Co-sponsored by the Asian Development Bank (ADB), this partnership marks a significant milestone in JICA’s first exclusive working capital loan, opening a new step in strengthening cooperation with leading global agricultural trading groups to support agriculture and food supply chains across Asia.
The loan is designed to strengthen supply chains, improve livelihoods, and create more employment opportunities for small-scale farmer households in the Asia-Pacific region.
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JICA supports small-scale coffee farmer households. |
In particular, it will help stabilize coffee purchases from more than 60,000 small-scale farmer households in Vietnam, Indonesia, India, and Papua New Guinea. In addition to financial support, the project will also provide consulting services, such as support for coffee certification, pilot models for climate change adaptation, and technical farming assistance for female farmers. These efforts aim to enhance climate resilience and promote gender equality within the region’s coffee value chain.
Vietnam is currently the world’s second-largest coffee producer, with coffee bean exports accounting for 12.2% of its total agricultural export value. However, enhancing value added and improving farmers’ incomes remain significant challenges for Vietnam’s agricultural sector. The loan aligns with the objectives of the “Scheme on agricultural restructuring towards raising added values and sustainable development” and “the 2021-2025 five-year socio-economic development plan of Vietnam,” aiming to promote value added in agricultural products via improved productivity, quality, and production efficiency. Concurrently, the loan also aligns with Japan’s global development agenda.
Yasui Takehiro, Director-General of Private Sector Partnership and Finance Department at JICA, stated that this project exemplifies the close cooperation that JICA has built with ECOM and ADB. It will contribute to strengthening the coffee supply chain and addressing challenges such as rural poverty, gender inequality, vulnerability to climate change, and the need for sustainable economic development opportunities in the region.
JICA reaffirms its commitment to supporting comprehensive and sustainable development initiatives in the Asia-Pacific region by boosting strategic partnerships and providing innovative financial solutions.
Translated by Huyen Trang - Thu Ha