ADB Signs $100M Loan to Boost Climate Resilience of Coffee Value Chain in Asia-Pacific

Loan Aims to Strengthen Coffee Farmers' Livelihoods and Sustainability in India, Indonesia, PNG, and Vietnam Amid Growing Climate Risks.

The Asian Development Bank (ADB) has entered into a $100 million loan agreement with ECOM Agroindustrial Corporation Limited and its subsidiary ECOM Agroindustrial Asia Private Limited (ECOM) to support the climate resilience of the coffee value chain across India, Indonesia, Papua New Guinea (PNG), and Vietnam. This initiative will directly benefit over 62,000 smallholder farmers in these countries, contributing to the long-term sustainability of one of the world's most important agricultural sectors.

Enhancing Climate Resilience through Financial Support and Technical Assistance

The ADB loan will primarily be used to enhance ECOM’s working capital, which includes the procurement of coffee from smallholder farmers, payment advances, and coverage of operational expenses. These funds will also support critical extension services, including training, research and development, and sustainability pilot projects aimed at improving the productivity and climate resilience of smallholder farmers.

This agreement is recognized as a certified social loan, with validation from Det Norske Veritas (DNV), ensuring that the funds will support projects designed to generate positive social outcomes. By aligning with the Social Loan Principles, the loan helps promote responsible financing that fosters economic opportunities for disadvantaged communities.

Addressing the Threats Posed by Climate Change

Climate change presents significant threats to global coffee production, with rising temperatures, erratic rainfall, and increasing pest and disease pressures already impacting yields in key coffee-producing regions. The four target countries of this loan account for 29% of global coffee production, making them critical to maintaining global coffee supply chains.

The loan will provide essential financial stability to smallholder coffee farmers, enabling them to adopt climate-smart practices, including regenerative agriculture and agroforestry techniques, to ensure long-term sustainability and secure future coffee production. These practices are essential for mitigating the adverse effects of climate change and improving the resilience of farming communities.

Empowering Women and Promoting Gender Equality in the Coffee Value Chain

Alongside the financial support, the loan is complemented by a technical assistance (TA) grant aimed at promoting gender equality within ECOM's supply chain, especially in Papua New Guinea. The TA will focus on empowering women farmers by enhancing their decision-making roles, improving access to resources, and addressing violence reduction initiatives. The grant will also support family-based planning to integrate women more fully into agricultural decision-making processes, particularly in coffee farming communities in PNG and Vietnam.

“Safeguarding coffee farmer livelihoods and resilience in the face of climate change is crucial for the stability of one of the world's most important agricultural supply chains,” said Suzanne Gaboury, ADB’s Director General for Private Sector Operations. "Through this partnership with ECOM, ADB continues to promote sustainable agricultural practices that enhance the productivity and resilience of smallholder farmers across Asia and the Pacific."

The Role of ECOM in Sustainable Agricultural Practices

Founded in 1849, ECOM is a leading global supply chain merchant and processor of agricultural commodities, including coffee, cocoa, and cotton. The company operates in over 40 countries, working closely with more than 650,000 farmers to enhance agricultural productivity while supporting their economic and environmental resilience. This partnership with ADB further underscores ECOM’s commitment to sustainability and climate resilience for coffee farmers across the region.

“This partnership with ADB is a testament to our shared commitment to sustainable development and climate resilience. Together, ECOM and ADB aim to empower smallholder farmers by providing them with the financial resources and support needed to adopt climate-smart practices,” said Raphaële Muel, ECOM’s Head of Sustainable Financing. “We are grateful for ADB's continued support in enhancing farmer livelihoods and ensuring the long-term sustainability of the global coffee supply chain."

With the challenges posed by climate change becoming increasingly urgent, this financing agreement between ADB and ECOM represents a critical step toward strengthening the resilience of smallholder farmers, safeguarding global coffee supply chains, and ensuring sustainable agricultural practices in the Asia-Pacific region.