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COMMON FUND FOR COMMODITIES
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Pilot Short-Term and Medium-Term Finance to Small-Scale Coffee Farmers in Kenya (CFC/ICO/20)

 

Common Fund Loan: USD 1,000,000

 

This project concentrates on designing and introducing an input credit scheme that is suitable for the liberalised commodity markets, against a background of declining credit facilities for fertiliser, pesticides and lack of basic farm equipment. The decline in credit is leading to declining yields by coffee farmers to levels which are below the break-even point of production. This project develops an integrated partnership between the farmers, banks, input suppliers and the auction system to enhance trust among the parties and lead to the success of the loan portfolio. The project is implemented on a pilot basis to create a suitable, workable and sustainable input credit scheme for smallholder producers. By the end of the project, the measures will be evaluated and their impact established to provide a tested system for effective coffee production financing in a liberalised market economy.