For over a decade, Phuc Sinh Group has demonstrated a steadfast commitment to sustainable agriculture, playing a pivotal role in advancing environmentally responsible and socially equitable farming practices in Vietnam. Established as a key player in the agricultural sector, Phuc Sinh has gained recognition not only for its innovative business strategies but also for its dedication to improving the lives of local farmers and preserving natural resources.
Early commitment to sustainable agriculture
Phuc Sinh’s journey toward sustainability began in 2013 when the company obtained its first UTZ certification for coffee, which at the time covered 659 farmers, 839.23 hectares, and produced over 2,600 tons of coffee beans. This achievement was significant, marking the beginning of the company’s focus on sustainable farming.
The following year, in 2014, Phuc Sinh earned the Rainforest Alliance certification for pepper farming, further cementing its role as a champion of environmentally sound agricultural practices.
This dedication to sustainability extends beyond certification. The company has consistently invested in social activities and farmer training programs, aiming to elevate the quality of life for rural communities while boosting agricultural productivity. The leadership’s unwavering commitment has enabled Phuc Sinh to thrive economically while contributing to a fairer, more equitable society.
Phuc Sinh’s sustainable farming efforts expanded significantly over the years. In 2018, the group extended its pepper-growing operations in Dak Nong, working with 639 farmers across 892.26 hectares, producing 1,800 tons of pepper. A year later, the company expanded its certified coffee-growing areas in Son La, with 696 farmers managing 1,002.16 hectares and producing nearly 2,000 tons of coffee.
By 2023, Phuc Sinh had dramatically increased its certified sustainable farming operations. The company had received Rainforest Alliance certifications for over 1,500 coffee farmers cultivating nearly 2,000 hectares of Arabica coffee and another 1,300 farmers growing 1,700 hectares of Robusta coffee. The pepper segment saw similarly impressive growth, with 511 farmers managing 829.45 hectares under Rainforest Alliance certification.
This strategic expansion has had multiple benefits, increasing both the volume and quality of Phuc Sinh’s products while simultaneously fostering positive changes within farming communities. By paying farmers bonuses for sustainable crop production (VND1 million per ton of pepper and VND300,000 per ton of coffee), Phuc Sinh incentivizes efficient, eco-friendly farming methods that not only enhance productivity but also nurture a sense of responsibility among farmers.
Commitment to farmer welfare
One of the hallmarks of Phuc Sinh’s sustainability strategy is its unwavering support for local farmers. The group offers a wide range of technical assistance, providing farmers with access to the latest farming technologies and techniques to improve yields and crop quality. Organic farming methods are emphasized, with Phuc Sinh’s technical experts offering monthly visits to guide farmers on best practices for environmentally friendly agriculture.
In addition to technical support, Phuc Sinh promotes knowledge sharing. The company regularly organizes workshops and training sessions, helping farmers to better manage their crops, combat pests, and adopt safe, sustainable farming practices. Demonstration farms (Demo-farms) serve as training grounds where sustainable farming models are showcased.
Phuc Sinh’s ongoing efforts to make farming financially sustainable are equally impressive. The company offers favorable financial policies, including providing raw materials and capital to ease the financial burdens on farmers. In return, Phuc Sinh guarantees to buy back the entire harvest at stable prices, providing farmers with much-needed financial security.
Phuc Sinh’s impact on local communities goes beyond farming. The group is deeply committed to creating jobs, improving education, and supporting social infrastructure in rural areas. By expanding its farming operations and building processing plants, Phuc Sinh has provided employment opportunities to thousands of local workers, reducing unemployment rates and improving living standards.
Education is a key area of focus for the company’s community development initiatives. Phuc Sinh offers scholarships, builds schools, libraries, and educational facilities to help raise educational standards for children and young adults in farming regions. The company’s philanthropic activities also extend to improving access to clean water, healthcare, and cultural development in rural communities.
Investment in R&D
Phuc Sinh’s commitment to advancing sustainable agriculture is supported by its substantial investment in research and development (R&D). The company has established a dedicated R&D center staffed with experienced agricultural experts who focus on developing new farming solutions while also sharing knowledge with the farming community.
Technology plays a crucial role in these efforts, with Phuc Sinh investing in cutting-edge agricultural technologies, including IoT and artificial intelligence. These innovations help farmers increase productivity and reduce risks associated with traditional farming practices.
Moreover, Phuc Sinh actively collaborates with academic institutions and research centers to conduct joint research projects. These partnerships not only keep the company abreast of the latest advancements in agriculture but also contribute to the overall development of Vietnam’s agricultural sector.
Sustainability for Phuc Sinh isn’t limited to farming; it extends to resource management. The group advocates for the responsible use of land, water, and other resources, ensuring that agricultural activities do not harm the environment. Organic farming is promoted, with farmers encouraged to use organic fertilizers and natural pest control methods.
Phuc Sinh also takes part in environmental protection initiatives, including reforestation programs, protecting primary forests, and raising awareness within the community about environmental conservation. This holistic approach helps Phuc Sinh strike a balance between economic growth and environmental stewardship.
The driving force behind Phuc Sinh’s success in sustainable agriculture is its leadership’s unwavering vision. Phuc Sinh has navigated the challenges of building a sustainable agricultural supply chain in Vietnam, overcoming obstacles to achieve significant milestones in coffee and pepper certification.
From the early days of UTZ certification in 2013 to obtaining Rainforest Alliance certification for both coffee and pepper, Phuc Sinh’s leadership has remained committed to sustainable growth. The company’s goal for 2024 is to increase its certified farming areas by an additional 20%, further reinforcing its position as a leader in sustainable agriculture.
