The International Coffee Organization (ICO) and the United Nations Industrial Development Organization (UNIDO) have proposed setting up a new global fund to support the coffee sector.
This fund would support stakeholders throughout the Coffee Global Value Chain (C-GVC), especially farmers.
It would also address climate change and structural challenges such as living income gaps, stringent regulatory framework, price levels, volatility, productivity, quality, and market access.
A joint report, titled ‘Sustainability & resilience of the coffee global value chain: towards a global investment vehicle’, highlights the difficulties faced by farmers and other stakeholders.
“We are happy to release this report which provides concrete solutions to address the challenges faced by millions of smallholder coffee farmers through targeted investments in the coffee sector,” says Gerd Müller, Director General of UNIDO.
“Coffee farmers often struggle to make a decent living due to volatile market conditions, the impacts of climate change on agriculture, as well as the need to respond to growing consumers’ demand for sustainability.”
The joint report also provides insights into the current state of the coffee sector, and highlights future demand patterns and the economic rationale for mobilising public and private funding in the form of both grants and investments.
It also underscores the need to refine investment estimates through improving data access for farmers and addressing knowledge gaps in sustainability interventions to ensure targeted and effective allocation of funds.
“The report is an important resource for navigating the requirements and options for mobilising public and private funding to support all stakeholders across the C-GVC: from farmers to consumer,” says ICO Executive Director Vanúsia Nogueira.
“It also provides invaluable and timely inputs to the G7 leaders to catalyse investment and commitment to ensure the resilience and sustainability of the coffee industry.”
