Sunterra, Coffee, Colombia

Sunterra is a Colombian exporter of specialty coffee (rated above 84 cup points), committed to transparent and traceable sourcing from smallholder farmers across Colombia’s coffee-growing regions. Established in 2016 and headquartered in Huila, one of Colombia’s prime coffee-producing areas, Sunterra operates a proprietary mill in El Puente that offers farmers free access to post-harvest processing services. The company is fully owned by Mr. Vicente Mejia Isaza, an experienced agricultural trader, and has received support from Yunus Social Business, as well as working capital financing from Bancóldex. Sunterra supplies a diversified portfolio of international clients in the United States, Europe, and Asia, including its primary partner, Ally Coffee, a reputable global coffee trader and roaster. With processing, drying, and storage capacities of 8,000 kg per hour, 30,000 kg per week, and 300,000 kg, respectively, Sunterra pays farmers local market prices and subsequently rewards them with a premium once the coffee has been shipped and paid for, thereby ensuring full transparency throughout the value chain. 

To support its continued growth and meet rising demand, Sunterra sought financing to address working capital constraints in its cash-intensive sector. The company has experienced significant growth in recent years but has occasionally had to decline commercial opportunities due to limited financing. To help Sunterra scale its operations and capitalize on market momentum, the Common Fund for Commodities (CFC) provided a USD 1 million revolving trade finance facility. The funding is used to procure high quality specialty coffee, with tripartite agreements in place involving reputable international buyers, thereby ensuring a secure, transparent, and impact-driven deployment of funds. 

The investment was made with the expectation of significantly expanding Sunterra’s inclusive sourcing model by increasing the number of supplying smallholders to 2,000 by 2028, while offering farmers price premiums of approximately 35% above traditional market rates. The project was also expected to support a substantial expansion in cultivated area from approximately 1,350 hectares to nearly 7,800 hectares, alongside improvements in productivity. Gender inclusion was expected to strengthen, with the share of female smallholders projected to increase from 26% to more than 50%, building on an already strong representation of women in the workforce. In addition, employment was projected to grow modestly from 25 to more than 30 full-time staff, while the business model continued to generate local value by enabling farmers to produce higher-quality, high-value coffee.

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