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

Kennemer Foods International, is an agribusiness company specialised in the production, processing and trading of high-quality cocoa, sourced directly from smallholder farmers. Capitalising on the knowledge and technology transfers, through its long-standing partnership with Mars, Kennemer sought to enhance its sourcing activities by enabling the plantation of new cacao trees, ensuring higher yields and better livelihoods for smallholders. Nevertheless, access to finance remains a challenge for smallholder farmers in the Philippines, limiting their ability to undertake the essential investments for such an expansion. To alleviate this problem, Kennemer set up an affordable smallholder financing mechanism, through its subsidiary, Agronomika Finance Company.

Partnering with other impact investors, such as FMO, CFC provided the necessary funding for the operations of Agronomika. Smallholder beneficiaries are expected to improve their yield from 0.5MT/ha to 2MT/ha, increasing their average annual income from USD 625 to USD 3,750, while more than 50,000 hectares of new cacao trees will be planted.

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