The Junta Nacional del Café represents 52 coffee cooperatives and associations with 55,000 producers in Peru. Through surveys and legal document reviews, it found cooperatives facing threats from tax authorities despite coffee being an important export crop. It advocated to government, assembling evidence of cooperatives' social and economic benefits. This led to stopped orders against cooperatives and improved agricultural union support, though sanctions were not fully revoked. The organization now stresses evidence-based policy proposals and building partnerships to strengthen smallholder participation in value chains.

1. Junta Nacional del Café- JNC
Farmer organizations in value chain
policy making
Defense of the cooperative model
Meike Carmen Willems
Responsable del área de Cooperación al Desarrollo e Incidencia

2. Junta Nacional del Café
Institutional Mission:
Strengthen management and negotiation capabilities of
Peruvian coffee organizations.
Strategic Objectives:
• Strengthening the negotiating capacity of national and
international influence
• Promotion coffee territorial development
• Support for production and business competitiveness of
the coffee organizations
• Development of internal capabilities
Members
Currently: 52 organizations (cooperatives and associations),
with 55,000 producers

3. Peruvian Coffee:
• 405 000 hectares, in 338
rural districts, 68
provinces by 165,000
families.
• Coffee has been the main
agricultural export
product for 25 years.
• 32% of the coffee is
certified extension as
differentiated coffees,
(organic – sustainable).
• 95% of production is
exported to 42 countries,
Europe being the main
destination.

4. Paradoxes Peruvian Coffee Sector
• Unwillingness of governments for
sectorial consensus, and therefore
lack of policies to support the
1st agro export crop sector
• Tax system puts the association of
1st exporter of coffee small producers at a disadvantage
produced with
environmental • Farm property not formalized
(approx. 50%)
responsibility criteria,
as organic, Fair Trade, • Poor development of technologies,
Bird Friendly and innovation and agricultural
Rainforest Alliance extension
• Old Coffee plants (average 20
years), poor yields

5. The development challenge (relating to smallholders and value
chains/market access) and how the challenge was identified
• Representatives of the new government (2011),
Ministry of Economy, calls for repeal of the law
that requires the Cooperative Act, claiming illegal
in their approval.
• Tax policy seeks to break the cooperative model
• Defense of the cooperative model and recognition
of Cooperative Act.
• Intervention of the SUNAT to the coffee
cooperatives ignorance of the cooperative model.
It came to seize the bank accounts of some
cooperatives.
• Achieving the lifting of sanctions to cooperatives.

6. What evidence was required and why (1 slide) and what research
or study work was undertaken (e.g. desk study, farmer or market
surveys, legal document review, etc) (1 slide)
• Program information and precise
actions of SUNAT
• Because of the situation and the
difficulty of the problem (though of
cooperatives by SUNAT) the members
were consulted of the problems there
was having with SUNAT to develop
advocacy strategy and pressure.

7. How was the research evidence used to formulate feasible, evidence-
based propositions for changes in specific policies and institutional
arrangements in support of aspects of smallholders participation in value
chains
• Mainly to describe the criteria governing
the existence of Cooperatives (embedded
in cooperative law) through a specialist.
• Meeting with representatives and their
advisers to refine the proposal.
• Cases of cooperatives that were being
tapped (through surveys and interviews)
• Broadcast JNC events (congresses coffee,
meetings and workshops).

8. Advocacy methods
• A document of political support by an expert in
the subject cooperative (parliamentary advisor).
• Media and political pressure to curb the actions
of SUNAT. Press Releases
• Strategic alliance with other agricultural unions
through CONVEAGRO.
• Prepared a dossier information for decision
makers (especially legislators and ministers).
• Broadcast JNC events (congresses coffee,
meetings and workshops).

9. What were the policy or institutional change outcomes? Who has
benefitted, in what way have they benefited and are the outcomes
sustainable (2 slides)
• They managed to stop the order of MEF,
mainly by social pressure (up in Lima) and
pressure from congressmen identified with
the subject.
• Not able to annul the existing sanctions
SUNAT (foreclosures persist) and do not
want to implement the recommendations.
They have no interest in learning or
promote the cooperative model.
• Enhanced support of agricultural unions
and state sectors

10. What (if any) institutional changes has your organization put
in place as a result of your experiences
• The JNC has the reputation of being
a proactive union.
• Policy proposal: stress the social
benefits (increase of family income),
technical support (pruning system),
financial support (payment method)

11. Main challenges for Farmer Organizations in supporting
value chain development
• Shared Vision
• Efficient and transparent business
management
• Culture of quality products
• Ensure favorable outcomes for partners
• Build partnerships with public institutions
• Accountability
• Democratic practices

12. How important is research based evidence-to-
policy and how can this be strengthened?
• Most governments ignore the reality of the
agricultural sector. Hence the need to
negotiate with validated proposals (with
sustainable results, economic and social).
• To do this you have to have systematized
processes (production, economic,
organizational, environmental, etc.).
• Professionals (researchers) involved

13. Any other key lessons learnt or observations?
• Build alliances with institutions like
CONVEAGRO, where they meet
agricultural unions, international
agencies, State
• Promote local and regional investments.
• Increase the knowledge of producers
and the capacity to put social pressure
(Mobilization)

14. • “There is no morning without coffee”