Invalsa Coffee smallholder extension and outreach programme The primary challenges to the development of the Bolivian coffee industry are:1.	low level of total production means that few specialty coffee roasters globally have heard of or tried Bolivian coffees, perpetuating a cycle of low demand and higher marketing costs, and2.	virtually all production is grown by small-scale farmers, producing on 2 to 3 ha on 10 ha land parcels, so absolute farm income is greatly impacted by falls in global coffee prices. This incentivises smallholders to switch to coca production, and/or to forgo the hand-picking and processing practices necessary to produce high-quality coffee during times of low coffee prices.The purpose of this project is to increase both certified organic productivity and acreage of smallholder coffee farmers in the Caranavi province of La Paz department by introducing modern, sustainable coffee farming knowledge and infrastructure to the industry. This will be done in three parts:1.	a formal training programme by leading international experts in sustainable small-scale coffee farming,2.	the establishment of a network of smallholder-owned washing stations and hub-farms,3.	a company-owned network of model farms where farmers can observe recommended production and processing methods.This demonstration farm includes a nursery to provide high-quality coffee genetic material to the farmers.The partners will construct a dry mill to ensure efficient and high quality export processing in La Paz. In essence, the projects aim is to move Bolivian coffee farmers from subsistence-based, to commercial farming methods. The applicant is Green Valley Trading Company dba Invalsa Coffee, an USA based company active in coffee trading from several Latin American countries since 2004. The owner is Nelson Valverde. The local partner is Industrias Valverde S.A. (Invalsa), a Bolivian corporation founded in 2003 that is owned by both Nelson Valverde (51%) and his brother Jorge Valverde (49%). Invalsa is engaged in coffee trading and is partner in PSI12/BO/25, starting a cocoa processing facility in Alto Beni.Corporate Social Responsibility (CSR)The project will be certified by Fair Trade USA and Rainforest Alliance. The processing plant will be certified for organic production and the coffee plantations of the participating farmers will continue to be certified organically. Invalsa already works with credit lines of Root Capital for crop finance of the farmers. The company pays living wages, employees receive free meals, housing and child care while working in the countryside. The price setting mechanism with the farmers is very transparent as a premium in top of the world coffee prices. All production will be done according to organic principles as such taking care of the environment.Impact•	Employment and working conditionsWorking conditions will be very good. The company will pay living wages in addition to all secondary benefits required by the strict Bolivian labour law. Healthcare insurance, pension funds and social security are included. Free housing will be provided on farm. In addition to the 10 permanent staff 65 seasonal workers will be hired during planting and harvesting season and for work in the dry mill. They will receive excellent daily payments and benefits as free meals, childcare as well as housing possibility on the farm. All workers will have access to the trainings.•	Innovation/Transfer of knowledgeThe project will lead to a better coffee quality and increased coffee production per farmer and per acreage. The innovative element is the attention on the production side rather than on processing of organic certification. Other exporting companies will benefit by increased capacity of available dry mills and better image of Bolivian coffee quality. Farmers will benefit also as their amount of work will decrease as wet pulping and drying will take place on the 3 hub farms. The latter will also maintain the quality of the organic certified coffee, leading to higher farm gate prices.•	Chain effectsImpact on local suppliersAs a result of the trainings the 150 outgrowers will have increased production (2 to 3 times higher), better and stable coffee quality and improved prices and income per hectare and in total.Impact on local customers or consumersNo impact on local customers or maybe an increase in availability of coffee on the local market.•	Impact on the sectorPositive impact as the company will actively work together with local technical schools on curricula development on coffee production and offer opportunities for thesis students. The trainers from Costa Rica will also provide coffee production seminars at these schools. It will also cooperate with the national organisation of coffee growers on knowledge exchange. The project will also be beneficial for other companies as the demo farms will be open for everyone interested in coffee growing and the extra dry mill will release the pressure on the existing dry mills. In general the coffee sector as a whole will benefit by increased demand of Bolivian coffees from the International specialty market.•	EnvironmentThe company buys only organically certified produced coffee, so all farmers work according to those criteria as well as the processing centres of the farmers and the companies. This means the fermentation water at the small farms will be cleaned before discharge. The fact that the hub farms will do the fermentation for all surrounding farmers makes it easier to do this investment in waste water treatment systems. The project will actively promote the extension of the coffee plantations. Farmers will cultivate coffee below the existing trees instead of cutting the entire secondary forest coverage to establish coca plantations. As such the ecology of the area will remain intact as well as the amount of erosion in this steep hilly areas will be prevented.•	Position of womenThe project will actively work with at least 50% women-headed household farmers. This will increase their income and improve their access to crop finance. In the company 1 out of 2 management staff will be female and 10 out of 26 FTE employees.•	Impact on food safetyThe farmers producing organic coffee are being trained how to produce according to organic principles. Their other products, like fruits and vegetables for the local market will be produced organically as well instead of the current practices of using large amounts of pesticides.•	Impact on waterThe project will actively promote efficient use of water in the farming system by leaving shade trees above the plantations. The amount of water needed will be less, rain water will infiltrate in the soil and the fermentation waste water will no longer pollute the small streams and rivers. To construct a network of smallholder-owned and operated, high-capacity washing stations in Bolivia, and increase organic certified coffee production and productivity through an intensive training and extension programme for smallholders led by profession.