ADA-Supported Project Helps Peruvian Coffee Producers Access Investment

ADA-Supported Project Helps Peruvian Coffee Producers Access Investment

A project supported by ADA has successfully strengthened small coffee producer organizations in Peru, enabling them to secure over USD 4 million in financing.

Coffee is Peru’s most important agricultural export, generating 25% of the sector’s income and supporting over 223,000 farming families. However, small producer organizations (SPOs) focusing on organic and specialty coffee face significant challenges, including reliance on a few buyers, global price volatility, and new sustainability regulations.

To address these challenges, Oikocredit implemented a one-year project sponsored by ADA’s SSNUP facility, aimed at strengthening the capacity and resilience of fourteen SPOs. The organizations received customized price risk management tools and training on post-harvest processes, reforestation, compliance with the EU Deforestation Regulation (EUDR), and the use of trading platforms.

While the long-term goal was to build resilience, Oikocredit recognized that many SPOs initially prioritized short-term survival needs, such as securing financing for the next harvest. The project therefore combined immediate solutions—including facilitated access to finance and risk-reduction tools—with longer-term capacity building measures.

The results were impressive: eleven SPOs accessed new markets and one secured export contracts. Most notably, seven SPOs secured a total of USD 4.05 million in financing from various sources, including Oikocredit, impact investors, and a development bank, with individual investments ranging from USD 100,000 to USD 750,000.

This project demonstrates how combining tailored, practical training with strategic tools and market access facilitation can directly enhance the investment readiness of small producer organizations: a key element of inclusive finance in action.

Source(s): ADA News

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