Café Solar® – Sustainable coffee in Central America

Coffee cultivation is a significant cause of deforestation, water shortages, and loss of habitat for migratory bird species in Central America. Coffee, however, is also one of the few viable industries providing employment to the region. Café Solar® embodies the vision of the founders to address a complex set of issues haunting the coffee industry in Honduras. Drawing from the experience and expertise of ornithologists, engineers, academics, coffee farmers, women activists and an array of partnerships, the nonprofit Mesoamerican Development Institute (MDI) developed innovative sustainable practices for coffee cultivation and processing. Further, in collaboration with the Fair-Trade cooperative, Cooperativa Mixta Subirana Yoro Limitada (COMISUYL), MDI translated the vision into strategy through its for-profit affiliate, MDI Honduras. The case includes specific areas in managing a sustainable enterprise, including creating a sustainable coffee value chain, and the application of budgeting and cash flows in supporting financial viability. Crucial to success was the creation of a brand that attracted a network of global customers desirous of Fair Trade and sustainable coffee. Hence, the case highlights opportunities, problems, and constraints to sustainability in the coffee industry in alignment with United Nations Sustainable Development Goals (UN SDGs). The case was tested in three class sessions (with 45 MBA/MS Accounting students) and was found to meet the pedagogic goals set for the case.