Dutch entrepreneurial development bank FMO will provide a US$23 million secured term facility to green coffee merchant Volcafe to strengthen the company’s operations in Costa Rica.
With an estimated 2 per cent of Costa Rica’s land dedicated to its production and representing 10 per cent of the country’s agricultural exports, coffee is an essential component of the Costa Rican economy and culture, supporting the livelihood of tens of thousands of families.
Volcafe Costa Rica will use the five-year term loan from FMO as working capital to purchase coffee cherries from smallholder farmers and local cooperatives, before processing them into export-ready green coffee.
The facility will also allow Volcafe in Costa Rica to strengthen its partnerships with local coffee producers, offering them not only an outlet but also support on sustainable production techniques to improve resilience and profitability through the Volcafe Way farmer support program.
“We are delighted to partner with FMO on this important outreach to Costa Rican coffee farmers,” says Carlos Homberger, Regional Director South and Central America at Volcafe.
“This facility will support farmers in learning and adopting sustainable farming practices while also improving our business operations. With new international regulations and growing demand for responsibly sourced coffees, it is crucial for coffee farmers in Costa Rica to continue thriving in a very competitive environment, and it is our responsibility, at Volcafe Costa Rica, to support them.”
Hans Boogaard, Director Agribusiness, Food & Water at FMO, adds that the partnership with Volcafe aligns with FMO’s ambition to support leading coffee traders to build more sustainable and inclusive value chains.
“With improved access to finance, both for origination and also through smallholder farmer financing, we can jointly ensure the long-term viability of the coffee sector in Costa Rica, while further increasing the production of high-quality, sustainable coffee. We look forward to a fruitful partnership with Volcafe,” he says.
As part of the agreement and to better align with the ESG standards of FMO, Volcafe will enhance its environmental and social plan in Costa Rica, through continuous assessment of the mills’ emissions and deeper engagement with indigenous people within coffee-farming communities.
