At a Glance
Location: Peru
Impact Areas: Sustainable Income, Smallholder Farmers
People Supported:
Smallholder Farmers
Joined NESsT Portfolio:
2021
Located in the jungle areas of central and eastern Peru, Kulkao sources cocoa from over 400 smallholder farmers living in the remote regions of the Amazon basin, purchasing their cocoa at prices typically higher than the market price. Its products include cocoa butter, cocoa powder, and cocoa nibs that are sold to local and international markets such as Europe and North America.
Kulkao provides farmers with technical support on organic farming and sustainable agriculture practices while offering them a premium price for their organic products. The social enterprise maintains close communication with farmers and conducts farm visits, during which its technical team oversees regular testing of farm lands and shares soil management lessons to keep quality and production levels high.
To safeguard against the damage of non-organic pesticides and other chemicals, Kulkao carries out several stages of quality testing in its certified organic processing plant. Its quality control procedures guarantee traceability, allowing the social enterprise to pinpoint sources of contamination and work with farmers to improve their practices.
In addition to strengthening smallholder farming communities, Kulkao also improves the livelihoods of rural Peruvian communities in Huánuco, Ucayali, Cajamarca and Junin by providing workers from these areas quality employment opportunities with stable income. Kulkao currently employs 50 workers from rural areas in its processing plant and administration team.
During the Covid-19 pandemic, Kulkao’s management team responded quickly to quarantine regulations, implementing health and safety protocols and issuing the necessary permits for their operations to continue.
Results & Impact
+400
smallholder farmers supported
+100%
higher income for suppliers compared to the informal market
34%
of suppliers supported are women
“We are very excited to renew our partnership with NESsT. Their support is not only key for the growth and sustainability of Kulkao’s business but also to ensure the supply of organic cocoa beans from our farmers. ”
NESsT Investment
With its cocoa value chain, Kulkao plans to increase the income of its rural farmers. In 2021, NESsT provided Kulkao with a working capital to support the social enterprise’s sustainability practices, increase its organic production capacity, and strengthen its position in the cocoa industry in Peru.
Kulkao was able to repay this loan in full in accordance with the NESsT loan schedule. This was made possible by maintaining strong relationships with local farmers and developing a robust customer portfolio.
In 2023, NESsT approved a second loan to Kulkao. This loan will support the social enterprise to continue to purchase cacao beans from local farmers committed to organic, sustainable practices. It will also give Kulkao the resources to boost production capacity and operations at its processing plant in Huánuco. As part of NESsT’s portfolio, the Kulkao team will also extend its technical support to more women and Indigenous farmers.