MINH TIEN GROUP: PRODUCT ECO-SYSTEM FROM A CLOSED-LOOP PRODUCTION SYSTEM | Knowledge Hub | Circle Economy Foundation
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Business case
MINH TIEN GROUP: PRODUCT ECO-SYSTEM FROM A CLOSED-LOOP PRODUCTION SYSTEM
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Coffee by-products or waste that came from the cultivation and production of coffee beans are traditionally disposed via landfills. A closed-loop production system revolving coffee tree where circular economy principles are integrated can generate a product range. At Minh Tien Group, every by-product at each production stage will be repurposed and recycled as materials for later productions of other products in our ecosystem, maximizing the value of the coffee tree.

Problem

According to report, agriculture by-products in Vietnam could be a stand-alone industry with an estimated value of 5 billion USD per year. Production of high-quality coffee beans always create an enormous amount of by-products. It is reprtted that there is approximately 95 percent of coffee waste goes into the disposable depot. As a result, methane is mass-produced, which is a substance more harmful than carbon dioxide at least 28 folds. By utilizing coffee by-products as materials for additional productions, there is a wide range of possibilities for agriculture innovations that directly address environmental issues.

Solution

At Minh Tien Group, the implementation of the circular economy model has achieved full integration across the existing operation chain. The company’s future direction would explore deeper into agriculture innovations and developments toward a sustainable economy. 


The current product ecosystem includes Green coffee beans; Coffilia; Ha Chuc Cascara Tea; Namigo bio-packaging, and Organic fertilizer. Essentially, the by-product of coffee cherry and coffee bean from the preliminary treatment and processing stage will become input material for subsequent productions, resulting in complement products of the ecosystem.


The closed-loop production entails five production stages. At stage 1, green coffee beans are harvested by hand from the coffee tree across growing areas. In stage 2, initial processing variations of ground and instant coffee products. In stage 3, the delicate skins of coffee cherries are removed, which will be used to process Ha Chuc Cascara tea. In stage 4, coffee parchments combined with corn, sweet potato, cassava starch, rice husks and bio-plastics create 100% fully bio-degradable packaging. The final stage 5 would utilize leftover parchments, pulps, and other residues to make micro-organic fertilizers for subsequent coffee farming. 


Essentially, Minh Tien Group constantly pursues sustainable growth through applications of the circular economy model while delivering world-class quality coffee. The model has become an integral principle that represents a sustainable end-to-end operation of coffee growing, harvesting, processing, and producing. Every by-product at each stage will be repurposed and recycled as materials for later productions of other products in our ecosystem, maximizing the value of the coffee tree.



Outcome

The company’s coffee bean has received 4C and UTZ certifications, which represent constant efforts and responsibilities to achieve sustainable development, long-lasting business partnerships, and responsibility for local communities and environments. In essence, all involved stakeholders attempt to reach a consensus which leads to a win-win situation. 


For society, greenhouse gas emissions and industrial waste are significantly minimized. In turn, the cost for environmental measures that respond to climate change would be reduced. Local communities would enjoy stable job opportunities which lead to assurance of sustained economic growth. 


For businesses, the threat of resource scarcity should not resurface regularly. Most importantly, there are attractive opportunities for investment in innovation and technology. As productions are optimized, the product life cycle is stretched, extensive exploitation of raw materials; production costs can be scaled down, and supply capacity increases. 


As the chairwoman expressed: “Minh Tien Group’s long-term strategy and investment in integration of Circular Economy should be a leading examples of “green” development not only in agriculture but also across different industries in Vietnam and global economy”.



Additional information

- Minh Tien Group officially participates in Expo 2020 Dubai and features the Circular Economy model in the form of miniature artwork made by Vietnamese craftsmen. 

- Minh Tien Group’s implementation of Circular Economy took center stage during the Vietnam Pavilion’s opening at Expo 2020 Dubai, and attracted international media attention including CNN, SkyNews, Kuwait National TV, FoodNavigator-Asia; being referred to as a coffee giant and economic beacon. 

- Minh Tien Group desires to promote the model, to recognize and actualize business opportunities at western markets; most importantly, to present the world a different perspective of Viet Nam’s modern and sustainable agriculture.

- Minh Tien Group currently eyeing strategic expansion into United Arab Emirate and Kuwait in early 2023, with undergoing preliminery market research.

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