Improving the livelihood of small producers through sustainable production of high-quality coffee
The effects of climate change in tropical countries are increasingly impacting coffee production and the livelihoods dependent on this crop, particularly due to the proliferation of pests and changing weather patterns in the tropics. Temperature changes affect land suitability in coffee landscapes, reducing crop productivity and driving deforestation and forest degradations as demand for coffee products continues to grow.
Sustainable coffee cultivation practices as the ones used by Café Capitan that take a comprehensive approach to production using coffee varieties that are less vulnerable to climate variations, planting methods that optimize productivity, and employing agricultural practices that help manage and reduce greenhouse gas emissions.
The company
Café Capitán is a coffee cooperative established in 2018 with the objective of improving the welfare condition of small producers through the sustainable production and commercialization of their products. They are located within the buffer zone of El Triunfo Biosphere Reserve in Chiapas, Mexico - one of the largest tropical cloud forests in North and Central America. The unique location of the biosphere at 1,200 meters above sea level makes it an ideal location for growing high-quality coffee.
The cooperative is made up of 350 members, who have 730 hectares under organic production and an additional 12,000 hectares of pristine ejido forest set aside for conservation.
The investment
CI Ventures is providing a $300,000 USD revolving credit line to Café Capitán, that will allow the cooperative to cover upfront operating expenses needed to fulfill its export contracts, setting them up for additional growth, improving their short-term profitability, and incentivizing further environmental commitments.
The impact
CI Ventures' investment will ensure the continued protection of the buffer zone near El Triunfo Biosphere Reserve, provide the short-term financing required to consolidate commercial operations, and ensure the long-term sustainability of their conservation efforts.
By rewarding environmental leaders in the local coffee industry with below-market interest rates, CI Ventures wants to incentivize the local coffee industry to go beyond Fair-trade Organic practices and think about how climate adaptation can improve profitability and local income in the long term.
