Mexico City, July 7, 2010 — IFC,
a member of the World Bank Group, Ecom Agroindustrial Corp. Ltd., a global
leader in green coffee trade, Nespresso and the Nestlé Group announced
today that their Central American project helped implement sustainable
practices, improve productivity, and increase the income of coffee growers
included in Ecom – Nestlé supply chain in Central America and Mexico.
“We knew that by collaborating with
multiple stakeholders, we would be challenged to see how good we could
get. Through continuous learning, and building new sets of tools and abilities,
we’ve been able to strengthen our local capacities and provide a better
service to our producers,” said Eric Ponçon, Ecom’s Regional Director.
The project assisted producers in capturing market premiums for their sustainable
coffee and provided advice on how to reduce costs and increase productivity.
Together, these effects enabled the project’s farmers to earn an additional
$3.7 million in premiums during the course of the project. By bringing
together technical assistance, access to financing, and a strong commitment
to buying increasing amounts of sustainable coffee, producers clearly saw
the incentives behind implementing sustainable practices on their farms.
The $1.5 million advisory services project budget was co-financed by the
Nestlé Group. To promote farm-level investments, IFC also provided Ecom
with a $25 million loan to on-lend to producers as short-term harvest finance
and for longer-term sustainability investments on their farms.
Juan Gonzalo Flores, IFC Advisory Services Program Manager in Latin America
and the Caribbean, said, “This project is an excellent representation
of how, through a mix of financing, technical assistance, and access to
markets, small and midsize coffee producers are able to make sustainability
improvements on their farms and increase their income.”
IFC’s strategy in Mexico is focused on priority areas that contribute
to increasing economic growth and reducing poverty. Agribusiness is one
of these areas. IFC also promotes access to finance for low-income
individuals and microenterprises. IFC develops frameworks for effective
private sector participation, supports energy efficient projects, and develops
infrastructure to strengthen competiveness. In the same manner, IFC supports
municipalities and state governments to improve business regulation and
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
For more information about IFC’s partners, visit: