MICROCAPITAL BRIEF: Fairtrade Access Fund Loans $1.8m to Coffee, Cacao, Sugar Cooperatives COAGRICSAL of Honduras, UCOSEMUN of Nicaragua, NORANDINO of Peru

The Fairtrade Access Fund (FAF), an affiliate of German NGO Fairtrade International that provides loans to farmers in developing countries, recently disbursed a total equivalent to USD 1.8 million to Cooperativa Agrícola Cafetalera San Antonio Limitada (COAGRISCAL) of Honduras, Unión de Cooperativas de Servicios Múltiples (UCOSEMUN) of Nicaragua and Cooperativas de Servicios Múltiples Norandino (NORANDINO) of Peru.

COAGRISCAL, a cooperative of approximately 700 coffee producers, received USD 600,000 to purchase coffee from its members grown during the 2012-2013 harvest season [1]. UCOSEMUN, a union of 14,000 coffee producer cooperatives, received a working-capital loan of USD 500,000 to support agricultural activities in preparation of the 2013-2014 harvest season [2]. NORANDINO, a nonprofit savings and credit cooperative, received PEN 2 million (USD 700,000) to support its membership of 7,000 coffee, cacao and sugar producers [3]. The producers have been “Fairtrade certified”, meaning that they have undergone an evaluation indicating they have met certain environmental, labor and development standards as overseen by FLO-CERT, a certification organization affiliated with Fairtrade International.

As of 2013, NORANDINO reported total assets of USD 10 million, A gross loan portfolio of USD 8.6 million, return on assets of 2.0 percent and return on equity of 9.6 percent. In 2011, NORANDINO reported 3,279 active borrowers and deposits of USD 3.6 million from 2,954 depositors. Financial information for COAGRISCAL and UCOSEMUN are not available.

FAF was launched in 2012 by Fairtrade International, a nonprofit based in Bonn, Germany; Grameen Foundation, a US-based nonprofit; and Incofin Investment Management, a Belgian for-profit microfinance investment manager. As of June 2013, the fund had disbursed USD 3.7 million to 7 cooperatives in Latin America. The fund plans to extend its outreach to Asia and Africa on an undisclosed schedule [4].

As of 2012, Fairtrade International reported assets of EUR 4.9 million (USD 6.4 million). For the same year, Grameen Foundation reported total revenue of USD 17.8 million and total assets of USD 24.1 million. As of 2011, Incofin reported total outstanding investments of USD 425 million in approximately 39 countries.

By Jennifer Young, Research Associate

About Fairtrade Access Fund
Fairtrade Access Fund was launched in 2012 by Fairtrade International, a nonprofit based in Bonn, Germany; the Grameen Foundation, a US-based nonprofit; and Incofin Investment Management, a Belgian for-profit microfinance investment manager. As of June 2013, the fund had disbursed USD 3.7 million to 7 cooperatives in Latin America. The fund plans to extend its outreach to Asia and Africa on an undisclosed schedule.

About Fairtrade International
Fairtrade International is a nonprofit association based in Bonn, Germany, that consists of 26 members including producers, traders and external experts involved with three producer networks – Cordinadora Latinoamericana y del Caribe in Latin America and the Caribbean; Network of Asian Producers; and Fairtrade Labelling Organizations International, a group of 21 labelling initiatives across Europe, Japan, North America, Mexico, Australia and New Zealand. As of 2012, Fairtrade International reported assets of EUR 4.9 million (USD 6.4 million).

About Incofin Investment Management
Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in approximately 39 countries.

About Grameen Foundation
The Grameen Foundation, a nonprofit based in Washington, DC, provides financial, technological and managerial support to provide new business opportunities and telecommunication services for poor people in rural areas. Though it is independent of the Grameen Bank, Dr Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors. Grameen Foundation reported total revenue of USD 17.8 million and total assets of USD 24.1 million as of March 31, 2012.

Sources and Additional Resources

[1] Incofin Story, “Cooperative COAGRICSAL receives loan from the Fairtrade Access Fund to buy Fairtrade certified coffee from their member producers during harvest season 2012/2013,” https://www.incofin.com/en/news/cooperative-coagricsal-receives-loan-fairtrade-access-fund-buy-fairtrade-certified-coffee-their?utm_source=newsletter&utm_medium=e-mail&utm_campaign=Newsletter%20May%202013

[2] Incofin Story, “Second investment of the Fairtrade Access Fund in Nicaragua,” https://www.incofin.com/en/news/second-investment-fairtrade-access-fund-nicaragua?utm_source=newsletter&utm_medium=e-mail&utm_campaign=Newsletter%20May%202013

[3] Incofin Story, “The Fairtrade Access Fund disburses local currency loan to cooperative in Peru,” https://www.incofin.com/en/news/fairtrade-access-fund-disburses-local-currency-loan-cooperative-peru?utm_source=newsletter&utm_medium=e-mail&utm_campaign=Newsletter%20May%202013

[4] Fairtrade International News Story, “Fairtrade Access Fund’s first loans making impact,“ http://www.fairtrade.net/single-view.html?&cHash=8bdc0cf29879c85daeac2da4f2bf741d&tx_ttnews%5Btt_news%5D=354

MicroCapital Story, June 11, 2012, “MICROCAPITAL BRIEF: Fairtrade, Incofin Launch Fund Offering Long-Term Microloans Starting in Latin America,” https://www.microcapital.org/microcapital-brief-fairtrade-incofin-launch-fund-offering-long-term-microloans-starting-in-latin-america/

MicroCapital Universe Profile: Fairtrade Access Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fairtrade+Access+Fund

MicroCapital Universe Profile: Fairtrade International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fairtrade+International

MicroCapital Universe Profile: Incofin Investment Management, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

MicroCapital Universe Profile: Grameen Foundation, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

Similar Posts: