Blue Marble Microinsurance – a consortium of nine companies including Zurich, AIG, Aspen, and Hamilton – has collaborated with Nespresso on the launch of a pilot weather index insurance program for smallholder coffee farmers in Colombia.
It has commenced with 1,975 farmer participants across 5,724 hectares belonging to the farmers of the Aguadas and Norte de Caldas cooperatives in Caldas, Colombia.
Through the use of satellite technology and parametric triggers based on the farmers’ knowledge and historical yields, the product provides coverage for excess rainfall and drought during the developmental stages in which coffee is most vulnerable to climatic shocks.
“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,” said Guillaume Le Cunff, President and Chief Executive Officer of Nespresso USA.
Nespresso has committed an initial $10 million to specific innovative coffee value chain initiatives, including this program.
“Our changing climate poses serious threats to the livelihoods of coffee producers, especially smallholder farmers,” said Joan Lamm-Tennant, Chief Executive Officer and Founder of Blue Marble.
Over time, Nespresso and Blue Marble intend to expand this program to other regions. The National Federation of Coffee Growers of Colombia has reportedly expressed interest in extending this program to other coffee regions.
“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.”
“Having an insurance solution that protects our members from the devastating effects of climate change is critical for the cooperatives,” added 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.”
