CEPICAFE

CEPICAFE (Central Piurana de Cafetaleros) is an association of small-scale coffee producers in northern Peru. The association includes 90 grassroots organizations, composed of more than 6,600 producers.

CEPICAFE was founded on March 26, 1995, by 18 primary-level co-operatives and 200 members. All of CEPICAFE’s coffee is grown by individual families, and the average area farmed by members is 1.5 hectares (about four acres). These small properties allow them to dedicate their efforts to the cultivation of coffee without damaging the forest and fruit species that both (a) serve as shade trees for the coffee and (b) supply an important part of their diet.

The region where CEPICAFE members grow coffee is in the highlands of northwest Peru, located on the western slopes of the Andes Mountains in Piura. This area is blessed with a unique climate and ideal soils for growing coffee. CEPICAFE’s headquarters are in the department’s capital, which goes by the same name. Its members come from three highland provinces: Ayabaca, Morropón and Huancabamba

The Origins and Challenges

During the late 1960s, Peru’s agrarian reform legislation led to private agriculture farms transitioning to production co-operatives owned and managed by former employees. This was accompanied by many contingency measures including credit, technology, and yield production techniques aimed at strengthening these co-operatives. Unfortunately, many of these measures failed.

In the early 1990s, the Peruvian government implemented new measures aimed at boosting the country's agricultural industry. Examples included the abolition of the coffee export agency managed by the government and the implementation of an international agreement designed to increase and stabilize coffee prices. Instead, this caused prices to fall and affected the channels through which these organizations exported their products. While these new measures gave new direction to many co-operatives in the region, many were dissolved as victims of mismanagement and corruption. As a result, a great deal of this land was subdivided and delivered to members.

A group of local university students, along with a German volunteer, took action in 1991 upon realizing that small farmers faced low prices, lack of credit, lower production rates, and strong scepticism and resistance to community organization. They created an organization called PIDECAFE (Programa integral Del café) aiming at providing technical and commercial assistance. Initially PIDECAFE worked with a handful of pioneering community leaders who were interested in learning about and experimenting with new agricultural practices.

photo by : Oxfam Wereldwinkels

This program evolved into a formal producer organization: APPCAFES (Asociaciones de Pequeños Productores de Café), which eventually became CEPICAFE. Initially, CEPICAFE sold raw coffee to local markets. However, over time they began to export, engaging in quality control training, better storage facilities, and ecological farming systems.

In 2003, CEPICAFE joined the Fair Trade system. In their first year they sold approximately 1.5 million pounds of coffee, equivalent to US$1.6 million, and invested in improving their coffee business and implementing social development projects in their communities.

Fair Trade's Impact

As a result of Fair Trade, CEPICAFE’s members currently experience many benefits including better prices, lower credit rates, enhanced quality, capacity buildings workshops, financial risk reduction, and development projects. They have also diversified their production base to include a range of products including brown sugar, marmalades, cocoa, and crafts.

The following programs have been implemented:

1. Capacity building workshops

CEPICAFE conducts capacity building workshops and working sessions on strategic management to members, the Board of Directors, executives, and local committees. It also has a strategic alliance with the NGO PIDECAFE, which allows members to learn about new production methods and technical innovation.

2. Female participation

18% of CEPICAFE’s members are women and, for the first time, a woman is part of the executive. Women actively participate in decision-making and, in some cases, run their own farms. They contribute to income generation and participate in discussions related to farm investments and community development.

3. Access to credit

Sustainable loan program: These credits aim to provide CEPICAFE members with the necessary cash to invest in agricultural practices and secure food for their family. Members also participate in a capacity building workshop conducted by the technical team on these matters.
Post-Harvest Loan: These loans are short term and provide producers with the resources to harvest, collect, and prepare the coffee cherries.
Family Support: This credit program was designed to rapidly meet the priority needs of CEPICAFE members and is mainly used to finance emergency basic needs not related to the business (i.e. health care).
Medium and Long Term Loans: This credit program was designed to allow small farmers to purchase machinery, invest in infrastructure, and further expand their businesses. They also promote diversification, allowing rural households to expand their activities in order to generate further income for their families.

4. Nutrition Program

CEPICAFE promotes good nutritional habits with families in the community. This program provides food such as oil, beans, and rice to families with malnourished children. It is geared towards providing families with information related to nutrition, hygiene, and reproductive health.

5. Coffee Tourism program

This eco-tourism project involves hosting tourists who stay with farming families, learn about Fair Trade, enjoy the region, and participate in the coffee, sugar, and cacao harvests.

Marmalade plant Photo by Percy Vasquez Cepicafe

6. Marmalade Program

As part of its diversification efforts, CEPICAFE now exports mango, pineapple, passion fruit, orange, lemon, and papaya jams

7. Ecological Sugar Program and Packing Factory

Producers

CEPICAFE