By Jennifer McLean, September 1998
The Chanchamayo Cooperativa is one of only two coffee cooperatives to survive in that region. Chanchamayo is the name given to the coffee-producing areas in Junin Department and neighboring Pasco. Terrorist activities in the 1980�s and lingering criminal activity weakened the local economy. The Cooperativa weathered out these difficult years to emerge even stronger. The success of the cooperative is due in part to the fact that it was established in 1966, well before the disruptions of the 80�s, and also the exceptional management of the business.
Membership grew rapidly in the 90�s, from about 100 families in 1990 to more than 500 in 1998. Membership is open to any coffee producer meeting basic standards of quality. However, the majority of the members are those who farm less than 15 ha. The larger producers tend to form their own business connections and do not require the services of a cooperative. In Chanchamayo, as in other coffee-producing regions, the bulk of the coffee comes from large plantations but the majority of coffee farmers hold much smaller farms. Thus the Cooperativa represents a small portion of the total production in the region but a significant number of families.
In its formative years, the cooperative provided all of the necessary services to its members. The same organization bought and sold the coffee, lent money to the farmers, and provided technical assistance and evaluation of the farms. Little by little these services were separated out until a separate organization was formed to broker the coffee, ECOCHASA, while the Cooperativa continued to serve the members in various social and legal matters. In 1994 the separation of functions was completed with the formation of the Banco CrediSelva to give loans to qualified farmers whose production had been independently assessed. CrediSelva was created with investments of the coffee farmers themselves. It is now sufficiently established to operate as a general bank. This evolution of the cooperative over some 30 years is an interesting example of how an agrarian cooperative can not only survive a difficult political and economic environment but also become successful enough to spawn other businesses.
The Cooperativa sells approximately 18,000 to 20,000 quintales (roughly 1,000,000 to 1,200,000 kg) of crude coffee to ECOCHASA. In Lima, the crude coffee is cleaned of the pergamino and sorted by quality. Cafe de Chanchamayo is sold either green or roasted to various clients in Europe and the United States. There are few customers in Peru. Despite the good quality of Peruvian coffee, there is not an established taste for fresh coffee and thus no national market. Several Peruvians who work in the coffee business complained to me that �los peruanos no saben como tomar el caf�. In the home, imported instant coffee is used. And in restaurants, generally, coffee is not fresh brewed but rather made available as a concentrated syrup that one adds to a cup of hot water. According to Ra�l D�az Apaza, manager of the Cooperativa, what is needed is a little promotion of good Peruvian coffee in hotels and restaurants, especially those catering to travelers.