The comforting routine of having a rich cup of coffee in the morning is a habit shared by millions of people around the world. Unique flavors and distinctive brews come from various countries such as Brazil, Colombia and Indonesia. Vietnam, once an underdog in the coffee industry, has now become one of the top coffee exporters in the world. As a new major contender in the international coffee trade, Vietnam faces new economic opportunities moving forward. Importantly, coffee in Vietnam has the potential for reducing poverty.
How Coffee in Vietnam Took Root
French colonists introduced coffee in Vietnam in 1857. The central highlands region, Buon Ma Thuot, had ideal growing conditions for the crop. Accordingly, it became a target region for coffee cultivation. Growing coffee in Vietnam proved to be difficult yet promising. The government encouraged citizen migration to rural regions such as Buon Ma Thot, which gained a 265% increase in the overall population. By the end of 2000, more than 4 million people settled in this area, which created a new and expansive workforce for the coffee industry. This new workforce, combined with the government’s coffee-growing program and the increased demand for coffee worldwide, created a boom in Vietnam’s economy.
In the span of just two decades, Vietnam became one of the most competitive coffee producers in the world. It now ranks as the second-largest coffee exporter behind Brazil. Starting with 8,400 tons of coffee produced in 1980, production numbers skyrocketed to 900,000 by 2000. Coffee production has contributed to Vietnam’s GDP increasing by 7.7% within the past few years. Unexpectedly, coffee became an important player in the Vietnamese economy.
Challenges Brewing Within the Industry
Two main types of coffee beans, Robusta and Arabica, compose most of the beans exported by countries worldwide. Currently, 95% of Vietnamese coffee exports are Robusta, known as lower quality beans. As a result, the success of Robusta in the market depends on fluctuations in global demand. Vietnam’s coffee industry must account for this variable by improving the flavor and quality of beans harvested in Buon Ma Thuot to remain competitive in the worldwide market.
But, remaining competitive in the market is no easy task. Unlike globally known brands, such as 100% Colombian coffee, Vietnam still needs to establish its trademark in the international market. Currently, processed coffee accounts for only 7% of Vietnam’s exports. Increasing coffee processing by establishing joint ventures with known retailers and roasters could create new opportunities for the industry. If Vietnamese brands become household names, Vietnamese coffee can garner substantially greater profit margins in the global market.
In addition to increasing coffee quality and ameliorating marketing tactics, Vietnam’s farming strategies must improve. Though Robusta is typically more resilient to environmental stressors, such as hot climates, pests and disease, this coffee crop is still susceptible to the dangers of unsustainable farming practices. Farming strategies that rely on intensive irrigation and the overuse of fertilizers can exhaust soil quality.
To combat land degradation, Vietnam’s government collaborates with global companies such as Kraft Foods and Nestlé. It also works with conservation organizations such as the 4C Association, Rainforest Alliance and Fairtrade Foundation. Together, they educate farmers, improve farming practices and establish an agricultural standard. This works to effectively and sustainably increase the production of coffee in Vietnam.
Solving Poverty One Cup at a Time
The significant surge in coffee production in Vietnam also means countless farmers and citizens gain a newfound source of income. With only 6% of total coffee production used domestically, coffee has become Vietnam’s key export. Coffee production provides a livelihood for around 2.6 million people. Importantly, 600,000 of these individuals are small-scale farmers, many of whom belong to underrepresented social groups.
This emerging industry has allowed Vietnam’s economy to vastly improve within a short span of time. Economic growth continuously boosts Vietnamese citizens’ quality of life. In 1994, Vietnam’s poverty rate stood at 90%. As of 2020, the poverty rate has lowered to 23%.
Global corporations also take part in developing Vietnam’s coffee industry and helping farmers. Nestlé and Mondelez International have each invested more than $200 million in training farmers to distribute stable supplies of coffee. In 2015, Starbucks introduced Vietnam Da Lat, its first single-origin coffee from Vietnam, to its locations in more than 50 countries. Altogether, more than 21,000 farmers benefited from foreign investments in this booming industry.
