Norandino, Peru

Funding for coffee and cocoa farmers

The saving and credit cooperative (Coopac) Norandino was established in 2005 by three producer organisations; Cepicafe, Cenfrocafe and Oro Verde. A cooperative financial institution such as Norandino was needed to further develop rural financial service provision in the north of Peru. Thanks to Norandino, over the years thousands of small farmers have obtained access to funding.

Norandino now has 8,250 members and 9 offices spread across different provinces in the north of Peru. Since 2009 Rabobank Foundation has sponsored this growth. This saving and credit organisation is a key intermediary for the many small coffee and cocoa corporations in the region. These organisations are often too small and not sufficiently professionalised to be eligible for working capital or trade finance. Through the Coopac Norandino channel, we are able to fund these smaller cooperatives. In addition, the members of the cooperatives concerned can also join Norandino as individual members. That way they become eligible for microfinance or a savings account.

Working capital and training

How do we work with Coopac Norandino? Rabobank Foundation grants a loan to Coopac Norandino, which in turn lends to a smaller coffee or cocoa operation. This working capital means that the farmers’ harvests can be bought at a fair price. That’s good for the cooperative as they are guaranteed sufficient coffee or cocoa. And it’s good for the farmer because he gets a better price for his harvest than he would on the local market or through an intermediary. Norandino also provides training and advice to smaller cooperatives and helps with capacity building. This means that these organisations can grow sustainably until they are able to operate independently. Organisations which reach that stage can then be directly financed by Rabobank Foundation.

Coopac Norandino and Coop Norandino

Coopac Norandino now has 16 cocoa and coffee cooperatives as members, including the producer cooperative (Coop) Norandino. So there are in fact two different Norandinos: Coopac and Coop Norandino. They’re both project partners of Rabobank Foundation. The financed cocoa from the small cooperatives can be sold to Coop Norandino, which then trades the cocoa on the international market at a good price. And Rabobank Foundation contributes to access to funding and to better markets.