A major outbreak of coffee leaf rust disease, or ‘roya’, has severely damaged coffee crops across Central America (and to a lesser extent Peru), with significant negative effects for coffee farmers and their organizations. As a response, Root Capital in partnership with Green Mountain Coffee Roasters, the Interamerican Development Bank, and the Skoll Foundation have recently launched the Coffee Farmer Resilience Initiative. Read more in the article from PRI’s The World.
In summary, the initiative has the following components:
- Long-term lending for coffee farm renovation or rehabilitation. Root Capital projects making at least $10 million in direct loans for on-farm coffee renovation and related investments in rehabilitation (e.g., pruning), nurseries, etc.
- Short-term lending to co-operatives affected by roya, including both trade finance and input finance for roya control and recovery
- Financial training, focused on management of internal credit funds and on farmer income diversification
- Agronomic coordination, to support the success of financial investments in renovation, rehabilitation, and recovery
- Impact assessment
- Knowledge dissemination