Nespresso launches weather insurance program for Colombian coffee farmers

Nespresso and start-up Blue Marble Microinsurance have launched a pilot weather index insurance program for smallholder coffee farmers in Colombia. “This pilot initiative helps to establish a support mechanism for smallholder coffee farmers in Colombia so that they can continue to thrive in the face of climate change,” says Guillaume Le Cunff, President and CEO of Nespresso USA. “Nespresso is truly grateful for Blue Marble’s partnership in developing this vital initiative for smallholder coffee farmers, whom we work closely with and rely on to grow and harvest the world’s highest quality beans.” Blue Marble Microinsurance aims to provide socially impactful, commercially viable insurance protection to underserved communities. “Our changing climate poses serious threats to the livelihoods of coffee producers, especially smallholder farmers,” says Joan Lamm-Tennant, Chief Executive Officer and Founder of Blue Marble. “Insurance provides these farmers with critical safety nets, and it can have a lasting impact. Blue Marble is proud to work with Nespresso to help mitigate risk and create value in the lives of these farmers.” The insurance program has commenced with 1975 farmer participants across 5724 hectares, belonging to the farmers of the Aguadas and Norte de Caldas cooperatives in Caldas, Colombia. It provides tailor-made coverage for excess rainfall and drought during the developmental stages in which coffee is most vulnerable to climatic shocks. “Having an insurance solution that protects our members from the devastating effects of climate change is critical for the cooperatives,” says Cesar Julio Díaz, Head of the Aguadas and Norte de Caldas cooperatives. “It allows coffee growers access to economic resources in the form of insurance payouts that will help them re-establish their crops, making them productive and able to continue with their agronomic activity.” Nespresso says all of the pilot program design parameters have been validated by farmers based on their knowledge and historical yields. Over time, Nespresso and Blue Marble intend to expand this program to other regions. The National Federation of Coffee Growers of Colombia (FNC) has also expressed interest in extending this program to other coffee regions.