Coffee farmers in the Luya Province of Peru operate in a critical ecosystem on the edge of the Amazon rainforest, far from national ports and even farther from international markets. Many grow their crops in agroforestry systems, integrating natural shade trees and participating in economic activity that balances farmer livelihoods with ecosystem preservation. The costs of getting product to market are significant, and it can take farmers as long as a full day to bring heavy jute sacks of coffee down winding dirt roads. Research shows that, in these sensitive ecosystems, smallholder farmers without access to fair prices may be driven to deforestation as a means of survival.
In 2017, 12 farmers came together to seek an alternative to the low prices offered on the local market. The group founded the cooperative C.A.C. Laguna de los Cóndores (LDC) to connect local farmers directly to premium markets. While LDC grew its reach through domestic sales, the business struggled to sell on the international market due to the lack of liquidity necessary for advance purchases of coffee from farmers.
Four years after its founding, LDC received its first loan from a CSAF lender, Root Capital, for $250K, allowing it to directly export. The cooperative has since expanded its credit, working with Alterfin, MCE Social Capital, and NESsT to access over $3M in cumulative financing from CSAF members. Paired with technical assistance, including from Rabo Foundation and NESsT, LDC has unlocked significant growth. Expanding from just over 200 farmers in 2020, the business grew to reach more than 800 farmers by 2025. The cooperative works with its members to help farmers maintain Fairtrade, Organic, and Rainforest Alliance certifications and ensure that over 90% of its coffee supply is shade-grown.
As the business has matured, it has leveraged CSAF member support to invest in social and environmental outcomes for its farmers. In 2021, the cooperative used a $5K grant from Root Capital to train 20 women farmers in agronomic skills, which resulted in improving their coffee quality by 15%. Nearly all participants became part-time extension workers for the business; this positions LDC to support more female producers, as the presence of women field staff tends to create a safe learning environment for other women. The cooperative has also partnered with NESsT to mainstream women’s empowerment across the organization, a strategy led by LDC’s 50% women management team.