Leading Peruvian coffee exporter Perhusa discovered the value of working with small-scale producers in order to increase its market share in certified specialty coffees. The farmer’s technical and organisational capabilities were increased by an extension program developed by Perhusa and SNV, and are now integrated in the specialty coffee value chain. After successful engagement with 4,000 farmers, with technical and financial assistance from SNV and IDB, the company expanded the programme to include an additional 5,000 farmers at its own cost. Farmer’s income from coffee production has grown by over 30%, on the basis of increased production and improved prices for the certified specialty coffee. Fifty people in the coffee company were trained in Good Agricultural Practices (GAP) for the production and management of specialty coffees and rural extension methodologies. Perhusa can now continue to expand the impact of the program.
Dole in Peru, a company that traditionally sources from large producers and company-owned plantations, implemented an Inclusive Business model that links small-scale banana producers to the company’s value chain through a mutually beneficial relationship. Productivity and quality of production of 2500 small farmers was increased with 75% over a period of 3 years. This went together with the organic certification of their product, and forward integration of farmers in the chain: they are now obtaining added value to their product through packaging the bananas themselves. Certification, together with the transfer of processing capacities to farmers’ associations generates increased sustainable incomes for the producers and improves employment conditions in an economically depressed zone that has considerable potential for agricultural business. The company gained through increased efficiency and larger export and trading of organic banana, a product with a growing demand in international markets.
See also: Inclusive Business at SNV