Johnny

p1070119-johnny

Johnny

Johnny looks after the microcredit scheme. Having had some credit issues with the original scheme, they have now joined up with the local Savings Coop to which most of the producers belong. This allows professional financial management of the scheme, with the coop supplying 50% of the capital and the cooperative savings bank providing the other half. Initially funded with 240,000 Peruvian Soles (or about $80,000) this current version of the scheme has lent an average of 1,500 soles each to 180 producers. This has been an important source of capital to fund the preparation and sowing of quinoa, and the amount lent represents approximately half the capital outlay of planting a hectare of quinoa- the principal source of income for the producers (potatoes being grown for own consumption). This has allowed most producers to increase the land sown with quinoa, where capital has been the main barrier to expanding production. The average coop member sows just under 2 hectares of quinoa each year, to put this in perspective. The producers pay 1.5% interest a month, or about half what they would expect to pay the local bank. So a win-win situation for everyone.