Sustainable Solutions for Rural Peru
Small-scale farmers in Peru, who work some 60 percent of the farmland, are mostly poor. They face daunting obstacles such as:
Limited information about where and how to sell their crops
Ineffective water management
As a result, many rural Peruvians struggle to earn a decent living. For example, the rural highlands are home to more than 36 percent of poor Peruvians and nearly 60 percent of the extreme poor. The challenges
that these farmers face lead some to migrate to urban areas in hopes of finding work.
There are several different kinds of organizations that we fund because of their interest in the financial success of the small farmers. We believe that if there is a symbiotic relationship in which both participants
need each other to prosper, there is much more of a chance for each to be sustainable.
Financial institutions increasingly seek our capital to on-lend to farmers. These loans are tailored to increase farmer productivity and/or reduce the cost of production. Examples of farmer purchases made with these agricultural loans and leases include:
genetically improved milking cattle.
equipment used to efficiently thresh quinoa and milking equipment.
“Social” enterprises increasingly establish win-wins with the smallholder farmer. Businesses that we fund with medium term loans are typically using our loans to purchase productive assets such as processing equipment. The businesses are eager to provide services to the farmers in their supply chain. Mobile phone payments to their farmers, innoculations for their cattle or making quality inputs more accessible assure increased loyalty from the farmer and reduce the risk to the supply of essential raw materials.
Agricultural Cooperatives seek funding to build or improve their processing capabilities. There is a new breed of professional cooperative in Peru run by skilled management. Similar to the social enterprise, these cooperatives are increasingly establishing reliable services (such as productivity training or loans for seeds and plants) so as to aggregate the crop at harvest time for sale.
At this present time, We are not accepting unsolicited proposals.