Kennemer Foods International Inc., established in 2010, is an agribusiness company specializing in the growing, sourcing and trading of cacao beans sourced from smallholder farmers. Kennemer has a long-standing commercial and strategic relationship with Mars, Inc. Mars is Kennemer’s biggest customer. Mars and Kennemer began a partnership in mid-2012, which involves the sharing of planting research and technology, as well as best practices for cacao growing, harvesting, fermentation, and drying. This is the first such expansion of new cacao production in the Philippines.
Kennemer has launched a new finance company, called Agronomika Finance Corporation, to finance tailor made cocoa loans directly to small cocoa farmers. Agronomika is expected to fund about 17,250 hectares of newly established cacao farms. By providing financing to establish new cacao farms and ensuring a buy-back mechanism for beans, the company is expected to provide a regular and reliable income source to cacao farmers. Agronomika enables Kennemer to expand more quickly, rapidly and efficiently. It also allows Kennemer to meet the needs of the growers with tailored made credit and insurance products.
Kennemer intends to help farmers achieve high quality beans and high yields, enabling them to have sustained improvements in income and quality of life. Smallholder farmers that follow their directed practices may achieve a fourfold increase in yields. By 2025/26 Kennemer expects to be working with 24,000 farmers who will have planted 40 million trees. They are expected to produce 33,000 metric tons of cocoa beans.
In July 2016, Agronomika Finance Corporation received its license from the regulatory authority and secured all operational licenses and permits by October 2016. Agronomika Finance Corporation is incorporated as a Finance Company under the Financing Company Act of 1998 by the Securities and Exchange Commission of the Republic of the Philippines, Department of Finance. The company secured start-up capital through an equity investment by IncluVest (a Netherlands-based Impact Investment Fund) and through debt funding by FMO (the Dutch Development Bank) and IDH. The CFC support to the project would be subject to confirmation of commitment by all partners.
|Organization:||Kennemer Foods International Inc||Project:||CFC/2016/08/0064|
|Total Cost:||USD 11,600,000||CFC Financing:||USD 1,400,000|
|Estimated net economic impact:||USD 180 million||Outreach:||5,000 farmers|