Freight Surety Scheme

Freight Surety Scheme

Category: Growers Services
Published Date

The scheme was designed to assist the most remote and disadvantaged coffee growers accessible only by air. Freight rates were increasing rapidly as fuel prices and inflation increased.

This coupled with lower coffee prices and increasing costs of production and processing as a result the remote people who depended entirely on air transport to shift their produce, especially coffee, to the market were hard hit.

In this scheme, 100% freight cost is paid upfront by CIC to third level airlines on behalf of farmers as a surety or guaranteed payment under MOA arrangement. CIC also arranges the marketing of their coffee. The 100% freight cost is than recouped by CIC at the point of sale and the balance paid to growers.

There are approximately 350 remote airstrips of which up to 140 are coffee growing airstrips with an estimate of 100,000 coffee growers spreading throughout these airstrips. The airstrips are serviced only by Twin Otter, Islander and Cesna 206 aircrafts.

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