Traceability is impossible if supply chain is broken.
Global coffee market is placing increasingly high demands not only on product quality but also on origin, production methods and environmental responsibility. For Vietnamese coffee, this requires a change in how supply chain is organized, especially in managing data on growing regions and traceability.
One of requirements of concern is the European Union's Anti-Deforestation Regulation (EUDR). To meet this regulation, exporting businesses must be able to prove origin of their products, identify location of production region and ensure that coffee is not related to deforestation activities according to criteria set by EU market.
Speaking with a reporter from Industry and Trade Newspaper, Mr. Thai Nhu Hiep, Chairman of Board of Members and General Director of Vinh Hiep Co., Ltd., said that in the past, buyers were mainly concerned about whether coffee was delicious and of good quality. But now, questions have gone further: where is the coffee grown, is it transparent, is it traceable and is production process sustainable? This change forces businesses to re-examine entire raw material chain.
Mr. Thai Nhu Hiep argued that EUDR is not solely responsibility of businesses and certainly cannot be considered sole responsibility of farmers. A business cannot have complete data without cooperation of growers; agents cannot remain detached while still acting as a bridge between businesses and farmers.
Meanwhile, farmers also find it difficult to meet all increasingly complex requirements of international market on their own. Each link in the chain therefore has its own role. Farmers have land, coffee plants and production experience; agents play role of connecting and purchasing; and businesses have market, technology and management systems. When these links share information and cooperate, traceability can be implemented seamlessly.
This reality also shows that EUDR is directly impacting way raw material areas are organized. While previously management relied heavily on purchasing relationships and records within businesses, now data from growing areas has become a crucial part of the chain.
Coordinates of growing area, information about producing household, the cultivation and purchasing processes…need to be established, updated, and connected with data at the downstream stages. This is also why digital traceability solutions are attracting attention of many coffee businesses.
At Vinh Hiep, TSMC system is introduced by the company as a data management tool from farmers and agents to factories. Accordingly, growers can update information on their orchards and cultivation logs; agents manage purchasing, inventory and sales activities; and factories monitor warehousing, processing and shipping processes.
Important point of the system lies not only in data storage, but also in its ability to connect information between the stages. When data is formed at the beginning of chain, businesses have a stronger basis for checking and tracing origin of products when they enter markets with high requirements.
To prevent traceability from becoming a burden for farmers
However, digitizing data also raises another question: how can new requirements not become a burden for coffee growers? This is a noteworthy issue because most traceability requirements start from source area. Farmers must provide information about area, location, cultivation process and many other related data.
Without guidance and support from businesses, cooperatives, or agents, implementation can become difficult, especially for households unfamiliar with record-keeping and using digital tools. Therefore, supply chain linkages should not only aim to ensure raw material supply for businesses but also help producers adapt to market demands.
According to Mr. Thai Nhu Hiep, important thing is to prevent EUDR from becoming a burden or a procedure that worries farmers. On the contrary, traceability should be seen as an asset of producers themselves. Knowing where coffee comes from, its quality and cultivation process provides farmers with a stronger basis for demonstrating value of their product. This also forms foundation for targeting markets with higher demands.
This approach raises a larger issue for coffee chain: traceability is only meaningful when the value of data is shared back with data creators. If farmers only provide information to help businesses complete export documentation but do not receive additional benefits from participating in chain, maintaining system will be difficult. Conversely, when data helps improve product quality, enhance farming methods, stabilize output, or expand market access opportunities, traceability will become a natural part of production process.
While EUDR may be one of prominent requirements today, general trend in international market shows that standards for agricultural products will continue to be raised. From traceability and deforestation control to emission reduction, responsible production and socio-environmental standards, export businesses will have to prepare for an increasingly multifaceted system of requirements.
This is particularly noteworthy for Vietnamese coffee, as the industry is experiencing strong growth in export value.
According to data shared at workshop “Enhancing Capacity for Sustainable Coffee Supply Chain Integration - Traceability to Meet EUDR Compliance” held on August 15th in Pleiku, for 2024-2025 crop year, Vietnam produced approximately 27.8 million bags of coffee, while export value will reach approximately US$8.4 billion. As trade value increases, so will requirements from importing markets.
Competition is therefore no longer just about volume and price. A business with a clearly defined raw material source, complete data, products that meet standards and ability to demonstrate its production process will have an advantage when the market introduces new demands.
At the industry level, this requires a change in the very way businesses connect with raw material sources. Vinh Hiep reports that it is currently linked with over 20,000 farming households and more than 20,000 hectares of 4C-certified coffee. The company also implements cooperation programs related to sustainable farming, emission reduction and traceability.
These figures partly illustrate scale of supply chain management challenge when the company is linked with tens of thousands of production households. But more broadly, this is also a challenge that many Vietnamese agricultural export businesses will have to face as markets increasingly demand transparency from the source.
From the EUDR story, requirement is not just "whether it is traceable or not," but whether the supply chain has the capacity to create and maintain reliable data. To achieve that, enterprises cannot stand alone. Farmers need support, agents and cooperatives must become essential links in supply chain and data must be shared and updated continuously.
Future coffee market will not only compete on price, but also on transparency, quality and ability to meet standards. EUDR can therefore be seen as a test of Vietnam's coffee supply chain organizational capacity. If viewed only as a technical barrier, businesses and farmers will always be in a reactive position, chasing market demands.
However, if considered as a driving force to standardize data, strengthen linkages and improve quality of raw material areas, market demands can become an opportunity for Vietnam's coffee supply chain to change in a more systematic direction.
When information about a coffee bean can be clearly identified from land, grower, to production process, it's not just about meeting EUDR, but also a foundation for Vietnamese coffee to maintain its position in markets that increasingly value transparency and accountability.

Source: Vitic/ congthuong.vn