Taking place at the Ministry of Agriculture and Rural Development, the event “Consultation workshop on circular economy models in rice and coffee value chains” shared the results of activities to improve capacity building on circular economy in Son La and the Mekong Delta. The event also reported on the results of identifying, analyzing potential circular business models in the rice and coffee value chain, and consulting stakeholders on proposed solutions to improve and replicate these models.
Figure 1. Image of all participants
- Opening remarks
Mr. To Viet Chau – Deputy Director of the Department of International Cooperation (Ministry of Agriculture and Rural Development), delivered the opening speech of the Workshop, affirming that the rice and coffee industry has been playing a strategic role in Vietnam’s socio-economic development. Particularly for the rice industry, the Mekong Delta has affirmed its position as a pillar of national food security and reached out to the international market, exporting to more than 150 countries including fastidious markets such as the EU and the US. In addition, Son La along with the Central Highlands provinces are currently large coffee producing regions, helping Vietnam’s coffee industry to be the second highest in the world in terms of output, bringing a large source of revenue to the country.
According to him, the application of the circular economy model to agricultural production is not only an option but has become an urgent requirement. The circular economy allows the reuse of agricultural waste, turning “waste” into “resources”.
Following the program, Mr. Hoang Thanh Vinh – Waste and Circular Economy Program Manager, United Nations Development Programme (UNDP) shared that the total amount of agricultural waste and by-products from food crops and industrial crops in Vietnam is estimated at 95 to 98 million tons per year. The reuse and reintroduction into the production life cycle of this waste by-product volume will create dual benefits, both creating new economic models and reducing waste generation and environmental pollution. Therefore, UNDP is implementing initiatives to support agricultural communities in the efficient use of resources from agricultural waste. These efforts not only reduce waste, but also help convert by-products into economically valuable products, such as organic fertilizers, raw materials for bioenergy, or even recycled building materials.
The program also places a focus on agricultural symbiosis, where production and livestock industries are interconnected in a closed ecosystem, minimizing environmental impact and increasing economic efficiency. In addition, training and capacity building initiatives for farmers are implemented to help them access advanced technologies and environmentally friendly production methods.
He also emphasized that the success of these pilot models will serve as a premise for nationwide expansion and replication, contributing to Vietnam’s global sustainable development goals and circular economy strategy. “The cooperation and commitment of all stakeholders, from governments to businesses to citizens, will be a critical factor in the success of these initiatives”.
- Report on the circular economy model in the rice and coffee value chain
Mr. Ly Vi Ky (Officer of the Viet Nam Circular Economy Network) presented a number of initial solutions of UNDP to “Promote the application of circular economy in agriculture” corresponding to the tasks and solutions set out in the Project “Scientific and applied development, technology transfer to promote the circular economy in agriculture by 2030”. UNDP has implemented a project to apply a toolkit to integrate the circular economy into the National Self-Determination Contributions (NDCs) targets, and conducted training to raise awareness of circular economy practices in the rice and coffee value chains. UNDP also collaborated with MARD’s Department of International Cooperation to organize a policy dialogue with a focus on strengthening international cooperation and intersectoral coordination on the Circular Economy. The event attracted 100 delegates from ministries, departments (central and local), international organizations, domestic businesses, and 100 delegates to participate online. In the near future, UNDP and the Strategic Rural Development Policy Institute (IPSARD) will launch the Vietnam Circular Economy Network (Agri-CE Hub) dedicated to the agricultural sector to support the sharing of scientific knowledge and the latest information from the community as well as industry activists.
Ms. Nguyen Cam Thuy (Coordinating Officer of the Vietnam Partnership for Sustainable Agriculture Development) presented a report on “Results of Circular Economy Training in the Coffee and Rice Value Chain”.
The TOF training course in Son La attracted 80 coffee farmers, of which 52% were women, including 76 farmers and 4 state officials and institutes, with the goal of improving understanding of the utilization and treatment of waste by-products from coffee processing into organic fertilizer and irrigation water. After the training, the trainees have had a significant change in perception and action. Before the training, only 17% of the students poured coffee husks into the garden and 34% composted, but now, no more students pour the husks into the garden and the composting rate has increased to more than 50%.
The results of two TOT training courses for 70 agricultural extension officers from An Giang, Can Tho, Kien Giang, Dong Thap, Soc Trang and Hau Giang provinces also achieved the goal of synthesizing and improving knowledge about circular economy, while helping trainees know how to develop a plan for ToF courses and retrain farmers. The topics implemented included an overview of circular economy in the rice value chain, small and medium-scale straw mushroom production, organic fertilizer production from rice straw, building a circular economy business model, and planning a ToF training plan.
In the coming time, the plan to expand the scale of training will be implemented in three main directions. Firstly, develop a formal training plan to equip specific subjects with in-depth knowledge. Secondly, combine training in the form of integration with other development programs to improve efficiency. Finally, the training programs will be designed according to the community approach, in order to encourage people’s participation and promote self-learning in the community.
Ms. Pham Thi My Dung (Institute of Rural Development Sciences (SIRD)) presented the report “Summary of research on circular economy business models in the rice and coffee value chain”. She presented the criteria for selecting and proposing solutions for two potential circular economy business models, including: Organic Fertilizer Business Model, Tan Binh Cooperative and Ong Hai Household, Son La.
Tan Binh Cooperative, with a commune-wide scale of 1,000 members, has implemented a model of producing organic fertilizer from straw.
This model represents the effective use of agricultural resources, reducing waste, and creating added value from straw in two main directions: (i) straw is sold directly to the market or supplied to mushroom households; (ii) Straw from rice fields can be transferred to factories for energy production or processed into other products for sale to the market.
The model offers sustainable benefits, including a 38% reduction in GHG emissions, a reduction in straw dust and pollution from fungal residues, as well as increased soil health. In terms of economy, this model develops cooperatives, opening up new business opportunities with an expected profit of 43.5 million VND/year (according to research). The society also benefits from creating stable jobs for 5 workers, with an income of 4 million VND/person/month.
The circular economy business model, Ong Hai household, Son La, focuses on developing environmentally friendly products such as organic fertilizers and microbial coffee water, using traditional technology combined with natural resources such as coffee pods, wastewater and probiotics. These products not only help improve soil quality, but also contribute to reducing pollution from the disposal of agricultural waste. The main activities of the model include compost production, composting, microbial water production, and packaging and selling products to the market. The cost structure of the model includes raw material costs, labor, and asset depreciation, while revenue mainly comes from the sale of organic fertilizers and microbial coffee water, along with consulting services, discounts, and free shipping to maintain long-term relationships with customers.
Figure 2. Image of Ms. Pham Thi My Dung presenting at the workshop
- Discussion
Mr. Nguyen Truong Vuong, an expert on the value chain, said that the coffee model report is currently too general and needs to add details about the value of microbial fertilizers, because this is also an important competitive factor in the market. In addition, there is a need for dual-value research, including both output and input. Coffee preparations should be used to fertilize other crops, in order to demonstrate the sustainability of the chain of links. In addition, in the report, the term “nutrient water” needs to be replaced with “microbial fertilizer” to ensure consistency, whether in liquid or water form. Finally, the report should also clarify the registration of intellectual property, specifically the ownership belongs to an individual or cooperative, and should clearly state the brand and type of ownership.
Mr. Hoang Xuan Truong, Institute of Food Crops and Food Crops, expressed the opinion that the recommendations in the current report are too general and lack specificity. According to him, in order for the recommendations to be really effective and easy to implement, they need to be detailed, focusing on each specific model. This means that instead of making blanket recommendations, it is necessary to make recommendations that are relevant and feasible for each model.
Figure 3. Image of Mr. Hoang Xuan Truong participating discussion at the workshop
Ms. Hoàng Mai Van Anh, representative of the United Nations Industrial Development Organization, said that the report applied a comprehensive model approach. She thinks that it is better to learn the technology of pyrolysis coffee drying to produce biochar from Switzerland. Currently, this technology has been localized to suit domestic conditions and resources. Vietnamese research units and enterprises have manufactured pyrolysis equipment at a lower cost than imported equipment. Experimental models in the Central Highlands show the potential for wide application, especially in cooperatives and coffee farms. This technology not only helps improve the economy for people, but also contributes to protecting the environment and minimizing the impact of climate change.
