FARMER FUTURE PROGRAM
The second initiative - the first-ever crop insurance scheme for smallholder coffee farmers - was launched in Colombia in 2018 together with Fairtrade and Blue Marble Microinsurance.
Previously, insurance companies were unable to offer suitable policies to smallholder farmers in remote, rural regions because their location and size made it difficult to verify losses. The scheme developed by Nespresso and Blue Marble uses satellite technology and weather index data to instantly verify when erratic weather has caused damage to crops, and makes automatic payouts – without the need for visit by an assessor. This solution is cheaper, simpler and more efficient, meaning that for the first time, it is commercially viable to offer insurance to these small-holder farmers.
Did you know?
• We formally began our collaboration with Fairtrade in 2013 by signing an agreement to source a quantity of Fairtrade coffee each year.
• 1800 farmers have already joined the scheme in Indonesia and over 2000 farmers in Colombia.
• By the end of 2019, Nespresso had invested some USD 5.7 million in the Farmer Future Program. Half of this is spent on providing technical assistance to farmers, and half is contributed to the retirement savings and crop insurance programs.