In Colombia's Cauca region, small-scale coffee farmers are feeling the effects of climate change. Excessive rain caused their harvests to fall short the last few years. In order to make farmers more resilient, Federacion Campesina, a famers’ association, has created a climate plan to help farmers better cope with climate change. Of course, with attention to people and the environment, because their coffee was already Fair Trade and Organic certified. With this loan, the organization can help 75 farmers and their families sustainably improve their incomes.
- 75 people reached
About the company
Federacion Campesina is an association of 5 farmers’ cooperatives in the Cauca region of southwestern Colombia. These farmers' organizations, which include a total of 595 farmers, have been active in the region for 50 years. Since 1998, they have been registered as Federacion Campesina (FCC).
FCC supports their members in growing and trading high-quality specialty coffee. This coffee has both a Fair Trade and Organic label, which not only means that the farmers get a better, fair, price for their coffee, but also that it is grown in an environmentally friendly way. FCC helps the farmers do this, for example by producing its own organic fertilizer, which the farmers use to fertilize their crops without the use of chemicals. FCC also offers the farmers technical advice on how to grow coffee in an environmentally friendly way, takes care of collecting their harvest and sells it to regular customers in the United States and Asia, as well as in Colombia itself.
As a result of climate change, there has been very heavy rainfall in this area over the past 2 years, resulting in reduced coffee yields. These changes in the weather make it more difficult to predict how much coffee can be produced in a season. To deal with this, FCC has developed a climate adaptation plan, which enables farmers to adapt their farming methods to better cope with the effects of climate change and increase their production.
Purpose of the loan
This €25,000 loan is intended as working capital, allowing FCC to purchase organic grown coffee beans from farmers and pay them immediately.
Federacion Campesina makes an impact for people and nature. This loan provides more income for 75 farmers, who sell their coffee through FCC. Thanks to the Fair Trade and Organic certifications, the farmers receive a better price for their coffee beans. In addition, FCC ensures that the coffee is grown in an organic, environmentally friendly way. But Federacion Campesina does more for the farming communities in this area. The organization empowers farmers, both to be successful in their business activities and to strengthen them as farmers in the region. There are also training programs for young people, for example to encourage entrepreneurship and develop their skills, scholarships are available for young people who want to study, financial support for families in case of illness and FCC organizes environmental protection projects.
This project contributes to the following UN Sustainable Development Goals:
- SDG 1: Zero poverty
- SDG 2: Zero hunger
- SDG 8: Decent work and economic growth
Federacion Campesina is an association of grassroots organizations in the central area of Cauca that work to improve the living conditions of the peasant, his family and the human team of the federation.
Federacion Campesina has a well-organized structure. The highest authority is the General Assembly, consisting of 35 people representing the members of the 5 cooperatives. The GA is responsible for the strategy and social, economic and financial policies of the association. Management and administration is the responsibility of the Board of Directors, consisting of 7 members (currently 6 because there is a vacancy). The members of the Board of Directors, with Jesús Eymer Meneses as president, are themselves farmers and members of the cooperative. They are elected every 4 years by the General Assembly and, in turn, appoint the 2-member Executive Board that is responsible for the daily implementation of the policies as determined by the GA.
Credit score: 2. To learn more about credit assessment process please visit this page.
Pricing: This is a social loan. This means you get no financial return, only (a lot of) social return. For the use of the platform services, the entrepreneur pays a one-time fee. Fees vary depending on the loan size and loan maturity. On average, the fee is 5,7%. This is below local market rates.
Risks: This is a direct loan to a company. Direct loans have a higher risk than indirect loans, where risks can be spread. Also, investing in agricultural businesses in developing countries is riskier than other investments. This is partly because agriculture depends on a variety of specific risks that an entrepreneur owner cannot influence, such as the weather or pest infestations. At the same time, agriculture is very important to the local economy and food security in many developing countries. And because agri-entrepreneurs usually cannot turn to a bank, this loan makes a lot of impact.
Available documents: Information document issuer.
|Company name||Federacion Campesina|
|CEO||Jesus Eymer Meneses|
Impact of this project
- With this investment 75 people are reached
About the investment
|Repayment period||6 months|
|Terms and conditions||Show|
About Federacion Campesina
About the risks
Read more about the Risks.