The True Price of Coffee from Vietnam

Leonardo Verkooijen, Adrian de Groot Ruiz, Vincent Fobelets
IDH, True Price

The report quantifies the societal costs of coffee production in Vietnam. By making the external costs visible for all stakeholders engaged in the Vietnamese coffee supply chain, it is possible to identify interventions that reduce external costs. This study showed that most impact can be realized by (i) improving irrigation practices to reduce scarce water use, and (ii) improving fertilizer application rates to reduce water pollution and energy use. The external costs of cultivation are relatively low for green coffee beans compared to cocoa beans (Ivory Coast) and seed cotton (India), and slightly higher than for green tea leaf (Kenya).