MassDevelopment.com: Press Room: MassDevelopment Supports Coffee Co-op with $1.4 Million Financing Package

MassDevelopment Supports Coffee Co-op with $1.4 Million Financing Package
January 18, 2006

Contacts:
Adam Bickelman, MassDevelopment, 617-330-2086
Rodney North, Equal Exchange Inc., 774-776-7398

MassDevelopment today announced a financing package for Equal Exchange, Inc. of West Bridgewater. Equal Exchange is a worker-owned cooperative founded to help provide higher, more stable incomes and greater market opportunities for small-scale coffee, tea and cocoa farmers in developing countries around the world.

The company used a $350,000 taxable bond and a $1,041,312 tax-exempt bond to acquire and install new, state-of-the-art coffee sorting, roasting and packaging equipment. The equipment will allow the cooperative to bring more of the value-added process in-house; improve its coffee quality; increase its efficiency; reduce inventory; and create jobs.

"The economic impact of this financing is far-reaching and widespread," said Robert L. Culver, MassDevelopment president/CEO. "Equal Exchange not only encourages commerce in retail and food service industries in Massachusetts and across the nation, it also guarantees just compensation for farmers in underdeveloped communities abroad."

Equal Exchange, Inc. - a pioneer and market leader in fair trade coffee since 1986 - is a full-service provider of high quality organic coffee, tea, cocoa, and chocolate. With ingredients harvested from around the world on farms in Latin America, Africa and Asia, Equal Exchange, Inc. is one of the largest worker co-ops in North America, marketing its products in local grocery stores, restaurants, cafes and universities. Equal Exchange, Inc. clients include Shaw's, Stop & Shop, Hannaford and other independent and national retailers and food service operations.

"Equal Exchange is not designed to maximize profits or returns to investors, but rather to bring to the workplace the same rights and responsibilities we hold as citizens," said Rink Dickinson, Equal Exchange, Inc. co-founder and co-director. "Because we are a self-sustaining but not wealth-accumulating enterprise, Equal Exchange is pleased to take advantage of the financial assistance that MassDevelopment and T.D. Banknorth have worked in partnership to provide."

MassDevelopment, the state's finance and development authority, works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. In fiscal year 2005, MassDevelopment financed or managed 158 projects statewide representing an investment of nearly $1.9 billion in the Massachusetts economy. These projects are supporting the creation of 2,769 housing units and more than 9,800 jobs: 4,702 permanent and 5,100 construction related.