Overall, coffee in Vietnam is a growing industry with many future possibilities. With the right policies and guidance, Vietnam’s coffee industry can further improve its economy, provide income opportunities and increase standards of living for countless communities nationwide.
– Vanna Figueroa
Photo: Flickr
SELCO Brings Solar Power to India
SELCO Solar Power
Harish Hande and Neville Williams co-founded SELCO in 1995. Headquartered in Karnataka, India, SELCO has more than 500 employees in operates in rural areas of Karnataka and surrounding southern states. SELCO offers a range of off-grid, completely solar-powered machines targeted toward rural Indians.
Its unique, localized financial model also means that it is able to provide products to people who traditionally would not be able to afford them. As stated on its website, a key myth that SELCO wants to dispel is that poor people cannot afford or maintain sustainable technology.
Affordability of Solar Power
To successfully bring solar power to India, SELCO argues that poor people cannot afford the traditional financing necessary to pay off these technologies. It has seen success from customizing payment plans to individual situations, which allows people to pay installments in sync with their own schedule instead of a bank’s set schedule. Today, Hande lobbies banks to allow for greater financing flexibility and international institutions including the United Nations now provide financial assistance after seeing the success of SELCO’S unconventional financing methods. This has allowed SELCO to grow at an annual rate of 20%, providing 450,000 “solar solutions” in the region.
It operates 25 satellite branches and a technician is less than two hours away from every customer. Technicians speak local languages to foster trust. Limiting its reach allows SELCO to adhere to its mission while making a profit. While institutions such as the World Bank have doubted whether providing solar to the rural poor can turn a profit, SELCO’s model allows it to defy expectations.
Flexible Solar Solutions
Just like its financing, SELCO’s products are successful because of flexibility. For example, Hande learned that many people needed light in multiple rooms but could not afford that many lights. So, SELCO devised a plan where it installs multiple electrical points but provides only one or two lights. The idea is that they don’t need lights on in every room at once and can move the bulbs from room to room. Sales soared. Being in tune with community needs allows SELCO to understand the needs of India’s rural poor and tailor solutions that other companies might not consider.
Besides lights, SELCO offers a range of solar-powered commercial and home products, from water heaters and sewing machines to milking machines and photocopiers. SELCO’s goal is to provide a new solar option every month. With the solar industry only expected to grow in the foreseeable future, expect SELCO to be at the forefront of bringing solar power to India.
– Adam Jancsek
Photo: Flickr
Reaching Out Romania Fights Sex Trafficking
Reaching Out Romania
The organization was founded by Iana Matei, a trained psychologist who was approached by authorities and asked to intervene when three young girls were rescued from a trafficking situation. The girls told Matei that they had been sold by a gypsy and then sent out on the streets. Matei was shocked to learn that there were no organizations in Romania to fight the illicit sex trafficking industry and decided to start her own.
Sex Trafficking Rings
According to a report by the United Nations Office on Drugs and Crime, the majority of human trafficking victims detected in Europe have come from the Balkans and the former Soviet Union. Romania is one of the countries with the highest levels of sex trafficking reported. Many of the women pulled into the industry come from poor households and have limited options to earn an income.
Most of the girls who end up staying with Matei have returned from Italy or Spain, which are the two main destinations for young Romanians who fall victim to prostitution rings.
Lavender Farming for Essential Oils
As more young women sought refuge at Reaching Out Romania, Matei had to think of a way to fund more housing and secure medical coverage for the girls. When a 15-acre parcel of land was donated to the organization, Matei was initially unsure what to make of it. She met with Creative Nova, a design thinking agency, that helped Reaching Out Romania create a business plan. Its idea was simple: plant lavender and make essential oils to sell.
Over the last few years, the market for essential oils has been on the rise. Reports indicate that the U.S. essential oil market will expand at an annual growth rate of 9% through 2024. Recent preferences for alternative medicine and reports on the therapeutic benefits of essential oils have triggered the growing demand. The timing was right for Reaching Out Romania as few farmers were planting lavender yet the demand for essential oils was on the increase.
