Strengthening the Coffee Value Chain (SCVC)

Peru Strengthening the Coffee Value Chain (SCVC) is a $3.6 million, 32-month public-private alliance funded by USAID to improve the competitiveness and sustainability of the Peruvian coffee sector. The project will also increase coffee production and quality to ensure that interested smallholder farmers are receiving the highest premiums for their coffee and are maintaining licit economic activities. ACDI/VOCA and implementing partners, Solidaridad, the Coffee Quality Institute (CQI), and Sustainable Harvest, are leveraging at least 3.6 million of cash and in-kind USAID resources.

Over 50 percent of Peru’s population lives below the national poverty line, according to the World Bank. ACDI/VOCA knows from experience that specialty coffee markets offer economic opportunities for coffee farmers in developing countries to increase their incomes and live better lives. Higher quality coffees fetch higher prices in the global markets and farmers are able to differentiate their product through origin and flavor.

SCVC is addressing the weaknesses in the country’s coffee value chain that prevent the country and its smallholder farmers from reaching their full potential. The project objectives are:
 

1. Enhanced productivity and production of coffee farms.
2. Improved farmer access to new and profitable markets.
3. Increased technical and management capacity of Peruvian coffee organizations and institutions.

SCVC is targeting the provinces of Huánuco, San Martin and Ucayali, where large numbers of smallholder farmers suffer from high rates of poverty and endure conflict associated with coca production. By increasing the profitability and sustainability of the coffee sector, farmers will be encouraged to abandon coca production and use coffee as a profitable, licit livelihood.

To achieve project goals, ACDI/VOCA will adapt several of its signature development approaches to the Peruvian coffee sector, including farmer field school training, Farming as a Business curriculum and value chain analysis tools.

Goals to be achieved by the end of the project:
 

• 3,543 families will receive productive assistance
• 12,000 hectares devoted to licit agricultural production in areas supported by the project
• Increase the production average to 20 quintals per hectare of coffee produced
• 60 producer organization leaders trained in operational and financial management
• 50 coffee cuppers certified as Licensed Q-Graders
• 3 producer organizations using the pilot traceability system established under the project