Ms. Pham Thi Hanh Tho, CASRAD Agricultural Systems Research and Development Center, said that for the coffee model, there is still a general need for more detailed research on coffee grounds, such as the use of coffee grounds to produce vermicompost, in order to create economic value and stabilize people’s lives. In particular, she emphasized that, in developing the coffee model, the biggest difficulty is bringing the product to the market, which requires ensuring quality, synchronization and consistency. Therefore, it is necessary to have an appropriate legal corridor to support and facilitate the product.
Ms. Bui Thi An, Chairwoman of the Hanoi Women’s Knowledge Association, said that the report is very good, on point and has a comprehensive approach. She suggested that the Ministry of Agriculture needs to find a solution to ensure the participation of all levels. In particular, it is necessary to evaluate the value of the environment.
Mr. Nguyen The Manh, ICRAF Vietnam, said that it is necessary to review the figure of 70% of straw in the Mekong Delta that is burned in Mr. Ly Vy Ky’s report. In addition, he also emphasized that the current research still has many limitations that need to be expanded and deepened, especially in the field of marketing and market research, which is an aspect that has not been mentioned in the report.
Ms. Hoang Thi Huong, GIZ expert, shared that from 2021 to now, GIZ has implemented a number of programs and projects in Vietnam, focusing on agricultural industries such as bananas, rice and coffee in Vietnam. These projects not only support farmers to improve production techniques, but also create sustainable models for people to learn from and replicate. Currently, Vietnam is implementing a sustainable development project of 1 million hectares specializing in high-quality, low-emission rice cultivation associated with green growth in the Mekong Delta region by 2030. According to her, in the report on the rice model in the Mekong Delta, there are still incomplete shortcomings, especially the use of straw. The production of mushrooms from straw is the main direction, because this is the main market of the Mekong Delta. After mushrooms, energy production is the next industry, so the report needs more research.
Mr. Nguyen Ngoc Hung, from the Institute of Agrochemical Soil, shared about some of the successful projects that his business has implemented. Besides, he also emphasized that if it is only made from straw, the product value will not be large and it will be difficult to achieve success, so it is necessary to have a blending, such as coordinating with cow manure, pig manure, etc. He also said that the selling price in the current report is not feasible and is only for reference, because the actual selling price depends on many factors. In addition, he pointed out that the current management capacity of cooperatives is still weak, and more training is needed. He also said that the current report is more theoretical and needs to be more practical.
Mr. Nguyen Vinh Duc, a representative of Minh Tien Coffee Group, shared that the coffee production model needs to expand the treatment of waste products, especially coffee pods. Coffee pods can be utilized to produce organic fertilizers or processed into tea from coffee pods. However, he also pointed out difficulties in processing coffee waste products, such as the requirement for large investment capital and the purchase of coffee pods that face many obstacles for manufacturing companies. In particular, fertilizers from coffee waste products need to have a license to be put on the market, although Son La is one of the major markets. Therefore, he believes that there needs to be a clear legal corridor along with expert training and practice experts to support this process, from direct guidance to supervision.
Mr. Ta Van Bong, Director of Tan Binh Cooperative, Dong Thap, proposed that the application of high technology in agricultural production needs the help and support of experts and economic organizations.
Mr. Nguyen Cong Hai, a representative of a business household in Sen To village, Tong Co commune, Thuan Chau district, Son La province, shared that the use of fertilizer from coffee grounds helps farmers significantly reduce the cost of chemical fertilizers and reduce the amount of pesticides by 5%. thereby increasing profits. At the same time, the process of collecting and treating coffee grounds also creates new job opportunities for people, contributing to promoting economic development in rural areas. However, this model currently faces many technical and cost challenges. He proposed that there should be support from the Government, especially financial incentives, agricultural extension programs, and mechanisms to encourage businesses to participate in the coffee grounds recycling chain. Agricultural organizations and businesses can also work closely together to implement this model in key coffee and rice growing regions.
