Bayer partners with Pula Foundation to insure 10 million smallholder farmers in South Asia and Africa

Bayer Foundation, in collaboration with the Pula Foundation, announced a significant development last week at the World Economic Forum in Davos, Switzerland. The company has committed to providing insurance to 10 million smallholder farmers by 2030. This initiative, in partnership with national governments across Pakistan, Bangladesh, Malawi, Ghana, Nigeria, Kenya, and Mali, seeks to fortify the agricultural sector against the increasing threats of climate-related events like droughts and floods.

The collaboration is designed to bolster climate resilience among smallholder farmers, which is crucial for protecting harvests, livelihoods, and global food security. It also aims to foster private-public partnerships and help shape the agriculture insurance market in Africa and Asia.

By the end of this decade, the Bayer Foundation plans to allocate 10 million euros from its Social Innovation Ecosystem Fund to subsidize insurance premiums. This contribution, supported by a donation from Bayer’s Crop Science Division, is expected to leverage potential insurance coverage worth approximately 127 million U.S. dollars for farmers in the targeted regions.

The initiative addresses critical challenges highlighted by the Food and Agriculture Organization (FAO), which reports that around 2.33 billion people globally suffered from moderate to severe food insecurity in 2023. Smallholder farmers, who produce over half of the food consumed in low and middle-income countries, face significant hurdles, including limited tools for climate change adaptation, access to necessary agricultural inputs, and inadequate financial services like credit and insurance.

Rodrigo Santos, President of Bayer’s Crop Science Division, emphasized the company’s commitment to sustainable growth and regenerative agriculture. “By unlocking climate finance and collaborating with entities like the Pula Foundation, we aim to deliver ecosystem-based approaches that empower smallholder farmers and their communities to overcome challenges and thrive,” Santos stated.

Adding to the sentiment, Ahmed Ali, Managing Director and CEO of Bayer Pakistan, remarked on the economic struggles faced by smallholder farmers in Pakistan, particularly in the aftermath of the devastating 2022 monsoon floods. “We appreciate and welcome this timely and relevant initiative by Bayer Foundation in collaboration with the Pula Foundation, to enable greater resilience for our smallholder farmers,” Ali said.

This partnership is part of Bayer’s broader goal to support 100 million smallholder farmers in low and middle-income countries by 2030, improving their access to agricultural products and services, which is expected to enhance their productivity and income. The initiative aligns with Bayer’s global mission of “Health for All, Hunger for None,” aiming to create resilience and ensure long-term food security.