Total loan: $50,000
Direct Origin Trading
Tolima, Tolima, Colombia / Agriculture
Flag of Colombia
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A loan helped raise wages for rural farming families in post-conflict regions in Colombia.
Direct Origin Trading's story
This loan may have higher risk but higher impact. Learn more here. Problem: Smallholder coffee farmers in Colombia have little access to differentiated coffee markets, limiting their ability to capture the true value of their coffee. This leaves farmers in poverty and incentivizes farming techniques that maximize production at the expense of quality and the environment. Their margins tend to be thin or nonexistent due to the volatility of the commodity market and number of middlemen, causing many to lose their farms and migrate to the cities. Solution: Direct Origin Trading (DOT) takes supply chain transparency to a new level, connecting farmers directly to craft roasters. This personal connection fetches a higher price, and more importantly, does not fluctuate like commodity prices. By forming farmer collectives, DOT allows farmers to receive payment at the time of harvest, while capturing the value that their quality coffee deserves. Check out their overview video to learn more. Use and Impact: This loan will extend DOT's pre-financing program to more smallholder farming families, especially in isolated, marginalized areas affected by armed insurgency. This loan will allow Direct Origin to process and export more coffee more efficiently while paying a 50%+ premium to rural farmers.