In addition to raising funds, the girls at Reaching Out Romania are encouraged to secure paid work in order to secure their independent futures. Roughly 30% of the victims come from rural areas so the organization tries to assist them in searching for a job in the agricultural field. The lavender fields were a perfect starting place. Over the summer, many of the girls staying at Reaching Out Romania visit the lavender farm to learn from experts and receive training in farming.
Addressing Human Trafficking in Romania
Matei and her organization, Reaching Out Romania, have received multiple recognition awards. The lavender farm proves mutually beneficial as a source of employment for the girls and a source of funding for the organization.
– Miska Salemann
Photo: Unsplash
South Africa’s Transition to Solar Energy
Ford Motor Company: Solar Car Park
The automotive industry is one of South Africa’s largest sectors, consisting of more than 13% of all exports and employing over 100,000 people. The Silverton Ford factory is among the country’s largest, employing 4,300 people. Due to the unreliability of the power grid, Ford announced its new solar project, named “Project Blue Oval” on November 14, 2020. Ford, in partnership with SolarAfrica, will install a 13.5 MW solar system that will supply about 30% of the plant’s power. It will contain more than 31,000 solar panels and provide coverage for more than 4,000 cars, making it the largest solar car park in the world. Ford will also install other green energy systems in the coming years, with the goal of being completely carbon neutral and off the grid by 2024.
Eskom: South Africa’s Electricity Supplier
South African cities are also transitioning to solar energy. City governments cite the sometimes weeks-long power outages as concerns and worry about the steadily rising cost of electricity. Currently, Eskom supplies most of the country’s power through coal power plants. Eskom is by far South Africa’s largest polluter, accounting for 40% of the country’s greenhouse emissions. Both the Cape province and Johannesburg have plans in place to move away from coal energy. The Northern Cape will complete a photovoltaic solar plant in 2023 capable of producing electricity for roughly 75,000 homes. Johannesburg has not yet committed to a specific plan for a solar or other green energy plant but has expressed interest.
Eskom is currently in $30 billion of debt and the large-scale transition away from the electricity provider will threaten Eskom’s financial stability even more. Eskom has announced on November 8 its goal to be carbon neutral by 2050. This will threaten the livelihoods of the 120,000 people who work at its 15 coal plants so the transition will be intentionally slow to lessen economic hardship.
Solar Energy in Agriculture
The agriculture industry is also starting to shift to solar energy. The periodic blackouts affect farmers’ abilities to freeze goods and irrigate crops, among other issues. Power from the grid is also expensive. Sun Exchange is a major player in bringing solar power to farmers across southern Africa. Its funding model of providing free equipment and installations while profiting off the energy usage allows agribusinesses to immediately lower energy costs by 20%. The market for solar energy in agriculture strong. GreenCape, a nonprofit green energy advocate, expects yearly solar market growth of 10% as companies like Sun Exchange continue providing low cost, reliable energy to farmers.
The Future of Solar Energy
The rise of solar and green energy in South Africa has less to do with environmental concern and more to do with issues of cost and reliability. Even energy giant Eskom will eventually switch over to renewable energy in the coming decades. South Africa’s transition to solar energy could make it a leader as the world slowly starts moving to green energy.
– Adam Jancsek
Photo: Flickr
Colombia’s National Development Plan
A Look Into Colombia’s Recent History
Colombia’s poverty rates and development plan cannot be explained without the inclusion of the country’s last five decades of civil unrest. Colombia’s civil war involves the Revolutionary Armed Forces of Colombia (FARQ), the National Liberation Army (ELN) and the Colombian government. The conflict largely revolves around the call for economic reform. The FARQ and the ELN were founded in the 1960s to “oppose the privatization of natural resources and claim to represent the rural poor against Colombia’s wealthy.”
Although the FARQ and the ELN cite good intentions, Colombia’s civil war has led to at least 220,000 deaths, 25,000 disappearances and 5.7 million displacements “over the last half-century.” The U.S. State Department calls these groups terrorist organizations. Unfortunately, the consequences of this civil war, like all other civil wars, had devastating effects on the countries’ social and political spheres. In 2016, the Colombian Government and the leaders of the FARQ signed a peace agreement, hoping to bring unity to the country.
The National Development Plan
However, three years later, the promises of reinsertion, protection programs and rural remain unfulfilled and the violence continues. Fortunately, this could change with Colombia’s National Development Plan (PND). This proposal “combines the government’s financial resources with grassroots participation which the government calls ‘co-creating together,’ a form of engagement that will play a key role in building sustainable peace.”
Launched by President Iván Duque in 2018, Colombia’s National Development Plan has a budget of $325 billion. The plan hopes to address societal, social, economic and political issues within the country. But, its most ambitious goals rest on “education, employment, entrepreneurship and environmental sustainability.”
Eradicating Poverty
One major goal of the PND is to bridge the gap between the economic classes, eradicating extreme poverty. Today, 1.9 million Colombians are in extreme poverty; the government hopes to implement the Sisben IV program, which “will see State resources delivered to the most vulnerable members of society through subsidies.”
The PND aims to alleviate poverty by stimulating the economy in a multitude of ways; state subsidies are just one example. For instance, Colombia plans to develop creative industries, “such as visual arts, software development and cultural industries.” The national administration also plans to reduce unemployment by more than 1% through the creation of 1.6 million jobs. Additionally, “The plan is also targeting the development of international trade and the promotion of foreign investment in Colombia as a means of increasing the capacity of the economy.”
Education and the Environment
Increasing employment and subsidies will certainly help the economy directly. But, the PND also hopes to improve the economy in the long run by developing education systems and improving the environment. For example, the PND hopes to increase participation in the public education system. Administrators aim to double “the number of students who are attending a single session school day from 900,000 to 1.8 million.” In terms of the environment, President Duque’s plan aims to invest $3 billion in sustainable development and to plant “180 million trees in order to stimulate a rejuvenation of the environment.”
For five decades Colombia has struggled with internal strife, leaving the country torn in the political, social and economic arenas. Colombia’s most vulnerable people, the impoverished, have seen little improvement in recent years. Colombia’s civil unrest and high poverty rates left little hope for the future. However, the 2018 National Development plan sparks the potential for change. The plan proposes both direct and long-term solutions for poverty through investments in education, employment, the environment and the economy. Hopefully, Colombia’s National Development plan will benefit the nation’s impoverished communities.
– Ana Paola Asturias
Photo: Flickr
Child Poverty in Tonga
In 2015, 22.1% of the Tongan population lived below the poverty line. To put this into perspective, 4% of the Tongan population live on less than $1 daily and 6.7% of households fall below the dietary poverty line. Therefore, many families are unable to financially cover the cost of their daily food needs. Alarmingly, in most countries, there is a larger percentage of children in poverty than adults. This holds true with child poverty in Tonga, where 36% of children (~12,000 children) live in poverty compared to around 22% of adults (~63,000 adults). Poverty can impact multiple aspects of a child’s life, including their education and health. Consequently, many children in Tonga face disadvantages on account of poverty.
Education
First, children are dropping out of school to support their families as a result of child poverty in Tonga. Around 8% of children live in a household that cannot afford to provide three meals a day for all their children, while 13% cannot afford daily fruit and vegetables.
When the most vulnerable families cannot afford food, they simply live off their own produce. As a result, children must drop out of school to work in fields and plantations. Regardless of Tonga’s excellent education record, students from impoverished backgrounds often remain in their parent’s positions to survive.
By missing the opportunity to receive an education, children feel the effects of poverty for a lifetime. Thankfully, Tonga’s government implemented the Tonga Education Support Program, which seeks “equitable access” and “universal basic education” for its children.
