Global coffee company Starbucks showed how it values coffee farmers by giving loans that amount to about $30 million. The coffee legend started a Global Farmer Fund program for farmers seven years ago and has now decided to increase the financial support more than twice the original amount.
This additional allocaiton will be distributed in the next five years, as the program was established with the intention of ensuring a steady supply of coffee. It aims to assist coffee farmers who have limited access to customary financing from banks.
Craig Russell, the Starbucks executive vice president of Global Coffee explained why the company is willing to spend such huge amount.
"Local commercial banks would never take the risk of these kinds of loans. As a responsible roaster, we wanted to be invested in making sure these farmers have excellent trees," Russell stated.
Since 2008, the company has financed 40,000 farmers coming from eight countries through the Global Farmer Fund program. By 2020, more farmers are expected to benefit from the loan program.
Starbucks came up with the decision of committing additional millions of dollars after hearing the news about the struggles of farmers in Central America and the Caribbean. They were suffering from the consequences of climate change which are destroying their crops.
With the loan program, farmers would be able to integrate strategic investments in their infrastructure. Russell explained that this opportunity will give them the stability they want so they can have a future in the industry.
The financial aid will help them purchase important farming materials like fertilizers and shovels. In this way, they can still produce quality products despite the climate change.
Unlike loan sharks who will just drag them down with the excessive rates of interests, Starbucks is offering them a real help. However, the company didn't reveal to the public any details of the loan terms.
