www.forestrade.com

The Project: ForesTrade Indonesia (FTI) is an independent subsidiary of ForesTrade Inc., a market leader of certified organic and sustainable coffee, spices, and essential oils. FTI works directly with farmers to protect and restore key corridor habitat in northern Sumatra by instituting best practices in the production of conservation-oriented organic coffee and vanilla. In addition, FTI pays higher prices than the local market, providing direct financial incentives for farmers to adhere to FTI’s conservation best practices.

The Deal: In February 2004, Verde Ventures approved a total investment to FTI of $500,000. This investment provided $300,000 in capital for infrastructure and harvest financing for vanilla production and $200,000 in finance for coffee produced in Aceh, Sumatra, by ForesTrade partner Gayo Organic Coffee Farmers’ Cooperative Association (PPKGO).

The Benefit to Conservation: ForesTrade Indonesia provides price incentives for local communities to restore connectivity between key ecosystems in Sumatra. This project will directly impact more than 6,000 hectares within the Gunung Leuser Ecosystem in the Northern Sumatra biodiversity conservation corridor, an important ecosystem within the Sundaland biodiversity hotspot. All 2,000 participating farmers are required to adhere to FTI’s conservation-oriented production practices including a commitment to no hunting, logging, or clearing of new forest land for agriculture.