A Peruvian coffee and cocoa co-operative that is succeeding in the face of adversity – thanks in part to help from Shared Interest – is Pangoa. As is the case with some of our other customers, Pangoa also has access to funds from other social lenders however, they are anticipating a rise in sales and as a result are looking to work with Shared Interest to help them meet demand. Luis Silva, Chairman of the co-operative said: “For us, it is an enormous satisfaction to have obtained this line of credit.”
Terrorism in the early 1990s led to nationwide problems for the rural area as many potential farmers fled to the cities. Pangoa was particularly vulnerable as the areas around it were rich in coca plants. Migration to the cities led to a decreased workforce, which meant that the coffee and cocoa couldn’t be properly harvested, resulting in decreased sales and a loss of contracts. As the problems associated with terrorism began to decrease, the cooperative realised that in order to be successful they needed to divert their focus from local to international markets. As they lacked experience and contacts with international buyers, initial exports were made through Coinca, a national coffee exporter.
As the co-operative developed they realised that quality was as, if not more, important than quantity. As a result in 2007 they launched a production improvement project which included advice on fertilisers, technical assistance to members as well as training and capacity development. In addition to this, thanks to the Fairtrade Premium, they were able to start health and education programmes with the members and their families. To increase production further the co-operative also invested in humid and dry mill plants as well as vehicles to transport coffee and cocoa.
Social impact has always been important to Pangoa. In 1993, after recognising that the district lacked the electrical capacity for normal operation of the business, the members decided to build a hydroelectric generator facility. They set up a new company named, Egepsa. This organisation is a completely separate entity but it is owned by Pangoa. Every farmer offered the weight of two quintals of coffee as initial investment and additional funds from the Government were obtained in 1994 to finish the project. Since then, that plant has provided electricity to the co-operative and the nearby regions. Pangoa have maintained this dedication to social impact by providing intensive training programmes for farmers as well as credit systems, tools and materials to help with production and housing schemes amongst many other projects, all of which aim to improve the living and working conditions for the co-operative’s members and their families.
Thanks to finance from Shared Interest, Pangoa will be able to continue positively impacting the development of the local community. Efrain Arcos, Secretary of Pangoa said: “As farmer and member of this co-operative, I am very happy and I feel encouraged to continue working having received this vote of confidence from Shared Interest, it is an incentive to all of us.”

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