NEW YORK, Nov 17 (Reuters) - The project of a coffee industry investment fund to revamp coffee farming in countries facing production challenges is advancing well and could start operations as early as next year, according to the International Coffee Organization (ICO).
The project has attracted interest from coffee companies, including roasters and traders, and it is undergoing the final modeling phase before it can start financing programs in countries seen as priorities, the executive director of the ICO, Vanusia Nogueira, told Reuters.
One main target for the project is to improve coffee tree varieties so they can be more resilient to a changing climate.
Extreme weather events, such as droughts and hurricanes, have hurt production in several regions in recent years. The industry sees many current plantations as not adapted or vulnerable.
Nogueira said investment is needed in science, to develop better coffee varieties, in field renovation, to substitute current trees with more resilient and productive ones, and in overall qualification of farmers for them to have better outcome from the activity.
The ICO is coordinating the initiative, having hired consultants in Europe and the United States to talk to the industry.
"We asked them (companies) if they are willing to take part, how much they are willing to put and what type of actions they would support," Nogueira said, adding that governments and development organizations would also need to be involved.
Italian coffee processor Illy is one of the backers of the project.
Illy's chairman Andrea Illy said that without any action the coffee industry risks losing production in countries that offer "flavor differentiation."
"We risk seeing a market dominated by two or three countries in the future, where prices would rise and quality fall," he said.
Brazil and Vietnam have increased their market share in recent years, while countries in Africa and Central America are struggling. (Reporting by Marcelo Teixeira; Editing by Chizu Nomiyama)
