The True Price and the True ROI of investments in Climate Smart coffee in Peru and Colombia

Coffee production is associated with environmental externalities (such as climate change, water pollution and the use of scarce water and toxic materials) and social externalities (underpayment and underearning). This report aims to assess coffee production from a societal cost-benefit perspective. Better insights into all costs of production (both financial and external) enables investments to have a higher impact and lower risk. In other words, society will receive more bang for its buck.

 

The project proposes five criteria that should be met to validate the belief that investments in Climate-Smart Agriculture are an important element towards a better coffee sector:

  • It is sustainable.

  • It is contributing to a decent livelihood for the farmer.

  • It is feasible in the marketplace.

  • It is profitable to the farmer.

  • It is cost-effective to society.

 

The project seeks to quantify the benefits of Climate-Smart Agriculture in Peru (San Martin) and Colombia (Risaralda/Cauca) versus conventional coffee production. Based on the results of this analysis, Solidaridad will be able to contribute to a better insight for different actors in how the transformation into a sustainable coffee sector can be realized.

 

Implementing partners

Fundación Solidaridad Latinoamericana Colombia

 

Direct and indirect beneficiaries

The beneficiaries of the project are varied in nature, as it will provide results that will benefit producers, traders, and impact investment funds.

 

Location

Peru (San Martin) and Colombia (Risaralda/Cauca).