EU Anti-Deforestation Law: A Catalyst for Coffee Industry Growth

Vietnamese Coffee Exporter
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The EU’s Anti-Deforestation Law could serve as a catalyst for the coffee industry, driving growth through improved quality while prioritizing environmental protection.

The EU accounts for 38% of Vietnam’s total coffee exports.

According to the Import and Export Department under the Ministry of Industry and Trade, the European Union is a major coffee market, representing about 38% of Vietnam’s annual coffee exports. Among Vietnam’s top 10 coffee-importing markets, five are EU countries.

The EU is also the world’s largest coffee importer, commanding approximately 33–35% of the global market share. In 2024, the region’s coffee consumption is projected to reach nearly $48 billion, with this figure expected to surpass $58 billion by 2029.

In recent months, many European importers have focused on purchasing Vietnamese coffee as the EU’s anti-deforestation regulations draw closer to implementation. This surge in demand has pushed Vietnamese coffee prices to the highest level globally, currently reaching 111,800–112,200 VND/kg in domestic markets.

The EU’s Anti-Deforestation Law mandates that key imported agricultural products—such as coffee, cocoa, palm oil, soybeans, livestock, rubber, and timber—must not be produced on deforested land. The enforcement of this regulation has been delayed by one year, allowing exporting countries more time to prepare.In Vietnam’s Central Highlands, the coffee production and export sectors are actively taking steps to meet these stringent requirements, particularly by prioritizing environmentally responsible practices.

Enterprises Adopting EU-Compliant Coffee Cultivation Standards

This high-quality coffee plantation follows strict processes in care, harvesting, processing, and preservation to meet export requirements for the European market. To achieve certifications such as UTZ or Rainforest, producers must prove that their products are not linked to deforestation, often using tools like Google Earth. Compliance with this criterion is regularly audited by the Rainforest Alliance.

Mr. Lê Đình Tư, Director of Minudo Farm – Care in Đắk Lắk, shared:
“We are always conscious of our actions. First and foremost, we focus on protecting the environment and ensuring the health of ourselves and the community. From there, we aim to create premium, high-value products that not only serve society but also provide us with better income.”

The EU accounts for over 40% of Vietnam’s total coffee consumption, making it a critical market for the nation’s coffee exports. However, the EU’s strict regulations requiring all imported agricultural products to be cultivated on non-deforested or non-degraded land pose significant challenges. At the same time, these requirements present an opportunity to transform Vietnam’s coffee industry towards more sustainable and high-value development.

Mr. Nguyễn Ngọc Quang, Deputy Director of Intimex Group JSC in Buôn Ma Thuột, Đắk Lắk, shared insights into the company’s efforts:
“We are building a comprehensive traceability system, including GPS mapping and plantation boundary demarcations. In collaboration with international organizations, we are implementing sustainable landscape programs. At the same time, we work closely with local governments, including district, commune, and township authorities, to collect farmer data and ensure compliance with the EU’s deforestation-free regulations (EUDR).”

European consumers, like their global counterparts, are increasingly attentive to the origins and safety of agricultural products. As a result, the EU’s Anti-Deforestation Law could serve as a pivotal driver for Vietnam’s coffee sector, encouraging not only higher-quality production but also greater environmental responsibility.

Raising Awareness Among Coffee Farmers

In the face of climate change, outdated farming techniques, overuse of chemical fertilizers leading to ecosystem degradation, and the encroachment of coffee farming on forested land remain prevalent in some areas. The EU’s stringent regulations present both a challenge and an opportunity, urging Vietnam to enhance transparency across the production and supply chain. At the core of this effort is raising farmers’ awareness, starting from the production stage.

Hundreds of households, predominantly from ethnic minority communities, are being trained in climate-resilient coffee farming practices. These training sessions focus on improving yield and bean quality, adopting sustainable cultivation techniques, enhancing soil health, and safeguarding the well-being of producers themselves.

In Đắk Nông province, Vietnam’s third-largest coffee-growing region with approximately 142,000 hectares of coffee plantations, only about 23,500 hectares meet voluntary sustainability standards like 4C or Rainforest, despite 100,000 hectares being certified for land use rights.

Mr. Phạm Tuấn Anh, Director of Đắk Nông’s Department of Agriculture and Rural Development, outlined ongoing efforts:
“In response to the EU’s specific regulations, the agricultural sector is proactively taking steps. First, we’ve commissioned and developed a risk-level zoning map for coffee production. Second, we’re collaborating with organizations to create communication materials and an action framework for this program. Third, we are actively engaging businesses to support local farmers in low-emission production practices and traceability systems.”

Mr. Bạch Thanh Tuấn, Vice Chairman of the Vietnam Coffee and Cocoa Association, emphasized:
“It’s essential to strengthen communication efforts to ensure the community understands that while we produce to meet daily needs, we also bear the responsibility of protecting national reputation, brand value, and ensuring sustainable development.” Sustainable coffee farming projects that comply with the EU’s anti-deforestation regulations are being implemented widely across Vietnam’s Central Highlands. These initiatives aim to bolster the sustainable growth and global competitiveness of Vietnam’s coffee industry, especially in the European market.

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Helena Coffee Vietnam

Helena Coffee Processing & Export in Vietnam | Helena., JSC, which was established in 2016, is a Vietnamese coffee exporter, manufacturer & supplier. We provide the most prevalent varieties of coffee grown in Vietnam’s renowned producing regions.