Price Risk Management

This project brings together a diverse group of organizations for the creation of a unique PRM project that aims to transform the profitability, credit-worthiness, and competitiveness of 16 selected cooperatives from Honduras, Guatemala, Costa Rica, Nicaragua, Colombia, and Peru over a three-year period.

The project includes the development of a PRM training process under a multi-year approach, refining the fundamentals and learning about PRM with a strong evaluative component that engages the cooperative’s Board and Management with tools tailored to the coffee cooperative context. A simulation-based program and a PRM toolkit will be created to provide experiential learning in the use of hedging instruments.

Finally, through Oikocredit, the executing agency, the project will have a pre-approved lending facility that will provide liquid, flexible, unsecured PRM financing to cover all costs related to PRM implementation.

Implementing partners

Oikocredit, Catholic Relief Services (CRS), Fair Trade USA, and Keurig Green Mountain.

Direct and Indirect Beneficiaries

The main project beneficiaries are 22 coffee cooperatives in Latin America, including Board Members, people in management positions, financial and commercial managers, and financial staff. Through the implementation of PRM strategies at the coop level, the approximate 5000 smallholder farmers represented by these cooperatives will also become project beneficiaries.

Location

Honduras, Guatemala, Nicaragua, Costa Rica, Colombia, and Peru.