Peru is the 5th largest Arabica producer with 4% of global Arabica supply. Productivity is low and consequently so are incomes, around 60% of farmers have access to credit. However, most of them rely on non-formal channels of lending, with interest of more than 40% per annum. Intermediaries control the local market, purchasing around 90% of the crop. The project will focus on setting up farmer centers as commercially viable service hubs that can continue to operate as legacy institutions and continue after the project ends
The overall goal of the project is to establish an economically sustainable, socially acceptable, environmentally viable and cost-efficient supply chain between 1,500 coffee farmers, Olam Peru and international buyers such as JDE.