Smallholder Agriculture | July 27, 2023

Culttivo raises $14.5 million to extend credit to Brazil’s small-scale coffee producers

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, July 27 – Brazil is the world’s largest producer of coffee. Most beans are grown and harvested by small producers, whose livelihoods are increasingly vulnerable to climate change. Culttivo is helping coffee farmers to access credit for seasonal growing and to store harvests for preservation or to wait for higher prices.

The fintech venture secured 70 million reais ($14.5 million) from the nonprofit Foundation for Agricultural Technological Innovation, or Figaro, to lend to farmers. Culttivo expects to recycle the short-terms loans to be able to support 500 producers within a year. 

Culttivo uses satellite and on-farm data to estimate production capacity and underwrite loans. Its model accounts for environmental factors and labor conditions. Those found illegally deforesting land or “involved in work analogous to slavery” are denied credit, the company says.