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© 2013 Vietnam To Produce More Coffee With Less Water Authors: Dr. Chu Thai Hoanh IWMI (Lao PDR) Dr. Upali Amarasinghe IWMI (India) Dr. Dave D‘haeze EDE Consulting (Vietnam) Msc. Tran Quoc Hung WASI (Vietnam)

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Page 1: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

© 2013 Vietnam To Produce More Coffee With Less Water

Authors:

Dr. Chu Thai Hoanh IWMI (Lao PDR)

Dr. Upali Amarasinghe IWMI (India)

Dr. Dave D‘haeze EDE Consulting (Vietnam)

Msc. Tran Quoc Hung WASI (Vietnam)

Page 2: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

2 © 2013 Overview

Background & Introduction

Methodology

Results

Conclusions

Policy recommendations

Page 3: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

3 © 2013 Background & Introduction

Average production increased by 35% from 1,400 to 1,900 kg/ha, between 2000 and 2009

Extensive irrigation & excessive fertilizer use;

Over-exploitation of groundwater & inefficient water use for irrigation

Climate change forecasts predict

Longer dry season and reduced water availability.

Heavier precipitation events and increased humidity in the rainy season

Coffee production is at risk

Water availability ↓, pests and diseases ↑, lower coffee quality ↓

Spill over to the entire global coffee sector and other developing countries that depend on coffee through

Disruptions and variability in coffee supply

Impact on global coffee prices, farmer incomes, rural economic growth, trade

balances and global coffee consumption.

Page 4: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

4 © 2013 Background & Introduction - General Terminology

Green water

Soil moisture from rain

Blue water

Water available from streams, rivers, ponds, tanks, lakes

reservoirs and groundwater

Grey water

Freshwater pollution that can be associated with the

production of a product over its full supply chain.

Volume of freshwater required to dilute pollutants to such

an extent that the quality of the water remains above

agreed water quality standards.

Water footprint website (http://www.waterfootprint.org/)

The Water Footprint of a product is the volume of

freshwater appropriated to produce the product, taking

into account the volumes of water consumed and polluted

in the different steps of the supply chain.

Page 5: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

5 © 2013 Background & Introduction - Project Scope

This Water Footprint study

Focus at farm level

Main focus is on green and blue Water Footprint components

Green and blue WFP in agriculture = Consumptive Water Use

Applied metrics: mm, liter/plant/round, liter/kg

Cherry Pulped Cherry

Roasted Coffee Green Bean

Hulled Bean

Dry Parchment

Wet Parchment

Fermentation

& Washing

Drying

Hulling

Polishing &

Sorting

Roasting

Wet Processing

Dry Processing

Agricultural Production

Process

Industrial Production Process

Pulping

Page 6: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

6 © 2013 Background & Introduction - global green & blue WFP Rainfall (1000 cubic kilometers/ year) 110 km3 100% Crops Livestock Rainfed agriculture 4.5% Crops Livestock aquaculture Irrigated agriculture 0.6% 1.4% Water storage, aquatic biodiversity fisheries Open water evaporation 1.3% Cities and industries 0.1% Ocean 36% Forest, grazing

lands… Landscape 56% Blue water Source: Water for food Water for Life. CA 2007 Green water Blue water

Page 7: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

7 © 2013 Background & Introduction - Vietnam’s green & blue WFP Rainfall (cubic kilometers/ year) 603 km3 Forest, grazing Landscape 51.9% Crops Livestock Rainfed agriculture 1.6% Crops Livestock aquaculture Irrigated agriculture 6.9% Water storage, aquatic biodiversity fisheries Open water evaporation 2.5% Cities and industries 0.4% Ocean 36.8% Green water Blue water Source: Estimated from FAO AQUASTAT data External renewable water resources 525 km3

Page 8: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

8 © 2013 Methodology - data

Data for CWU estimation

Climatic data (rainfall, max-min temperature, relative

humidity, wind speed and sunshine hours)

Period: 2002 to 2009

3 meteorological stations (Buon Ma Thuot, Buon Ho

and Lak).

Daily coffee production records

4 communes in Krong Pach district

Period 2005 and 2009

52, 51, 92, 146 and 303 farmers in 2005,

2006, 2007, 2008 and 2009 respectively

Sample survey

300 farmers

5 communes in Krong Pach district;

1 commune in Buon Ma Thuot City

Period: February and March 2012

Coffee area

Page 9: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

9 © 2013 Methodology - Analyses

Consumptive Water Use Analysis

Estimation of the Reference Evapotranspiration based on climatic variables

Calculation of the crop water requirements according to FAO, 2012

Marginal Profit Analysis

Multiple regression

Assessment water and other production variables on yield and profitability

Water Footprint Analysis

Hoekstra method

Estimation of Green, Blue and Grey WFP components

Page 10: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

10 © 2013 Methodology - Estimation of coffee CWU

Evapotranspiration =

Total (green + blue) CWU

Loss of water due to quality deterioration = grey WFP

Surface Irrigation Outflows

Rainfall Evapotranspiration

(ET)