Nutrition and Obesity
Second, the cases of obesity and other non-communicable diseases in children are increasing. According to 2016 estimates, 17% of Tongan children are overweight. While data on childhood obesity is more limited, a 2010 school-based survey found that one in five surveyed students were obese.
Nutritious food and regular time intervals for children’s meals are necessary components of developmental health, which impacts children’s ability to live up to their potential as adults. Even with groups such as the Ma’alahi Youth Project, which aims to decrease rates of child obesity, a study found that community-based intervention is not sufficient in preventing the increase of unhealthy weights. Longer and more intense changes are necessary on a sociocultural level.
Illness
Third, children are at risk of communicable diseases. WHO Global Health Observatory data show gaps in immunization coverage for all 12 universally recommended vaccines in Tonga. Data reveals a downward trend in immunization rates for some vaccines. This could reflect either a reduction in uptake or access issues. From 2000 to the present day, WHO recorded a 10% decrease in rates for several vaccinations. Prescribed medication also provides a monetary barrier.
Additionally, a lack of basic sanitation, hygiene and safe drinking water is an issue of mortality in the Pacific region. This tends to contribute to the spread of water-related diseases like diarrhea and impedes child development. There is growing evidence that clean water and sanitation facilities at home and in schools can improve school attendance and even learning outcomes for boys and girls.
Key deficiencies have been filled with funding from the Australian Aid-funded Tonga Health Systems Support Program (THSSP), which helps address critical staff deficiencies and stipulates that the Ministry of Health focuses on preventative measures. Thankfully, data shows that improvements are visible. In 2012, nearly one in four children lived in a household that could not afford their prescribed medication. Today, 15% of children live in such a household, a decrease of 10%.
The decrease in child poverty in Tonga can, in part, be attributed to the community-level organizations fighting poverty in Tonga. The largest is the Tonga Family Health Association, followed by ‘Aloua Ma’a Tonga, Vaiola Hospital Board of Visitors and Tonga Red Cross. They aim to provide health services directly to households through financing, training and education. Despite moderate success, child poverty in Tonga persists. It seems additional work is needed to successfully eradicate poverty in what is known as “The Friendly Islands.”
– Elizabeth Qiao
Photo: Flickr
Impact Hub Helps Serbian Youth Unemployment
Impact Hub
Impact Hub was founded in London in 2005 and now has over 7,000 members in more than 60 locations, one of which is Belgrade. The program is funded by USAID and assists young innovators in accessing the tools they need to connect with investors because unsuccessful funding is the biggest obstacle for startups. On Impact Hub’s website, online visitors can become “Impact Angels” and invest in a startup in minutes.
Impact Hub assists in the development of new products and business models. The program focuses on technological innovators and entrepreneurs and the future of their businesses. The organization provides collaborative workspaces, program support, an inspirational environment and diversity.
Impact Hub Belgrade offers young entrepreneurs resources such as acceleration and connections to grow their business. It is both a community center and a business incubator. The program encourages the sharing and building of a community and the space in which the project operates is used to organize events, from arts and culture to entrepreneurship.
Guiding Young Entrepreneurs
Impact Hub founders believe talent allows for growth and production. Since many young people know how to code, design and create innovative solutions, Impact Hub aims at helping Serbian youth grow their startups. The program secures investments and teaches young people about using money in competitive markets. Impact Hub wants to get young entrepreneurs out of their comfort zone to expand their network. There are two different paths that Impact Hub employees guide entrepreneurs through. The first is “Core Competence for Market Validation,” in which individuals learn how to get the first buyer, expand their customers and make financial projections. The second is “Growth Readiness” and focuses on profiling a buyer, expanding traction and creating revenue models.
Impact Hub Belgrade implemented an initiative called We Founders, in which startup teams, founders, leaders and business developers can connect and work to improve their businesses. Impact Hub helps form partnerships to allow people to share the risks and prepare together for possible losses.
Impact Hub is Positively Impacting
Participants of Impact Hub raised $230,000 in investments from the Serbian public sector and private investors, not including a $100,000 investment from Dubai’s Innovation Impact Grant Program.
