Upscaling Coffee Flour Production Plant of SANAM, Colombia
CFC funded this project in Colombia in order to be part of creating a unique example of both recycling the waste as well as producing value added premium products. Founded in 2007, SANAM is a coffee flour production company in Colombia, dedicated to the use of waste (husk and pulp) that are usually discarded in the process of coffee processing. These wastes are transformed into Miel de Café (coffee honey liquid) and Harina de Café (flour) which are used as raw materials and supplements for cosmetic, food, pharmaceutical and feed products. The pulp and husk contain elevated levels of antioxidants, proteins and minerals, which are used as raw materials and supplements for cosmetic, food, pharmaceutical and feed products. SANAM has already tested the process and currently produces 3 tons of coffee flour per day. The current project focuses on the upscaling of the SANAM processing plant to increase production of coffee flour. More than 60% of the requested funds will be invested in assets like machinery, equipment and buildings.
The project will have socio-economic and environmental benefits:
(a) Employment Generation: the project will create at least 65 jobs, primarily in the rural areas.
(b) Income increase of 5-10% for 3,500 farmers. In addition, once the waste is used by SANAM, coffee farmers would not need to pay fines for waste management which will save them money. About 85% of coffee farmers are smallholders (with land up to one hectare) in Colombia , who usually do not have resources for waste management, and
(c) Positive environmental impact as coffee waste will no longer pollute the environment by preventing debris such as mucilage and coffee pulp to be poured into streams and rivers without any treatment as the waste will be processed.
CFC is supporting the project through a loan extended via Truvalu Group, supporting small and growing agri-food businesses (former ICCO Cooperation). The funds were disbursed in October 2016 and have been used to invest in the machinery and equipment of the beverage and coffee flour line.
SANAM was certified and accredited as the only company in Colombia authorized to produce coffee honey, also known as concentrated mucilage, and coffee husk meal. In 2019, the company also obtained the process and product patent for the Colombian market. About 230 tons of coffee waste has been processed into coffee concentrate in 2018. SANAM is currently receiving the coffee waste from over 80 small coffee growers in the region. The two main products introduced to the market are coffee flour and fruit beverages containing coffee-derived antioxidants. In 2019, SANAM commenced sales of the beverage called Naox on the local market. Trade links have been established with the US, Europe and China, and estimated export volume is about 50,000 bottles.
Project overview CFC-2016-08-0077FT
|Project type:||Fast Track||Project:||ICCO Foundation B.V. (Trading name Truvalu Group, on behalf of SANAM Company|
|Commodity:||Coffee||CFC Financing:||USD 120,000|
|Form of finance:||Loan||Target Impact Indicators:||3,500 farmers will increase their income with at least 5%|