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IFC, ECOM to establish training centres
The International Finance Corporation (IFC), a member of the World Bank Group, signed yesterday an agreement to establish the first training centre for Vietnamese coffee farmers.
The corporation signed the co-operation agreement with coffee trader Atlantic Commodities Viet Nam Ltd, a subsidiary of ECOM Agro-industrial Corporation.
"IFC's ongoing co-operation with ECOM shows how we can maximise development impact by supporting large numbers of smallholders," said Simon Andrews, IFC Regional Manager for Viet Nam, Cambodia, Laos and Thailand.
"Adding value to our farmer suppliers through farmer training centres makes good business sense for ECOM Group, which has been proven through similar projects in Mexico and Uganda," said Alexander Gruber, General Director of Atlantic Commodities Viet Nam Ltd.
The centre will train Vietnamese coffee farmers to meet international certification standards, improve the sustainability and productivity of crops, and increase their earnings.
The centre is part of a larger plan for the IFC to provide investment and advisory services to help ECOM Group, a global coffee trader, establish several farmer training centres.
The plan includes a US$55 million, five-year corporate loan facility for use in six countries, including Viet Nam, which was committed in June 2008.
The new training centre, which will target 4,000 farmer households over three years, will help smallholder farmers qualify for sustainable coffee certifications like Utz, Rainforest, or 4C.
As ECOM and other buyers pay premium prices for certified coffee beans, farmers joining the training centres should see their incomes increase through certification.
ACOM and IFC expect about 50,000 non-ACOM farmers to benefit indirectly from exposure to best management practices, and information disseminated by the project.
"By combining our advisory and investment services with ECOM's market influence, we can demonstrate the business case for good social and environmental practices," said Andrews.
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets.
In Viet Nam, IFC's advisory services are delivered in partnership with Finland, Ireland, New Zealand, the Netherlands, and Switzerland.
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