The case of Café Ambiental, SPC: A new business model for a Nicaraguan fair trade cooperative

Quan Le, Braden Wild and Susan Jackels

World Development Perspectives, 2017, vol. 6, issue C, 35-37

Abstract: The global coffee crisis in the early 2000’s had a devastating effect on Nicaraguan coffee producers. In response, cooperatives were formed with the purpose of supporting the communities as they survived the crisis and moved toward coffee quality improvement for access to global specialty markets. Usually, humanitarian support agencies work with existing cooperatives, but in this case Catholic Relief Services embarked on a project to support over 300 of the poorest coffee producers in the Matagalpa in their initiation of CECOSEMAC cooperative. This report describes how the process of forming a social enterprise introduced the Seattle University students to CECOSEMAC and revealed inadequacies in the fair trade and organic coffee export model. The innovative solution to this problem is to offer the producers a premium above fair trade and organic price and pay them up front. In addition, the supply chain was simplified and shortened that enabled the business to return another 12% of the sale price directly to the producers and 27% to an educational fund to support the children. This unique combination of educational focus, fulfilling community needs, and the empowerment of students has created a successful model that has transferrable potential to other educational institutions.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wodepe:v:6:y:2017:i:c:p:35-37

DOI: 10.1016/j.wdp.2017.05.003

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