Strengthening business and climate resilience for 15 cocoa enterprises to accelerate inclusive economic growth
Peru is the world’s second largest producer of organic cocoa and the sector provides a living for circa 50,000 smallholder farmers. They often work in cooperatives or in early-stage, nascent enterprises that lack the business management skills to fully harness their potential to grow, access credit, and better support farmers’ livelihoods.
Furthermore, Peruvian cocoa producers face increasing challenges, including fluctuating prices, lack of direct access to international markets, and razor-thin profit margins. Climate change and deforestation (often provoked by farmers who want to increase their income through agricultural expansion) risk to further compromise environmental conservation and the livelihoods of rural communities.
Our partner Root Capital believes that the sustainable development of the organic cocoa sector is key to drive a fair and inclusive economic growth for Peruvian smallholder farmers.
Building on the successes and lessons learnt from two previous partnerships between Root Capital and the Trafigura Foundation, we are entering a new phase of collaboration to promote the social, financial, and environmental prosperity of cocoa farmers across Peru.
Through our three-year project, Root Capital will provide targeted advisory services to 15 cocoa cooperatives that support the livelihoods of an estimated 16,000 producers and their family members.
Our partner will offer catalytic financing and a diverse suite of advisory services designed to respond to the needs of two distinct cohorts of cooperatives.
A cohort of nine emergent, early-stage cooperatives will receive business management advisory services to strengthen their credit-readiness, grow their businesses and ultimately improve farmers’ incomes sustainably and at scale.
Another cohort of six, more mature cooperatives, which have already participated in Root Capital’s lending and advisory programmes, will be offered a training in advanced Agronomic & Climate Resilience to help them build their adaptability and take effective climate action.
We share Root Capital’s bold vision to build greater bankability and resilience of agricultural enterprises, and we are committed to supporting our partner’s efforts in tracing a sustainable pathway out of poverty for rural communities in Peru.