Corporacion Agricola Vinasol S.A.C. (CAVSAC) began operations in 2001 as Agricola Vinasol (AVSA) selling and exporting crops in Valle de Canete, Peru. AVSA was the commercial branch of the Institudo Rural Valle Grande (IRVG), a Peruvian NGO that works to improve smallholder farmers’ livelihoods by advancing production techniques. By selling products developed by IRVG and grown by local farmers, AVSA served a key role in the process of connecting Peruvian farmers to markets and technical expertise.
In 2011, AVSA restructured into CAVSAC, which continues to sell crops produced by small scale farmers in Canate, Caraz, and Humay at local and international markets. CAVSAC’s products include snow peas, asparagus, and apples, and the company provides processing, cold chamber rental, storage, and machinery rental services to agribusinesses in the Canata area.
GBF has been a long-time supporter of CAVSAC and AVSA. In 2010, GBF helped AVSA purchase agricultural processing equipment with an equity investment. As the company evolved and restructured itself into CAVSAC, GBF transferred its remaining investment into a loan in 2012. GBF has also provided CAVSAC short-term working capital loans to help meet the company’s financial need fluctuations around the harvest season.
GBF BAS & CAVSAC:
GBF’s Business Advisory Services (BAS) has helped CAVSAC develop their suppliers, improve their financial management, expand production, and ensure environmentally and socially responsible practices. Some of GBF’s BAS programs to date are:Financial Management: Ensuring budgets are followed and financial statements are measured against the budget through supervision meetings Environmental & Social (E&S): Implementing key areas of improvement from the company’s environmental and social review
CAVSAC boots farmers’ earnings by bringing their products to local and international markets, and has helped increase productivity through technical assistance
- As of September 2014, CAVSAC’s operations directly supported 396 farmers and workers, and an estimated 1,585 dependents
- GBF estimates that CAVSAC delivers an estimated $1.6M of income to its beneficiaries in January- September 2014; since GBF’s first investment with CAVSAC in 2010, the company has delivered an estimated $7.6M of income
- A Social Impact Assessment conducted in 2013 by SCS Global Services confirmed that over a third of farmers have seen their incomes increase since working with CAVSAC
- Using a 10-year estimate of CAVSAC’s economic reflows and total capital required, GBF calculates a 15% “Economic Rate of Return” for capital employed
- GBF estimates that 33% of the projected economic value created by CAVSAC goes to benefit low-income groups