The “Global village” of today’s world is based on global economic integration. There is a clear need for a holistic strategy that integrates international market access, smallholder incomes, and committed buyers for large sourcing areas.
“Fragmented production landscapes” were found to be the biggest challenge to the agriculture sector of Dak Lak Province at a trade fair held with the PPI Compact of Krong Nang District, Central Highlands, Vietnam on 30 September 2020. Mr. Y Giang Gry Nie Knong, Vice Chairman of Dak Lak People’s Committee, said: “The landscape is broken into smaller and isolated patches. This situation is happening to 80% of the province’s agricultural land. Organizing farmers into production groups or professional associations or cooperatives is another challenge.” The trade fair was hosted by a partnership of the Compact, comprising of the local authority, IDH, JDE, and SIMEXCO.
Mr. Cao Hoai Duong, Director of Dak Lak Department of Agriculture and Rural Development (DARD), emphasized the importance of establishing farmers’ groups or cooperatives: “This helps farmers to better access the market as they can ensure the quality and quantity of products committed to the buyers. They can ensure the traceability of their products. However, the percentage of farmers that join groups or cooperatives is relatively low.”
As a result, smallholder farmers often have problems sustainably and effectively accessing markets. Mr. Cao Hoai Duong highlighted the pilot of the验证采购区（vsa）由IDH-实施的可持续贸易倡议与Krong Nang District，JDE，Simexco，Coffee Company和农民的地方权力伙伴关系，作为处理此类问题的“良好的例子”。通过相互决定展示了飞行员的成功，以扩大目前占地5,000公顷的地区，在不久的将来达到10,000公顷。最近的评估还表明，与干预区以外的农民相比，PPI紧凑型农民的收入增加了30％。Intercroping主要归因于这种增加。
As a result of the pilot, the provincial leader has agreed with a proposal set by IDH to develop a provincial-level policy that facilitates the replication of the model to other districts in the province. “It is a good model and we agree to replicate it,” said DARD Director.
At the event, a number of Memorandum of Understanding (MoU) agreements were signed between private partners and cooperatives of farmers. These partners will procure fruits from the PPI Compacts in which intercropping is practiced. In the coffee sector, the local authority, IDH, JDE, and SIMEXCO signed an MoU to related to controlling the use of weed killers with Glyphosate to meet strict EU market requirements.
“For almost ten years, all coffee products originating from our production areas in Krong Nang district have always met the market requirement of Glyphosate residue,” said Mr. Nguyen Tien Dung, Sustainability Manager of SIMEXCO. “In contrast, other provinces of the Central Highland are struggling with the issue. I attribute this success to the fruitful partnership with IDH, JDE, local authority, and especially farmers. JDE is our committed buyers.”
The PPI Compact of Krong Nang District was officially implemented in early 2019. This was the next phase of a pilot that IDH had initiated in the district in 2013.