The Brazil Nut Effect

After six hectic days of travelling we are coming to the end of our journey.  Today we met with of CANDELA PERÚ; some people may recognise the brazil nut organisation from the video we produced last year.

Candela has been established for 23 years and mainly works with brazil nut collectors in the Madre de Dios area of Eastern Peru.  Collectors or “Casteneros” are given 40 year concessions to collect nuts and one concession can cover 800 ha.  A massive area particularly when one considers that there may only be 1 tree per hectare.  Collectors can carry their nuts for three days to get to the nearest collection point.  The collection season is also very short at 3 months so the life of the collector is extremely difficult.  30% of the collectors have no other form of income.

The aim of Candela is to work with these grass roots communities providing river transport, establishing committees, providing food, training and with the help of a Shared Interest lending facility, they offer their 300 Casteneros much needed credit.  The nuts are brought to the CANDELA factory in Puerto Maldonado where they are shelled and dried before being transported by truck to Lima. Here the nuts are dried further, sorted, graded and vacuum packed for sale.

Brazil nut facts:

Brazil nut trees grow wild in the rainforest.  They can take up to 30 years to mature and can live up to 1000 years

The trees can grow up to 50m tall and 2m wide and require a specific bee to pollinate them which has made cultivation attempts largely unsuccessful.

Brazil nuts are not actually nuts. Like horse chestnuts, they are seeds contained in a capsule or pod, which splits apart. True nuts don’t split – the seed and the fruit are one and the same. 

The pods contain up to 24 nuts and can weigh up to 1KG.  These wooden capsules fall to the ground in the rainy season and are gathered by the collectors.    

A Brazil nut is 65 per cent oil. In a packet of muesli full of seeds, nuts and cereal, Brazil nuts always end up on top if you shake the packet; this is called the Brazil nut effect.

 

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A Lifeline for the Community

Edwin and I had a very moving experience visiting the inspirational association Intercrafts Peru. This co-operative represents over 20 producer groups and 1,400 members.  General Manager, Moner Lizana Huaman described the organisation as a family and many of the artisans we met echoed this sentiment.  Moner wanted me to pass on his thanks to Shared Interest investors for providing the funding to “change lives”. 

We saw how the groups recently approved term loan was being put to good use, funding the construction of a new building.  This new office will house 25 staff and will be a base for artisans to meet, share ideas and discuss their future vision. 

Whilst visiting Intercrafts we met Ildefolso a jovial man who is responsible for communications.  Ildefolso was suffering from kidney failure and attended hospital every other day for dialysis.  This vital treatment was only made possible through health insurance received from Intercrafts.

  

We also travelled to see one of the producer groups “Asociacion Casa Betania”.  There we met Emily, a weaver who had worked for the association for seven years.  Emily explained that she liked coming to work where she made colourful hats and jumpers for sale.  The money she earned meant she could have a better life for her family.  As we travelled to our next appointment, through the suburbs of Lima and witnessed the local hardship, it was even more apparent that this co-operative provides a lifeline for the community and really does change lives.

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Coffee, Cocoa and Social Impact

On Wednesday we left the banana plantations behind to visit Cepicafe to learn more about their Fairtrade coffee, sugar and cocoa exports.  When we arrived they were hosting an international conference but Finance Manager, Jose Fernando Reyes Cordova still found the time to show us around their facilities. Cepicafe is a fascinating model that really helps grass roots communities. Farmers are encouraged to work together in associations in order to increase the scale of production and reduce costs.  Once the association is large enough they are given assistance and staff to become independent. 

Cepicafe exports sugar, coffee, cocoa, marmalade and juice.  Shared Interest funds have been particularly helpful in this time of high coffee prices. During our visit we looked at the sugar and coffee processing, before heading out to see the cocoa farms.

Sugar cane needs a lot of sun to grow so the region is perfect. Cepicafe works with 700 sugar producers and by exporting sugar cane they have improved their quality of life and self-esteem significantly. Particular emphasis is placed on training the farmers to reduce their costs and maximise their yields.  Working with the farmers has also resulted in big reduction in alcoholism due to the sugar being used for other products and in addition, the increase in price makes alcohol less cost effective to make.

Cepicafe has seen a huge growth in cocoa production and export.  There are a number of factors that have led to this increase.  Firstly buyers are looking for a high quality aromatic cocoa.  Also the quality of the bigger cocoa producers has reduced but the most important factor has been the marketing of white cocoa “Porcelana” which is considered the best in the world.

