Carbon Footprint Reporting on coffee farms in Vietnam for USAID, IDH and JDE

Carbon Footprint Reporting on coffee farms in Vietnam for USAID, IDH and JDE

Agri-Logic is presently carrying out Carbon Footprint Reporting on behalf of USAID, IDH and JDE based on the data of ~14,000 coffee farmers in Vietnam. The carbon footprint of farmers will be calculated based on estimation of each farmer’s carbon emissions and carbon stocks on the coffee farms. Farmers’ carbon footprint will be compared to explanatory variables and farm profitability. Furthermore, the effect of project interventions by a range of organisations on the carbon footprint will be evaluated.

Final recommendations will tie the conclusions into a set of suggestions on how to move forward at the level of the supply chain management companies on how to work practically with farmers in their supply chain on reducing emissions while maintaining or enhancing yields and profitability. At programme level recommendations for scaling up of the involved initiatives will be formulated.

Farmer Field Book on coffee farming in Honduras for Olam Honduras

Farmer Field Book on coffee farming in Honduras for Olam Honduras

In collaboration with Olam Honduras 2019 has seen the start of a new Farmer Field Book project in Latin America. In Honduras, Arabica coffee is grown. However, productivity of coffee farmers in the department of Santa Bárbara is among the lowest in the country. To gain more insight in how farmer productivity can be improved, two-hundred coffee farmers in Santa Bárbara participate in the Farmer Field Book, or ‘el libro de campo’ in Spanish. For this program, the farmers record data on their daily farming activities. This data is collected frequently and digitized. Agri-Logic and Olam Honduras provide the farmers with individual profit-and-loss reports as well as group reports. This allows the farmers to compare their investments and results with each other and share knowledge on best farming practices. Group discussions among farmers are facilitated to stimulate them to further improve their coffee farming practices. For farmers with low coffee productivity it is difficult to compete with large-scale coffee producers such as exist in Brazil. Improving farmer productivity is a way to improve farmer income from coffee.

Sourcing glyphosate-free coffee in Vietnam

Sourcing glyphosate-free coffee in Vietnam

Can coffee be sourced in a way that avoids buying coffee with traces of glyphosate? In Vietnam, glyphosate is gradually being phased out now that the Vietnamese government has prohibited new imports and production of the herbicide in spring 2019. However, stocks of glyphosate already present in the country can still be sold and used.

Requested by a European coffee roaster, Agri-Logic investigated the possibility of sourcing coffee in Vietnam with low(-er) glyphosate contamination. To answer this question a two-pronged approach was used consisting of on-farm field trials as well as supply chain mapping. The former intended to establish the correlation between glyphosate use and residue-levels under controlled glyphosate application conditions while the latter was used to establish the contamination levels in coffee of small village-based coffee collectors and to identify geographical areas that are safer for sourcing.

Impact investment scoping study Southeast Asia

Impact investment scoping study Southeast Asia

For a leading European impact investor Agri-Logic scoped out market opportunities in selected commodity value chains in South East Asia. Based in part on our advice, the client is currently upscaling its financial product offerings to medium and large-sized companies in the region.

Value Chain Analyis Specialty Coffee Rwanda

Value Chain Analyis Specialty Coffee Rwanda

CBI (Centre for the Promotion of Imports from developing countries) is part of the Netherlands Enterprise Agency, funded by the Dutch Ministry of Foreign Affairs.

The mission of CBI is to connect small and medium-sized enterprises (SMEs) in developing countries with the European market and so contribute to sustainable and inclusive economic growth. CBI does this by implementing three to five-year projects in a specific export value chain (VC) in a specific country, focusing on seizing opportunities for exports to Europe and tackling obstacles that hamper or hinder these exports. They are integrated projects, meaning they involve both SME exporters and the enabling environment. CBI develops and implements projects in several consecutive phases.

