Cafe Soluble II

inactive

The purpose of the project is to help strengthen the Company’s overall competitiveness through the modernization of the processing plant and the management information systems, and the expansion of its storage capacity in order to adjust to recent and projected growth. The IIC will have the following role:Providing long-term financing:Long-term resources are scarce in Nicaragua. The operation will complement the first loan provided by the IIC to CSSA in 2001.Supporting an industry with a high value-added component:The ground and soluble coffee production process includes the cleaning, toasting and grinding of green coffee beans to produce roasted and ground coffee, and the subsequent extraction of liquor from the ground roast coffee which is then dehydrated to produce soluble coffee. Because of its comparative advantages, Nicaraguan exports of processed coffee have ample growth potential.Strengthening a medium-size company:The project will help the Company adjust to its recent growth and reach its potencial, thus protecting many existing jobs.Foreign exchange generation:The Company has experienced significant growth during the last five years, entering into new export markets. The project is necessary to support any future growth in sales and exports.Generating business for SMEs:The Company is an important buyer of packaging material and green coffee produced in Central America, mainly by small and medium-size companies from Nicaragua, El Salvador and Guatemala.Promoting best production practices:The Company has obtained the ISO 9002 certificate for quality and is currently applying for food safety certification, which should support its efforts to penetrate new markets.