VIETNAM TEA INITIATIVE MARD & Unilever Vietnam PPP for Sustainable Agriculture Development Task Force Update 8 december 2014

“MADE IN VIETNAM COFFEE” vision & objectives “MADE IN VIETNAM TEA” equivalent of “MADE IN VIETNAM COFFEE” To help Vietnam increase its export of tea through enabling Vietnam’s designated tea growers and processors to achieve 4.0* Quality Index minimum Specifically, to increase annual tea procurements from Vietnam by Unilever to 30,000 - 35,000 tons of R.A certified tea.

Quadruple import quantity from Vietnam to 12,000 MT Progress to date COMPLETED PHASE 1 (2011-2012) Quadruple import quantity from Vietnam to 12,000 MT PHASE 2 (2013-2015) – on-going Expand farmers’ network 6 provinces Procure 30,000 – 35,000 MT / year from Vietnam (fully RA certified)

Phase 2: progress to date Tea processing cooperation A long term manufacturing contract has been signed with a selected partner – My Lam Tea processing investment Direct investment in 1 CTC line factory in Yen Bai province. Final stage of investment licensing IDH-Unilever-RA agreement Agreement reached on a 3 year joint project to scale up the work with farmers on the integration of smallholders into Quality and Sustainable Tea Supply Chains in Vietnam

Idh - unilever - RA cooperation PURPOSE: To integrate Smallholders into Quality and Sustainable Tea Supply Chains in Vietnam so as to accelerate and up scale viable and sustainable Tea production and trade in Vietnam.  

Idh – unilever - ra cooperation Scope: to improve the long-term economic, environmental and social sustainability of Vietnamese small holder tea farmers and tea factory owners via provision of training on the Sustainable Agriculture Network Standard that can lead to RA certification. Target provinces: Phu Tho, Tuyen Quang, Lam Dong, Yen Bai, Vinh Phuc & Nghe An Direct impacts: > 23,000 farmers Budget: Euro 440,000 Duration: Nov 2013 – Dec 2015 Launched in Jan 2014 in Hanoi.

Project status update Project status summary With Nghe An, Lien Son and Hung Ha now 15 companies participating in the project. Tran Nam Viet likely to join in December, bringing the total estimated production capacity to 41,300 tons and a production base of nearly 11,600 smallholders. FFS training on RA/SAN standards completed at 10 companies. Four companies will be assisted to apply for RA certification in December. Link between UL/IDH/RA program and Vitas/IDH Major Issues and/or risks Certain producers did not have full commitment to project at start up. New companies were added to the project as (partial) replacement. For 2015, some “uncommitted” companies have confirmed to join again. Most companies do not have their own farm and many find it difficult to develop linkages with smallholders.

Agri-teams & responsible pesticide

suggestions/ support SC Sustainable tea established. Ensure DCP has the proper capacity Develop a strategy for sustainable tea production (look at the future) Invest resources in sustainable tea IGG Tea Team UP (annual) 2015

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