Caes piura

Unlocking the Power of Panela

Traditionally, most small farmers in the Piura highlands have grown coffee and sugarcane simultaneously, placing more importance on coffee cultivation as it is more profitable. In recent years, with the growing popularity, small producers in the northern macro-region have recognised that sugarcane represents an important source of income.

Panela has transitioned from being a marginal product with very low value in local markets to a more valued product in terms of quality, processing, and presentation, and it is now exported to more demanding markets in Europe and Japan.

The producers of CAES Piura grow sugarcane on their farms, either individually or as a family. Once harvested, they organise themselves into grassroots associations or groups to process the crop.

The Impacts of Climate Change on Panela Production in Peru

Sugarcane can be harvested throughout the year, however in the mountains of Piura, the heavy rains between the months of January and May make transportation and processing difficult. For this reason, during these months only 5% of the annual production is processed, with the highest production months being from July to December, when the rains have ended.

Elber Meza, General Manager at CAES Piura, said: 

“In 2023, the Piura region experienced heavy rains that affected roadways in some areas, with the most severe consequences felt by families living on the Peruvian coast. Within the co-operative, approximately two hectares of sugarcane were destroyed, impacting 10 families."

Elber continued: "The roads leading to the farms were damaged, with deep trenches making it difficult for families to access and harvest their crops. However, in other farms, the three-row planting systems and contour planting helped prevent significant soil erosion. Regarding the areas of land, only one family area was partially destroyed by the rains and landslides. Producer Ramos Abad Morocho had to invest 15,000 soles (around £3,000) to restore it, and the co-operative supported the restoration by providing bricks. The farm is now back in operation.

“There is growing concern about climate change, which is being accelerated by the harmful practices of industries, agriculture, and the general population, as they increasingly rely on energy from hydrocarbons. This is happening despite scientific advances in more eco-friendly energy sources. 

"CAES production is based on circular, Organic, and fair trade practices, which not only respect and protect water, soil, and the environment but also apply social principles, such as non-discrimination, respect, and equal opportunities for men and women. Additionally, it supports education for children and rejects child labour.”

Shared Interest and CAES Piura

Shared Interest has supported CAES Piura with finance since 2019, enabling the organisation to acquire larger stocks of brown sugar from their members and to contribute to improvements in their income and quality of life.

Speaking about the impact of our finance, Elber said: 

"The purpose of the Shared Interest loan is exclusively for working capital, such as the collection of raw materials and payment to each of the producers upon delivery, in a timely manner. CAES Piura supports the producers by providing advance payments for the collection of their products, which allows them to secure the product and pay their labourers promptly."

CAES Piura's Social Impact

General Manager, Elber Meza, told us: 

“In general, CAES Piura operates mainly in the rural highlands of Piura, an area identified as being impoverished. This is where their processing plant is located, creating jobs for local residents, primarily women and young people, providing them with dignified employment and opportunities for growth."

The main international market for brown sugar is Europe. CAES Piura aim to continue increasing their sales in the European market and they are also exploring the possibility of entering other markets such as the USA and Asia. In addition, they are seeking to diversify their portfolio, focusing on products with higher added value, such as peanuts.

CAES Piura work with their members to develop social and environmental projects. They have been working with the Inter American Foundation (IAF) to improve members’ family incomes by increasing the production and quality of their sugarcane fields. This project enabled farmers to improve their processing plants, as well as train farmers in Organic certification, so they can access wider markets.

In addition, this project included organisational strengthening by training women and young people to assume leadership roles. The project concluded in 2022 and they began a new project to finance production of brown sugar and peanuts. 

With regards to gender equality, the co-operative ensures its women members play an active role in its assemblies, meetings and decisions. Women have a voice and the right to vote, with the aim of promoting gender equality and social inclusion. Additionally, priority is given to integrating women into leadership positions within the co-operative.