Located in the northern Peruvian highlights, Cedros Café is a cooperative that supports smallholder coffee farmers to improve their business practices and income opportunities. Nine years since its inception, Cedros supports 328 local associates and exports its products internationally to clients in US, Norway, Switzerland, France, Canada and Belgium.
NESsT’s loan will support Cedros Café with working capital to increase the number of farmers they can support – in the next two years, the enterprise plans to work with 400 associates. Cedros will also equip these smallholder farmers to double their production capacity, reaching 1,200 kilos per hectare while safeguarding their quality and certifications.
Cedros Café works with small-scale coffee producers in the mountainous region of Cajamarca, where agriculture is the main source of income for local inhabitants. Despite being one of Peru’s leading coffee-exporting regions – renowned for its certified coffee with flavor diversity – it remains one of the regions with the highest poverty levels in the country – reaching 46%. This is because smallholder coffee farmers do not receive fair prices for their beans and are not protected against external shocks.
Cedros offers its associates 30% more than conventional buyers for their coffee beans.
In addition to ensuring its associates fair prices for their product, Cedros provides business management and personal finance training. It also provides technology and tools such as fertilizers and drying tents, helping farmers to grow their production capacity and obtain Fair Trade and organic certifications.
Over 42% of Cedros’ workers are women, and the Peruvian enterprise is committed to increasing the number of women employees and suppliers. Cedros equips women with training in areas such as animal husbandry and greenhouse construction, empowering them to access additional income sources.
As part of the Lirio Fund, Cedros Café will access business mentorship and technical training in addition to funding to enhance its product and growth strategies. NESsT will also support Cedros Café to diversify its revenue stream by launching new products, helping the enterprise to strengthen relationships with existing clients and to reach new markets.