Colombia provides agricultural insurance against climate disasters for coffee growers
Due to the adverse weather in the last three years and the recent decline in the price of coffee beans on the international market, Colombia decided to provide protection to the industry by expanding its financial instruments. According to Andries Lozano, senior adviser to the Agricultural Development Bank of Colombia, from January next year, Colombian small growers will receive a new agricultural insurance to ensure that their losses are minimized in the event of extreme weather changes. "growers don't have to pay for insurance, and the government and the coffee industry federation will pay for it," Lozano said. "
According to reports, the total size of the insurance plan is 30 billion pesos (about 16.5 million US dollars). The insurance will cover 96 per cent of the country's 500000 small coffee growers (planting area less than 5 hectares).
Louis Samper, head of marketing at the Coffee Industry Federation, said the insurance is limited to losses caused by extreme weather disasters, including hail, landslides, excessive rainfall or extreme dry weather.
Affected by weather factors, the Coffee Industry Federation on the 24th again lowered its 2012 coffee production forecast to 8 million bags (60 kg each), compared with 8.5 million bags before.
(responsible Editor: coffee Sound)
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