Strengthening capacity to diversify farmer business models for climate resilience
This climate resilience case study (No.9) from Viet Nam is the ninth of ten case studies prepared by forest and farm producer organisations (FFPOs) for the Forest and Farm Facility (FFF).
It describes the actions of the Viet Nam Cinnamon and Star Anise Cooperative to find nature based solutions (NbS) that give climate resilience. The Viet Nam Cinnamon and Star Anise Cooperative is enabling its 23 core members and more than 600 organic supplier farmers to become more resilient to climate change in Yen Bai province in the North of Viet Nam.
Climate change has become a prominent issue, with an increase in annual average annual temperature and decrease in rainfall – but with many more extreme events including: landslides; droughts; floods; cold spells; and hailstorms. These events have increased crop damage, increased the incidence of disease, reduced yields as well as causing significant human and property losses. The Cooperative has addressed these risks by diversifying on farm products through value chain developments that have diversified products within their core (cinnamon) value chain, plus diversifying into additional and alternative value chains such as medicinal plants, honey, handicrafts, tourism and silk to gain further resilience.
The innovation has come because members of four small cinnamon farmer groups decided to combined forces in 2017 into a formal cooperative that has been registered under the 2012 Cooperative Law. Three years later in 2020, they have attracted inward investment for, and built, a processing factory that produces an annual turnover of US$ 1.1 million across a diversified range of cinnamon products. With new products under development, members and supplier farmers have diversified the ecosystems on their farms; and are now starting to diversify their income streams from other from forest and farm resources.
This practical development of a functional cooperative has proved that smallholder farmers can rapidly develop climate resilient business models coping effectively with climate change.
Thi Thoan, H., Voan, V., Tai Thang, P., Van Tien, P. (2021). Strengthening capacity to diversify farmer business models for climate resilience. IIED, London.