Alongside USAID, Impact Hub Belgrade gives Serbian youth the chance to see their innovations and ideas come to life. Outside of Belgrade, Impact Hub is available worldwide to allow individuals the opportunity to receive education regarding the tools and skills necessary for creating a business.
– Rachel Durling
Photo: Flickr
Commendable Healthcare in Monaco
Healthcare Education in Monaco
Leaders in Monaco believe that prevention and screening are essential to maintaining health and it is customary for young people to access comprehensive health education. This education aims to promote high-quality lifestyles and prevent early-risk behavior, such as tobacco use, drug addictions and sexually transmitted diseases.
Caisses Sociales de Monaco (CSM)
The Caisses Sociales de Monaco (CSM) is the official agency responsible for supervising Monaco’s public health service. Public healthcare automatically covers all citizens and long-term residents who contribute to the agency. French and Italian citizens may also access public health facilities in Monaco upon evidence of regular contributions to their home country’s state healthcare scheme. Foreign visitors can receive health treatment at all public hospitals and clinics. However, without state insurance contributions, travelers and expatriates will be forced to pay for all healthcare expenses accrued from treatment.
Public Healthcare Coverage
Public healthcare insurance operates through reimbursements, so an individual who plans on using coverage provided by the CSM will be required to make up-front payments and then claim costs back. After joining the public healthcare system, an individual receives a card that provides access to medical and dental care. The card contains administrative information necessary to refund medical care.
The public healthcare system provides coverage for inpatient and outpatient hospitalization, prescribed medications, treatment by specialists, pregnancy and childbirth and rehabilitation. Some prescription drugs are also reimbursed through the CSM and emergency care is available to everyone at Princess Grace Hospital, one of three public hospitals. The hospital will be reconstructed to strengthen the complementary nature of all the hospitals in Monoco.
Out-of-Pocket Healthcare Costs
Out-of-pocket healthcare costs in Monaco are high and if the CSM fails to provide sufficient coverage, an individual may supplement with private insurance. Private health insurance is a tool for individuals who want to cover medical services and fees not paid for by the public healthcare system. Doctors fund privately-paid equipment and staff through private contributions. According to an article from Hello Monaco, most Monaco citizens take out extra private insurance to cover ancillary services and unpaid rates.
A Commendable Healthcare System in Monaco
Every resident in Monaco is eligible for public health insurance but private health insurance remains an option for those interested in more coverage. Healthcare in Monaco earned outstanding reviews from the OECD and officials continue to seek improvements by reconstructing medical buildings and providing health education for young people.
– Rachel Durling
Photo: Flickr
5 Misconceptions about Homelessness
5 Misconceptions About Homelessness
After challenging these stereotypes, people can begin to humanize the homeless population and do more work to solve this epidemic. Abandoning these five misconceptions about homelessness is a great way to start to challenge stereotypical beliefs. If people learn more about truths concerning homelessness, society can reshape and redefine the solutions to this problem.
– Eva Pound
Photo: Flickr
4 Ways India’s Government Can Improve its GDP Per Capita
GDP per capita measures the average income earned per person in a country during a given year. In 2019, India’s GDP per capita was $2,104. However, in 2020, this figure dropped to $1,876, placing the country one spot below Bangladesh, which currently has a GDP per capita of $1,887. Unlike India, Bangladesh has experienced consistent economic growth over the past three years.
Indian citizens are demanding that Narendra Modi, the country’s prime minister, enact reforms and policies that will boost GDP per capita by improving wages for India’s working class. Here are four ways that India could potentially boost its GDP per capita.
4 Ways India’s Government Can Improve GDP
While the path to economic recovery is not always as straightforward as it seems, India’s government has several means through which it can improve incomes for everyday workers. The government not only has an incentive but an obligation to create a better quality of life for its working class, which is the foundation of India’s economy. Improving India’s GDP per capita would directly benefit the nation and its citizens. Greater opportunities for manufacturing exports, foreign investments and urbanization are all benefits the country would reap from its own investment in its working class.
