Simalungun, Indonesia, December 6, 2011—
IFC, a member of the World Bank Group, and PT Indo Cafco, an Indonesian coffee exporter, have opened a new training center to help 4,500 small coffee farmers meet international standards for their crops, improve sustainability and productivity, and increase their incomes.
The center will provide support to smallholder farmers in North Sumatra and Aceh provinces so they can qualify for international certifications like UTZ, Rainforest Alliance, and C.A.F.E. Practices over the next four years, allowing them to link up to global supply chains. PT Indo Cafco, a subsidiary of the global coffee trader Ecom Agroindustrial Corporation, will pay a premium price for the certified coffee beans, raising farmers’ incomes.
“It is ECOM’s philosophy that its global operations interact directly with farmers. This makes good business sense for us and our customers who will benefit from the shorter supply chain and direct access to certified quality coffee beans,” said Nick Watson, Arabica Manager for PT Indo Cafco. “Smallholder farmers will also benefit from improved productivity and quality of their coffee, which will enhance their income.”
About 30,000 farmers not affiliated with Ecom are also expected to benefit indirectly from exposure to best management practices, quality control training, market and price information, fertilizer recommendations, and information disseminated by the project.
IFC has collaborated with Ecom to establish training centers for coffee farmers around the world, starting with a project in Central America in 2007. In 2010, IFC and Ecom launched Vietnam’s first training center for coffee farmers.
“Indonesia is the fourth-largest coffee producer in the world but the industry faces a range of challenges to meet potential export market opportunities,” said Ernest Bethe, Agribusiness Program Manager, IFC Indonesia. “IFC and PT Indo Cafco share a common interest in assisting Arabica coffee farmers in Indonesia’s North Sumatra and Aceh deal with these issues and capture these potential markets.”
IFC’s support to PT Indo Cafco is part of its objectives in Indonesia to reduce the impact of climate change and increase rural incomes. IFC Advisory Services in Indonesia are supported by the governments of Australia, Finland, the Netherlands, New Zealand, and Switzerland.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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