Leveraging Financial Advisory Services to Grow a Coffee Cooperative in Chiapas, Mexico
Nestled in the buffer zone of the El Triunfo Biosphere in Chiapas, Mexico, Triunfo Verde is a coffee cooperative that grows organic and fair trade-certified coffee. In 2000, Triunfo Verde was a new cooperative of fewer than 100 members with a young management structure. Today, it has more than 255 members, and it is known for its transparent accounting and management practices.
Client Profile: Triunfo Verde
In 2000, Triunfo Verde was a new cooperative of fewer than 100 members with a young management structure. Today, it has more than 255 members, representing and it is known for its transparent accounting and management practices.
Though Root Capital began lending to Triunfo Verde in 2006, under-developed financial systems prevented the cooperative from accurately forecasting costs and maintaining reliable financial records.Root Capital’s Financial Advisory Services (FAS) program developed a customized technical assistance program to address Triunfo Verde’s needs and began to provide one-on-one training in 2008. As part of this training, the cooperative consolidated financial and administrative tools and automated the preparation of financial reports that improved the financial management and governance of the cooperative.
Also, the cooperative’s leadership was trained on how to use accounting software and evaluate financial results. Alicia Hernandez, Triunfo Verde Internal Credit Manager, observes, “We had the accounting software installed prior to the training from Root Capital, but we didn’t know how to use to use it. Now that I know, our accounting system will provide us much more and better organized information.”
After the 2008 training, Triunfo Verde received $1.8 million in trade credit financing from Root Capital and was able to grow its membership from 150 to 255 and increase sales by 22 percent.