Resilient Coffee: Climate Action and Access to Finance for Coffee Enterprises

Context

Indonesia is one of the world’s leading coffee producers, but the changing climate threatens the livelihoods of coffee farmers.

Drought, inconsistent rainfall, and heat stress threaten Indonesia’s agriculture sector, including coffee farming. Coffee farmers need to implement new practices to adapt to climate change and build resilience to future shocks. Women farmers, in particular, have less access to resources, information, and land than their male counterparts, resulting in lower productivity and income. Inclusive access to loans, business and digital training, and climate change mitigation information will enable small and medium producers to compete in the global coffee market.

Indonesia Coffee Enterprise Resilience Initiative
(Resilient Coffee)

Resilient Coffee is a partnership between USAID, Root Capital, and Keurig Dr. Pepper to provide smallholder coffee farmers with the skills and resources to strengthen their businesses and increase sales. The partnership strengthens core business management practices, increases access to business loans, promotes digital business solutions, builds climate resilience to adapt to climate change, and improves gender equality and social inclusion in small- and medium-sized enterprises (SMEs) working in coffee. The activity helps farmers secure better prices, prepare for climate shocks and stressors, and improve their productivity.

Resilient Coffee aims to improve the livelihoods of 14,000 coffee farmers through 14 cooperatives and SMEs in the provinces of Aceh, East Java, and North Sumatra.

Results

To date, USAID has provided customized business training to 16 coffee cooperatives and SMEs and trained nine coffee SMEs in agronomic and climate resilience. USAID also facilitated Resilient Coffee partner Root Capital to disburse $6.9 million of loans to nine coffee SMEs to increase their coffee purchases, leading to improved sales for 9,500 coffee smallholders.