France
The Neumann Kaffee Gruppe is partnering with BNP Paribas to create a $25 million loan assistance program for coffee farmers. The intent is to support sustainable agriculture for farmers in 10 countries.
The revolving loan program supports the Neumann Gruppe’s NKG Bloom sustainable sourcing initiative, according to company statements. In all, more than 100,000 farmers are expected to benefit from the loans while receiving additional resources and sustainability training.
The money will help farmers obtain, manage and diversify their suppliers, employ sustainability practices, and make sure their farms are economically viable, the companies said.
The Smallholder Livelihoods Facility established by the bank would allow the Neumann Gruppe “to bring the power of the global financial markets – long the missing piece – to smallholder coffee farmers,” said Cataline Eikenberg of the Neumann Gruppe’s sustainability business unit. “We’ve set ourselves an ambitious goal and we’re excited to make it happen.
”The loan facility is designed so that if a farmer defaults on a loan, BNP Paribas and partner banks would accept the loss. This risk-sharing agreement works alongside default guarantees from the U.S. Agency for International Development (USAID) and the Dutch Sustainable Trade Initiative (IDH).