DFCD supports climate-resilient and inclusive coffee value chains in Cambodia

SNV will support the company in developing a business investment proposal to enhance a climate-resilient and inclusive Cambodian coffee value chain

Coffee farmers

The Dutch Fund for Climate and Development (DFCD) origination facility investment committee has approved a project proposal to support Kofi Co. Ltd in enhancing climate-resilient and inclusive coffee value chains in Cambodia.

As a result, the SNV Netherlands Development Organisation (SNV) intends to sign a EUR 283.750 grant funding agreement with Kofi Co. Ltd. The technical assistance package with SNV will support the company in developing a business investment proposal to enhance a climate-resilient and inclusive Cambodian coffee value chain. This will be achieved in collaboration with smallholder farmers by improving their production practices within the agroforestry system. Kofi seeks to introduce more climate-resilient Robusta varieties as the lower Mekong basin is highly vulnerable to climate change. The combination of agroforestry with more climate-resilient Robusta is expected to be a nature-based adaptive response to address adverse impacts caused by climate change.

Kofi will work closely with the local government, smallholder farmers, and other key stakeholders to understand and meet the needs of the smallholder farmer groups.

This project achieves a Rio-Marker 2 score (Agriculture 311). It is also in line with the long-term strategy for carbon neutrality issued by the Kingdom of Cambodia. The strategy was developed following net-zero-by-2050 commitments made during COP26.

The outputs of the project include:

  • An assessment of the Cambodia coffee value chain.

  • An assessment of the optimum Robusta seedlings for the project area.

  • Design and promotion of smallholder coffee farming systems based on assessing the best agroforestry production systems.

  • Introduction of more resilient Robusta breeds and establishment of a nursery.

  • Establishment of a smallholder farmer supplier network.

  • Training smallholder farmers on best practices for coffee growing.

  • An assessment on biodiversity in Mondolkiri, preliminary Environment & Social (E&S) and Gender Equality and Social Inclusion (GESI).

The impact of the originating stage includes:

  • 300-500 ha of forest under sustainable management.

  • 2,500 people employed by the project, of which 1,250 are women.

  • 2,500 beneficiaries at project maturation.

About the DFCD

The Dutch Fund for Climate and Development is a 160 million Euro fund from The Netherlands Ministry of Foreign Affairs to improve the resiliency of the most vulnerable landscapes, ecosystems, and communities through climate change adaptation. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV Netherlands Development Organisation, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit www.thedfcd.com.

About SNV

SNV is a not-for-profit international development organisation that makes a lasting difference in the lives of people living in poverty by helping them raise incomes and access basic services. We focus on three sectors – agriculture, energy, and water – and have a long-term, local presence in 24 countries in Asia, Africa, and Latin America. Our team of approximately 1,300 people is the backbone of SNV.

About Kofi

Founded in 2009, Kofi Co., Ltd started as a coffee, coffee-making equipment, and related product and service provider to Cambodian HORECA outlets and has been a key contributor to this growing sector. Kofi has expanded their business in Cambodia, covering most of the key population centres. Kofi also invested in a state-of-the-art roasting facility in 2019 to keep up with the demand for locally roasted coffee. With this expansion, Kofi has become one of the leading coffee-roasting companies in Cambodia.

For more information

To read the full disclosure document, please click here. For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:

SNV - Dutch Fund for Climate and Development: Mr Alex Downs, adowns@snv.org