Abstract

This paper aims to analyze and discuss the evolution towards sustainable coffee supply chain and its management in Vietnam. Coffee is a major agricultural export commodity of Vietnam with the export value accounts for 3% of national GDP in 2014 and provides a livelihood for approximately 2.6 million people. However, the sector is facing enormous challenges as the current farming methods and processing infrastructure have been unsustainable resulting in many catastrophic impacts on the environment such as deforestation and soil degradation that have the potential to lead to a decrease in the quality of coffee beans. Using a case study in Buon Me Thuot City, Daklak, Vietnam, the paper analyses the key factors influencing the sustainable coffee supply chain management in Vietnam. Our analysis confirms that although productivity is high, and farmers have positive experiences in this sector, sustainability issues are emerging. For instance, the farmers have experienced soil erosion and a lack of water and as such are now more willing to incorporate sustainability initiatives in their production and processing.

Highlights

  • Coffee is a major agricultural export commodity of Vietnam with the export value accounts for 3% of national GDP in 2014 and provides a livelihood for approximately 2.6 million people (Vietnam Customs 2015)

  • The purpose of this paper is to study the current situation of the supply chain of Vietnamese coffee in Buon Ma Thuot City, Dak Lak Province, Vietnam, to examine the issues related to the development of sustainable coffee and to build up a logistic model that will explain the correlation between those factors and the decision to join the sustainable coffee program

  • The introduction of certified sustainable coffee This paper aims to investigate the management of the sustainable coffee supply chain

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Summary

Introduction

Coffee is a major agricultural export commodity of Vietnam with the export value accounts for 3% of national GDP in 2014 and provides a livelihood for approximately 2.6 million people (Vietnam Customs 2015). When a cross-border supply chain becomes more popular in the agricultural sector, the supply chain will experience increasing risks such as policy and institutional related risk, operational managerial related risks For this reason, managing a sustainable supply chain is vital in order to maintain long-term business relationships and stabilise the economic development of the world (Farina and Reardon 2000). Certified coffees are currently defined as those that consider at least one aspect of sustainability, including farming in a good-quality environment, providing economically viable for farmers and promoting social equity among farmers and workers (Giovannuccia and Ponte 2005) It helps stakeholders in the coffee supply chain network to preserve the environment, appreciate human and social rights, and offer customers traceable and high-quality products (Wahyudi and Jati 2012).

UTZ Certified
Reputational risk
The methodology and model
Data analysis and findings
The years of coffee farm
Likelihood ratio
Shade trees
Collectors or traders examine the planting process and quality frequently
Have participated
Yes for sure
Findings
Variables in the Equation
Full Text
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