CRAS - Impact Story - 1004

STRENGTHENING THE CLIMATE RESILIENCE

OF POOR POPULATION GROUPS PARTICIPATING IN COFFEE PRODUCTION IN SON LA AND DIEN BIEN PROVINCES OF VIETNAM, TAKING INTO ACCOUNT OF THE IMPACT OF COVID-19.

BACKGROUND

Overview background

Agriculture is one of the biggest employment sources in Cambodia and Viet Nam. Over 70% of the popula�on is directly, or indirectly involved in the produc�on of agricultural goods. Crop failures because of droughts in the dry- and flooding during the rainy season or rime during cold spells with its high precipita�on pose major challenges for producers.

In addi�on to the ongoing risks posed by the changing climate, smallholder farmers are now struggling to cope with the restric�ons on trade in the Associa�on of South East Asian Na�ons (ASEAN) countries that came into effect due to the COVID-19 pandemic.

Background of DIEN BIEN

Total coffee produc�on area 3.330 ha

Arabica planted & developed �me >50 years

Arabica coffee has been a vital economic resource in Dien Bien for over 50 years, aiding in poverty reduc�on. However, the province faces challenges due to unstable market values and outdated cul�va�on prac�ces, compounded by unfavorable weather condi�ons. Most coffee areas are on sloping land with limited shade trees, exacerba�ng vulnerability to climate events like hoarfrost. Processing is primarily done at the household level with low added value. Strengthening climate resilience in Dien Bien's Arabica coffee value chain is crucial to address these challenges effec�vely.

Background of SON LA

Total coffee produc�on area 20.000 ha

Natural factors affec�ng coffee quality 30%

Son La, the largest coffee province in the North, faces significant challenges from climate change impac�ng coffee produc�on. Extreme weather events have decreased coffee produc�vity by 30%. Only 10% of households use effec�ve prac�ces like intercropping. Climate change worsens soil erosion and degrada�on, compounded by low market prices hindering investments. Wet processing and complex terrain limit fer�lizer use, degrading coffee gardens. Coffee husk compos�ng shows poten�al but needs improvement. Enhancing climate resilience in Son La's Arabica coffee value chains is crucial.

PROJECT OVERVIEW

Implementation period

30 months (from January 2022 to September 2024)

Implementation location

2 provinces: Son La and Dien Bien

Module indicators

60% TRAINED SMALL FARMERS

60% of 2.000 trained small farmers (in which 50% are poor and near-poor households and 40% are women) use new climate-resilient produc�on methods on 25% of their coffee land

Project name

Strengthening the Climate Resilience of Agricultural Systems in Cambodia and Vietnam (CRAS)this is the regional project implemen�ng in 2 countries: Vietnam and Cambodia. While in Cambodia, the focus is on casava and cashew commodi�es and in Vietnam, Arabica coffee in the Northwest region is chosen.

Project name of Vietnam component: Strengthening the Climate Resillience of poor popula�on groups par�cipa�ng in coffee produc�on in Son La and Dien Bien provinces of Vietnam, taking into account of the impact of COVID-19.

20% OF COFFEE PRODUCTS

80% of trained coffee purchasing companies confirmed that at least 20% of coffee products they purchased is produced with climate-resilient methods

1 POLICY BRIEF

Integrate 1 policy brief for climate-resilient coffee value chain into agricultural sector´s plan and policy frameworks

Beneficiaries

1. Direct beneficiaries:

◦ State management agencies, policy makers, and government officials at both central and local levels

◦ Coffee farmers in Son La and Dien Bien province

◦ Private organiza�ons, including coffee companies, coopera�ves, and other relevant actors working in coffee value chain in Son La and Dien Bien province

Budget

2. Indirect beneficiaries:

Managers, policy planners, research ins�tutes, universi�es, and other stakeholders involved in the implementa�on of relevant value chain and climate change studies."

Approx of 6 mil EUR in which 3,9 mil EUR for Cambodia and 2,1 mil EUR for Vietnam

Implementing partners

Coffee in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

Coffee in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

PROJECT OBJECTIVE

Overall Objective

The CRAS Vietnam component focuses on enhancing resilience in Arabica coffee value chains amid climate change and the COVID-19 pandemic. It aims to strengthen smallholder coffee produc�on and livelihoods in two poverty-stricken areas heavily impacted by climate change.

