Producer Profile: CAC Pangoa

Written by Cafe Campesino on Jan 5, 2009 in NEWSLETTER, Producer Profile |

Approx. 600 members (2009)
Based in San Martin de Pangoa (450 km east of Lima; in central Amazon)
Coffee grown between 1,100 and 2,000 meters
Economic diversification: cocoa, honey, roasted coffee (domestic market), ecotourism
FLO Certified since 2003
Organic certified since 2002

Tucked away in the central Amazon region of Peru, just east of the Andean mountain range that runs through the center of the country, CAC Pangoa (Cooperativa Agraria Cafetalera Pangoa) has been serving its members since 1977.  The coop has experienced a colorful history of good and hard times.  It was founded by 50 farmers from a coop in neighboring city, Satipo, and grew to nearly 1700 members at its peak (in the early 1980s).  With 3% of every sale, Pangoa was able to build most of the infrastructure that it uses to this day.  During the period that’s known as El Terrorismo (“the terrorism”) when the Shining Path violently swept through what had, up to the late ’80s, been the peaceful, isolated, rural areas of Peru, killing thousands of innocent people and carrying out a determined campaign of instilling paralyzing fear.  CAC Pangoa lost hundreds of farmers who fled to cities to escape the terror.  Since then, they have regained membership and currently serve approximately 600 members (2009).

CAC Pangoa began encouraging its members to switch to organics through a formalized program of training and documenting practices according to OCIA (international organic certifier) standards.  In 2002, they got their first certification; today, about 50% of their members are either in transition or already certified organic.  In 2001, they received FLO certification but had trouble finding a market to export to.  Dutch NGO Green Development Fund sponsored the coop to send current manager Esperanza Dionisio and the president to go to the SCAA gathering in the US in 2003 where they learned of Cooperative Coffees.  Since 2003, Pangoa has put forth strong efforts to provide Coop Coffees with high quality, consistent Fair Trade, organic coffee.

The coop is involved in the lives of its members beyond the purchasing and selling of their coffee.  From promoting education to gender equality to better quality of life, Pangoa provides an exemplary model of Fair Trade.  The Women’s Development Committee (Comite de Desarrollo de la Mujer) works to benefit the female members, wives, and daughters.  They organize medical check-ups for all women over 30 years old for prevention and early detection of several diseases.  The committee is an integral part of the cooperative and strengthens it by forming new leaders and members with a new vision of development that includes and appreciates the female voice.

When the coop was first certified Fair Trade, it established two programs that continues to serve members today: 1) the Educational Fund which allows members to borrow up to $2000 (US) to pay for their children’s university fees and 2) the Health Services Fund offers members interest-free loans of up to $600 (US) to cover any medical attention they might need.  In 2008, Pangoa expanded its FT premium project list to include 5 more that cover tree renovation, improving their members’ living standards, developing individual wet processing plants and drying stations, and covering the funeral costs of any members.  With these extra funding projects, Pangoa hopes to better and more broadly meet the needs of its members.

In addition to coffee, Pangoa has promoted economic diversification through cocoa production in lower elevations and honey cultivation.  They export a couple containers of cacao per year and are working on improving quality and expanding their market.  A roasted coffee project is fully underway with the objective of establishing a secondary source of income as well as develop a domestic appreciation for high quality (exportable) coffee to be consumed internally.  In 2009, they began plans to develop a local ecotourism project to supplement incomes from coffee production.

“With the Fair Trade price we hope to increase our organic production so that we can improve and conserve the soil and subsequently increase our productivity. With increased revenue from Fair Trade sales, we plan to improve all technical aspects of our production.” Ing. Esperanza Dionisio Castillo,CAC Pangoa, General Manager

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