  1. Value Chain Selection (VCS) phase: based on preliminary research, the most promising value chain in the target country is selected
  2. Business Case Idea (BCI) phase: an initial idea for a project is formulated focusing on the selected value chain
  3. Value Chain Analysis (VCA) phase: an in-depth analysis of the VC is conducted
  4. Business Case phase: a detailed business case for a project is developed
  5. Implementation and Performance Management phase: the project is implemented and the success of the project is monitored
  6. Audit and Evaluation phase: after completion, the project is audited and evaluated.

The objective of the Value Chain Analysis study was to provide answers to the following questions.

  • What does the European export market look like? To confirm findings in the earlier phases of project development and to gain a better understanding of the specific markets and segments a project could focus on.
  • What is the composition of the value chain? Includes an analysis of the key actors, chain supporters and influencers.
  • What are the salient corporate social responsibility (CSR) issues?
  • What are the main opportunities for export to Europe and which obstacles prevent export?
  • What interventions and support activities are needed to seize opportunities and tackle obstacles?
  • How and to what extent will these interventions and support activities help seize opportunities and tackle obstacles?
  • Who can take up which interventions and support activities?
  • What the risks are for a project and how can these risks be mitigated?

The Value Chain Analysis was completed in September 2018, and CBI is currently implementing a specialty coffee program in Rwanda.

Value Chain Analysis for the Coffee Sector in Rwanda (CBI)
Farmer Field Book for ISLA Vietnam

Farmer Field Book for ISLA Vietnam

IDH’s landscapes programme, ISLA, works together with government, business and civil society to improve livelihoods and contribute to economic development while minimizing environmental harm. One of the focus regions is the Central Highlands region in Vietnam. To gain a better understanding of the effects of its interventions on farmers, industry and landscapes, rigorously collected data at farm level is required.

IDH and the implementing partners in Vietnam use the Farmer Field Book (FFB) methodology to allow rigorous monitoring & evaluation for the ISLA programme. Agri-Logic has developed special software functionalities for this programme and supported the training of field staff. We also perform a large part of the data analysis and reporting of results.

The FFB approach for ISLA includes reports at four levels: the individual farmer level, the farmer group level, the company level and the ISLA programme level. The first set of reports was delivered in July 2017, covering the crop year 2016-2017. The programme level reports can be downloaded below. The reports cover topics such as farm economics of different production systems, toxic loading, carbon footprint, farm economic and agronomic performance and assessment of production practices’  influence on productivity and profitability.

ISLA Vietnam Farmer Field Book analysis 2016-17 (IDH & partners)
ISLA Vietnam Farmer Field Book analysis 2016-19 (IDH & partners)
Supplier Assessment in Vietnam and China for JDE

Supplier Assessment in Vietnam and China for JDE

Agri-Logic conducted a targeted supplier assessment for JDE’s Supplier initiative. Prior to this, JDE had assessed sustainability issues in its supply chain by two different methods which produced diverging results. Agri-Logic’s targeted assessment investigated the misalignment between the self-assessment forms filled out by selected suppliers and the results of the origin issue assessment conducted by a third party.

Both methods for assessing sustainability issues were reviewed in-depth and discussed with selected suppliers and JDE, respectively. Subsequently, a detailed analysis of available farmer data as well as a review of scientific and grey literature and further discussions with stakeholders were carried out. The resulting reports outlined the list of possible sustainability issues and a detailed reasoning as to why these are included or not. Furthermore, based on a reconciled view of what sustainability issues are present and which are most pressing, recommendations on possible remedial measures were presented and are currently being implemented in both countries.

Coffee export capability Burundi & Rwanda

Coffee export capability Burundi & Rwanda

TWIN in partnership with Trade Mark East Africa (TMEA) implemented a two year project to strengthen export capabilities of twenty coffee cooperatives in Rwanda and Burundi with a specific focus on supporting cooperatives in: attaining certification, increasing access to Specialty Coffee markets, improving quality of the coffee produced and developing a traceability programme for coffee grown by women.

This export capabilities study identifies actors, value addition, financial analysis, market demands and the enabling environment. We have assessed the export capability of each of twenty coffee cooperatives on a range of indicators, leading to a segmentation. Furthermore, we identified general trends in export opportunities and challenges for both origins.

Even though Burundi has very high quality coffee according to buyers, there are still a lot of basics that need to be covered to be able to market the coffee successfully. Major challenges still exist in logistics, speed, traceability, reliability of pre-shipment samples, communication and marketing.

Rwanda is seen as well-organised and it is a coffee of good quality, there are certain constraints put forward by the buyers with regards to the marketing of the coffee. Flavour is not as unique and other differentiation is needed to compete in the specialty segment. Cooperatives are not always able to provide reliable pre-shipment samples and have limited knowledge of the market and pricing.

Coffee export capability assessment Burundi & Rwanda (TWIN-TMEA)
Farmer segmentation for optimised service delivery

Farmer segmentation for optimised service delivery

By assignment of IDH Sustainable Trade Initiative, Agri-Logic conducts 4 farmer segmentation studies to optimise service delivery by Supply Chain Management companies to farmers, in order to increase the impact at farmer level.

Many supply chain companies offer services to smallholder farmers to improve productivity, quality and profitability at farm level, and to secure their supply. The effect of these services at farm level is mixed and there is a strong desire to improve their performance. One way to do this is to group farmers in segments based on household and farmers characteristics. These segments are likely to have differing needs, development potential, ambition levels and investment rationales. When these segments are defined, services could possibly be better targeted and return on investment of service delivery could be improved.

The objective of this project is to gain experience with farmer segmentation exercises and to share the learnings of these experiences to support supply chain partners and IDH to segment farmers. Additionally, we aim to develop tailor-made services and products in order to increase the return on investment for supply chain partners, farmers and organizations that are co-investing in service delivery models. Four segmentation case studies are performed with coffee and cocoa supply chain partners in West- and East-Africa.

The envisioned results are:

  • For each segmentation case study: identification of farmer segments, their defining characteristics and recommended tailor-made service packages
  • A set of guidelines on how to monitor effects of service packages on different farmer segments and knowing when to change a strategy
  • A framework for organisations on how to realize effective farmer segmentation to optimise service delivery
African Coffee Investment Review

African Coffee Investment Review

Via its Global Coffee Platform (GCP), the IDH Sustainable Trade Initiative seeks to make a significant impact on the global coffee sector. Africa features heavily in it’s strategy as an under-utilized source of significant new coffee volumes to meet growing demand. Ironically, much of the coffee and sustainability investments over the past 10-15 years have taken place in Latin America and Asia. Africa has just 4% of global certified sustainable supply (against around 10% of total supply), yet the needs for investment in coffee on the continent are arguably greater than elsewhere.

Agri-Logic was asked to conduct in-depth coffee sector studies for 9 African origins: Angola, Burundi, Cameroon, Ethiopia, Ivory Coast, Kenya, Rwanda, Tanzania and Uganda. These studies are used to develop the GCP’s African investment strategy, and feed into the establishment of an African Coffee Facility by the African Development Bank (AfDB) and the Inter-African Coffee Association (IACO). Investment opportunities in each origin are investigated, including modelling of their impact and return on investment at different levels of the value chain.

We developed a dynamic sector model allowing to analyze large volumes of data from different sources. This model is fed by a structured database and allows insight into a sector’s performance compared to user-defined global benchmark origins. The study has been presented at the Africa Coffee Facility inception meeting in Abidjan to a public of regional coffee sector representatives and staff of IACO and the AfDB, as well as during the Global Coffee Platform workshop in Addis Ababa.

African coffee sector investment opportunities – summary (GCP)
African coffee sector investment opportunities – country report Angola (GCP)
African coffee sector investment opportunities – country report Burundi (GCP)
African coffee sector investment opportunities – country report Cameroon (GCP)
African coffee sector investment opportunities – country report Cote d’Ivoire (GCP)
African coffee sector investment opportunities – country report Ethiopia (GCP)
African coffee sector investment opportunities – country report Kenya (GCP)
African coffee sector investment opportunities – country report Rwanda (GCP)
African coffee sector investment opportunities – country report Tanzania (GCP)
African coffee sector investment opportunities – country report Uganda (GCP)