16 / 98
16
Coffee has always been the most
important industry in Central America. In
recent years, climate change has led to
an increase in outbreaks of coffee rust,
and so the TaiwanICDF has proposed
to its local development partners in
the region – including the Central
American Bank for Economic Integration
(CABEI), and the International Regional
Organization for Plant and Animal Health
(OIRSA) – the concept of combining
prevention technologies with financial
services, in the hope of integrating the
key strengths of different development
organizations and jointly promoting a
regional development project that can
reduce the damaging effects of coffee
rust.
In 2013, we dispatched inspection
teams on two occasions, visiting –
alongside the relevant CABEI and
OIRSA officials – local agriculture
departments, coffee associations,
farmers’ organizations and individual
farmers in El Salvador, Guatemala,
Honduras and Nicaragua so as to get
an idea of the scale of local coffee
industries and the level of damage they
were suffering. Through field studies in
different coffee growing areas, we made
a definitive diagnosis on the epidemic
from a technical perspective and
suggested effective countermeasures
that could be introduced. Next, in
order to create a consensus among
stakeholders throughout the coffee
industry, we invited domestic and
foreign experts of plant pathology to visit
Honduras at the end of the year, holding
a seminar in conjunction with the OIRSA.
The event brought together producers,
government representatives, academics
and farmers from countries suffering
from coffee rust so that they could
exchange views on different themes and
discuss the problems and requirements
involved in the management of the
industrial chain. A further round of
field surveys was conducted after the
seminar, with the attending specialists
and participants carrying out joint
analysis, collated from their various
points of view, in order to understand
the constraints faced by each country in
terms of field management techniques.
From there, improved, integrated policies
and a regional-level promotional strategy
were drawn up to serve as a foundation
for the promotion of long-
term technical assistance
projects.
Elsewhere, to support
the development of a
coffee industry value
chain, the TaiwanICDF
h a s b e e n a c t i v e l y
discussing such matters
with CABEI, which is responsible for
private sector development, and in
particular discussing the provision of
agricultural loans to small-scale coffee
farmers, who are most vulnerable to the
twin pressures of international market
supply and demand, and the production
and marketing systems used for their
own crops.
Small-scale Farmers First to Benefit
From Increased Lending Assistance
A f t e r mu c h d i s c u s s i o n a nd
consultation, the TaiwanICDF and CABEI
will jointly promote a Regional Lending
Program for Coffee Rust in Central
America, based on the key strengths
and advantages of each organization
and providing loans and technical
assistance grants. It is anticipated that
the program will formally get under way
after the signing of the loan agreement
next year. Countries needing assistance
will be able to apply to CABEI for a
sovereign loan, with such funding then
being loaned out to small-scale coffee
farmers via coffee associations or
organizations.
Although issues with coffee rust
have been around for some time,
this time small-, medium- and large-
scale producers alike are all suffering
because of the severe
epidemic brought
on by a wa r m i ng
climate and excessive
rain. Epidemics no
know bo rde r s , so
the TaiwanICDF and
CABEI have raised
their commitments
to co-finance this regional program,
with prevention and plant health
management. The most vulnerable
small-scale farmers have been selected
as initial target recipients in the hope of
generating positive feedback, spurring
other international organizations and the
private sector to invest more resources,
and together help the local coffee
industry return to the scale it was before
being so badly damaged by the coffee
rust epidemic.
20,600
Coffee farmers expected to
receive lending assistance
Regional Lending Program for Coffee
Rust in Central America
Case Study
4