The Cu M’gar Landscape, situated in Đắk Lắk province of Vietnam’s Central Highlands, is the largest concentrated sustainable sourcing zone in the country. Encompassing over 82,449 hectares, it comprises 37,726 ha of coffee, 4,800 ha of pepper, 3,000 ha of fruit trees, and approximately 6,747 ha of forest. In 2021, the district established the Cu M’gar PPI (Production – Protection – Inclusion) Compact under a public-private partnership to create Vietnam’s flagship large-scale sustainable sourcing area by 2025. The Compact pursues three strategic pillars: protecting forest resources and promoting responsible land use; ensuring 85% of coffee and intercropped areas adopt climate-adaptive, sustainable practices with full traceability to premium markets; and enhancing livelihoods for over 60,000 smallholders, with targeted inclusion of ethnic minorities (representing 35% of the population) and women (37% participation in training).

The initiative scaled from earlier pilots and now operates across all 15 communes and 2 towns. The area faces critical sustainability pressures: fragmented landholdings (average 2.3 ha/household), widespread overuse of chemical inputs, soil degradation, and irrigation inefficiencies. These challenges are compounded by emerging market demands under the EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD).

As the lead pilot for the national EUDR database—officially transferred to MARD in 2024—Cu M’gar has achieved 100% farm-level GPS polygon mapping, full supply-chain traceability, and a 98% reduction in glyphosate residues. Through coordinated action among government, IDH, private-sector partners, and cooperatives, the Compact is establishing a replicable model for deforestation-free, inclusive, and commercially viable coffee production at provincial scale.