AGRIBUSINESS, FOOD & WATER DUTCH AMBASSADORS MEETING FEBRUARY - - PowerPoint PPT Presentation

AGRIBUSINESS, FOOD & WATER

DUTCH AMBASSADORS MEETING FEBRUARY 2, 2018

SECTOR

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Non-specific region Latin America & The Caribbean Africa Asia Eastern Europe & Central Asia

€257 mln €172 mln €125

mln

€101

mln

€125

mln

Committed portfolio €780 million per 2016

27% 29% 17% 27%

Production Processing Trading Other agri projects COMMITTED PORTFOLIO / PER INDUSTRY CLASS/ PER CURRENCY

17% 79% 4%

EUR USD Local currency

Agribusiness, Food and Water

We invest in companies throughout the agribusiness value chain (from farm to fork) - ranging from agricultural inputs to distribution:

• to promote inclusive development focusing on (small)

farmers and improve their livelihoods

• to increase resource efficiency using fewer inputs
• to increase yield through good agricultural practices
• to optimize value chains to reduce loss and waste of food
• To promote local production and local consumption

ZERO HUNGER SDG IS LEADING FOR AFW

UN: “A profound change of the global food and agriculture system is needed if we are to nourish today’s 795 million hungry and the additional 2 billion people expected by 2050.” “The food and agriculture sector offers key solutions for development, and is central for hunger and poverty eradication”

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Most AFW projects are integrated through the value chain

AFW STRATEGY BASED ON 3 PILLARS…. Business potential

Where is the growth?

• LAC: G&O, agro-

logistics, F&V

• ECA: G&O, Sugar, Food

processing

• Asia: Proteins (poultry,

aquaculture), rice, food processing, agro- logistics & inputs

• Africa: sugar, palm oil,

cocoa, coffee, agro- logistics, horticulture, proteins

Inclusive Green

Sweet spot examples:

• Drip irrigation
• utgrower schemes
• Climate smart

agriculture

• Agro processing/co-

generation (eg sugar)

• Replanting palm oil on

degraded lands

• Agroforestry

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PRIORITY SECTORS

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• Grains, Rice & Oilseeds, Cocoa and

Coffee will remain leading sub-sectors

• But more room for other green/inclusive

sectors

• Animal proteins: focus on Aquaculture,

Poultry and Dairy

• Fruits, Vegetables & Nuts focus on drip

irrigation, export diversification

• Agro inputs/fertilizers only with sufficient

forward integration to dealers/farmers (no stand-alone bulk production of general fertilizers)

• Agro logistics & distribution only with

sufficient value chain integration and if it supports AFW priority sectors

• MASSIF/IDF will be optimized for first loss

where necessary

Indicative Model AFW Portfolio 2025 EUR 1.3bio

BABBAN GONA, NIGERIA

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ANGKOR RICE, CAMBODIA

Business Model

• Processes Rice from 40,000 smallholder families

in southwest Cambodia

• Supports farmers by providing high quality input

FMO Financing

• USD 23 million loan for expansion of supply base

and processing capacity: Long term finance 7/8 year loan

• Together with two local banks which provide

addition USD 10 million

• Increase production from 100,000 tons to 250,000

tons of paddy

• In cooperation with DEG provide funds for Good

Agricultural Practices and Organic Products Role Embassy

• Support FMO in contact Cambodian authorities on

withholding tax exemption for its customer

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AFRICA IMPROVED FOOD, RWANDA

Business model

• Create and deliver nutritious supplementary food for the vulnerable part
• f the population (pregnant and breast-feeding mothers, older infants

and young children) FMO Financing

• USD 8 million equity to start processing capacity ‘made in Rwanda’ of

45 tons fortified high quality food

• Together with IFC, CDC and DSM In cooperation with World Food

Program and local governments, PPP

• Programs have yielded so far a 20% increase of productivity with 9000

smallholders; to be increased in the coming years