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The case of Café Ambiental, SPC: A new business model for a Nicaraguan fair trade cooperative

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  • Le, Quan
  • Wild, Braden
  • Jackels, Susan

Abstract

The global coffee crisis in the early 2000’s had a devastating effect on Nicaraguan coffee producers. In response, cooperatives were formed with the purpose of supporting the communities as they survived the crisis and moved toward coffee quality improvement for access to global specialty markets. Usually, humanitarian support agencies work with existing cooperatives, but in this case Catholic Relief Services embarked on a project to support over 300 of the poorest coffee producers in the Matagalpa in their initiation of CECOSEMAC cooperative. This report describes how the process of forming a social enterprise introduced the Seattle University students to CECOSEMAC and revealed inadequacies in the fair trade and organic coffee export model. The innovative solution to this problem is to offer the producers a premium above fair trade and organic price and pay them up front. In addition, the supply chain was simplified and shortened that enabled the business to return another 12% of the sale price directly to the producers and 27% to an educational fund to support the children. This unique combination of educational focus, fulfilling community needs, and the empowerment of students has created a successful model that has transferrable potential to other educational institutions.

Suggested Citation

  • Le, Quan & Wild, Braden & Jackels, Susan, 2017. "The case of Café Ambiental, SPC: A new business model for a Nicaraguan fair trade cooperative," World Development Perspectives, Elsevier, vol. 6(C), pages 35-37.
    • Handle: RePEc:eee:wodepe:v:6:y:2017:i:c:p:35-37
    DOI: 10.1016/j.wdp.2017.05.003
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    References listed on IDEAS

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    1. Valkila, Joni, 2009. "Fair Trade organic coffee production in Nicaragua -- Sustainable development or a poverty trap?," Ecological Economics, Elsevier, vol. 68(12), pages 3018-3025, October.
    2. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447, December.
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    Cited by:

    1. Aniseh S. Bro & Daniel C. Clay & David L. Ortega & Maria C. Lopez, 2019. "Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 895-915, April.
    2. Quan Vu Le & Grace Jovanovic & Don-Thuan Le & Sanya Cowal, 2020. "Understanding the Perceptions of Sustainable Coffee Production: A Case Study of the K’Ho Ethnic Minority in a Small Village in Lâm Đồng Province of Vietnam," Sustainability, MDPI, vol. 12(3), pages 1-16, January.

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