For over 50 years, FCC has worked to improve the livelihoods of small farmers in an area of Colombia greatly affected by armed violence. The NESsT Lirio Fund extends a revolving working capital line to this long-standing federation of coffee growers, complementing the strategic support it receives as part of the NESsT Acceleration Portfolio.
Photo: FCC producers
Federación Campesina del Cauca was founded in 1971 as a vital support network for small coffee producers and their families in Cauca, Colombia – an area where paramilitary and guerrilla groups are still active. Today, formed by five local farming associations, FCC represents and protects the rights of over 350 small producers, over 30% of whom are women, purchasing their high-quality coffee beans at premium prices and ensuring they earn a living income.
In 2024, FCC was selected to join the NESsT Acceleration Program in South America to scale its business and impact. When our comprehensive due diligence processes revealed a need for increased working capital to pay coffee producers, the NESsT acceleration and Lirio Fund teams assessed financing options, ultimately facilitating a loan – the NESsT Lirio Fund’s third investment in Colombia.
With a revolving working capital line from the NESsT Lirio Fund, FCC will be able to pay its members promptly and consistently while managing longer payment cycles from buyers. Having access to a ready-to-use, flexible funding stream also allows the federation to maintain its commitment to the ongoing education of farmers in organic and Fair Trade certifications and sustainable farming practices that honor their heritage and improve the quality of the coffee they grow.
Juan Bautista Narvaez is one of the oldest producers supported by Federación Campesina del Cauca and is also one of the federation’s co-founders.
Juan manages a climate-smart farm where he grows coffee alongside tangerines, avocado, and other fruits – planted with FCC’s support to farmers to diversify income streams and adapt to climate changes.
Due to persistent climate challenges, one of the areas FCC provides support in preparing self-sustaining farms with diverse income streams. During 2024, with the support of NESsT’s acceleration portfolio managers, the federation assisted 366 farmers to introduce bees to their organic farms. Beyond creating extra household income, beekeeping enhances plant pollination and combats the loss of coffee flowers caused by climate change. With access to capital from the Lirio Fund, FCC can support farmers to sustain this practice, ensuring long-term growth and greater climate resilience.
As FCC builds upon its significant legacy of positive change in Cauca, it seeks to secure new buyers in a region with intense competition. On-going support in strategic weekly meetings with the NESsT acceleration team has strengthened FCC’s commercial and branding strategies, developing a unified brand that ties its coffee and honey business lines under a solid identity and positioning FCC for greater sales opportunities in national and international markets.
Photo: FCC small-holder farmer
Building on this progress and drawing on its extensive experience supporting coffee cooperatives and associations throughout South America, the NESsT Lirio Fund team is assisting FCC to attract a wider range of clients, with a focus on establishing lasting partnerships with international buyers.
This dual-track approach will allow FCC to boost its farmers’ income by 60%, while enabling the federation to improve profit margins and raise additional funds for new projects that support local growers in producing exceptional coffee.
This story originally featured in the NESsT 2024 Annual Report.
