Challenge MG

Will the cooperative generate sufficient profits to recover start-up costs and provide money for expansion and growth?

Please argue why:

“Let’s roast our own coffee!” – This statement of farmers in Peru helps us to identify:

The commodity price for coffee was near historic lows and third generation coffee farms were going broke therefore, to tackle this issue Pachamama was built for the benefit of the coffee farmers. Doing so, what risk did they manage?

Pachamama Coffee Cooperative is the first farmer-owned coffee brand who found a niche in the independent grocery market. Doing so, what risk they tackle:

Imagine if Pachamama Coffee Cooperative would have skipped carrying out the steps for organizing a cooperative. Could you think of some problems/risks that the business might have to face?

Watch the story of Pachamama Coffee Cooperative and classify the following risks:

The second step is to check the following questions and to argue your answer.

Is there sufficient interest and commitment in the cooperative?

Please argue why:

Is there a strong incentive among potential members to get the business up and running?

Please argue why:

The targeted customers want to buy the product or service from Pachamama Coffee rather than from their competitors?

Please argue why:

Please argue why: