Reserved Amount = € 0,00
Reserved Amount = € 0,00
Promotion of an inclusive value chain by joining 3.000 local producers who have access to an international export value chain.
Better working and financial conditions for small producers, who own less than 2 hectares of land.
Rural poverty reduction: smallholders will receive a higher profit margin for their produce, which can be allocated to more than pure subsistence.
Contribution to the Company’s social mission, by ensuring cash payments at the “farm gate” to the farmers and early payments at a premium to the Company. The company can then reinvest the money in training, education, social support to the farmers and their families, health support and help with organic and fair-trade certifications.
Gender quality promotion - the company is fully owned by its female CEO, who runs a senior and experienced team.
Incentive to organic products growth: all the cocoa produced is organic and certified by a third party, that, among others.
Incentive to reducing child slavery – the chocolate certification guarantees that all the processing and procurement is free of child slavery labour, and there is no tolerance for any abusive labour practices.
Contribution to the environmental protection of the Selva Region, in the Peruvian Northern Highlands: A shade crop, cocoa can be grown in forests and agroforestry systems, thus helping to enrich soils and protect them against erosion.
The goal of this campaign is to provide production and export financing to a fair trade, certified, female owned and female-led, Cocoa aggregator, processor, local seller and exporter, operating with more than 3,000 local producers in the Northern regions of Cajamarca, San Martín and Amazonas and the central region of Huánuco – the four regions collectively producing 55% of the Peruvian yearly total cocoa produce, for a total aggregate of 23,400 Metric Tons per year.
The Company, is in Tarapoto (San Martin) and concentrates 10% of the local market share, ranking as the third largest cocoa bean marketer in Peru. Its vision is to improve the quality of life of its farming partners, offering training and technical assistance, and to be recognized by the local and international community as suppliers of inputs for quality, developing customized products, with commitment, ethics and trust. This vision and strategy is reinforced by several certifications, from which Fair Trade (Comércio Justo) and USDA Organic should be highlighted.
The Fair Trade Certification is particularly relevant, as it places the Company in the 13% out of the 33million global cocoa producers that have achieved such certification which, among others, ensures that the cocoa processing and procurement is free of child slavery labour – the Fair Trade certification is particularly strict in this regard, and with yearly inspections in the sourcing farms, has no tolerance for any abusive labour practices.
Peru is the sixth largest producer of cocoa worldwide, the second largest organic cocoa producer (after the Dominican Republic) and the number one fair-trade organic cocoa producer worldwide.
The worldwide demand for cocoa is growing and especially the demand for certified cocoa is expected to continue to grow in Europe over the next years, with two clear increasing trends: search for sustainable (certified) chocolate products, i.e. cocoa bean production that complies with social, environmental and economic aspects and where the whole process is successfully certified by a third party; and towards authentic ingredients and single origin cocoa products.
Less than 10 years ago, thousands of farmers used their plots in the Northern Highlands of the Selva region to grow coca - while coca provided a steady income in remote regions, the illicit crop also brought with it the violence of drug traffickers and their allies. The government was eager to eradicate it and with the collaboration of the military, police, local, regional and national governments and initiatives from international donors and the private sector, Peruvian coca farmers were converted to cocoa (and coffee) farming and Peru has, in the last years, quickly built a global reputation for producing traditionally cultivated, shade grown, high quality cocoa beans.
The funds raised through this campaign will be used as Transactional Working Capital to provide liquidity to the Company from its procurement and processing stage, all the way through its exports.
Transactional Working Capital is a short-term debt financing asset that allows the producer/aggregator/seller to receive advance/early payments and the buyers to delay their payments.
In commercial sales, standard market practice for payments is between 30 to 90 days from the time when the seller issues its invoice – such payment terms usually strain the cash availability of the seller for its own procurement, while allowing the buyer to hold on to their cash for longer. Often, the seller’s working capital gap is resolved by accessing traditional bank financing, which usually requires to be over-collateralized over hard assets (i.e. factories, buildings, machineries). However, due to the elevated requirements demanded by banks as guarantees for the loans, impossible to meet for smallholders, such bank loans seldom resolve any working capital gap.
Transactional Working Capital fills this gap without the need for collateral. That, in turns, obtains the following results for both the smallholders and the aggregator:
Liquidity to procure raw produce – the aggregator/processor is able to grow its business by increasing the level of raw material procurement to fulfil new orders for its international buyers, without waiting for payment from existing buyers.
Premium Prices - The producers receive a premium price that reflects the certified and fair trade value of the cocoa, resolving the cash pressure and eliminating the need to provide discounts to the buyer, in return for early payment.
Higher profit margin that can be reinvested: the higher profit margin can then be allocated not only to pure subsistence but to invest in capacity building of technical agricultural skills and technologies, improving production standards and yield investments in organic, fair trade and quality certifications.
WCA maintains a Trade Credit Insurance Policy with a global insurance company providing worldwide trade credit insurance, surety, and collections services, with a strategic presence in 50 countries. The Project repayment will be guaranteed under such Trade Credit Insurance Policy, which effectively protects GoParity lenders from default in a credit related event (e.g. insolvency, bankruptcy). The policy covers against losses from Insolvency, Protracted Default and Political Risk and covers up to 90% of the value of the underlying commercial transaction financed by WCA. As WCA provides up to 80% financing to any underlying commercial transaction, the policy in essence covers more than WCA’s entire financing.
Payments Status: On time