Building the bridge between responsible consumers and Fairtrade-certified farmers
Impact
Challenge
Fairtrade-certified farmer organizations usually buy the product from their members and then sell it to international clients willing to trade at Fairtrade conditions.
However, they often face a liquidity gap: they do not have enough cash to pay their members directly on delivery of the product. And it can take weeks or even months before the payment from the customer is received.
When smallholder farmers see that their organization cannot pay them when they bring the product, they prefer to sell it to local middlemen at the local market price (or below).
They are therefore vulnerable to price volatility and receive no premium. Access to prefinancing during the harvest season enables Fairtrade-certified farmer organizations to buy more products from their members.
This generates incremental and stable income to smallholder farmers and a Fairtrade premium that they can invest in the sustainable development of their communities.
Achievements
Fair2C achieves its impact by prefinancing the production and export of Fairtrade certified products (with a focus on coffee for now). This way, farmer organizations can make additional sales under Fairtrade conditions.
Since 2021:
Support 12 farmer organizations regrouping over 13’000 small producers in Peru, Colombia, Guatemala, Honduras and Nicaragua
Gather CHF 845k in capital and ensure its rotation, making it possible to provide financing solutions of over USD 4.8M
Create a community of 70 cooperative members, both private persons and legal entities
Prefinance the production and export of 86 containers of Fairtrade coffee.
Contribution to SDGs
Who We Support
Smallholder Farmers
Fair2C only offers financing to farmer organizations that are Fairtrade-certified. These are part of the portfolio of the impact investment firm FairCapital SA and have already received international financing. When necessary, Fair2C reiterates its support for the same organization year after year.
Norandino
Founded 19 years ago, Norandino (FLO ID 18075) is a Peruvian organization that brings together 10 associations and cooperatives. It has a total of 6’086 members, all smallholder farmers. Norandino commercializes coffee, granulated brown sugar, cocoa beans and its derivatives, most of which are Fairtrade- or organic-certified. It was supported by Fair2C in the coffee harvest of 2023.
Amoju
Amoju (FLO ID 36507) is a Peruvian coffee cooperative founded in 2016. It has 722 smallholder farmers members dedicated to the production of high-quality coffee, mostly with the Fairtrade and organic certifications. Amoju was supported by Fair2C in the coffee harvest of 2024.
Lima Coffee
Lima Coffee (FLO ID 34573) is a coffee cooperative based in Peru that was founded in 2015. At the beginning of 2024, it had 777 active members. Lima Coffee produces and sells conventional, organic and Fairtrade coffee. Lima Coffee was supported by Fair2C in the coffee harvests of 2021 and 2023.
Norcafe
Based in Peru, Norcafe (FLO ID 34328) is a coffee cooperative founded in 2015 to improve the living standards of its 574 members while involving local youth in coffee farming. Norcafe produces and commercializes conventional and organic Fairtrade coffee. The cooperative was supported by Fair2C in the coffee harvest of 2022.
Juan Santos Atahualpa
Operating since 2011, Juan Santos Atahualpa (FLO ID 29078) currently has 668 members. This Peruvian cooperative produces and sells certified coffee. Exports to international clients represent a majority of the organization’s sales. Juan Santos Atahualpa was supported by Fair2C in the coffee harvests of 2022, 2023 and 2024.
Global Cafes
Global Cafes (FLO ID 30509) is a Colombian coffee cooperative which focuses on producing and selling conventional and Fairtrade coffee. The cooperative was founded in 2012 to support the development of its region. In addition to its 83 members, Global Cafes works with 615 certified producers and 500 other suppliers. The cooperative was supported by Fair2C in the coffee harvest of 2021.
Asobagri
The Guatemalan organization Asobagri (FLO ID 877) was established in 1986 and formally legalized in 1989. Starting off with 20 producers, it currently has 1’248 members. The cooperative focuses on the production and commercialization of Fairtrade and organic coffee. Asobagri was supported by Fair2C in the coffee harvests of 2021-2022 and 2023-2024.
Cocafelol
Operating since 1999, Cocafelol (FLO ID 27211) is a farmer cooperative in western Honduras. It represents 607 smallholder farmers in this region. Cocafelol started to export high-quality coffee in 2011. Over the years, the cooperative managed to increase its share of direct exports, which reached half of the total volume of coffee sold in the last campaigns. Cocafelol was supported by Fair2C in the coffee harvest of 2023-2024.
Cocafcal
Founded in 1993, the farmer cooperative Cocafcal (Capucas) (FLO ID 19080) gathers 946 smallholder farmers in western Honduras. Cocafcal acquired its own coffee processing plant in 2022, which has enabled the cooperative to increase its direct exports. Cocafcal was supported by Fair2C in the coffee harvest of 2023-2024.
UCA SJRC
UCA SJRC (FLO ID 2967) is a Nicaraguan union of 8 smaller cooperatives, which has brought together 500 small coffee farmers. The organization has focused on the production and commercialization of organic coffee since the start of its operations in 1993. UCA SJRC was supported by Fair2C in the coffee harvests of 2022-2023 and 2023-2024.
Procafe
The Nicaraguan coffee cooperative Procafe (FLO ID 27124) represents 171 members, all smallholder farmers. Founded in 2001, Procafe produces and sells mainly certified coffee. Procafe was supported by Fair2C in the coffee harvests of 2021-2022, 2022-2023 and 2023-2024.
