Daklak Import-Export Company (Simexco Daklak) is a pioneer in deforestation-free and low-carbon coffee production. As early as 2009, the company chose the path of sustainable development through close linkages with farming households. Starting with small initial groups of around 30 to 40 households, Simexco Daklak has since built a network of approximately 65,000 farming households. This close integration has helped the company be more proactive in organizing production while rapidly adapting to new international regulations such as the EUDR.

Notably, by April 2024, the company had been awarded the world's first two certifications for deforestation-free growing areas. To date, the company has digitized data for approximately 48,000 farming households in the Central Highlands within growing areas that meet EUDR standards, creating an important foundation for traceability and sustainable agricultural development.

The Central Highlands, long known as Viet Nam's coffee capital, has been deeply intertwined with the livelihoods of millions of farming households for generations. Across its fertile red basalt hillsides, vast coffee plantations not only generate the primary source of income but also help shape Vietnamese coffee's position on the world market.

Yet faced with the increasingly visible impacts of climate change, the coffee industry is being compelled to embark on a profound transformation toward green production, emissions reduction, and sustainable development.

Climate change, as evidenced by rising concentrations of greenhouse gases such as CO2 and CH4 in the atmosphere, is fundamentally altering agricultural production conditions. Extreme weather events such as prolonged drought, off-season rainfall, and surging pest and disease outbreaks are occurring with increasing frequency, directly affecting coffee yields and quality.

The Central Highlands currently accounts for the majority of Viet Nam's coffee-growing area, with Dak Lak province as the key locality, covering more than 214,000 hectares, predominantly Robusta coffee. According to experts, climate change is increasingly affecting coffee plant development. Many growing areas have recorded declining yields, weak plant growth, and rising input costs while economic returns remain unstable. This presents an urgent requirement to shift farming methods toward sustainability and emissions reduction.

According to research by the Western Highlands Agriculture and Forestry Science Institute (WASI), the majority of greenhouse gas emissions in the coffee value chain originate from the cultivation stage. Among these, the overuse of chemical fertilizers is a primary cause. Many farming households habitually apply fertilizer well beyond the crop's actual needs, leading to soil nutrient surpluses that generate emissions and cause environmental pollution.

In addition, unreasonable irrigation practices also contribute to increased emissions. The use of traditional irrigation methods consumes large quantities of water and energy, leading to higher fuel or electricity consumption. Moreover, improper post-harvest handling of by-products such as coffee husks and pruned branches, particularly burning, is also a significant source of greenhouse gas emissions.

Another important cause is soil degradation. After many years of continuous cultivation, soils become depleted and lose their capacity to absorb and store carbon. This not only reduces crop yields but also increases atmospheric CO2 concentrations.

According to Master's degree holder Do Van Chung, Deputy Head of the Agricultural Systems Division at WASI, many emissions-reduction solutions have been and are being implemented, yielding positive signals. Among these, applying fertilizer according to the "four rights" principle – right type, right quantity, right time, and right method – is considered the core solution. When properly applied, it not only helps reduce input costs but also significantly limits greenhouse gas emissions.

Alongside this, the use of agricultural by-products to produce organic compost is increasingly being encouraged. Coffee husks and pruned branches, when fermented with microbial agents, become a valuable source of nutrients for the soil, thereby improving fertility and increasing carbon retention.

Ground cover management is also an effective solution. Rather than using herbicides, many farming households have switched to mowing weeds and using the cuttings as green manure. This ground cover not only helps retain soil moisture during the dry season but also limits erosion during the rainy season, while creating conditions for natural soil recovery.

In addition, post-harvest processing plays an important role. Improperly drying coffee can lead to unintended fermentation and the generation of greenhouse gases. It is therefore necessary to apply thin-layer drying with adequate ventilation to limit gas generation during storage.

Notably, the multilayer coffee intercropping model, planting durian, avocado, macadamia, or pepper alongside coffee, is being expanded across many localities. This model not only helps diversify income sources but also creates a balanced ecosystem, improves the local microclimate, and increases CO2 absorption. The complementary plant layers support one another, helping coffee gardens to develop more stably in the face of weather fluctuations.

Not only farmers but also companies are playing an important role in the coffee industry's green transition. A prime example is Simexco Daklak, which has implemented numerous sustainable production linkage programs with farmers. Through these programs, coffee growers receive technical training, intercrop seedlings, guidance on reducing chemical fertilizer use, and support in adopting environmentally friendly farming practices.

Thanks to the consistent implementation of these solutions, many growing areas have recorded significant reductions in fertilizer and irrigation use while yields have remained stable. Notably, some pilot models have achieved emissions reductions of around 16 percent, demonstrating great potential if replicated at scale.

