The positive economic and environmental effects of coffee agroforestry in Viet Nam

The positive economic and environmental effects of coffee agroforestry in Viet Nam

Viet Nam - 24 September, 2024

Until recently little was known about how growing trees in coffee plantations in Viet Nam might affect the economic and environmental performance of the plantations. In 2023, however, TBI, together with Tây Nguyên University and experts from the Dutch start-up, FarmTree BV, used the Farm Tree tool to estimate the costs and benefits of three agroforestry farms.

The tool estimates the economic and environmental performance of farm plots, using data on growth, yield, markets and environmental factors. The study in Viet Nam paid particular attention to financial performance under good market conditions, and to the effect of trees on local water regulation. It also compared the three agroforestry farms to local monoculture coffee farms.

The study showed that incorporating fruit trees in a coffee system can financially compensate farmers for reduced coffee yields, both by providing additional revenue and by reducing the need for inputs such as irrigation and fertilizer. Additionally, since this approach provides coffee growers with a diversity of products it reduces their vulnerability to fluctuations in coffee prices. To optimize these benefits, it is important to select the appropriate tree species, and to have access to markets for the tree products. In the three farms studied, cashew was common, although in other coffee agroforestry plantations avocado and durian are also frequently grown. The study found that cashew trees provided increased income and helped regulate water availability between soil layers throughout the year. The high-value, low-volume and nonperishable products of shade trees and mulch-producing trees with efficient water use seem to be particularly useful in agroforestry systems in remote areas, such as the ones studied in Viet Nam.

The next step is to advocate for including coffee agroforestry in national payment for environmental services schemes by engaging with key stakeholders and policymakers at both the regional and national level in Viet Nam.