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4 Case Study

Regional Lending Program for
Coffee Rust in Central America–El
Salvador Sub-Project

People from Taiwan enjoying Central American coffee while sharing their concerns
with respect to the challenges faced by the coffee industry in allied countries (picture
taken from the 2016 Taiwan International Coffee Show).

In recent years, climate change Coffee Rust in Central America” (the from CABEI to provide loans to small-
has brought increased rainfall, Program)-in 2015, with the objective scale farmers. With the capital, the
humidity and rising temperatures of assisting small coffee producers farmers will renew their plants, improve
to Central America. Coupled with restore their productive capacity. production and management facilities,
aging plants and ineffective plantation and receive guidance on strengthening
management, coffee rust, a disease El Salvador Sub-Project: One- of the institutional capacity of the
caused by fungal spores devastating stop assistanceNfrom lending coffee industrial chain.
to coffee plantations, has ravaged the to technical assistance The El Salvador sub-project also
area. The Pr ogram consists of provides technical training for all parts
Coffee is one of the most important contributed funds for agricultural of the coffee industrial chain, from
economic crops in Central America loans from the TaiwanICDF and coffee farming, roasting, creating
and creates job opportunities while CABEI, and funding for technical market products, developing disease-
bringing foreign exchange to the assistance, provided by Taiwan’s resistant varieties, establishing
nation. However, once infected by Ministry of Foreign Affairs, CABEI demonstrations of eco-friendly farming
coffee rust, coffee leaves turn into a and governments of the beneficiary and bean processing practices, to
rusty orange color and fall off; in severe countries. The beneficiary countries promoting small-scale coffee farming
cases, coffee trees wither and die. The plan sub-projects based on coffee culture. This sub-project aims to
2012 coffee rust epidemic in Central rust conditions in their countries and enhance the abilities of small coffee
America significantly affected the yield submit them to CABEI, the project farmers to effectively overcome the
and quality of coffee, leading to strong implementation organization, for challenges brought by climate change.
social and economic impacts. assessment. These sub-projects are
In view of this, the TaiwanICDF then implemented after details are
proposed a cooperation framework reviewed and approved by CABEI and
to address the problems caused by the TaiwanICDF.
coffee rust disease as early as 2013, in In the case of El Salvador, the
collaboration with the Central American Ministry of Agriculture and Livestock 5,500
Bank for Economic Integration (Ministerio de Agricultura y Ganaderia,
(CABEI) and the International Regional MAG) proposed the “Project to
Organization for Plant and Animal Support Family Agriculture for Good Number of farmers and
Health (Organismo Internacional Living in El Salvador” (“Proyecto cooperative organization
members in El Salvador
Regional de Sanidad Agropecuaria, Apoyo a la Agricultura Familiar para who will receive
OIRSA). International conferences el Buen Vivir en El Salvador”), which training
were held to discuss challenges aims to help households in rural areas
of the coffee industry in the region. gain better livelihood through various
After consolidating relevant opinions means, including improvement of
and resources, the TaiwanICDF and the competitiveness of small coffee
CABEI entered into a loan agreement- farmers. It is estimated that MAG will
the “Regional Lending Program for apply for a funding of US$8.87 million

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