Vietnamese Coffee Producer to Receive Up to $25 Million ESG Loan

Coffee and pepper producer Phuc Sinh Corp. will receive a loan of up to $25 million from the &Green fund of Netherlands-based SAIL Investments.

The Ho Chi Minh City-based company, which also exports chillies, cashews, cassia and other products, is the first Vietnamese coffee producer to receive direct support from the foundation, Phuc Sinh said in an emailed statement. The company will use the funds to ensure deforestation-free coffee supply chains.

“We are committed to not only improving product quality, but also ensuring that Phuc Sinh’s production process contributes to environmental protection and community support,” the company said.

Founded in 2017, SAIL’s &Green invests in agricultural companies that meet ESG standards to promote green economic development, environmental protection and climate change mitigation, according to its website. Vietnam is one of ten jurisdictions in which the fund invests.

Vietnamese companies have come under increasing pressure to implement ESG practices as global investors push for profits and sustainability. The Southeast Asian country has stated that it aims to achieve a net-zero carbon emissions target by 2050.

Phuc Sinh exports products to markets including the United States, Europe and Australia, and claims to be the Southeast Asian country’s top pepper exporter, with an 8 percent share of the global market.

&Green invested US$20 million in Netherlands-based Mercon BV in late 2022 to promote a sustainable coffee supply chain in Vietnam.

What about the coffee market in Colombia

During the first half of the year, the domestic coffee market moved a total of 20,901 containers, representing an increase of 931 compared to the levels handled in 2023. This translates into an increase of 4.7%.

Coffee exports boosted market performance, registering a 14.9% increase. In contrast, imports continue to decline, with a 53.5% drop in volume. Coffee remains a representative product in Colombia’s exports, with a market share that has fluctuated between 7% and 11% of total foreign sales.

The terminals in the port area of ​​Buenaventura are responsible for handling more than 60% of the total coffee exports in Colombia. The Cartagena Port Group (GPC), with its Sprc and Contecar terminals, handles 26%.

The National Federation of Coffee Growers spoke of a 31% increase in production

The Federation of Coffee Growers continues to be the entity that reports the most coffee export cargo, with 4,014 containers as of June 2024, 19% more than 2023, and 357% more than 2022.

During the first half of the year, total production reached 5.8 million bags, which represents an increase of 15.9% compared to production in the same period in 2023.

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(Featured image by 🇸🇮 Janko Ferlič via Unsplash)

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