P.O.Box 824, Goroka
Eastern Highlands Province 441
Papua New Guinea
Contact: Kaimi Warin, Managing Director
Phone: 011- 675 -472 -4330
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.
- Accessible financing for all co-op members for services such as education and
- A women’s education program addressing reproductive health issues
- Construction of a local elementary school
- A home improvement program for
- A crop diversification project which provides technical support and
allows members to produce chili and cardamom for the local market, as well as vegetables and
livestock for home consumption
The ultimate goal of the above programs is to improve business capacity and consequently the vitality of the Obura-Waninara community. These programs, therefore, target its 1400 members and more in the Obura-Waninara District of the Eastern Highland Province of Papua-New Guinea. This is the poorest region of this Pacific island nation, with 96% of the population living below the U.N. recognized poverty line of one dollar a day, and the literacy rate at less than ten percent.
- Obura-Waninara District of the Eastern Highland Province of Papua-New Guinea.
-Poorest region of this Pacific island nation
-96% of the population living below the U.N. recognized poverty line of one dollar a day, and the literacy rate at less than ten percent.
-Coffee is the sole cash crop for almost every farmer in KWAY.
- 444 farmers and their
families, spread throughout the remote Obura-Waninara District, formed the cooperative.
-In the absence of pre-financing, farmers borrowed funds from local moneylenders at exorbitant rates, often eliminating the advantage gained through Fair Trade pricing.
- KWAY used Fair Trade premiums to build a water supply system for one of the villages
- The cooperative has grown to 1,400 members since inception
- For the current
harvest, 92 tons of certified Fair Trade coffee are expected to be exported under Fair Trade prices
(worth US$1.41/lb. up from 15cents/lb)
- About 50% of Annual Revenue is redistributed to
- 18% of Annual revenue is cost of sales
- 21% of Annual Revenue covers air
freight and other costs of bringing coffee to processing mills.