The Problem
Smallholder coffee farmers in Kenya earn less than 35% of the international market value on their high-quality specialty coffees, earning on average just $250 annually (less than a dollar a day) for the coffee they produce. This is primarily due to lack of market access and limited information regarding the quality of their coffee.
The Solution
Vava Coffee is a Fairtrade-certified social enterprise founded by Vava (photos 2-5) that brings specialty grade micro lot coffees to consumers and importers who pay fair, premium prices. By directly linking smallholder coffee farmers to markets that are keen on ethically sourced, traceable microlot coffees, Vava Coffee's fair trade model provide a sustainable livelihood for their smallholder farmers.
Impact
Since 2009, Vava Coffee has worked with 30,000 smallholder farmers, paid them 57% higher than market prices, and has increased their income by 16x. Their aim is to impact 130,000 farmers by 2018.
Loan Use
With your Kiva support, this loan will allow Vava Coffee to:
1. Bridge the gap in cashflows that exists between paying their suppliers immediately during the harvest season (December - February), and when they receive cash from their customers (coffee importers).
2. Expand distribution into new specialty coffee markets.