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  • 10.12.1-RISK AND THE RELATION TO TRADE CREDIT-ALTERNATIVE SOLUTIONS - VARIOUS INITIATIVES

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  • Alternative solutions - various initiatives

     
     
    In many countries growers can and do sell basis PTBF to local exporters and so they do not necessarily need to have direct access to the overseas market for this type of operation. But, if to access price insurance they must sell locally then their bargaining position may be weakened. And in countries with indirect marketing systems, such as central auctions, the grower has no direct access to the exporter in any case so this option is not available.

    Together with the international banking system, institutions such as the United Nations Conference on Trade and Development (UNCTAD), the International Coffee Organization (ICO), the World Bank and the Common Fund for Commodities (CFC) are actively and imaginatively seeking new credit and risk insurance solutions for small growers, through pilot projects in a number of countries. Ever-lower coffee prices have in recent years starkly demonstrated the need for such initiatives, but the unprecedented scope of those price falls has also made it more difficult to mobilize the resources and motivate the active grower participation necessary for these initiatives to be launched.