Sagri and a Leading Vietnamese Sugar Producer NASU Sign an MOU on Cooperation in a Sustainable Sugarcane Cultivation Program
— Converting to regenerative agriculture to stabilize farmer income and the raw-material supply —
Sagri Co., Ltd. (headquarters: Tamba City, Hyogo, Japan; Representative Director: Shunsuke Tsuboi; hereinafter “Sagri”) has signed a Memorandum of Understanding (MOU) with Nghe An Sugar Co., Ltd. (hereinafter “NASU”), a sugar producer based in Nghe An Province, Vietnam, on cooperation within a sustainable sugarcane cultivation program.
The two companies are planning a pilot project in NASU’s sugarcane growing areas, combining regenerative agriculture practices suited to local conditions with field management on Sagri’s digital platform “SagriVision”. The pilot will examine the effects on soil health, yield and quality, and production cost, and the results will inform expansion across NASU’s raw-material area.
■ Background and objectives
Vietnam’s sugar industry has roughly doubled its output over the past five years, and its sugar production per hectare is among the highest in ASEAN. Nghe An Province, where NASU is based, is a leading sugarcane region in the north-central part of the country. At the same time, Vietnamese agriculture, including sugarcane, faces the challenges of adapting to climate change and containing production costs. Sustaining sugarcane production over the long term therefore requires not only maintaining and improving productivity, but also improving soil health and the efficiency of input use, so that farmers can continue growing the crop. This project will examine the agronomic and economic effects that the conversion of farming practices brings to participating farmers and to NASU — higher and more stable yields and lower production costs for farmers, and a more stable raw-material supply for NASU.
■ Main activities
- Regenerative agriculture practices adapted to local conditions
Under Sagri’s regenerative agriculture program, and drawing on local sugarcane expertise, the companies will support the conversion to regenerative agriculture following a protocol developed from cultivation history and soil analysis results. As a first step, the two companies will discuss the specific scope of a pilot in part of NASU’s raw-material area.
- Digitalising detailed field information by linking digital farming tools
Sagri will work with NASU to link the farm management application operated by NASU with Sagri’s “SagriVision”. The farmer, field and production data and farming records already held in the application will be combined with SagriVision analysis — using satellite data, Digital Soil Mapping (DSM) and process-based models — to build an environment in which soil and crop conditions and the effects of the practice conversion can be tracked field by field. This will support day-to-day farming decisions in the field and technical guidance from experts, and will be used to verify the results of the program.
■ Outlook
Based on the results of the pilot, the two companies will consider expanding the target area and moving to full implementation. The use of environmental and sustainability value arising from the program, including carbon, will also be considered in light of the pilot results and market conditions.
■ About Nghe An Sugar Co., Ltd.
A leading sugar producer in Vietnam, based in Nghe An Province. The company holds ISO 9001 and ISO 22000 certification — the international standards for quality management and food safety management — and works together with local farmers on the sustainable development of the sugarcane growing region.
■ Contact
Companies and organisations interested in partnerships, pilot projects or Sagri’s solutions, in Japan or overseas, are welcome to get in touch.
Contact: agri-innovation-dev@sagri.co.jp
