AGRIBUSINESS, FOOD & WATER DUTCH AMBASSADORS MEETING FEBRUARY 2, 2018
SECTOR Agribusiness, Food and Water Committed portfolio €780 million per 2016 We invest in companies throughout the agribusiness €101 €125 value chain (from farm to fork) - ranging from mln mln agricultural inputs to distribution: Non-specific Eastern Europe & • to promote inclusive development focusing on (small) region Central Asia 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 COMMITTED PORTFOLIO / PER INDUSTRY CLASS/ PER CURRENCY 4% 17% 27% 27% Latin America Asia Africa 17% & The Caribbean 29% 79% €125 €257 mln €172 mln Production mln Processing EUR USD Local currency Trading Other agri projects 2
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” Most AFW projects are integrated through the value chain 3
AFW STRATEGY BASED ON 3 PILLARS…. Where is the growth? Sweet spot examples: • LAC : G&O, agro- • Drip irrigation logistics, F&V outgrower schemes • ECA : G&O, Sugar, Food • Climate smart Business processing agriculture potential • Asia : Proteins (poultry, • Agro processing/co- aquaculture), rice, food generation (eg sugar) processing, agro- logistics & inputs • Replanting palm oil on • degraded lands Africa: sugar, palm oil, cocoa, coffee, agro- • Agroforestry logistics, horticulture, proteins Inclusive Green 4
PRIORITY SECTORS Indicative Model AFW Portfolio 2025 EUR 1.3bio • 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 5
BABBAN GONA, NIGERIA
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 7
AFRICA IMPROVED FOOD, RWANDA Business model • Create and deliver nutritious supplementary food for the vulnerable part of 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 1
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