The FINANCIAL — IFC, a member of the World Bank Group, has signed an agreement with Mondelēz International, one of the world’s largest coffee companies, to train 5,000 coffee farmers in the Dak Lak province in sustainable agricultural practices and business skills over the next three years. The new skills will help farmers increase their yields and improve their livelihoods and sustainability.
The agreement is part of Mondelēz International’s global “Coffee Made Happy” program, which aims to develop 1 million coffee entrepreneurs by 2020. Mondelēz International has also committed to sustainably sourcing 100 percent of its coffee for West European markets by 2015. As the world’s largest Robusta coffee exporter, Vietnam is a key country for Mondelēz International in achieving these targets, according to IFC.
“Our partnership with IFC will create opportunities for more smallholder coffee farmers to participate in our ‘Coffee Made Happy’ program, helping to guarantee the future of quality coffee in Vietnam,” said Malcolm Hett, Coffee Made Happy Program Lead from Mondelēz International. “This project will strengthen our relationship with our supplier network and help Vietnamese farmers improve their agricultural skills, making coffee farming more profitable, sustainable and respected.”
As part of the program, coffee farmers will learn business skills to help them better market and sell sustainable and traceable coffee, which will help link them to the global coffee supply chain and improve their ability to obtain financing from banks to grow their businesses. IFC will also work with its client banks in Vietnam to help develop suitable financial products for the trained coffee farmers.
“IFC and Mondelēz International share a common interest in adding value to the Vietnamese coffee industry and linking coffee growers to a credible and competitive global supply chain so they can realize the industry’s full potential,” said Ian Crosby, IFC’s Manager for Manufacturing, Agribusiness and Services Advisory Services in East Asia and the Pacific. “Our combined support will provide unique opportunities for these farmers to develop and grow successful coffee businesses.”
IFC will be implementing the project in collaboration with the Daklak September 2nd Import-Export Co. (Simexco Daklak), a local supplier to Mondelēz International in Vietnam. About 50,000 farmers not affiliated with this project are also expected to benefit indirectly from exposure to best management practices, quality control training, and market and price information disseminated by the project.
IFC’s advisory services in Vietnam’s agricultural sector are delivered in partnership with the Government of Canada. “Canada is supporting Vietnam’s continued economic growth by improving its agricultural competitiveness,” said David Devine, Ambassador of Canada to Vietnam. “With our support and private sector participation, this initiative will benefit thousands of women and men farmers.”
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