According to Vo Duy Hai, Growing Area Manager at Simexco Daklak, in the context of international economic integration, importing markets are increasingly tightening standards on environmental performance, traceability, and carbon emissions. Requirements such as deforestation-free sourcing and supply chain transparency are becoming mandatory. This demands that coffee growers shift their production mindset from prioritizing volume to prioritizing quality and sustainability.

Keeping farming records, maintaining transparent production data, and adhering to technical protocols not only help raise product value but also open opportunities to participate in carbon credit markets, a field of considerable future potential.

Reducing emissions in coffee production is not only an environmental responsibility but also an opportunity to enhance the value and competitiveness of Vietnamese coffee. From small changes at each stage of production, a green and sustainable agriculture is gradually taking shape across the Central Highlands.

Across 2.5 hectares of coffee at the peak of the dry season, the entire garden of Dau Ngoc Thanh in Hamlet 3, Quang Phu commune, Dak Lak province, remains lush and laden with fruit.

Across that same plot, Thanh intercropped more than 100 durian trees, 70 avocado trees, 150 pepper trellises, and 70 macadamia trees. All plant varieties are thriving, and the grass below remains green thanks to a supplemental irrigation system, creating a harmonious landscape garden in which the different crops support one another's development.

Dau Ngoc Thanh explained that the 2.5-hectare coffee garden was planted by the family in 1996. Previously, it was a monoculture without shade trees, managed by traditional methods without the application of science and technology, and with varieties that did not meet quality standards. After more than 20 years of production, the garden rapidly deteriorated, yields declined, pests and diseases increased, and fertilizer costs rose sharply.

Recognizing that the rootstock was still healthy and guided by agricultural extension advisers, in 2015 the family decided to graft-renovate 1.5 hectares rather than replant. Grafting material was selected from high-yielding, disease-resistant varieties developed by WASI. At the same time, avocado and pepper were planted as shade trees to increase income from the same land area.

After two years of graft renovation and proper technical management, the 1.5-hectare area grew well and produced stable harvests. Seeing the outstanding economic results, in 2017 Thanh continued to renovate the remaining hectare, again intercropping with avocado and pepper. With the new technical regime applied, both the coffee and intercrop species developed well, yielding 3 to 4 tonnes of green beans per hectare, markedly higher than before.

By 2018, as durian and macadamia commanded strong prices and proved well suited to coffee intercropping, he converted part of the avocado area to those two varieties, giving the farm a stable source of income throughout the year.

In 2021, the family began partnering with Simexco Daklak to develop sustainable, low-emission coffee production. Where previously intercropping had been guided mainly by personal experience, the partnership brought structured technical training and proper multi-layer planting arrangements, ensuring that both upper- and lower-canopy plants generate returns and create diversified year-round income.

Today, the 2.5-hectare coffee farm generates income year-round. "If January and February bring income from pepper, by April avocado is ready for harvest; July and August are durian months; and at year-end it is coffee and macadamia. Coffee yields around 3 tonnes per hectare, reaching 3.5 tonnes in a good year. The intercrop species bring in approximately 500 million dong ($19,455) per hectare per year. Because the crops support one another, income is stable, and risk is reduced when any one crop fails or loses value," Dau Ngoc Thanh said.

Previously, weeds in the garden were managed with herbicides. Now, guided by Simexco Daklak on the benefits of natural ground cover, he lets grass grow freely to retain moisture in the dry season, limit runoff in the rainy season, and provide organic matter when cut. Simexco Daklak also guided Thanh to compost coffee husks mixed with microbial agents and cattle manure into organic fertilizer. "Before, after every harvest our family used to burn the coffee husks; this was both wasteful and polluting. Now we turn them into organic fertilizer, which saves costs and is good for the environment," Dau Ngoc Thanh said.

Notably, through its partnership with Simexco Daklak, the family has also developed coffee in a low-emission direction, receiving support in the form of durian, pepper, and macadamia seedlings for intercropping, as well as microbial fertilizer for the crops.

The use of organic and microbial fertilizer has helped reduce chemical fertilizer use by around 30 percent, delivering a significant reduction in carbon emissions and contributing to enhanced garden sustainability and extended productive life.

This farming approach has also helped save approximately 40 percent of irrigation water, reducing costs and limiting emissions.

Not only a successful farmer, but Dau Ngoc Thanh is now also Director of the Cu Sue 2-9 Sustainable Agriculture Cooperative in Dak Lak. The cooperative was established in 2021 with support from the Sustainable Landscape Coffee Program and currently has 9 full members and 160 affiliated households, totaling more than 200 hectares.

From Thanh's own model, cooperative members have learned and applied the landscape-intercropping, low-emission approach to coffee cultivation under Thanh's dedicated guidance. In particular, upon joining the cooperative, households receive support from Simexco Daklak in the form of coffee replanting seedlings, intercrop species including durian, pepper, and macadamia, and structured technical training. As a result, the garden grows harmoniously; plants do not compete but support one another, helping farmers achieve stable year-round income.

