Pilot Project on Coffee Price-Risk Management in Eastern and Southern Africa

The central objective of the project is to provide a suitable and sustainable price-risk management scheme to reduce the exposure of coffee farmers to fluctuations in world market prices and secure stable incomes from coffee-growing. The project provides access to farmers to use suitable price-risk management instruments specifically designed for their size and circumstances. The project is implemented through four main components: (a) Survey of the current marketing chain in each country to identify the potential users; (b) Selection of suitable risk management instruments and providers; (c) Development of a training program on the application of risk management strategies and instruments through a series of awareness-raising seminars and workshops; (d) Development and testing of a system of price insurance using price-risk management instruments. The results of the project will be disseminated to other coffee-producing countries.