Second Payment

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Last week I traveled three hours south to help our senior business advisors administer the second payment scheme. It is a shame that I only got to get out to the field so late in my stay because this is really where it all takes place, where everything that one is doing in the office comes to life and ultimately what the entire project is about.

The second payment was recently introduced by Technoserve to make sure greater premiums paid for washed coffees make their way back to the farmer. Farmers deliver their coffee cherry to the wet mill/cooperative and are paid an initial sum of money. The wet mill then processes the cherry and sells the processed bean. If the wet mill makes a profit for that quarter/year they then pay the farmers an additional sum of money based on how much coffee they initially delivered to the wet mill.

Although in theory joining a coop seems to be a no brainer, farmers are reluctant because coops have a history of poor management and corruption. As a result much of the morning was spent marketing the wet mill/coop and explaining the benefits to farmers.

Observations: Amazing sense of value add; farmers regularly coming up to me and explaining how I (yes I personally) had changed their lives (very humbling). Some of the community members spoke to the community and it was amazing that even the least educated delivered flawless speeches; poised, eloquent and confident. Steve Jobs himself would have been proud.

All in all the day was a real eye opener. When we asked the farmers if they thought that one year ago they would ever be paid twice for their coffee, the answer was a resounding NO. But there we were dolling out cash for a second time and that is a testament to what can be achieved with vision, serious determination and of course the all important lubricant of capitalism - funding.

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