Partner Article

Lender shares interest with Peru

A co-operative lending society based in the North East has been spreading its influence all over the globe, with its latest success story taking place in the jungles of Peru.

Shared Interest, a Newcastle-based lender which works with fair trade businesses across the world, has secured finance for a coffee-growing collective in northwest Peru called Aprocassi.

The Aprocassi collective wanted to use their land for a more environmentally-friendly purpose such as coffee farming, instead of the region’s traditional gold and silver mining.

After ten years in business, Aprocassi has recently been recognised by the Peruvian business community, receiving an award from the National Peruvian Chamber of Commerce for its support for social and economic development, and is now planning to grow by 20% in the next year.

Paul Sablich, Shared Interest’s Regional Development Executive in Peru, said: “a key success factor for Aprocassi has been its continuous work in enhancing its social basis through technical, financial and social support.

“Speaking with farmers and asking them how they feel and how they understand benefits of fair trade was exciting.

“Naturally, there is still much work to do in order to clearly communicate the impact of fair trade businesses to farmers, but they notice how their quality of life is improving thanks to those benefits.”

Aprocassi has long term relationships with buyers also known to Shared Interest, but in order to continue increasing their operation and obtaining major orders, they needed pre-finance from Shared Interest to provide their working capital.

Paul Sablich said: “Next year is considered a year of high production for coffee in Peru, bearing in mind it is a bi-annual product: one year increases, the next one diminishes.

“In order to avoid this erratic style, action is taken to counteract natural viability, particularly through fertilising and manuring of the soils.

“Other plans include maintaining their commitment to offer high standards of quality to customers and developing their capacity for social responsibility.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .