|Venture Name:||Cafe Seguro Colombia with Nespresso|
|Subtitle:||Index insurance for Colombian coffee smallholders|
|Case study date:||June 2021|
Cafe Seguro has been protecting smallholder coffee farmers since 2018. Launched in collaboration with Nespresso in two cooperatives in the heart of the coffee-growing region, the venture has expanded its geographical footprint each year. The program is a co-creation of farmers, Nespresso coffee specialists and Blue Marble insurance experts. It provides coverage for excess rainfall and drought during the developmental stages in which coffee is most vulnerable to climatic shocks. This financial stability protects smallholder farmers from the poverty caused by adverse weather, encourages the farmers to invest in sustainable agronomy and improves the supply chain’s resilience.
Before Café Seguro, smallholder coffee farmers in Colombia had no access to weather insurance.
Providing financial stability for smallholder farmers helps them and their families, their customers and the wider community. Adverse weather that damages the coffee harvest disproportionately hurts smallholder farmers as it can lead to a cycle of poverty and debt that is hard to escape.
The program provides farmers with financial stability and allows them to plan for the longer term and invest in sustainable agronomy. This stability provides benefits for all stakeholders and improves the supply chain’s resilience for coffee buyers.
To make Café Seguro affordable, we created a unique, shared-value ecosystem.
We designed and delivered tailor-made, digitized weather index insurance for excess rainfall and drought.
We are delivering meaningful impact with consistent year on year growth in the number of farmers, sum-insured value and hectares protected
“With the last payout, I invested in fertilizers so that with good weather, I can have a good harvest. Else, we’d have needed loans, or our coffee production would’ve suffered.”
– Mario Davila Rios
“I have talked to my neighbors, friends and family members about how Café Seguro is a safety net that allows us to cultivate coffee with more peace of mind.”
– Luz Marlene Betancourt Galliano