Completed Project: Start-up of Innovative Agriculture Finance Company for Cocoa, Philippines

Kennemer Foods International is an agribusi­ness company specializing in the produc­tion, processing, and trading of high-quality cocoa sourced directly from smallholder farmers. Building on knowledge and tech­nology transfer through its long-standing partnership with Mars, Incorporated, Kennemer sought to enhance its sourcing activities by supporting the planting of new cacao trees, thereby ensuring higher yields and improved livelihoods for smallholders.

Nevertheless, access to finance remained a challenge for smallholder farmers in the Philippines, limiting their ability to undertake the investments required for such expan­sion. To address this constraint, Kennemer established an affordable smallholder financing mechanism through its subsidiary, Agronomika Finance Company.

In partnership with other impact inves­tors, such as FMO – Dutch Entrepreneurial Development Bank, the CFC provided the necessary funding for Agronomika’s operations. 

Following the CFC-supported financing, Kennemer and its subsidiary Agronomika demonstrated substantial scale-up in out­reach and production capacity. The num­ber of smallholder beneficiaries increased significantly from approximately 1,300 in 2020 to more than 16,000 by 2024, along­side a sharp expansion in cultivated land from fewer than 500 hectares to nearly 5,000 hectares. 

Employment generation was also strong, with permanent staff at Kennemer increasing from approximately 80 to more than 230. Gender inclusion improved notably, particularly among beneficiaries, with the number of female clients increasing from fewer than 400 to more than 15,000, while female employ­ment also rose steadily across both entities. 

Overall, the project reflected rapid scal­ing in farmer outreach, cultivated land, and employment, supported by enhanced sustainability standards, including the adop­tion of certifications such as CacaoTrace and Rainforest Alliance.

SDGs