– Natasha Cornelissen
Photo: Flickr
How Coffee in Vietnam Can Reduce Poverty
How Coffee in Vietnam Took Root
French colonists introduced coffee in Vietnam in 1857. The central highlands region, Buon Ma Thuot, had ideal growing conditions for the crop. Accordingly, it became a target region for coffee cultivation. Growing coffee in Vietnam proved to be difficult yet promising. The government encouraged citizen migration to rural regions such as Buon Ma Thot, which gained a 265% increase in the overall population. By the end of 2000, more than 4 million people settled in this area, which created a new and expansive workforce for the coffee industry. This new workforce, combined with the government’s coffee-growing program and the increased demand for coffee worldwide, created a boom in Vietnam’s economy.
In the span of just two decades, Vietnam became one of the most competitive coffee producers in the world. It now ranks as the second-largest coffee exporter behind Brazil. Starting with 8,400 tons of coffee produced in 1980, production numbers skyrocketed to 900,000 by 2000. Coffee production has contributed to Vietnam’s GDP increasing by 7.7% within the past few years. Unexpectedly, coffee became an important player in the Vietnamese economy.
Challenges Brewing Within the Industry
Two main types of coffee beans, Robusta and Arabica, compose most of the beans exported by countries worldwide. Currently, 95% of Vietnamese coffee exports are Robusta, known as lower quality beans. As a result, the success of Robusta in the market depends on fluctuations in global demand. Vietnam’s coffee industry must account for this variable by improving the flavor and quality of beans harvested in Buon Ma Thuot to remain competitive in the worldwide market.
But, remaining competitive in the market is no easy task. Unlike globally known brands, such as 100% Colombian coffee, Vietnam still needs to establish its trademark in the international market. Currently, processed coffee accounts for only 7% of Vietnam’s exports. Increasing coffee processing by establishing joint ventures with known retailers and roasters could create new opportunities for the industry. If Vietnamese brands become household names, Vietnamese coffee can garner substantially greater profit margins in the global market.
In addition to increasing coffee quality and ameliorating marketing tactics, Vietnam’s farming strategies must improve. Though Robusta is typically more resilient to environmental stressors, such as hot climates, pests and disease, this coffee crop is still susceptible to the dangers of unsustainable farming practices. Farming strategies that rely on intensive irrigation and the overuse of fertilizers can exhaust soil quality.
To combat land degradation, Vietnam’s government collaborates with global companies such as Kraft Foods and Nestlé. It also works with conservation organizations such as the 4C Association, Rainforest Alliance and Fairtrade Foundation. Together, they educate farmers, improve farming practices and establish an agricultural standard. This works to effectively and sustainably increase the production of coffee in Vietnam.
Solving Poverty One Cup at a Time
The significant surge in coffee production in Vietnam also means countless farmers and citizens gain a newfound source of income. With only 6% of total coffee production used domestically, coffee has become Vietnam’s key export. Coffee production provides a livelihood for around 2.6 million people. Importantly, 600,000 of these individuals are small-scale farmers, many of whom belong to underrepresented social groups.
This emerging industry has allowed Vietnam’s economy to vastly improve within a short span of time. Economic growth continuously boosts Vietnamese citizens’ quality of life. In 1994, Vietnam’s poverty rate stood at 90%. As of 2020, the poverty rate has lowered to 23%.
Global corporations also take part in developing Vietnam’s coffee industry and helping farmers. Nestlé and Mondelez International have each invested more than $200 million in training farmers to distribute stable supplies of coffee. In 2015, Starbucks introduced Vietnam Da Lat, its first single-origin coffee from Vietnam, to its locations in more than 50 countries. Altogether, more than 21,000 farmers benefited from foreign investments in this booming industry.
Overall, coffee in Vietnam is a growing industry with many future possibilities. With the right policies and guidance, Vietnam’s coffee industry can further improve its economy, provide income opportunities and increase standards of living for countless communities nationwide.
– Vanna Figueroa
Photo: Flickr