In November 2013, the company CAFEPSA (SPECIAL COFFEES OF EL PARAISO S.A. DE C.V.) of El Paraíso was able to sign a contract with the customer HONDUCAFÉ to sell 900 quintals of raw coffee under the conditions of Fair trade (FLO). Thanks to the FLO certificate, the coffee company will benefit from a minimum rate as well as the FLO premium.
One of the objectives of FUNDER through the SAG/USDA/IICA Food for Progress Program is the improvement of productivity through technical assistance and training to support production systems. Certification programs boost environmentally and socially responsible production and help provide good prices on international markets.
As part of this project, FUNDER began in 2013 a series of educational cycles in El Paraíso with the objective that the company CAFEPSA and other coffee organizations achieve Fair trade certification. Through training and technical assistance the CAFEPSA partners gained the capabilities to meet the FLO standard. The criteria that had to be implemented for certification include: being socially responsible (e.g. wages and decent working conditions), ensuring traceability, improving the organization through a Development Plan and protecting the environment (e.g. list of prohibited materials, safe storage of chemicals and keeping farms free of trash).In late 2013 an independent FLO-CERT auditor for two days confirmed compliance with Fair trade criteria. The coffee organization did well, so it turned out that in April 2014 CAFEPSA managed to get the certificate. It is noteworthy that before entering the certification process the coffee company already had a potential client who promised to buy a FLO coffee container under the condition that CAFEPSA had the certificate. Once the certificate was issued, the client took a step back because of the economic situation. FUNDER continued to support CAFEPSA, on one hand to retain the certificate and on the other side to find new customers.
In 2013 in new potential clients were identified in Europe to which samples were sent which were well received. In November 2013 CAFEPSA managed to sign a contract with HONDUCAFÉ to export 900 quintals of raw coffee to Europe.
Favorable Fair trade conditions will allow the coffee to be sold at a minimum price of US$140 per quintal of raw coffee. Current Price (16/12/2013) in the New York Stock Exchange for Arabica coffee is US$127.13. Also CAFEPSA will benefit from an additional payment of US$20 per quintal. This money, totaling US$18,000, must be invested to develop and empower the organization. Its use will be democratically decided by all partners.
Thanks to the Fair trade certification, support from the SAG/USDA/IICA project and FUNDER, the commitment of the partners and the manager, CAFEPSA managed to increase revenue significantly and came to lay the foundation for sustainable development of their organization.