Resilient Cocoa Farming III

Working Capital Associates provides direct financing to value chains of agriculture products from Sub Saharan Africa (SSA) and Latin America (Latam). So far, the company has raised 700.000€ through GoParity to fund three different organizations: a coffee cooperative in Peru (Peruvian Resilient Farming I and II); a cocoa company in Peru (Resilient Cocoa Farming I and II); and a family-owned cocoa company in Ecuador (Ecuadorian Cocoa Farming I and II). Three out of six campaigns (total amount of 250.000€ lent) have successfully reached their payments plan maturity. All investors have received their full capital invested and interest.

This is the third campaign aimed at providing working capital to this fair trade, certified, female-owned and female-led Peruvian organization dedicated to the aggregation, processing, and selling of cocoa and its derivatives (after Resilient Cocoa Farming I and II). Operating with more than 3.000 local producers in the regions of Cajamarca, San Martín, Amazonas, and Huánuco, that collectively produce 55% of the total cocoa produced in Peru, for a total aggregate of 23.400 metric tons per year.

The Company is located in Tarapoto (San Martin) and concentrates 10% of the local market share, ranking as the third-largest cocoa bean marketer in Peru. Its vision is to improve the quality of life of its farming partners, offering training and technical assistance, and to be recognized by the local and international community as a high-quality supplier, developing customized products, with commitment, ethics, and trust. This vision and strategy are reinforced by several certifications, from which Fair Trade (Comércio Justo) and USDA Organic should be highlighted.

The Fair Trade Certification is particularly relevant, as it places the Company in the 13% out of the 33 million global cocoa producers that have achieved such certification which, among others, ensures that the cocoa processing and procurement are free of child slavery labour – the Fair Trade certification is particularly strict in this regard, and with yearly inspections in the sourcing farms, has no tolerance for any abusive labour practices.

Peru is the sixth-largest producer of cocoa worldwide, the second largest organic cocoa producer (after the Dominican Republic), and the number one fair-trade organic cocoa producer worldwide. The worldwide demand for cocoa is growing and especially the demand for certified cocoa is expected to continue to grow in Europe over the next years, with two clear increasing trends: search for sustainable (certified) chocolate products, i.e. cocoa bean production that complies with social, environmental and economic aspects and where the whole process is successfully certified by a third party; and towards authentic ingredients and single origin cocoa products.

Less than ten years ago, thousands of farmers used their plots in the Northern Highlands of the Selva region to grow coca - while coca provided a steady income in remote regions, the illicit crop also brought with it the violence of drug traffickers and their allies. The government was eager to eradicate it and with the collaboration of the military, police, local, regional and national governments, and initiatives from international donors and the private sector, Peruvian coca farmers were converted to cocoa (and coffee) farming and Peru has, in the last years, quickly built a global reputation for producing traditionally cultivated, shade-grown, high-quality cocoa beans.