Peru is a leading exporter of a number of agricultural products, including asparagus, ginger, and mangoes, that are contributing to the 84% growth rate that the sector has experienced in the last 10 years. (USDA) Nevertheless, the expansion of the agriculture sector is geographically uneven. While large-scale farms in the country’s coastal regions have seen robust growth in agriculture productivity, millions of smallholders and indigenous farmers in the highland areas still live in poverty. (Reuters)
Junín, Peru
Due to a lack of information and limited access to technology, many indigenous farmers situated deep in the highland regions are exploited by intermediaries who take ownership of and export their products at rates that severely undercut the farmer. As a result, indigenous communities whose livelihoods solely depend on farming live in poverty and resort to producing products that provide higher margins but also carry a higher risk of violence and crime.
Greenbox is a social enterprise that helps farmers break their dependence on these intermediaries. The enterprise transforms regions in the Amazon Andes of Peru from harvesting coca plants for use in drug trafficking, to harvesting organic fruit for use in value-add products. The company is a pioneer in producing dry goods in the highland region of Peru and exports dehydrated organic golden berry, pineapple, banana, and mango to international clients.
Christian Suarez and his co-founder, Johannes Da-Fieno, started the company with the same vision - to create dignified employment for disadvantaged populations in the highland area. Farmers in this region are mostly smallholders who practice subsistence agriculture, use limited technology, and sell their produce in the local market where prices are volatile each season.
To support the disadvantaged indigenous community, Greenbox pays indigenous farmers a fair and stable price by fixing a minimum price for the year, which helps them to manage price volatility due to seasonality. Greenbox also offers local workers employment opportunities with health insurance and other social benefits. Through this process, Greenbox helped indigenous farmers realize the potential of their work and their land. The company also introduced sustainable agricultural practices to the farmers and supported them to switch to organic production.
Greenbox works with clients across Europe, many of whom have visited Greenbox’s production site in the Amazon-Andes region and tasted their products. During these visits, the clients met with indigenous farmers and employees, experienced the local culture, and witnessed the sustainable agricultural practices used in the production of organic products. For Greenbox, the site-visits fostered a loyal and fast-growing consumer base that did not dwindle in the face of the pandemic.
NESsT Investment
NESsT provides key business services to help the company develop their financial skills and track their social impact on communities. “NESsT opened our eyes to the measurements of impact. We knew we were making an impact and now there is a way for us to quantify it,” says Christian.
To meet the challenge of a loyal and growing demand, NESsT is helping Greenbox to expand production and reposition for the future. The company is actively expanding their client base in the U.S. and is in the process of opening up new lines of products, including ginger.
“Greenbox is always trying to find opportunities for improvement, not only for the company’s performance but for the quality of life of their workers. One of their latest projects for the short term is to open a day-care for the workers’ children.”
The co-founders are very focused on the wellbeing of their employees and plan to offer them occupational training and open a nursery for their children, “employees always come first”, adds Christian.
More than a Job: A Career
In June, 2020, NESsT began to offer masterclasses to portfolio companies to help them manage key challenges during the COVID-19 crisis. Junín native Magaly Crisóstomo joined the masterclasses to solidify her knowledge in the areas of business and finance. Magaly is the head of administration at Greenbox and oversees the company’s day to day revenues and spending, including documenting controls and logistics.
In Junín, 24.5% of people live in poverty and the industries for work for women are severely limited. (INEI) Beyond supporting farmers, Greenbox is enabling local community members like Magaly to access career mobility. She aspires to take on more finance-related responsibilities at Greenbox and is pursuing a degree in accounting to expand her skillset, “My experience at Greenbox has been one of constant growth and learning,” she adds.