The new EU regulation mandates trade companies to adhere to strict rules on the traceability of their products.
Europe is Vietnam’s biggest market for coffee. About 50 to 60 per cent of the Southeast Asian nation’s total coffee exports head there each year.
Industry players said that most of Vietnam’s coffee production does not flout the new EU rule, as a majority of its plantations were established decades ago. A farmer works among coffee plants in Vietnam’s Central Highlands, where rich soils and temperate climate have made the region home to the nation’s biggest coffee plantations.The European Union Deforestation Regulation mandates companies to prove their goods are not produced on land deforested after 2020.
Major Vietnamese coffee exporters are working with independent agencies in the international coffee industry to promote and obtain certificates on sustainable production. The risk category will determine the level of specific obligations for traders and authorities to carry out inspections and controls.“The guidance for implementation is not there yet with the European Commission. We also don't know what is the result of benchmarking Vietnam’s coffee sector against other countries,” said Ms Tran Quynh Chi.
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