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Going Bananas in Peru

I have learnt a LOT about bananas in my first few days in Peru so I thought I would share some banana facts with you.

Did you know that Peru is relatively new to bananas? Despite its late entry to the market the country has a competitive advantage in that the climate is relatively dry which reduces the risk of fungus and allows the farmers to cultivate their bananas without the use of chemicals.  It takes about 8 months for the banana bunch to grow.   First the ‘madre’ stem grows and three weeks after the flower appears small fingers start to grow.  A protective bag is then placed over the bunch to stop insects and birds attacking the fruit. 12 weeks later the bananas can be harvested.  The stem then dies and the farmer selects a “nino” child stem to grow and take the mothers place.  The process starts again.

Yesterday I brought you news of Banana co-operatives Cepibo and Appbosa.Since we met them we have visited two other banana groups, Bos and Apoq. Bos really felt like a community organisation. They have been using their Shared Interest term loan for a number of projects which include new storage, palletising and office facilities.  We went with the General Manager, Pedro Quezado to see the on-going construction work. Shared Interest’s lending has also enabled a government grant to be accessed to finance the projects. This new storage facility is important because it will reduce the waste created when containers are not available.  The next project will be a processing plant to make puree from the bananas which are rejected for export.  This will create 30 new jobs.  I spoke to one Board member, Mirta, who told me that she had worked with Bos for five years.  Previous to that she had sold her produce to the local market at a very low price.  Now she gets a good price for the bananas.  She told us that Bos had a very big impact on the community.  Each year they invite 750 local children to participate in learning activities.  Many more children go to school now and two young people have just graduated from university. This would have been impossible without the existence of Bos and the help of Shared Interest.

Later in the afternoon we met with Apoq is a small producer organisation with 458 members. All are small producers with on average 0.8 ha of land.  Since working with fair trade 7 years ago they have built their own packing plant and currently export 100% of their bananas. The social impact has been significant in this time.  They invest the Fairtrade premium to improve the packing stations and also help the producers with health and education.  They pay 50% towards a health insurance and the other half is paid by the farmer.  Training is provided on security, health, environmental impact and first aid topics.  Profits are reinvested back into the community with workers paid $10 per day, 25% more than the daily average.

I can’t resist sharing a few more banana facts…did you know that:

  • Bananas are the fourth most important staple crop in the world, and are significant for food security in many tropical countries. They are also the most commonly eaten fruit in the world.
  • If all the bananas grown in the world every year were placed end to end, they would circle the earth two thousand times.
  • World banana production amounts to around 81 million tonnes per year and due to the climatic conditions required to grow them, production is mainly concentrated in developing countries in Asia, the Caribbean and Latin America.
  • Fairtrade bananas were first introduced into the UK in 2000.

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My Land is Kenya

By Account Manager (Africa) Rita Musyimi

I recently returned from a trip to Kenya. This was more than just work for me as it gave me the opportunity to return home and visit friends and family. Over the next three days I will attempt to bring you a taste of my trip, sharing my experiences.

Going back to my roots and to my producers

Days before the planned trip I found myself packed and ready to go. As I packed my bags I couldn’t help but sing Roger Whittaker’s song:

‘‘My Land is Kenya, Right from the highlands to the sea…’’

Never mind that I couldn’t remember most of the words. I ended up humming it instead. I beg your indulgence for this kind of excitement, but then again it has been a long time since I was home. Coupled with the fact that I will be meeting my producers for the first time. This time round I will only visit producers in Kenya. During this trip I am in the secure company of my colleague, Elisabeth Wilson.

The long awaited trip finally came to fruition on 23rd March. It was not without a certain amount of angst that I looked forward to the aircraft landing at the main airport of my homeland. The events that characterised this country in the last three years include skewed elections and a near-genocide crisis that ensued, a political power sharing agreement, a referendum, a new constitution, pro-market reforms and economic growth. I find myself thinking about the talk about restoring our national unity that has been the discourse in recent times and wonder if it is indeed true that the situation has gone back to what I remember it to have been as a child, secure and with a heritage of splendour.

I had been warned that I probably would not recognise some of the erstwhile familiar roads in Nairobi. What with all the infrastructural works going on. That became apparent as we drove from the airport to the hotel. The taxi driver wondered where I had been while all the work on the infrastructure was on-going. You do feel rather silly when such a question is posed to you. This is home after all and I should be up to speed with all this information. However there is a fine line between what you read in the press, hear from family and friends, and the reality of experiencing it first-hand. I could not help but wonder how I would soak in the whole experience during the following days.

‘’When these road works are completed the towns will have a completely new face with very modern highways just like the ones where you have come from’’, the driver added in Swahili with pride. He probably would have wanted to add that with the new constitution, government will be established and resources devolved at county levels, meaning expansion of opportunities for job creation and for small businesses not just in the major towns but countrywide. I suppose against his better judgement he decided to keep that information to himself. Nevertheless I could sense the great strides made during my absence. It all began to come back to me: ‘’Kenya Vision 2030 – towards a globally competitive and prosperous nation’’.

Rachel Ngondo, our Business Development colleague in Nairobi came to the hotel the following morning to take us to the office. Up until now I had only communicated with Rachel via email and telephone so a first time meeting was a special encounter. She is as warm as she sounds on telephone. We chatted like old friends at a school reunion. Later at the office Elisabeth and I were introduced to Kennedy Mwasi, our new colleague in the Nairobi office, whose genteel manner is refreshing. We also got introduced to and met the rest of the fair trade fraternity who share office premises with Shared Interest in Nairobi.

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Costa Rica & Peru Trip January 2011

My wife tells me I am now early-middle-aged (I disagree) but even if so I think I’m reasonably well travelled. She is Malaysian so we have that part of the world well covered and I’ve been privileged previously to visit Australia, India, East Africa, much of mainland Europe, North America and Colombia in “Latin America”. What to expect therefore of Costa Rica and Peru – two of the key bases for Shared Interest in that region of the world?

Costa Rica reminded me of Malaysia in some ways. Tropical, beautiful, coastal and a mixture of more developed city and poorer rural areas. We visited coffee growers and cooperatives as well as two contrasting sugar processing businesses.

From Costa Rica we flew down the South American coast to Peru and our base in Lima – a city whose centre is elegant and modern but which is ringed with suburbs where the fashion for adding further layers to domestic houses as the family extends, leaves a rather half-built and messy feel.

We visited a number of businesses in and around Lima (cocoa, coffee and handicrafts) but the highlight was a two- day trip to the jungle area of Madre de Dios to see the Brazil nut supplier Candela and meet some of its nut gatherers. Our base was Puerto Maldonado – a town of some 50,000 at the eastern end of the controversial Trans-Oceanic highway spanning South America from the Atlantic Brazil coast to the Pacific in Peru. To reach Puerto Maldonado was a two-hour flight inland passing through historic Cusco and going tantalisingly close to the legendary site of Machu Picchu.

Contrary to my preconceptions Brazil nuts don’t grow in small red net bags with other (Christmas fare) nuts arranged alongside! In fact they grow in clusters of 12 to 20 arranged, rather like the segments of a “chocolate orange”, in a pod which resembles the fairground coconut we see in the UK. This hard outer shell falls when it feels like it from the 100+ foot tree and gatherers (who work under a 40-year government permit) harvest the individual nuts from the outer – with a spectacular and thumb-tingling display of machete wielding.

Candela’s processing (further fascinating plant visits) provides good quality work at better-than-basic pay and in good conditions for over a hundred (mostly) women. The nut gatherer whose base we visited deep in the forest was certainly an inspiring and entrepreneurial woman. As well as the trees she earns a living from a small fish-farm, chicken farm and a herd of cattle which range through her land concession. In addition she has dammed the stream through her land and installed a micro-hydro-electric plant!

The two week trip flew by and yet we covered so much ground, saw so many interesting businesses and met some great people. This is one of the great, unquantifiable privileges of working for Shared Interest. You return jet-lagged and somewhat culture-shocked but, invariably, with greater commitment to the work of fair trade and full of admiration for the men and women at the beginning of the supply chains we take for granted.

Oh, and finally, the wildlife. Beautiful birds (and vultures), a shy iguana, mosquitoes (in the jungle area in Peru) by the busload and a (dead) three-metre boa constrictor in the rain-forest. Can’t wait for the next trip.

Brazil nut harvesting
The above picture shows Brazil nut harvesting.

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Meeting the people

Everywhere we had been during our trip, people were decorating hotels, streets, houses and municipal buildings with green, white and red flags in preparation for 16 September, Independence Day.  This year the date has particular significance as much of Latin America will be celebrating 200 years of independence from the Spanish.

We were staying in Huatusco, a lively town in a bowl surrounded by mountains and an extinct volcano, in order to carry out a due diligence visit on a new prospective customer.  We were welcomed into a professional, well-run business by open, funny and charming people with whom it was our pleasure to spend two days.  (In fact, everyone we have met in Mexico has been delightful).  They helped us to understand their business fully, showed us all their facilities and introduced us to a number of their producer members.

Mexico Blog Post

One of the ladies had left her sons tending her parcel of land whilst she took up the role of Secretary of the Board.  She was evidently relishing the experience and the opportunity which she would not have been able to take up had the co-op not offered her accommodation locally.

Another producer had started delivering his coffee to the co-op back in 1992.  In 2000 he became a member and when we met him, he was in his fourth year of serving on the Members’ Committee, having just been reelected for a second term.

The company’s motto is ‘Nadie llega lejos sino sabe a donde va’ which translates as ‘No one goes far without knowing to where they are going’.  This saying obviously has significant meaning but was likewise very apt for a long and tiring but fascinating and inspiring journey around part of Mexico.

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All aboard!

Later that same evening we caught an overnight bus from Tuxtla Gutierrez to Veracruz, the second of the 14 Mexican regions we would be visiting on our travels. If I’m honest, I was not looking forward to the experience but I need not have worried. The standard of driving here is excellent from what we have seen and the bus was very, very comfortable; the latter is particularly important in Mexico as the distances are simply vast.

Unfortunately for us, ours was the only bus delayed out of the station due to the incoming vehicle being affected by local landslides and impassable roads. Whilst we waited from 11pm until 2am for the ‘off’, we were glued to the television showing the devastating effects of the flooding in Veracruz. We saw much evidence of this as we travelled along although I’m very pleased to say that it did eventually stop raining during the journey. It’s a very rural area and the living conditions in places are really quite impoverished so the last thing the local people need is to be deluged.

Once again, we were kindly met at the bus station by a representative of the co-operative we would be visiting. After a couple of hours’ further travel when we were just five minutes drive away from our destination, we became stuck in a roadblock due to a strike. We were initially told that no one would be going anywhere until 6pm – it was then 1pm! Taxi drivers mainly were protesting because of the price of petrol – MXN 9 which is the equivalent of less than 50p. Despite not having eaten since yesterday, there was simply no way round so we just had to sit it out; it was all incredibly good natured and there was a definite Latin American feeling of ‘qué será será!’ Eventually, after only one hour, we were allowed through the roadblock, leaving the fabulous butterflies and a very interesting array of insects behind us.

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There are worse places on earth …

Mexican Building
As expected, the weather finally caught up with us today and we were unable to get to Jaltenango due to the closure of the road.  This was a great shame as we had hoped to be able to advise a new client that we would be able to work together for the coming harvest.  We will just have to do so ‘virtually’.  Consequently we found ourselves ‘stuck’ in San Cristóbal.  I use the term loosely as it is a simply wonderful place and much as I had imagined Mexico might be: culturally diverse, traditional, ethnic, colourful and with very clear, breathable air the higher up you get.

Mexican Building

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Anyone for a cucaracha?

The whole of Chiapas (the region through which we are currently travelling) is a part of the Mayan traditions and culture.  Here in Tapachula, we are very close to Guatemala and many migrants have crossed the border.  They have brought their customs with them and the women still wear skirts made of fabric denoting where they are from.  Two women wearing skirts of different fabric are able to communicate in Spanish but their own dialects are too diverse so they are unable to understand each other when speaking in dialect.

Having managed politely to decline the ‘hot’ sauce I was offered at breakfast, I found myself turning down cucaracha at lunchtime!  For the non-Spanish-speaking amongst you, cucaracha means cockroach but I discovered it is also a type of crab here in Mexico.  Having spent the morning with one of our current customers discussing various issues, we were invited to lunch by the General Manager.  We enjoyed some interesting debate during which he remarked that ‘Shared Interest has to exist primarily for its investors’.  Their kindness also extended to driving us across the mountains for five hours to ensure we arrived safely at our next appointment at Comitan.  I’m sure the view is wonderful but thanks to Daniel, the current tropical storm, we saw a lot of low, grey cloud from the incredibly windy roads.  Tropical storm Earl is now apparently hot on the heels of Daniel.

On the way we passed numerous ‘ejidos’ or small communities, in the true sense of the word, that is ‘communal’.  These date back to the Agrarian Reform of 1910 and most of the companies we are visiting have based their constitutions and thus their democratic processes on the way of life and the values of the ‘ejido’.

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