CASE STUDY - Café Selva Norte: Coffee Agroforestry in Peru - PROJECT OVERVIEW

It invests in forest protection and restoration activities, supports coffee cooperatives and their smallholder producers by providing micro-credit and technical assistance, and invests equity in a processing plant to improve infrastructure and ensure sustainable and efficient production processes. [...] While the grant provided support for ECOTIERRA to carry out the project to a high technical standard and to decrease FEASIBILITY & risk, commercial investments had already been secured at the time. [...] Securing guarantees Although ECOTIERRA explored the option of securing guarantees, the significant costs and lengthy process made this proposition unattractive to the first investors and the project proceeded without them. [...] Combining revenue streams The key success factor for securing commercial finance for the Café Selva Norte project was the combination of revenue streams originating from carbon services, coffee and timber, as well as commercialisation services. [...] The strategy for attracting investors was to reduce the risks by diversifying revenue streams, especially in light of the price volatility in some of the markets considered.