Root Capital, Central America

Improving smallholder farmer livelihoods by strengthening cooperatives in the coffee, cocoa and honey sectors.

Agricultural enterprises, with proper support and access to finance, can improve the lives of millions of vulnerable rural families. In Central America and Mexico, agricultural cooperatives play a critical role in linking farmers to global markets, providing them with agronomic trainings and ensuring stable incomes. One of the main challenges that these enterprises face – and the reason why so many fail to become engines of prosperity – is their lack of access to credit.

Root Capital grows rural prosperity in poor, environmentally vulnerable places in Africa and Latin America by lending capital, delivering financial training and strengthening market connections for small and growing agricultural businesses.

In partnership with the Trafigura Foundation, Root Capital intervenes by extending essential financial and agronomic training to 12 agricultural cooperatives in Guatemala, Honduras, Mexico and Nicaragua, with the aim of boosting their resilience and credit-readiness. The programme targets small, farmer-led cooperatives in the coffee, honey and cocoa sectors serving an average of 200 farmers each.

One of them is Cooperative Maya Ixil, a coffee cooperative in Guatemala. Root Capital is helping this cooperative diversify into honey production, an important economic alternative as climate change and crop diseases have severely threatened coffee production in recent years.

We are grateful to Root Capital for the training that it offered us. Their support helped us develop the tools that are necessary to manage honey and coffee production, and harness the value chains of these products, from production to trade”, says Miguel Ostuma, Director of the Cooperative Maya Ixil.

(Photo Credit: © Sean Hawkey)

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Key Figures

12

cooperatives supported in Mexico and Central America

2,446

farmers benefitting from better business practices in 2018

85

days of on-site financial training in 2018

12 cooperatives supported in Mexico and Central America
2,446 farmers benefitting from better business practices in 2018
85 days of on-site financial training in 2018