Major coffee trader ECOM Agroindustrial?is pushing for a fivefold increase in the number of growers covered by its specialty weather insurance in Vietnam, where the industry depends on thousands of small farm?increasingly exposed to climate risk.
The world¡¯s second-biggest coffee trader is seeking to expand the coverage to 2,500 farmers this year, up from 500, said Laurent Bossolasco, Vietnam-based sustainability manager at ECOM. The company piloted the parametric insurance program five years ago, under which payouts are triggered if it rains too much or too little and farmers don¡¯t have to provide proof of crop losses.
Vietnam is the world¡¯s largest producer of robusta beans, used in instant coffee and espresso blends, and most of the country¡¯s growers farm relatively modest plots and have limited ability to absorb weather-related disruptions. As climate pressures mount and economic incentives shift, some have diversified into or replaced coffee with crops such as black pepper and durian.
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