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Risk and Finance in the Coffee Sector: How to Improve Risk Management and Access to Finance in the Coffee Sector ?

The study is the outcome of a collaborative work between the World Bank’s Agricultural Risk Management Team and the International Coffee Organization (ICO). Aimed at raising awareness of risks and their impacts on the different actors and at the different stages of the coffee sector’s value chain, the report presents a variety of programs and mechanisms for managing risks, with a focus on innovations to improve access to finance.

This report explores the role that producer associations, governments, non-profit organizations, the private sector, and other intermediaries can play in making risk management and financing tools more accessible and more workable for smallholder coffee growers. It examines the global coffee sector and outlines: 1) major risks and constraints facing the sector; 2) potential opportunities for improving the management of certain risks; and 3) programs launched in various regions aimed at improving access to finance.

Through the use of detailed case studies taken from a number of coffee-producing countries, this report seeks to demonstrate: how risks can arise that adversely impact on the coffee sector and those working within the sector; how risks can be better managed so that the sector is able to improve its resilience; how financing constraints can be overcome through a variety of innovative approaches; and how there are potential opportunities to both improve risk and access to finance in a coordinated manner. The rationale for utilizing case studies is to enable best practices to be shared more widely.

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