ADB Project no: TA 6897-REG
CLIMATE-RESILIENT FARMER GROUP DEVELOPMENT TO SUPPORT COVID-19 RECOVERY FOR SMALLHOLDER COFFEE FARMERS
Climate change and other disruptions like COVID-19 pose a significant threat to the livelihoods and food security of millions of poor smallholder farmers and agribusinesses in Indonesia and Papua New Guinea (PNG). A coordinated integration of climate risk management and risk transfer approaches, especially more affordable insurance solutions, will be required to sustain and improve their resilience and livelihoods.
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About
UniSQ has been selected by the Asian Development Bank (ADB) to lead a project that aims to develop insurance products for coffee crops in consultation with ECOM Agroindustrial Corp Ltd, ADB, local coffee industry stakeholders, and insurance and reinsurance companies. The primary goal of this project is to provide technical assistance and develop innovative risk transfer solutions, such as index-based insurance, for smallholder coffee growers.
The new climate crop insurance products will help poor farmers cope with climate disasters and ensure a more sustainable income stream. However, a significant challenge will be to ensure that the insurance products are relevant, sustainable, transparent, and affordable.
Project approach
The Technical Assistance (TA) team will adopt a user-centric and industry-driven approach to create innovative insurance products for managing climate risks associated with coffee cultivation. These products will be sustainable, transparent, and affordable, focusing on long-term sustainability. TA team will work with farmers and the private sector to co-design insurance solutions that establish trust and ownership, allowing for flexible product design tailored to cropping systems.
More importantly, the TA team will analyse climate and coffee yield data before co-designing the insurance solution. This analysis will help identify the crop-climate risk thresholds specific to the region. Additionally, the team will review available weather information and providers, drawing on their deep understanding of climate risk to provide recommendations. Once these thresholds have been identified, the TA team will develop specific insurance products for the crop stage or climate phase. The TA team will also consult stakeholders' opinions in this process to strengthen the products designed.
Objectives/ Expected outputs
- Develop a climate and disaster crop insurance product for coffee farmers in Indonesia
- Develop a climate and disaster crop insurance product for coffee farmers in Papua New Guinea (PNG), including assessments relating to the feasibility of blockchain-based insurance products
Target industries
Smallholder coffee farmers, coffee industry
Outcomes
- Understanding of local laws and regulations relating to insurance products
- Consult stakeholders to develop appropriate climate crop insurance product and delivery modalities, and to develop appropriate methods for piloting or implementation of climate crop insurance product
- Identify implementation partners
- Prepare training curricula to train farmer group leaders on climate crop insurance. Training may be delivered by other extension providers and is not required to be directly delivered by the consultant
- Develop a commodity- and country/region-specific climate and disaster insurance products
Key experts and contacts
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