2. 1) Producers unable to sell everything on FT
terms (gap between supply & demand)
Addressing gaps in Fair Trade
2) Producers lack access to
affordable credit to build
business capacity (different
from pre-harvest financing)
3. The Hoop Leverages Successful Models
• Fair Trade
- large and growing network of producers and
products
- expanding consumer demand
• Micro-lending Online
- Kiva proved mass appeal of micro-lending concept
- Could be directed to create much-needed financing
for Fair Trade producer businesses
4. Hoop platform unites two movements
• Microloans
Consumers make loans directly to producers
- Capacity-building
- Chocolate, rice, quinoa, apparel, etc
• Drive Fair Trade product sales
Consumer purchase product from same producers
- Partnerships with brands
5. Virtuous Cycle of Lending
and Purchasing
• Creates unique, powerful experience for
Consumer/Lender
• Creates multiplier effect of impact at
community level
– Builds on existing business and community
infrastructure
11. Alto Huayabamba, Peru
• Access to traditional
medicinal remedies
• Develop local sales
• Additional revenue
• Reforestation efforts
Medicinal Plant Nursery Loan Project
Amount: $2,500
Term: 2 years
12. Surin, Thailand
• Buy a freezer for better
seed conservation
• Cultivation of endangered
rice species
• Purchase seeds boxes
• Arrange for seed transport
Community Rice Seed-saving Loan
Project
Amount: $2,500
Term: 2 years
to improve the quality of their products, claim higher prices, diversify their businesses in ways that make sense (e.g. grow other products for local markets), buy much-needed equipment, or even to invest in their marketing capacities.
Fair Trade
- large and growing network of producers and products
- expanding consumer demand for fair labor, sustainable supply chains and deeper connections
Microlending Online
- Kiva proved appeal of microlending concept
- Could be directed to create much-needed financing for Fair Trade producer businesses
-- leverage two models…. to multiply impact on producer communities and create a unique experience for the lender
to improve the quality of their products (which means selling greater percentages of what they make for higher prices), diversify their businesses in ways that make sense (e.g. grow other products for local markets), buy much-needed equipment, or even to invest in their marketing capacities.