Common Fund Loan: USD 1,532,400

The project encouraged horizontal and vertical diversification in marginal rural areas for coffee producers who due to the low coffee market prices are unable to generate sufficient incomes to sustain their livelihoods. The aim of the project was to establish a defined process of diversification for marginal coffee farms in the State of Veracruz, Mexico. Through technology transfer mechanisms based on the capacity and experience of the University of Veracruz, an entrepreneurial culture for small coffee growers has been promoted through the setting up of integrated enterprises. The ultimate goal was to identify and develop productive alternatives and innovative ways of production which would encourage coffee farmers to stay in the region. These activities resulted in additional farmer’s income in the short and medium term and improved the quality of life of coffee growers’ in these marginal areas. Among the other results obtained the following should be mentioned:

  • A productive diversification program in coffee farms located in marginal areas of the State of Veracruz, covering 1,500 ha, was established which is currently expanding to the remaining areas of Veracuz, encouraged by the State Government;
  • Maintenance of selected 1,500 ha of coffee under shade so as to generate and conserve various ecological resources such as “water conservation”, land and regional bio-diversity;
  • Maintenance of the local agro-forestry system generating environmental benefits.

Grant-funded activities were operationally completed in 2013. A final publication focusing on the grant part of the project has been prepared by the University of Veracruz. The report (in Spanish) can be accessed here (Final Report CFC/ICO/32). Monitoring of the outstanding loan, is taking place on a regular basis, to be repaid in full in 2019.

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