Specific Objectives

Enhance capacity of farmer groups in the Arabica coffee value chains in Son La and Dien Bien on climate change adapta�on coffee produc�on, taking into account of the impact of Covid-19

Improve coopera�on between stakeholders (enterprises, coopera�ves, farmer households, managers and policy makers, agricultural extension service prodviders) in the Arabica coffee value chain;

Strengthen the capacity of public and private sector organiza�ons on climate change resilience and disaster risks, taking into account of the impact of Covid 19

Sharing of na�onal experiences among public and private sector actors through regional and na�onal coopera�on pla�orms

Coffee farm in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

Coffee farmer in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

IMPLEMENTED ACTIVITIES

>3000 SMALLHOLDER FARMERS

More than 3.000 smalholder farmers (1.273 female and 600 poor and near-poor households) have been trained in climate-resilient Arabica Coffee produc�on techniques and trade agreement nego�a�ons

More than 130 public and private sector professionals have been trained in climate-resilient coffee produc�on techiques using the acquired knowledge to advise farmers

>130 SECTOR PROFESSIONALS UPDATING ToT & ToF 15HA

Three mother coffee gardens with a total of 15 ha have been established to provided verified, high-quality, climate-resilient varie�es to producers

ToT and ToF training mateirlas is updated and tailored to the Northwestern Arabica Coffee value chain available as printed and digital version for further dissemina�on.

Develop the capacities of small farmers to apply climate-resilient production methods

7DEMONSTRATION SITES

07 demonstra�on sites with a total of 30 ha were developed and maintained to showcase the applica�on of sustainable farming prac�ces for end-of-cylcle and commercial coffee farms

340.000 THA1 COFFEE SEEDLINGS &

50.000 MACCADAMIA SEEDLINGS

More than 340.000 THA1 coffee seedlings and 50.000 Maccadamia seedlings were provided for smallholder coffee farmers located in two project sites to promote the applica�on of climate-resilient coffee varie�es and sustainable farming techniques

Exchange of national experiences on public-private partnership cooperation through regional exchange forms/forums

Within the framework of the first Son La Coffee Fes�val in 2023, the CRAS project and partners organized a series of ac�vi�es for sustainable coffee development.

◦ The "Sustainable Development, Enhancing the Value of Son La Coffee" workshop, held with Son La province's People's Commi�ee and relevant departments, a�racted over 220 delegates who par�cipated both in person and online, including the representa�ves from MARD and MoIT of Son La and various provinces, businesses, coopera�ves, and research ins�tu�ons in the coffee industry.

◦ A farmers’ compe��on on "Sustainable Coffee Produc�on, Adap�ng to Climate Change" was organized with the Son La provincial Farmers' Associa�on to disseminate knowledge and enhance sustainable coffee produc�on techniques as well as enabling coffee growers in the province to enhance their resilience in the face of climate change.

Evaluate and disseminate insights on climate resilience in Vietnamese Arabica coffee produc�on in regional forums for broader dissemina�on to neighboring countries.

Develop technical capacities of public and private-sector actors in the field of resilience to climate change

Develop a policy brief on sustainable farming and climate adapta�on, submit�ng it to the Ministry of Agriculture and Rural Development for poten�al integra�on into the sector's policy framework.

Conduct provincial and na�onal workshops to share insights, best prac�ces, lesson learnt, summarizing findings and offering recommenda�ons for climate-resilient produc�on methods to both public and private value chain par�cipants.

Arrange 4 study tours for core farmers and extension workers in the project area to exchange experiences in climate-resilient coffee cul�va�on with those from the Central Highlands.

Coffee in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

Cooperation Between Small Farmers and Companies

Six innova�ve ideas on developing high-quality, environmental-friendly, climate-adap�ve Arabica coffee products are supported through Integrated Development Partnerships with the Private Sector (iDPPs)

Detech Coffee Company

Bich Thao Coopera�ve

◦ Technical manual for raising earthworms with coffee pods/husks to produce earthworm manure and earthworm solu�on for plants was developed.

