Agronomika, a newly established agri-finance company that focuses on providing loans to smallholder cocoa farmers in the Philippines. Agronomika is part of Kennemer Foods, a Philippine company that sources and exports cocoa beans and that has a unique business model that supports smallholder farmers to set up their own cocoa farms. Kennemer Foods has created an end-to-end contract farming model that provides farmers with high quality planting material and technology, training on farming practices, and access to financing and markets. In just five years of operations, Kennemer has achieved significant scale, establishing a sourcing network of 10,000 Philippine farmers who stand to gain a sizeable increase in income when they invest in cocoa. By adopting modern technology, farmers can experience cocoa yields of four times the national average.
Agronomika will receive a blended farmer finance facility, that consists of a long term loan from FMO (Massif-fund) which is supported by a first loss guarantee of IDH. Both FMO and IDH support Kennemer's operations with technical assistance whereby IDH's focus is on the farmer engagement model and FMO's support is aimed at improving governance and risk management of Agronomika. The blended farmer finance facility will be utilized to provide microloans to farmers for long term investments in their cocoa farms. The facility is structured under the Smallholder Finance Facility, the cooperation between FMO and IDH (http://smallholder.finance/).
Via facility smallholder farmers in rural Philippines will gain access to finance for investments in their cocoa farms, which offers an opportunity to improve their livelihoods significantly.
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/