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Cooperativa de Servicios Agropecuarios 25 de Julio Limitada

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Public Statement 2015

Title Mountain Economy
Type of organization Cooperative
Country Honduras
Duration  Three years
IAF Funding   $163,890
Counterpart Committed $170,335: $45,000 in cash; $125,335 in kind
Number of direct &
indirect beneficiaries
Direct: 105
Indirect: 550
Primary program areas Agriculture/food production, education/training, Environment

Organizational background
La Cooperativa de Servicios Agropecuarios 25 de Julio Limitada became legally constituted in September 1993. Its mission is to obtain better prices for its members’ coffee and to cultivate the crop in a manner consistent with the responsible use of the environment. Its board of seven directors is elected every two years by a general assembly of all 27 members. Achievements include more than 100 acres of coffee under organic cultivation, construction of a processing center, and the production of organic fertilizer as a component of the cooperative’s output. The Honduran Secretaría de Recursos Naturales y Ambiente and the brewery Cervecería Hondureña awarded 25 de Julio a prize for its efforts to protect the environment. Caritas and Fundación Ayuda en Acción have supported 25 de Julio.

Project Objective
To increase income through responsible agricultural practices, improved management, access to credit and expansion into new markets.

25 de Julio, located in the municipality of Victoria, Yoro, will help its members improve their income by developing the cooperative’s administrative skills, conducting training, offering credit in partnership with a community savings-and loan-association, increasing coffee production, pooling harvests to sell in volume and reaching new markets. The work will benefit 105 Hondurans directly and another 550 indirectly.

Rationale for funding
The IAF funds many organizations working with coffee, but the IAF’s Honduras portfolio does not currently include a grantee involved in coffee production. Yet coffee is an important crop in Honduras and a grant to 25 de Julio would support farmers trying to earn a living from it. The cooperative’s partnership with the savings-and-loan association is an appealing feature of the proposal because two grassroots groups are working together to develop the community they both serve.

Learning Opportunity
The cooperative should confirm the benefit of access to capital and training when farmers want to improve production. It should also show that two community-based organizations working together can be more effective than either one working alone.