July 19, 2024

My Views on News

Impartial and Unflinching

coffee industry and farmers

UN Plan Boosts Coffee Industry and Protects Farmers

Spread the love

The coffee industry is facing significant sustainability challenges, with over 5.5 million coffee farmers living in extreme poverty. To address this, the United Nations Industrial Development Organization (UNIDO) and the International Coffee Organization (ICO) have proposed a new global funding mechanism.

The key idea is to bring together industry stakeholders, financial institutions, and the public sector to mobilize both public and private funds.

This is crucial because the global demand for coffee is expected to rise steadily over the next two decades. However, studies show that around $10 billion in annual funding is needed to advance the Sustainable Development Goals in coffee-producing regions. Specifically, $1.4 billion per year is required to improve productivity and adapt to climate change.

The proposed funding model includes initiatives like the Ethiopian Coffee Fund, which provides concessional loans through the Commercial Bank of Ethiopia and technical assistance to coffee cooperatives and enterprises. The funding proposals will be evaluated based on their potential impact, investment risks, and overall bankability.

Overall, this global fund mechanism aims to tackle the complex challenges facing coffee farmers, from climate change to price volatility and income disparities. By bringing together diverse stakeholders and financing sources, it seeks to drive sustainable transformation in the coffee industry.

Other Stories

Upcoming Ethiopian Coffee Exhibition in Hawassa & Jimma