FMO trade facility to Volcafe to support thousands of coffee farmers in Costa Rica

FMO will provide a US$23 million secured term facility to Volcafe

FMO, the Dutch Entrepreneurial Development Bank, announced it will provide a US$23 million secured term facility to Volcafe, a leading global green coffee merchant, to strengthen the company’s operations in Costa Rica and support thousands of coffee farmers in the country.

With two percent of Costa Rica’s land dedicated to its production and representing ten percent of the country’s agricultural exports, coffee is an essential component of the Costa Rican economy and culture, supporting the livelihood of tens of thousands of families.

Volcafe Costa Rica will utilise the five-year term loan from FMO as working capital to purchase coffee cherries from smallholder farmers and local cooperatives, before processing them into export-ready green coffee. The facility will also allow Volcafe in Costa Rica to strengthen its partnerships with local coffee producers, offering them not only an outlet but also support on sustainable production techniques to improve resilience and profitability through the Volcafe Way farmer support programme.

Hans Boogaard, Director Agribusiness, Food & Water at FMO, added, ‘This partnership with Volcafe aligns strongly with our ambition to support leading coffee traders to build more sustainable and inclusive value chains. With improved access to finance, both for origination and also through smallholder farmer financing, we can jointly ensure the long-term viability of the coffee sector in Costa Rica, while further increasing the production of high-quality, sustainable coffee. We look forward to a fruitful partnership with Volcafe!’

As part of the agreement and to align even better with the ESG standards of FMO, Volcafe will further enhance its environmental and social plan in Costa Rica, through continuous assessment of the mills’ emissions and deeper engagement with indigenous people within coffee-farming communities.

Green coffee drying at Volcafe's San Diego coffee mill

Volcafe's Santo Domingo coffee mill

Volcafe's El General coffee mill

About Volcafe

Established in 1851, Volcafe is one of the world’s largest coffee merchants, specialising in worldwide green coffee procurement, processing in origin countries and distribution to roaster partners. Volcafe provides access to all the major coffee producing origins and supplies beans for over 66 billion cups a year.

About FMO

FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.

For more information: please visit www.fmo.nl