pepper.

 

However, Mr Vu Minh Nhat, Director of Minh Nhat Vina Coffee, noted that the link between enterprises and farmers would be difficult to maintain considering that businesses currently lacked sufficient capital to meet the demands of production and business in the joint project; and access to credit remained difficult. Therefore, for this project to work out, the company hoped local authorities would establish policies supporting businesses and farmers during the project implementation. In particular, the province should pay attention to, support and create favourable conditions for businesses to access credit through the banking system, so that they can get capital to reach the production and business objectives in the project, working towards the goal of a sustainably developed Dak Nong rural area.