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Mountain Coffee is an association located in the Pichanaki district, part of the province of Chanchamayo. It is composed of 453 farmers and its total area under production is 2,667 hectares. It maintains Fairtrade, Organic and Rainforest Alliance certifications.
THE PROJECT
Mountain Coffee was created in 2001 by eight producers and has grown gradually to over 450 members. Its members are indigenous to the districts of Pichanaki, Perené and Río Negro. Organic certification has been maintained since 2002 and FairTrade since 2008. Most recently, they obtained the Rainforest Alliance Certification. Prior to 2008, 80% of farmers participated in the C.A.F.É Practices program, but collectively decided to end this because they were offered better market opportunities through the Organic and FairTrade certifications alone.
Mountain Coffee is an organization that provides different services to its members such as technical assistance, milling house processing, access to credit as well as product commercialization and consolidation. Further technical support is provided through ARPRODES and IICA. Quality is another aspect that is strengthened through such support.
THE DEAL
In 2011, VV provided a credit line to be used in multiple tranches in order to fund coffee harvesting, wet and dry milling, and transportation costs.
THE BENEFIT
All farmers produce shade grown coffee and work under FairTrade, Organic and Rainforest Alliance standards to comply with environmental and socially responsible requirements. The producers are located in the buffer zones of the San Matias San Carlos Protection Forest, Pui Pui Proection Forest and native communities in the Central Forest of Peru. FairTrade also offers a US $0.20 premium per lb of coffee and Organic provides a $0.30 premium, offering the producers much more favorable economic incentives.
The cooperative aims to promote good housing conditions for its members as well as means for better health and security. Transparency in the business operation is also guaranteed. This coupled with the price premium assures for much better overall conditions for the members. The organizational structure is also a guarantee of the social benefits that this business brings to many communities in the Central Forest of Peru.