5. IDH in a glance
Profile
â˘âŻ Accelerating + up-scaling sustainable trade
Founded in 2008
â˘âŻ Convening impact oriented coalitions
â˘âŻ Co-funding private investments to achieve Investment
package
sustainable production Euro 600 M for
â˘âŻ Stimulate private sector development 2011-2015
â˘âŻ Impact on MDG1, MDG 7 and MDG 8 12-16 commodity
programs
International
coalition:
Reaching âtipping pointâ -⯠70 companies,
-⯠10 NGOs
Scaling impact
Endorsed by Dutch
Accelerating (and other)
governments
35 staff members
6. IDH in a glance
Profile
â˘âŻ Accelerating + up-scaling sustainable trade
Founded in 2008
â˘âŻ Convening impact oriented coalitions
â˘âŻ Co-funding private investments to achieve Investment
package
sustainable production Euro 600 M for
â˘âŻ Stimulate private sector development 2011-2015
â˘âŻ Impact on MDG1, MDG 7 and MDG 8 12-16 commodity
programs
International
Public Co- Impact Commercial coalition:
grants funding investing finance -⯠70 companies,
Reaching âtipping pointâ
-⯠10 NGOs
Scaling impact
Endorsed by Dutch
Accelerating (and other)
governments
35 staff members
7. Bankability of commodities
Bankability = the ability to pay back = the ability to meet the
organizational objectives
Ecological Social Business performance
â˘âŻ â use of agro- â˘âŻ Contracts with workers â˘âŻ Quality mngt
chemicals â˘âŻ Community relations â˘âŻ Health mngt
â˘âŻ Control use of feed â˘âŻ Insurances â˘âŻ Monitoring of farming
â˘âŻ Nature and bio- â˘âŻ etc. â˘âŻ Farming protocols
diversity conservation â˘âŻ â Supply chain links
â˘âŻ â Productivity â˘âŻ Traceability
â˘âŻ etc. â˘âŻ Market positioning
â˘âŻ etc.
Certification = more robust management = increased ability to
meet organizational objectives (less risks, less costs, higher
profitability)
8. Finance and aquaculture
âCautious due to past experiencesâ
â˘âŻ Country risks
Difficult for (foreign) lenders to register collateral
Macro economy: fast growth and high trade deficit lead to growing inflation
â˘âŻ Market risks aquaculture
Price volatility: raw material and farm-gate prices
Increased international competition
Difficult to differentiate through quality
â˘âŻ Farming risks
Diseases
Production failures
Environmental and social risks
â˘âŻ Financial and currency risks
Informal financing (small holders shrimps)
High interest rates (for farmers)
10. Finance and cocoa
â˘âŻ Economic growth
â˘âŻ Employment
â˘âŻ External balance
â˘âŻ Secure long
term supply
â˘âŻ Fertilizer
business
opportunity
â˘âŻ Profitability
â˘âŻ Community
welfare
â˘âŻ Food security
â˘âŻ Environmental preservation
â˘âŻ Reduce pressure on land clearing
11. Finance and cocoa
1.⯠Farm finance: The farmer group takes a bank loan for fertilizer for its
members, with risk-sharing from the other supply chain agents
2.⯠Fertilizers-for-beans: The cocoa supplier is partially paid in fertilizer
upon delivery of beans to the trader
3.⯠Cash-and-carry: Building
on the supply chain
infrastructure, fertilizer is
made available at selling
points close to farmers to
buy in cash
Need for innovative
financing models:
â˘âŻ Robust
â˘âŻ Efficient
â˘âŻ Outreach
12. Finance and aquaculture
Average annual growth in global per capita food consumption, 2012-2021:
Source: OECD-FAO Agricultural Outlook 2012-2021, 2012
13. Finance and aquaculture
Feed Seed
FI Policy &
regulation
Farming
Middle-
men
Middle-
men
Need for innovative
financing models: Proces-
â˘âŻ Robust sor
â˘âŻ Efficient
â˘âŻ Outreach
14. Finance and aquaculture: de-risking
â˘âŻ Savings
â˘âŻ Organising capacity building & training
On farm â˘âŻ Aggregation
â˘âŻ Certification as risk-mitigator?
Finance
â˘âŻ Risk assessment profiles in aquaculture
inclusive supply â˘âŻ Risk-sharing arrangements (supply chain)
chain â˘âŻ Professionalization of suppliers and chain
management
partnerships
â˘âŻ Support farmer aggregation
Government & â˘âŻ Clarity on land-titles
Investors â˘âŻ
â˘âŻ
Patient money for investments in capacity building
Diseases: monitoring & control
15. Insights on
bankability of small
holders:
1) Value chain needs to be
streamlined
2) Farmers need to save
3) Certified farmers control
risks better
16. Key messages:
1) Value chain commitments
increase access to finance
2) Certification is a tool:
âaggregating receptive
farmersâ + streamlining
value chain + risk-tool