1. Understanding the Business Risks of ClimateUnderstanding the Business Risks of Climate
Vulnerable Small Scale FarmingVulnerable Small Scale Farming
Dr. Jacob ParkDr. Jacob Park
Associate Professor ofAssociate Professor of
Business Strategy and SustainabilityBusiness Strategy and Sustainability
Green Mountain College (USA)Green Mountain College (USA)
E-mail:E-mail: parkj@greenmtn.eduparkj@greenmtn.edu
Climate Smart Agriculture SymposiumClimate Smart Agriculture Symposium
Jamaica Rural Economy and Ecosystems Adapting to ClimateJamaica Rural Economy and Ecosystems Adapting to Climate
Change (JA REEACH) ProjectChange (JA REEACH) Project
July 16, 2015July 16, 2015

2. Presentation OutlinePresentation Outline
How can the business of climate vulnerable small scale
farmers/ agricultural enterprises be “derisked” in the
context of Jamaica?
 Disaster & Project Management Risks
 Climate Change Risks
 Farming & Agricultural Enterprise Risks
 Inclusive Climate Smart Agriculture Enterprise Platform

3. DISASTER & PROJECTDISASTER & PROJECT
MANAGEMENT RISKSMANAGEMENT RISKS

4. Similar to a mutual insurance company, CCRIF
functions on behalf of 16 participating states in
the Caribbean, and purchases coverage up to
a limit of approximately US$100 million for
each insured hazard (tropical cyclones,
earthquakes or excess rainfall events).
By pooling these catastrophe risks into a single
diversified portfolio, capital needs for paying
claims are significantly lowered (see figure on
the left). This in turn leads to a pricing
reduction of about half of what it would cost if
countries were to purchase identical coverage
individually.
Source: http://www.ccrif.org (“Understanding
CCRIF”, March 2015 report)

6. CLIMATE CHANGE RISKSCLIMATE CHANGE RISKS

7. Source: http://www.wbcsd.org/work-program/sector-projects/water/waterenergyfood.aspx
Climate Change, Water, Energy, Food NexusClimate Change, Water, Energy, Food Nexus

8. Climate Resilient Agricultural TechnologiesClimate Resilient Agricultural Technologies
SELECT EXAMPLES
Drip irrigation Approaches that involve applying
water directly around roots
Water harvesting: Irrigation that uses earth dams,
channels and other ways of directing water toward
crops
Drought tolerance Plant varieties that can process
available moisture more readily and that are less
vulnerable to water deficiency
Integrated soil fertility management New
fertilizer and composting combinations
No-till Farming that involves little or no soil
disturbance and potentially the use of cover crops
Precision agriculture GPS-assisted, machine to
machine solutions that combine information
collected by sensors with automated management

10. AGRICULTURALAGRICULTURAL
ENTERPRISE MARKET RISKSENTERPRISE MARKET RISKS

11. Base of the Pyramid Regional MarketBase of the Pyramid Regional Market Report (2015)Report (2015)
Inter-American Development BankInter-American Development Bank

12. Small Medium Sized EnterprisesSmall Medium Sized Enterprises
Capital FinancingCapital Financing

13. ‘‘Affordable’ Cold Chain Technology andAffordable’ Cold Chain Technology and
Transport SystemTransport System
Source: Geography of Transport Systems (2013)
http://people.hofstra.edu/geotrans/eng/ch5en/
appl5en/ch5a5en.html
Source: Fresh Realm http://freshrealm.co/

14. INCLUSIVE CLIMATE SMARTINCLUSIVE CLIMATE SMART
AGRICULTURAL ENTERPRISEAGRICULTURAL ENTERPRISE
PLATFORMPLATFORM

15. Agricultural
Technology
Financial
Inclusion
•Enterprise financing
•Venture capital
•Index Insurance
Climate Smart
Engagement & Outreach
INCLUSIVE
CLIMATE
SMART
AGRICULTURAL
ENTERPRISE
PLATFORM
•Drip irrigation
•Water harvesting
•Precision agriculture
•Food/agriculture waste to energy
•Last mile market dilemma
•Agricultural value chain analysis
Source: Adapted from Parrish, Bradley D. 2010. “Sustainability-driven Entrepreneurship:
Principles of Organization Design” Journal of Business Venturing 25, 510-523.
Inclusive climate smart agricultureInclusive climate smart agriculture
enterprise platformenterprise platform