The Asian Development Bank (ADB) has signed a USD 100-million loan agreement with ECOM Agroindustrial Corporation Limited and ECOM Agroindustrial Asia Private Limited to strengthen the climate resilience of the coffee value chain across the Asia-Pacific region.
According to the ADB, the agreement will support over 62,000 smallholder farmers in India, Indonesia, Papua New Guinea, and Vietnam. ECOM, a global agricultural commodities processor and supply chain merchant, will use the financing to bolster its working capital, which includes funding for inventories, receivables, and advances to smallholder farmers for coffee procurement.
The loan will also cover operating expenses for essential extension services, such as training, certification support, research and development, and sustainability pilot projects.
Suzanne Gaboury, ADB’s Director General for Private Sector Operations, highlighted the importance of the initiative, stating, “Safeguarding coffee farmer livelihoods and resilience in the face of climate change is crucial for maintaining the stability of one of the world’s most significant agricultural supply chains.”
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