For decades, farmers in Temanggung, Indonesia, have relied on tobacco farming, a crop that has become increasingly unattractive because of falling market prices and rising input costs. Tobacco farming also depends heavily on chemical fertilizers, which degrade the soil and reduce long-term fertility.
But a shift is underway.
With support from the Rejo Mulyo cooperative, farmers are leaving tobacco behind and turning to coffee. This crop flourishes organically in Temanggung’s rich volcanic soil and thrives within a diverse, sustainable agricultural system. Farmers value coffee as a lasting asset that supports both their livelihoods and the environment. Since 2021, Rejo Mulyo has grown to 279 members, helping Arabica and Robusta coffee farmers improve quality, connect with buyers, and secure premium prices.
Take Ibu Isti, a former tobacco farmer who now cultivates coffee on her small plot of land. Since joining the coop, she’s learned new skills in post-harvest processing, marketing, and quality control. She’s doubled her income and become a mentor to younger women in her community.
“When I joined the cooperative, I learned how to sell directly to local coffee shops, cutting out middlemen,” she says. “I used to work hard but often faced losses. Now, I still work hard, but I feel more at peace knowing my debts are being paid off through selling coffee to the cooperative.”
In 2024, Ibu Isti was recognized as the top coffee supplier at Rejo Mulyo.
This year, the coop received a breakthrough export order from Dutch importer This Side Up. To fulfill it, Rejo Mulyo needed working capital to pay farmers upfront for their cherries. Beneficial Returns provided a $275,000 loan to bridge this financing gap, enabling the coop to meet growing demand and deliver better prices to members and non-member suppliers.
Rejo Mulyo’s story shows how catalytic capital can transform rural livelihoods and regenerate the land. This reminds us that farmers are the backbone of our food systems. As long as capital continues to flow toward extractive, chemical-dependent agriculture, farmers will remain trapped in cycles of poverty. At Beneficial Returns, we’re working to change that.
Interested in how catalytic capital can transform communities and ecosystems?