◦ Pilot model of raising eathworms from coffee pods on a houshold scale was established with a scale of 100m2

◦ Provide training course on specialty coffee produc�on and processing for more than 30 key members of Bich Thao Coopera�ve and linkage households

◦ Promote the applica�on of freeze-drying coffee method to produce high-end coffee products, contribute to reach interna�onal users with higher price

Minh Tien Company

◦ Provide ToT training course on Rainforest Alliance Standards and Internal Control System for key technical staff

◦ Provide ToF training course on Rainforest Alliance Standards for more than 500 coffee farmers

Building a circular agricultural economic model associated with Arabica coffee produc�on according to organic standards in Son La province

◦ 04 phase-training courses on organic, high-quality coffee farming and adapta�on to climate change were organized for more than 100 coffee farmers who have the linkage with Minh Tien Company

◦ 04 Coffee Produc�on Coopera�ves were established and enhanced capacity on internal control, field technical consul�ng and in-depth knowledge on Arabica Coffee cul�va�on.

◦ Provide training and produce microbial organic fer�lizer and compos�ng coffee husks to create organic fer�lizer and distributed to trained coffee farmers

◦ Provide training course on C.A.F.E Prac�ces standards - Interna�onal coffee verifica�on standards developed by Starbucks and SCS Global Services for coffee farmers having linkage with Minh Tien Company

Aratay Coopera�ve

◦ Provide training on sustainable and climate-resilient coffee farming techniques for 300 coffee farners

◦ Provide training course on cascara produc�on from coffee pods and marke�ng and promo�ng skills

◦ Produce a video and photo set illustra�ng specialty-Arabica coffee produc�on, including cascara, to enhance Aratay Coopera�ve's market presence and product promo�on.

◦ A filed visit to Central Highland of Viet Nam to visit 02 successful models of sustainable and climate-resilient coffee farming prac�ces was organized with the par�cipa�on of 12 key members of Aratay to strengthen produc�on, processing, and marke�ng capaci�es for specialty coffee products and cascara.

Weather Plus Hong Ky Company

◦ Install Smart Weather Sta�on in Chieng Co commune, Son La province to promote real-�me weather forecas�ng and warning

◦ The mobile app named Northwest CAFÉ is built to provide forecas�ng/warning about extreme weather events, pests and diseases integrated with related sustainable coffee farming prac�ces in response to climate change.

◦ A training course on the instruc�ons of Northwest CAFÉ mobile applica�on was organized for more than 100 coffee farmers and 24 agricultural extension officers in Son La province to promote the digital applica�on in coffee produc�on

◦ Establish and support the opera�on of Tenh Phong Sustainable Coffee Coopera�ve - one of the first coopera�ve in Tuan Giao district

◦ Provide training on sustainable coffee produc�on adap�ng to climate change for more than 60 par�cipants who represent members of Tenh Phong Coopera�ve, technical staff of Hong Ky company and extension staff at commune level. It will act as the founda�on of coffee farming techniques for newly established coopera�ve as Tenh Phong

◦ Provide training course on HACCP standards for key member of Hong Ky and Tenh Phong Coopera�ve to assist to access both domes�c and interna�onal markets, enhancing the posi�on of Hong Ky company

◦ To enhance the presence and product promo�on in the market, a professional video clip describing the forma�on and development of coopera�ve, Hong Ky company and their products were developed

Conclusion

Overall, these ac�vi�es are designed to improve the capacity of small farmers to adapt to climate change, enhance coopera�on between farmers and companies, develop technical exper�se, and share valuable knowledge and experiences to build resilience in the coffee value chain.

ACHIEVED RESULTS

Coffee in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

Cooperation between small farmers and companies that purchase and process their produce is improved in terms of fostering climate-resilient cropping methods in agriculture.

4 PARTNERSHIP

4 partnership agreements that foster climate-resilient methods signed between value chain actors.

6 INTEGRATED DEVELOPMENT PARTNERSHIPS

6 integrated development partnerships with the private sector implemented on innova�ve approaches to promote climate-resilient value chains.

