First training center for Vietnamese coffee farmers to be launched
By Thanh Trung - The Saigon Times Daily
Hanoi – The International Finance Corporation (IFC), a World Bank Group member, announced on Monday that it would establish the country’s first training center for Vietnamese coffee farmers. IFC will collaborate with Atlantic Commodities Vietnam Ltd., a Swiss ACOM Agroindustrical Corporation subsidiary, to open the center.
The training center’s primary aim is to help local farmers meet international certification standards. As well, they hope to give farmers the skills to improve both crop sustainability and productivity, therefore increasing their earnings.
The training center is part of IFC’s plan to provide investment and advisory services to global coffee trader ACOM Group. IFC hopes to help ACOM group establish several training centers too.
A US$55 million five-year corporate loan, that was committed in June 2008, will fund the project in six countries, including Vietnam.
The new training center will target 4,000 farming households over three years. It will help smallholder farmers to qualify for sustainable coffee certifications like Utz, Rainforest or 4C.
As ACOM and other buyers pay premium prices for certified coffee beans, farmers who enroll in the training center should see their incomes increase through certification. ACOM and IFC said they expect about 50,000 non-ACOM farmers will benefit indirectly from exposure to quality management practices and the information disseminated via the project.
Alexander Gruber, general director of Atlantic Commodities Vietnam Ltd., said training centers would have a positive impact on the industry. “Adding value to our farming suppliers through training centers makes good business sense for ACOM Group, which has been proven through similar projects in Mexico and Uganda,” he said.
“This agreement is an important example of ACOM’s long-term working relationship with farmers, engaging in sustainability certifications and other programs to enhance farmers’ professionalism and profitability,” he added.
Simon Andrews, IFC’s regional manager for Vietnam, Cambodia, Laos, and Thailand, said that IFC’s ongoing cooperation with ACOM was a testament to the support many Vietnamese smallholders could have on maximizing business development.
“By combining our advisory and investment services with ACOM’s market influence, we can demonstrate the business case for good social and environmental practices,” he said.
Currently, IFC is seeking more capital to create further opportunities for disadvantaged people in developing countries. The corporation hopes to link small hold farmers to commercially attractive and sustainable supply chains.
In Vietnam, IFC collaborates with Finland, Ireland, New Zealand, the Netherlands and Switzerland to deliver advisory services.
ACOM Agroindustrial Corporation Ltd. and its subsidiaries source commodities from Asia, the United States, Central and South America, Europe, and Africa. In collaboration with Switzerland, ACOM ranks among the top five leading world traders in coffee, cotton, and cocoa.
“ACOM and IFC expect about 50,000 non-ACOM farmers to benefit indirectly from exposure to quality management practices, and information disseminated by the project.”
Atlantic Commodities Vietnam Ltd., (ACOM) la cong ty con cua ECOM tai VN, va thoa thuan nay IFC ky voi ACOM.