How Might We Improve Access to Pre-financing for Cooperatives and Coffee Washing Stations?

May 18, 2016 - AGLC Team

Backgrounder 5: How might we improve access to pre-financing for cooperatives and coffee washing stations? May 2016

KEY ISSUES

1. Many cooperatives and cooperative-owned coffee washing stations face management challenges. At the same time, Rwandan banks are cautious in making agricultural investments. Because of these factors, many cooperatives do not receive pre-financing.
2. Since cooperatives often do not have the pre-financing required to pay farmers upfront, many farmers revert to selling to either middlemen or private coffee washing stations.
3. Cooperatives can provide farmers with benefits not provided by private companies. For example, they can pay dividends / premiums to reward the production of high quality coffee, and can provide inputs. However, the lack of prefinancing and thus the lack of upfront payments reduces the benefits of cooperative membership.

You Might Also Be Interested In

Accessibility Questions:

For questions about accessibility and/or if you need additional accommodations for a specific document, please send an email to ANR Communications & Marketing at anrcommunications@anr.msu.edu.

Tag List
  • aglc,
  • aglc backgrounders,
  • food security group,
  • innovation lab for food security policy,
  • rwanda
  • follow us on linkedin
Michigan State University
  • Spartans Will.
  • © Michigan State University

MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential.

Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Quentin Tyler, Director, MSU Extension, East Lansing, MI 48824. This information is for educational purposes only. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned.

The 4-H Name and Emblem have special protections from Congress, protected by code 18 USC 707.

We comply with the Federal Trade Commission 1998 Children’s Online Privacy Protection Act (COPPA).