At a Glance

Location: Peru

Impact Areas: Sustainable Income, Employment Formality, Rural Livelihoods, Environmental Protection

People Supported:
Smallholder Farmers, Rural

Joined NESsT Loan Fund:
2022

www.cedroscafe.com

Overview

In Cajamarca, a verdant and mountainous region situated in the northern Peruvian highlands, agriculture is the main source of income for local inhabitants. Cajamarca’s dry and sunny climate and high altitudes create fertile soil ideal for growing coffee, tare, beans, and avocado, among other crops. It has been one of Peru’s leading coffee-exporting regions for decades, producing certified coffee with flavor diversity – a result of unique micro-climates that can bear a variety of vegetables and fruits, including berries, apple, and prunes.

Cajamarca’s coffee industry, like the rest of Peru’s economy, is dependent on smallholder farmers. Despite its growing coffee production, Cajamarca 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. One example is how warmer temperatures induced by rising greenhouse gas emissions has led to an increase in the spread of pests that damage the coffee crop. For farmers that rely on coffee sales to sustain their livelihoods, lower production volume or quality could mean not being able to feed their families and cover basic living expenses.  

Cedros Café is a cooperative that supports smallholder coffee farmers in the region to improve their business practices and income opportunities. In addition to offering its associates 30% more than conventional buyers for their coffee beans, Cedros also provides business management and personal finance training as well as technology and tools such as fertilizers and drying tents, helping farmers to grow their production capacity and obtain Fair Trade and organic certifications. Nine years since its inception, Cedros now supports 328 local associates and exports its products internationally to clients in US, Norway, Switzerland, France, Canada and Belgium. 

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. To protect Cajamarca’s biodiversity, Cedros Cafe launched a reforestation program in alliance with “Café Selva Norte” that has covered over 47 hectares of land with forest.  

NESsT Investment

Cedros Café joined the NESsT LatAm fund portfolio in 2022. 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. NESsT will 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.