Building stronger, more resilient and sustainable businesses

Onboarding new organisations into the Shared Interest portfolio continues to present challenges. However, there was a notable improvement in the last financial year, with the addition of 11 new facilities. These new facilities were extended to nine organisations, with a total value of £2.1m—an increase of £800k compared to last year's new facilities.

Coffee co-operatives, central to our lending portfolio, are leading diverse approaches to sustainability and climate resilience. Their strategies reflect growing recognition that coffee farming's future depends on adaptation and income diversification.

During our consultations with producers, we asked participants to share their organisations achievements and the factors that contributed to improved trading opportunities.

Uganda

In Uganda, contrasting approaches highlight the breadth of adaptive strategies. One co-operative gave 705 beehives to 141 farmers, creating parallel income streams through honey production while supporting crop pollination. Another co-operative focused on climate change adaptation training, building farmers' capacity to manage environmental challenges and maintain coffee yields despite increasingly unstable weather patterns.

Peru

Peruvian co-operatives have prioritised infrastructure and technological advancement. A new warehouse development has streamlined logistics operations, addressing storage constraints that previously hindered efficient distribution. Meanwhile, another co-operative's investment in modern agricultural equipment, including de-pulping machines and irrigation systems  demonstrates how technological upgrading can simultaneously boost productivity and reduce environmental impact.

In another sustainability-driven initiative, a Peruvian coffee co-operative partnered with Solidaridad an international non-governmental organisation (NGO) to participate in their agroforestry carbon credit system. This initiative extends beyond traditional farming practices, enabling the co-operative to generate income from carbon credits while advancing climate mitigation through reforestation and agroforestry.

Nicaragua

In Nicaragua, a coffee co-operative took strides in supporting quality control and product innovation by establishing a laboratory to analyse and improve coffee quality. This investment in quality control runs alongside practical support through fertiliser provision, reflecting a holistic approach to production improvement.

These adaptations represent a significant shift in coffee farming strategy, where environmental sustainability and financial resilience increasingly converge. Recent research from the International Coffee Organisation suggests such diversified approaches are becoming essential for coffee producers facing climate instability, with successful models combining technological innovation, environmental stewardship and market diversification.

The initiatives demonstrate how coffee co-operatives are evolving beyond traditional production models, creating more resilient and sustainable operations while maintaining their crucial role in community development and environmental protection.

Click here to read the full Social Accounts document.