"Previously, farmers here planted many intercrop species but without proper attention to density or care protocols. After the training, people have gradually changed. They have identified coffee as the primary crop and arranged shade trees at appropriate densities. In particular, cooperative members have become aware of the importance of reducing chemical fertilizers and increasing the use of organic and microbial inputs for sustainable development," Dau Ngoc Thanh shared.

In a context where the global coffee industry faces heavy pressure from climate change and increasingly stringent green standards, Simexco Daklak has proactively restructured its production model toward sustainability and emissions reduction, steadily enhancing the value and competitiveness of Vietnamese coffee on the international market.

According to Ngo Quoc Vu, Director of Sustainable Agriculture at Simexco Daklak, in recent years the coffee market has changed rapidly, generating many new requirements related to traceability, emissions reduction, environmental protection, and biodiversity. In particular, markets such as Europe are tightening regulations on pesticide residues, deforestation, and supply chain transparency.

Alongside this, Viet Nam's commitment to net-zero emissions by 2050 also compels export companies to adapt proactively. In this context, failing to change means risking market loss; moving ahead of the curve, on the other hand, creates opportunities to raise product value and consolidate market position.

Since 2009, Simexco Daklak has been building its farmer supply network. Since 2016, the company has stepped up its sustainable, low-emission coffee development programs, focusing on changing farming practices, protecting the environment, and raising coffee growers' incomes. To date, the company has partnered with approximately 65,000 farming households across more than 68,000 hectares of coffee, with an annual output of around 180,000 tonnes. Through these programs, farmers are guided in applying international standards such as 4C and Rainforest Alliance, thereby meeting the increasingly high requirements of export markets.

Notably, Simexco Daklak has partnered with numerous international organizations, including IDH, as well as major buying partners and trading groups, to implement sustainable agriculture programs. These organizations not only provide financial support but also deliver technical solutions, farmer training, and climate-adaptive farming models. At the same time, buying partners require products to meet emissions-reduction and environmental criteria, thereby motivating both the company and farmers to change.

Vo Duy Hai, Growing Area Manager at Simexco Daklak, noted that around 70 to 75 percent of emissions in coffee production originate from the cultivation stage, particularly from the use of chemical fertilizers, pesticides, and irrigation fuel. The core solution that Simexco Daklak has therefore implemented is changing farmers' production habits.

Each year, the company organizes technical training sessions to guide farmers in reducing chemical fertilizer use, increasing organic and microbial inputs, applying water-saving irrigation methods, and gradually shifting from diesel to electric power for pumping.

In addition, the company encourages farmers to use agricultural by-products, such as coffee husks and pruned branches, to compost into organic fertilizer, thereby improving soil and reducing input costs. The planting of shade trees and fruit trees as intercrops is also being promoted to increase ground cover, improve the microclimate, and absorb CO2. From 2016 to the present, millions of seedlings have been distributed to farmers, helping build a sustainable farming ecosystem.

Thanks to the consistent implementation of these measures, chemical fertilizer use has fallen by 15 to 25 percent, while organic fertilizer use has risen by more than 20 percent. At the same time, irrigation volumes have been significantly reduced, thereby lowering production-stage emissions. Beyond the environmental benefits, these solutions have also helped farmers reduce costs, stabilize yields, and increase incomes.

In one pilot project involving more than 1,800 farming households, Simexco Daklak recorded an emissions reduction of approximately 16 percent, from more than 3 tonnes of CO2 per tonne of green bean down to around 2.5 tonnes. This is an important early result demonstrating the effectiveness of applying sustainable farming models. However, scaling up remains challenging because coffee production in Viet Nam is predominantly small-scale, with most households managing only 1 to 3 hectares. At the same time, long-established traditional farming practices require time to change.

Another challenge is the demand from international markets for transparent production and emissions data. Simexco Daklak is therefore progressively building out carbon measurement systems, farming data collection, and traceability infrastructure. These programs are regularly audited and assessed by independent organizations to ensure accuracy and transparency. According to company representatives, in the current environment, it is not enough to do things correctly; one must also be able to demonstrate that they are being done correctly to satisfy partner requirements.

In the period ahead, Simexco Daklak will continue to expand its certified sustainable supply base, increase the proportion of internationally certified farming households, and advance the application of science and technology in production. Farmer support programs covering seedlings, fertilizer, technical training, and market linkages will continue to be maintained and expanded.

Sustainable coffee development is no longer a choice but an inevitable requirement for the industry. Reducing emissions, protecting the environment, and raising farmer incomes will be the foundation for the long-term development of Vietnamese coffee. With early, methodical steps, Simexco Daklak is progressively affirming its pioneering role, helping position Viet Nam's coffee industry to adapt to global trends and strengthen its standing in international markets.