The technical capacities of public and private-sector actors in the field of resilience to climate change have been developed.

1 NATIONAL EVENT

1 na�onal event has been held to disseminate research-based recommenda�ons for ac�on on climate-resilient methods for public and private-sector value chain actors and their exis�ng pla�orms.

70% OF THE TOTAL OF 20 TRAINED ACTORS

70% of the total of 20 trained actors in the public and private sectors confirm the periodic use of local informa�on systems to prepare and run extension measures on climate-resilient cul�va�on techniques.

Public and private-sector actors from the three countries are informed about experience gained with scalable resilience measures in the value chain.

2 NATIONAL LESSONS LEARNED ON CLIMATE RESILIENCE

2 na�onal lessons learned on climate resilience in the value chains have been incorporated in the agenda for ins�tu�onalised regional dialogues.

6 INTEGRATED DEVELOPMENT PARTNERSHIPS

6 integrated development partnerships with the private sector implemented on innova�ve approaches to promote climate-resilient value chains.

IMPACT

Economically

The project has contributed to the increased profit from coffee produc�on of farmers via suppor�ng processing enterprises to develop new high value products.

"Project’s supports have a significant impacts on the operation of the cooperative. The freeze-drying coffee helps the cooperative to produce a high quality product which is exported at around 3 mil/kg comparing to regular products at around 1 mil/kg. Bich Thao cooperative has also revived Chieng Set cooperative which was on the verge of dissolution through training on processing techniques. Buying price for linked-farmers is also increased from 13,000VND/kg to 19,000 VND/kg. "

Bich Thao Coopera�ve

Socially

Increase understanding and awareness of crop varie�es that adapt to climate change, have higher economic efficiency, and are more sustainable. Through the training sessions, I learned about THA1 coffee. I liked it very much and sought to buy it, from Dien Bien to Son La.

"Before training, most farmers don’t know how to apply fertilizer properly, they just throw fertilizer near tree trunks. After training, they now know to put fertilizer following coffee trees roots."

Extension Staff of Ang Cang Commune – Muong Ang District – Dien Bien Alleviate hunger and reduce poverty, raise people's awareness.

"Farmers are now pruning their trees more properly. They used to leave all the shoot to grow, now they only leave 2-3 shoots and prune the others."

Extension Staff of Ang Nua Commune – Muong Ang District – Dien Bien.

Understanding of crop varie�es that adapt to climate change, have higher economic efficiency and are more sustainable.

Eliminate hunger and reduce poverty, raise people's awareness

Coffee farmer in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

Environmentally

The project has introduced new processing method, help reducing waste water.

A model of raising earthworms with coffee pods/husks was developed, reducing processing waste.

Expanding useage of organic fer�lizer, improving land degrada�on situa�on.

Expanding sustainable grass management prac�es, reducing soil erosion

Impacts outside the design of the project

The project contributed to improving coffee produc�on of the region, crea�ng more jobs for labour from other provinces/districts.

"In the coffee harversting season, ethnic Mong people from Muong Nhe and Tua Chua districts come here to harverst a lot. They often go as a couple. They work hard and at the end of one season, the couple has enough money to buy a new motorbike to get home."

Extension staff in Ang Nua Commune, Muong Ang District, Dien Bien

LOREM IPSUM DOLOR SIT AMET, CONSECTETUER

How has the story been empowered? Is it effective? Is the procurement going more smoothly? Is the farmer's position higher in each crop than before?

(Demo answer) Organize a transna�onal forum among ASEAN countries, including the par�cipa�on of the ASEAN Resilient Network (CRN) to share lessons learned on climate change adapta�on, including Vietnam and Cambodia in the coffee/cashew/cassava value chain.

Par�cipa�ng in the Conference/Fair to promote interna�onal/domes�c trade for Arabica coffee products in the

Develop 01 video clip and 01 set of photos about the process of produc�on, harves�ng, processing and preserva�on of Arabica coffee as well as cascara of Aratay Coopera�ve to promote the image of the coopera�ve as well as products to the market.

