MICROCAPITAL BRIEF: Oikocredit Places $4.7m in Equity in Caravela Coffee to Support “Responsible” Trade in Latin America

Netherlands-based cooperative investor Oikocredit recently closed an investment of USD 4.7 million in UK-based coffee trader Caravela Coffee. Caravela sources its product from approximately 4,000 coffee producers in eight countries in Latin America while seeking to “ensure the price [paid to] farmers is enough to secure their commitment and investment in quality for long-term production in the face of a changing climate and to demonstrate a successful business model for the next generation.” Based on this work, Caravela earned “Best-for-the-world” recognition from B-Corp, “a worldwide movement of more than 2000 companies that meet strict criteria for social and environmental performance, accountability, and transparency.”

Speaking about the investment, Oikocredit’s director of equity investments, Tom Keleher, stated that the cooperative “is very pleased to add Caravela to a global portfolio of innovative and pioneering agricultural-related businesses that are both highly respected in their respective sectors and have social impact at the top of their agendas.”

Established in 2000, Caravela Coffee sold coffee to 275 roasters in 27 countries during 2018.

Founded in 1975, Oikocredit is a cooperative that invests in microfinance, fair trade, agriculture and renewable energy. As of December 2018, Oikocredit had total assets of EUR 1.29 billion (USD 1.48 billion), including EUR 1.05 billion (USD 1.20 billion) invested in approximately 680 businesses.

By Jolene Khor, Research Associate

Sources and Additional Resources

Oikocredit press release
https://www.oikocredit.coop/k/n2613/news/view/308161/9049/oikocredit-invests-in-latin-american-responsible-specialty-coffee-trader-caravela.html

Caravela Coffee homepage
https://caravela.coffee/

Caravela Coffee 2018 Impact Report
https://caravela.coffee/project/impact-report-2018/

Oikocredit homepage
https://www.oikocredit.coop/

Oikocredit 2018 Annual Report
https://www.oikocredit.coop/publications/annual-reports

B-Corp homepage
https://bcorporation.net/

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