Private Sector Solutions for the Value Chain and Sustainable Rice Sector

Farmers at the heart of connections

Catur Utami Dewi introduces Ricolto, an international organization dedicated to achieving sustainable incomes for farmers and ensuring healthy food for all. Operating in 18 countries, it operates through our regional offices in Southeast Asia, East Africa, West Africa, Europe and Latin America. The organization’s core mission has been described as aligned with the goals of promoting sustainable agricultural practices, and events like this deeply resonate with our ongoing efforts.

According to Ms. Dewi, a key lesson Ricolto has learned is that sustainability is a shared responsibility. Farmers often see sustainability as improving their livelihoods, while consumers prioritize affordability and access to healthy food. Meanwhile, private actors focus on creating value in the supply chain. Understanding these perspectives is essential to creating innovations and solutions that benefit all involved.

Another key insight is the importance of trust and communication in business relationships. For sustainable practices to take root, there must be transparency between farmers and private parties. Both parties must understand and respect the needs of the other in order to create shared goals and improve business outcomes. Strong relationships built on trust and transparency can help move the entire rice sector toward greater sustainability.

“Incentives, both financial and non-financial, play a significant role in driving these efforts. For example, certified rice varieties often command higher prices in the market, although demand may be limited by consumer purchasing power. In Indonesia, for example, certified organic rice is doing well, but its reach is limited by higher costs,” Ms. Dewy said.

Private entities are also investing in non-financial incentives such as advisory services, pre-financing of inputs and, in the case of the low-carbon rice project, purchasing carbon credits to reduce emissions.

The challenge, however, is scaling these initiatives across the broader rice sector. Ricolto believes that with the right incentives, partnerships and innovation, the entire industry can move towards a more sustainable future, benefiting not only farmers but all actors in the value chain.

Sharing the idea from Corteva’s perspective, Mr. Bryce Sturgess confirmed that food security is a critical issue for all of humanity and will become even more of a challenge as we progress. This makes collaboration through partnerships critical. Partnerships are the foundation of our approach to fieldwork.

To answer this question more directly, Corteva is an agricultural research and development organization operating globally in 142 countries. We focus on crop protection, seed innovation and biological advances to bring cleaner, greener and more sustainable technologies to market. These innovations aim to reduce the risks associated with Maximum Residue Limits (MRLs) and over- and under-use of resources, ultimately enabling safer and more efficient trade of agricultural products.

When the organization looks specifically at Asia, where most of the world’s rice is grown, our field projects have taught us that success depends on personal relationships. Direct engagement with farmers is essential because seeing is believing. Building trust is key, especially given the aging farming population that tends to be more conservative and resistant to change. For any new initiative to succeed, there needs to be a strong enough incentive to motivate farmers to adopt new practices.

“From Corteva’s perspective and my own, farmers need to be at the heart of decision-making. Empowering and enabling farmers through partnerships is key to achieving long-term success in addressing food security issues. Their involvement in the process ensures that innovations and policies are tailored to their needs, making the entire system more sustainable and resilient,” explained Mr. Sturgess.

Replicating Australia’s Models in Vietnam

Kylie Porter, a representative of Sunrice Group – an Australian-based multinational company with rice mills in Australia, the US and Vietnam – said the Group sources rice from these regions but is diversifying its business into other sectors as well.

His main focus has been Australia, but he is increasingly involved in projects in Vietnam. Sunrice Group recently set emissions reduction targets in line with the Science-Based Targets initiative for verification. Like many companies here, we have significant Scope 3 emissions, particularly from rice production. So the goal is to better understand those emissions and find ways to reduce them while ensuring farmers maintain or even improve yields.

In Australia, Sunrice Group has partnered with AgriFutures and Deakin University to collect gas flow data, which helps them understand how different seeding practices affect methane emissions. For example, trials have shown that switching from air seeding to direct seeding with delayed continuous irrigation can reduce greenhouse gas emissions by 84%, a significant reduction. It plans to replicate similar projects in Vietnam, where many commercial growers are already switching to alternative wetting and drying systems. Sunrice Group agronomists in the field in both Australia and Vietnam are helping farmers adopt these practices.

“While these projects are very promising, we recognise that the challenges vary across countries. In Australia, farmers tend to have higher incomes and can invest in mechanisation and technology more easily than smallholder farmers in Vietnam,” Kylie said.

However, the Group is working on proof-of-concept projects in Vietnam, focusing on improved fertilization efficiency, mechanized planting and carbon sequestration through biochar. Some of these are still in the pilot phase but are expected to be commercialized soon.

“In Vietnam, we have also partnered with the Australian Centre for International Agricultural Research (ACIAR) on a five million dollar project to build a high-quality, sustainable rice value chain in the Mekong Delta. This initiative involves collaboration between scientists, growers and the Vietnamese government and includes the establishment of a Centre of Excellence for post-milling. One of our key goals is to encourage younger generations to remain involved in the rice industry, especially given the ageing farming population in both Vietnam and Australia,” Kylie said.