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Root Capital
November 2007

In This Issue
  • Fair Trade Chocolate Benefits Growers in Ivory Coast
  • Supporting An Indigenous Permaculture in Ethiopia
  • Helping Farmers in Tanzania While Protecting Chimpanzees
  • Give a Holiday Gift that Counts
  • NuWire Investor Ranks Root Capital #3 in Top Charities

  • Fair Trade Chocolate Benefits Growers in Ivory Coast
    Fair Trade Cocoa from Ivory Coast

    The Ivory Coast is the world's largest cocoa producer and exporter, generating 41% of the world supply. Almost all Ivorian cocoa is grown by small farmers, and it provides them with an important financial lifeline in the midst of upheaval that the country has experienced in recent years. In 1999, the Ivorian government abandoned its system of internal price controls for cocoa, and opened up the markets. This initially led to predatory practices and reduced prices, and in response, groups of farmers began to organize cooperatives to sell and export their products jointly.

    The Kavokiva farmers' cooperative was incorporated in 1999, and five years later, it became the first in the country to achieve Fair Trade certification. With high quality cocoa and a good industry reputation for reliability, Kavokiva has quickly grown its Fair Trade sales. Root Capital recently loaned the cooperative $250,000 to enable it to purchase more cocoa from family farmers in the Sassandra region of western Ivory Coast, to take advantage of this increased demand.

    Starbucks Coffee Company is a key partner for Root Capital in ensuring sustainable supply chains for coffee and cocoa. Starbucks has not only purchased cocoa from the Kavokiva cooperative, but has worked through its suppliers over the past years to implement best practices and financial management systems at Kavokiva, and provides loan capital for Root Capital's cocoa portfolio. As Dennis Macray, the Director of Business Practices for Starbucks stated, "We are committed to purchasing cocoa that is produced and traded in an ethical, transparent and sustainable manner and our support to Root Capital is a critical component in making that possible."


    Supporting An Indigenous Permaculture in Ethiopia
    Coop members Yirgacheffe coffee

    All of Root Capital's agricultural clients practice at least some sustainable farming techniques, from reforestation and soil conservation to certified organic farming, often as a way of reversing productivity declines resulting from adoption of modern farming practices. But the members of the Yirgacheffe Coffee Farmers Cooperative Union, in the highlands of southern Ethiopia, don't need anyone to teach them about sustainability. Their coffee-- regarded by connoisseurs as one of the best in the world- is grown in a unique indigenous permaculture system that has sustained this land and its people for 5,000 years.

    The coffee crop is native to Ethiopia, and as a result its cultivation has been integrated into indigenous production systems for millenia. But it is in the mountainous Gedeo Zone, home to the Yirgacheffe coffee appellation, that coffee farming has become a part of what has been called "the most durably sustained land use system on the plant."


    Helping Farmers in Tanzania While Protecting Chimpanzees
    KILICAFE photo

    The Kigoma region in Northern Tanzania boasts some of the most fertile soil in Africa, and its altitude makes it perfect for growing high-quality, specialty coffee. However, the region's farmers have been hampered by their isolation, which makes it difficult to learn about best practices, and have limited access to water, a necessary ingredient in fermenting and de- pulping the coffee beans. Farmers have to walk an average of two kilometers to fetch water in local rivers, and then carry it bucket by bucket. An innovative partnership between Root Capital, Sustainable Harvest, and the Jane Goodall Institute (JGI) aims to change that, however.

    With generous support from the Lemelson Foundation, the three groups have teamed up for the "Gombe Coffee Promotion Project," which will train coffee farmers in the Kigoma region to process their coffee with low water use eco-pulping technology, resulting in coffee that will meet specialty coffee standards-and can be sold internationally for a premium, providing economic benefits to farmers and an incentive for them to preserve the local environment. Root Capital will provide long-term loans to coffee producers in the Kigoma region (as well as farmers in the Association of Kilimanjaro Specialty Coffee Growers, or KILICAFE) to purchase the more efficient coffee washing stations, resulting in an 80% reduction in water consumption-a huge environmental benefit in areas with water shortages, not to mention a huge savings in labor for farmers.


    Give a Holiday Gift that Counts
    gift2

    Starting to look around for holiday gift ideas? Please consider giving your loved ones a present that is truly meaningful and visit our profile on ChangingthePresent.org. Root Capital offers a variety of possibilities that will speak to your family and friends' unique interests while helping others. The coffee devotee in your life will appreciate your gift to support a women's coffee growing collaborative in Nicaragua. Your beach-going friends will love your donation in support of preserving ocean life in Mexico. And don't forget carbon offsets for your jet-setting pals!

    Once you select a gift, ChangingthePresent.org will send a beautiful, personalized greeting card to announce the donation in your own words. Gifts are available in all price ranges, including stocking stuffers. We appreciate your help in spreading the holiday spirit by helping others.


    NuWire Investor Ranks Root Capital #3 in Top Charities

    This week, NuWire Investor, an online investment magazine, released their list of the Top 15 Charities for Investors. Root Capital ranked #3 on the list. Says NuWire web editor Trenton Flock, "We chose our top charities based on their effectiveness and how tangibly the success of one's donation could be measured. Root Capital's goal of helping rural farmers take care of themselves, their communities, and the habitat of their homes is so crucial. The company does an excellent job of providing testimony and showing the tangible results of their positive involvement."


    Personal Perspectives
    Gail Kaneb

    Gail Kaneb is the President of Breakthrough Strategies and a Root Capital supporter.

    Passion and Creativity in Philanthropy

    We were looking for an organization involved in economic development that

    • was creating new models to attack old problems
    • was staffed by dynamic people who welcome new ideas
    • used entrepreneurship to achieve social goals
    • was developing solutions that are environmentally sustainable and scalable on a global level.
    We found it in Root Capital.

    Our family has been involved in micro finance for several years. Unlike traditional micro finance, which works very well in cities, Root Capital has found a way to work in rural settings. Traditional micro finance gives people access to local markets. Root Capital gives them access to global markets, in some cases doubling their income. By linking this increase to the fact that their products are sustainably produced, Root Capital offers traditional farmers a better alternative than "slash and burn" techniques.

    While Root Capital's mission and approach is what brought us in the door, we became interested in getting more involved after visiting their office and meeting the staff. Willy brought in the entire team and each person presented his or her part in the initiative. Because my background is in organizational development, I was particularly impressed with the diversity and the cohesiveness of the entire team, as well as the degree of passion and competence that ran through each level of the organization.

    The sense of team extends to the wider Root Capital community. Our involvement with Root Capital truly feels like a partnership. The staff seems to enjoy working with donors and has been very open to our ideas. Recently, our family has gotten involved. When our son was traveling in Latin America, he stayed at an eco-lodge that Root Capital finances in Peru. Our daughter has volunteered her time and shared her marketing expertise. The more involved we've all become with Root Capital, the more impressed we are.

    It is hard to imagine finding a better social and financial return on our charitable gift. Each loan affects, on average, five hundred families and the repayment rate is almost perfect. We also like the fact that our money is recycled annually to make a difference for new communities around the world. In the midst of a busy holiday season, I hope you will consider this exciting opportunity to affect the lives of others. As the year comes to an end and you think about your charitable giving, I strongly encourage a donation to Root Capital. There is no better investment you can make in the livelihoods of poor communities and in the conservation of our natural resources.

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