KWAY Organic Coffee Farmers, Ltd. is a Papua-New Guinea cooperative that pre-finances contracts for
coffee producers to sell to Royal Coffee, Inc. (“Royal”) of Emeryville, California. Prefinancing
provides funds to the coffee farmers at the time of harvesting, processing and exporting, prior to
the payment against shipping that is the standard for coffee contracts. Without prefinancing,
farmers must borrow funds from local moneylenders at exorbitant rates, often eliminating the
advantage gained through Fair Trade pricing.