Support enterprises/coopera�ves and farmer households to implement innova�ve and crea�ve ini�a�ves to build a value chain model of high-quality tea coffee from the produc�on stage applying climate change adap�ve farming methods (using new varie�es, gra�ing and replan�ng, intercropping shade trees, etc intercropping) associated with deep processing (applying environmentally friendly deep processing technology to produce specialty coffee, trea�ng by-products from coffee pods as organic fer�lizer, contribu�ng to reducing environmental pollu�on, reducing emissions...) associated with the consump�on of high quality coffee products.

Is trading in enhanced areas more stable? How has the output and quality improved through iDPPs implementation?

(Demo answer) Organize a transna�onal forum among ASEAN countries, including the par�cipa�on of the ASEAN Resilient Network (CRN) to share lessons learned on climate change adapta�on, including Vietnam and Cambodia in the coffee/cashew/cassava value chain.

Par�cipa�ng in the Conference/Fair to promote interna�onal/domes�c trade for Arabica coffee products in the Northwest

A highlight answer here to get a�en�on “

An assessment of the value that the project brings in align with the orientation and expectation of provinces. Potential replication in other areas after the project ends?

(Demo answer) Organize a transna�onal forum among ASEAN countries, including the par�cipa�on of the ASEAN Resilient Network (CRN) to share lessons learned on climate change adapta�on, including Vietnam and Cambodia in the coffee/cashew/cassava value chain.

Par�cipa�ng in the Conference/Fair to promote interna�onal/domes�c trade for Arabica coffee products in the Northwest

Head of the DCP: An assessment of the success of the project. the contribution of project in promoting the development of coffee industry in Viet Nam in general and Is there any change/contribution in current policy and new regulation? In the near future, can the application scale be expanded?

(Demo answer) Organize a transna�onal forum among ASEAN countries, including the par�cipa�on of the ASEAN Resilient Network (CRN) to share lessons learned on climate change adapta�on, including Vietnam and Cambodia in the coffee/cashew/cassava value chain.

Par�cipa�ng in the Conference/Fair to promote interna�onal/domes�c trade for Arabica coffee products in the Northwest

*The content will be updated later

Coffee farmer in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

PROJECT SUSTAINABILITY

Informa�on from project’s documents can be used in future training aci�vi�es of provinces.

"Training documents from the project are very helpful and can be used in our further training training courses or communication campaign"

Extension Division of Son La Province

The sustainability of the project's value chain promo�on ac�vi�es is s�ll unclear. Current linkages are not sustainable, especially in the context of rising coffee prices and businesses and traders compe�ng to buy raw materials. To ensure the sustainability of the link, it is necessary to have a market-oriented approach so that the linked businesses can sell products

In some project areas, there have been cases where households switched from coffee to other fruit trees, in which case the

"In the commune, there are currently a number of households switching from coffee to growing grapefruit. Grapefruit trees are 3 times more economically efficient than coffee, with a yearly income of about 450 million/hectare, while requiring less

Extension

staff in Ang Nua Commune, Muong Ang District, Dien Bien

RECOMMENDATIONS

◦ Con�nue to implement project ac�vi�es, especially linkage development ac�vi�es, using the “coopera�ves establishing coopera�ves” strategy.

◦ Pilot value-chain-lending method.

◦ Consider reducing regular training, increasing the number of demonstra�on models combine with field seminar. Addi�onal instruc�onal video clips in local languages.

◦ Combined with resources from state programs such as the coopera�ve development project and Decree 98 on linkage development.

◦ For the construc�on and implementa�on of new projects, there should be par�cipa�on of local specialized units (e.g. sub-division of crop produc�on, plant protec�on, rural development).

◦ For new projects, there should be specific components for poor/near poor households, taking into account the resource limita�ons of this target group.

◦ Consider recrui�ng specialized project staff at the local level to coordinate, monitor ac�vi�es and report.

Coffee farm in Son La province

Photo: © GIZ/Nguyen Chau Ngoc Son

STRENGTHENING

THE CLIMATE RESILIENCE OF POOR POPULATION GROUPS PARTICIPATING IN COFFEE PRODUCTION IN SON LA AND DIEN BIEN PROVINCES OF VIETNAM, TAKING INTO ACCOUNT OF THE IMPACT OF COVID-19.

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