In August, NESsT welcomed Cooperativa Agroecológica de Café de Origen Selva Central (CAECOS) into its portfolio. The NESsT Fund is providing a $500,000 working capital line to CAECOS to help the company accelerate its growth.
CAECOS is a cooperative of over 350 smallholder farmers from Junín, Peru that exports organic, free-trade coffee to Europe. The smallholder farmers of CAECOS are primarily from low-income areas in the central jungle of the Peruvian Amazon and are heavily dependent on coffee sales. CAECOS provides technical support to improve the farming practices and the quality of the coffee, enabling the smallholder farmer to reach higher prices and secure a steadier income stream.
Junin, Peru
Founded in 2009 by 30 members, CAECOS has since grown to support more than 350 smallholder farmers, 24% of whom are women. The company reduces local farmer’s reliance on intermediaries by helping them produce high-quality coffee beans and get higher prices for their product. On average, farmers who joined the cooperative have seen their income increase by 31%.
Evith Rivas
CEO of CAECOS
“Without NESsT, it would have been very complicated to reach our goals considering the crisis and our liquidity levels prior to receiving the loan. The NESsT loan is allowing us to accelerate our exports and continue to support our “asociados.” Among the farmers and suppliers are single mothers who are working hard to bolster their income to support their families and communities. Coffee sales drive this economic support. It is evident that NESsT’s approach is focused on the needs of the enterprise, while also surfacing what changes it can make to improve the business.”
A strong advocate of rainforest preservation, the cooperative focuses on sustainable, environmentally-friendly coffee management and promotes organic and shade-grown coffee.
It has also been implementing reforestation efforts and plans to target reforesting around 500 hectares of forest in the next 5 years.
“We have been very impressed by the CAECOS team,” said Chad Sachs, Director of the NESsT Fund. “Under very difficult circumstances, we appreciate how the team has continued to deliver, adjust and innovate to improve opportunities for their associates. We are pleased to support an organization that cares so deeply about its associates and finding ways to sustainably harvest high quality, organic fair trade coffee.
The Impact of COVID-19
CAECOS’ smallholder farmers are among the most vulnerable communities in Peru. The central jungle region is one of the areas hardest hit by the coronavirus, and the number of COVID-19 confirmed cases is still rapidly rising. To combat the pandemic’s severe impact on the company’s logistics, NESsT has been working closely with the company to ensure continuous employment and income opportunities for people in the region.
More about the NESsT Fund
Since its launch in 2019, the NESsT Fund for Latin America has been focusing on lending to small enterprises in poor communities to increase their ability to grow and create jobs. To date, the NESsT fund has financed companies such as Inka Moss, a moss producer in the highlands and Greenbox, a producer and exporter of organic dried fruits. Both companies have strong management teams and a strong focus on helping to bring communities out of poverty.
The NESsT Fund is investing in more social enterprises like CAECOS that create social impact and adopt sustainable practices. We are accepting applications for funding and accompanying business assistance from companies and cooperatives alike!