Groundwater irrigation

Loss of water due to quality

deterioration

Page 11: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

11 © 2013 Methodology - Estimating the ET

(ETa)

Page 12: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

12 © 2013 Methodology - Estimation of coffee CWU

Irrigation

Rainfall

Rainfed Agriculture Irrigated Agriculture

Blue

CWU =

ETairrigation

Green

CWU =

ETarainfall

Green

CWU =

ETarainfall

Rainfall

Page 13: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

13 © 2013 Methodology - Estimating the ETc

Reference Evapotranspiration (ET0)

i.e. potential evapotranspiration of a well watered

grass

Calculated based on climatic data on monthly

basis

Crop Evapotranspiration (ETc)

Multiplication of the ET0 by the crop coefficient

Crop coefficients vary over 4 growth periods

Initial Flower bud

initiation Dec-Jan

Develop-

ment Flowering Feb-Apr

Middle Fruit growth May-Sep

Late Ripening &

Harvesting Oct-Nov

Page 14: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

14 © 2013 Results - Monthly Crop Evapotranspiration (ETc)

FAO crop water requirement

Toal is 1,388 mm per year of which

529 mm from January to April (113

mm rainfall and 416 mm irrigation)

FAO estimation does not include

the water stress requirement for

crop production

Remarks

Rainfall meets 68% of the annual

ETc, but only 25% of total ETc

between Jan & Apr

Irrigation is a critical factor for

coffee production in particular to break the dormancy of flower buds and

develop cherries (swelling stage)

Crop phenology requires induced water stress between January and April to

obtain high and economically viable yields.

Page 15: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

15 © 2013 Results - Marginal Profit Analysis

Marginal income and cost

Net marginal profits become negative beyond 400 mm from Jan. to Apr

113 mm rainfall and 287 mm irrigation, or

870 liter/plant/irrigation round (3 rounds)

It is economically not viable to irrigate over 870 liter/plant/irrigation round

Page 16: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

16 © 2013 113

113

113

113

113

416

347

287

150

100

0 100 200 300 400 500 600

Theoretical crop water requirementJan-Apr (FAO, 2012)

Worst Practice

Economic Maximum

Best Practice(average rainfall in Nov-Dec)

Best Practice(high rainfall in Nov-Dec)

mm

Effective Rainfall (Jan-Apr) Irrigation Supply

Results - Irrigation Supply Practices in Jan-Apr 1,050 liter/plant/round 870 liter/plant/round 455 liter/plant/round 300 liter/plant/round 1,260 liter/plant/round Conventional

Conventional

Page 17: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

17 © 2013 Conclusions

Crop Water Requirement for Robusta coffee is over-estimated by FAO

1260 liter/plant/irrigation round

Conventional Practice

1,050 liter/plant/irrigation round

More efficient than FAO recommendation?

From an economic perspective

Irrigation supply above 870 liter/plant/ irrigation round is not economically viable

Empirical observations

Yield of 4 ton/ha can be achieved with 300-450 liter/plant/irrigation round (3 rounds)

In combination with other good agronomic practices (e.g. pruning, fertilization,…)

Best agricultural practices allow

more sustainable use of fresh water resources &

increased productivity compared to the average

Page 18: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

18 © 2013 Policy Recommendations - Government

MARD recently further decreased the official irrigation supply standards (Decision 273/QD-TT-CCN; dated July, 3rd, 2013) in the coffee rejuvenation program

Basin irrigation standards for mature Robusta coffee:400 to 500 liter/plant/irrigation

round;

Interval of 20-25 days;

Recommendation to increase by 10-15% for the first irrigation round

Recommendations

Raise awareness on improved irrigation management to be broadcasted on local television channels, in order to curb traditional farmers’ believe that more water will yield higher productivity and income.

Page 19: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

19 © 2013 Policy Recommendations - Research & Extension

National Agricultural Extension Centre

Review the latest research findings on good agricultural practices for Robusta

production

Design a uniform capacity building program for farmers

Build farmers’ capacity through farmer field schools and demonstration plots

Western Highlands Agriculture and Forestry Science Institute

Establish multi-year, on-farm demonstration plots

In different agro-ecological zones in the Robusta production areas

Assess and record crop performance under reduced irrigation supply conditions and to better understand the timing of irrigation and other inputs to attain yields of 4,000

kg/ha.

Page 20: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural

20 © 2013 Policy Recommendations - Industry

International & Nat. Standards Programs (4C, Utz, Rainforest Alliance, Vietgap,…) Integrate the new water management recommendations in their compliance criteria

This may accelerate short-term impact generation

Target: to increase sustainable green coffee production according to international standards from the current 8% to 25% by 2015

Traders and Roasters

Integrate the new water management recommendations in their farmer training

programs.

This would not only benefit the producers, but also contribute to the individual companies’ water footprint reduction

Page 22: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural
Page 23: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural
Page 24: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural
Page 25: Vietnam To Produce More Coffee With Less Water · Dry Parchment Wet Parchment Fermentation & Washing Drying Hulling Polishing & Sorting Roasting Wet Processing Dry Processing Agricultural