The project SEB Peru aims at estimating the economic value of enhanced climate services specifically designed for the coffee and maize production in the Andean region Cusco. Exploiting strong synergies with the ongoing CLIMANDES, the project is financed by the Swiss Agency for Development and Cooperation (SDC).
The agricultural sector is especially vulnerable to climate variability, climate change and high impact weather events. User-tailored climate services can avoid or reduce crop losses by improving the decision making of the farmers and thus generate significant socio-economic benefits (SEB). This project investigates the willingness-to-pay of coffee and maize farmers for customized early warning systems in the Andean region Cusco.
Coffee plays a crucial role for farmers’ incomes as it is the most important agricultural export commodity of Peru, but production declined as a result of the recent wide-spread occurrence of the coffee rust fungus in Latin America.
Maize on the other hand is a vital crop for ensuring food security, but due to the high altitudes of cultivation, production is significantly challenged by weather stresses such as droughts, frost, hail and heavy rainfall.
Results reveal that farmers show a significant willingness-to-pay for customized early warning-systems, indicating substantial potential socio-economic benefits of such services. Aggregated to a larger entity, results indicate - over a period of 10 years - benefits for the coffee and maize production of about USD 10 million for the region Cusco and well over USD 100 million for Peru as a whole.
This study suggests the need and utility of user-tailored climate services to improve farmers’ decision-making and points to the essential role meteorological services can play, for instance, in ensuring food security or improving farmers’ incomes. This implies the importance of climate services as a fundamental element for national climate change adaptation strategies in climate-sensitive sectors.
Support of CLIMANDES project
SEB Peru supports the activities of the GFCS-twinning project CLIMANDES which aims at developing user-tailored climate services for the pilot regions Cusco and Junín. The case study highlights the high importance of the user dialogue between the provider of climate services and decision-makers in order to explore the user needs and requirement in climate-sensitive sectors.
MeteoSwiss at the COP20 in Lima
MeteoSwiss realized this project with the Peruvian National Service for Meteorology and Hydrology SENAMHI in close collaboration with the Swiss project partners Federal Institute of Technology Zurich(ETHZ) and Meteodat. The UN-Climate change conference (COP20) held in Lima between 1-12 December 2014 was an ideal platform for the presentation of the case study’s results. MeteoSwiss and SENAMHI participated in a joint side event with contributions from its coordinating partners, the World Bank, the World Meteorological Organization (WMO), the International Research Centre on El Niño (CIIFEN) and the Ministry for Foreign Affairs of Finland.