According to the Department of Agriculture and Rural Development of Dak Nong, the province currently has about 142,000 hectares of coffee, with an output of more than 360,000 tons per crop. Dak Nong coffee is exported to many major markets such as Singapore, the United States, Germany, Japan, Australia, Spain, South Korea, and Italy.
However, coffee production here is facing many difficulties due to climate change, especially prolonged drought causing significant damage to people.
To support farmers, Dak Nong is implementing the project "Sustainable coffee production towards reducing emissions and meeting EU anti-deforestation regulations".
Within the framework of the project, Intimex Dak Nong Joint Stock Company, JDE Peet’s Company (Netherlands) and TMT Consulting Joint Stock Company have coordinated with the Department of Agriculture. The parties have jointly implemented a pilot rainfall insurance model in Krong No and Dak Glong districts.
In Krong No district, this model has been supported by farmers in 7 communes. Mr. Nguyen Trong Tuyen - a farmer growing more than 3 hectares of coffee in Dak Glong district - said that unusual weather has increased the cost of coffee care. Rainfall insurance is like a savings to help families reduce damage caused by the weather.
To effectively implement the model, TMT Consulting Company has organized surveys and workshops to help farmers better understand this model. Currently, more than 35 households with 99.6 hectares of coffee in Krong No district have accessed rainfall insurance.
According to Mr. Nguyen Thanh Tam - Director of TMT Consulting, this is a new model in agricultural production. The company has connected relevant parties to find solutions for implementation and replication in the future.
In Vietnam, several companies such as Insur-Tech Hillridge, MSIG Vietnam Insurance and PVI Insurance have offered rainfall insurance products. This model is fully digitalized, allowing payments to be based on automated measurement data rather than the extent of damage.
Farmers in 18 provinces and cities, including Dak Nong, have now accessed this program. With an insurance rate of VND5,000/day, people have the opportunity to receive compensation of up to VND6 million if the rainfall in the cultivated area is lower than the prescribed threshold.
Claim procedures are carried out quickly via smartphone and automated system.
