Kulkao supports over 400 cacao farmers
Located in the jungle areas of central and eastern Peru, Kulkao sources cocoa from over 400 smallholder farmers living in the remote regions of the Amazon basin. Its products include cocoa butter, cocoa powder, and cocoa nibs that are sold to local and international markets such as Europe and North America.
Kulkao provides farmers with technical support on organic farming and sustainable agriculture practices while offering them a premium price for their organic products.
In 2021, NESsT’s provided Kulkao with a working capital loan to support the social enterprise’s sustainability practices, increase its organic production capacity, and strengthen its position in the cocoa industry in Peru.
Kulkao maintains close communication with farmers and conducts farm visits, during which its technical team oversees regular testing of farm lands and shares soil management lessons to keep quality and production levels high.
To safeguard against the damage of non-organic pesticides and other chemicals, Kullkao carries out several stages of quality testing in its certified organic processing plant. Its quality control procedures guarantee traceability, allowing the social enterprise to pinpoint sources of contamination and work with farmers to improve their practices.
Kulkao’s rigorous quality testing ensures high-quality cacao
Kulkao was able to repay this loan in full in accordance with the NESsT loan schedule. This was made possible by maintaining strong relationships with local farmers and developing a robust customer portfolio.
Due to its success, in 2023, NESsT approved a second revolving loan to Kulkao, supporting the social enterprise to continue to purchase cacao beans from local farmers committed to organic, sustainable practices.
“We are very excited to renew our partnership with NESsT. Their support is not only key for the growth and sustainability of Kulkao’s business but also to ensure the supply of organic cocoa beans from our farmers.”
Beyond strengthening smallholder farming communities, Kulkao also works to improve the livelihoods of rural Peruvian communities in Huánuco, Ucayali, Cajamarca, and Junin by providing workers from these areas quality employment opportunities with stable income. The cooperative currently employs 50 workers from rural areas in its processing plant and administration team.
Led by a strong management team with 40 years of combined experience in the cocoa sector, Kulkao will leverage NESsT’s second loan to increase production capacity and operations at its processing plant in Huánuco. This will support the cacao cooperative to source from and provide technical support to more farmers, including women and Indigenous farmers.