This loan will allow the coop to buy 30qq of corn, 10qq of semilla de jicaro, and 1qq of canela. Buying such large quantities of corn and semilla de jicaro at this time of year will substantially reduce the coop's raw material costs, and having larger amounts of all ingredients on hand will allow the group to respond to larger orders more quickly.
Reducing raw|| material costs and expanding the coop's ability to process large orders could help the business tap into larger markets and lower prices sufficiently to compete with larger corporate producers. The coop has a long-term goal of selling their products in Wal-Mart's Central American supermarket chains, and this loan would be an important step in that direction. |