EthicHub achieves a significant milestone by expanding its financing activities to Brazil.
Um Coffee becomes the first local node in Brazil, enabling hundreds of small Brazilian farmers to benefit from new financing tools and the possibility of marketing their crops in international markets.
In addition to Mexico, Brazil has become the second country where EthicHub will extend its financing and marketing services for raw materials.
The agreement reached with Um Coffee will allow small Brazilian farmers to upload their financing projects to the EthicHub platform to benefit from loans at much cheaper and more accessible interest rates. With the opening of the Brazilian market, EthicHub begins the program of scaling up its activities to be present in more countries and commercializing new crops.
For Gabriela Chang, co-founder of EthicHub, "this agreement represents a significant step for all of us because we want to show that the work carried out in Mexico in recent years is capable of being replicated in other countries with the same success."
EthicHub presented its financing platform in June 2018 with small coffee-growing communities in Mexico. In this time, the EthicHub team has managed to finance more than 200 projects in 15 different communities, managing to gather more than one million dollars from 2000 active users, benefiting more than 300 families of coffee growers and with a non-payment percentage lower than 1%. Regarding the commercialization of raw materials, in these last two years, EthicHub has exported 140 tons of specialty coffee, produced by farmers, and is present in five international markets; Spain, China, Canada, the US, and the UK.
Boram Um, our new Brazilian Local Node, has extensive experience in the coffee industry and in helping and assisting farmers in-field tasks. For Boram Um, who achieved the national title of a barista in Brazil in 2020, becoming the head of the Originating Hub in Brazil "constitutes a huge pleasure," and he assumes with great enthusiasm "to be the first EthicHub pilot to scale his model in Brazil." Boram is convinced that many small Brazilian farmers "will benefit from this collaboration." Initial annual funding projections are estimated at around $ 50,000, and the possibility of using EthicHub business networks in the future remains open.
As Gabriela Chang recalls, "EthicHub arises with a global vocation since there are millions of farmers excluded from the traditional financial system and who, despite having profitable, productive activities, live in conditions of poverty. With our solution based on blockchain and decentralized finance, we manage to bring affordable working capital and market your crops in more favorable markets. After Mexico and Brazil, we will continue with other countries and other crops. We are showing that there is another way of doing things and that thanks to technology, we can create collaborative ecosystems where we all win by interacting, generating sustainable benefits, with social, economic, and environmental impact".