CHANGE THAT MATTERS 3 THIRTEEN GLOBAL COMMODITY PROGRAMMES - - PowerPoint PPT Presentation

CHANGE THAT MATTERS

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THIRTEEN GLOBAL COMMODITY PROGRAMMES

HOLISTIC ANALYSIS ENGAGEMENT AT FIVE LEVELS

DAIRY 2025:

CATALYST FOR BUSINESS DRIVEN AND CLIMATE SMART DAIRY FARMING

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• Initiated by a group of Dutch dairy farmers in 1996
• DOB Equity and TDCU (cooperative of farmers)

are main shareholders

• Capacity > Sourcing
• Sourcing:
• 6,000 own farmers (5-10 ltr / day)
• temporarily from Morogoro, Kilimanjaro, Iringa

Challenge for more milk =

• pportunity for development in Tanga region

TANGA FRESH

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MRUAZI FARM

• An investment owned by Holland Dairy LTD, Katani

LTD and TFL, started in 2010 to produce crossbred heifers of Zebu breeders and Holstein Friesian bulls

• 2,000 hectares (old sisal plantation)
• 1,600 dairy cows
• Milking cows
• Heifer production
• potential innovation centre and service provider
• Trainings / support
• Fodder production
• New farm settlement

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…% per year

Dairy farms

secured and profitable market: 365 days

Dairy processor

\\\

Dairy Hub

Milking, cooling, services

service providers

FROM

…% per year

Dairy farms

secured and profitable market: 365 days

Tanga Fresh Ltd

\\\

MCC’s

Milking, cooling, services

Mruazi Farm & service providers

TO

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DAIRY 2025 – TANZANIA

Aim To contribute to an economically viable and a climate smart dairy value chain in Tanzania by 2025 Partners Tanga Fresh, DOB Equity, Mruazi farm, Achmea Foundation, Rabobank Foundation, Stichting Flexi-Plan Size Dairy 2025 (2019-2021)

• 3 dairy hubs
• Training 500 progressive farmers & access to finance
• 25 ha fodder production
• 3 farm settlements

Roles Solidaridad

• Program management
• Support to farmers / farms
• Business development / calculations
• partnerships
• Development finance and investment program, connection

impact investors

Contribution budget percentage Achmea Foundation € 999,130 66% Rabobank Foundation € 200,000 13% DOB Equity € 50,000 3% Solidaridad (Flexiplan) € 100,000 7% Own contribution TFL / Mruazi € 158,527 11% Total €1,507,656

BUDGET

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NB: Part of contribution Achmea Foundation is loan: € 261,723

• Total Grant from donor: 999,130 EUR
• 261,723 EUR as loan

GRANT/LOAN FRAMEWORK

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Dairy Hubs 53,036 EUR 50/50 loan/grant - 4 year term, 1.75% interest, Direct to Solidaridad, repayment by TFL via revolving fund Fodder Production Centre 107,500 EUR 100% loan - 7 year term, 1.75% interest. Direct to Solidaridad, repayment by Mruzai via revolving fund. Grace period of 3 years -thus effective annual rate of 0.75% interest Dairy Farm settlements 101,187 EUR 10 year term, 1.75% interest, Direct to Solidaridad, repayment by TFL via revolving fund

• What is PlusPlus?
• How will revolving fund be managed? Loan contract with PlusPlus

(separate contract established) – doing due diligence (documentation & business plan). PlusPlus re-uses repayments for the purpose of the project with possibilities to include crowd investments.

• Lessons learned;
• Non-for profit ANBI status has legal implications to be able to

administer loans (possible but high risk – for profit activity)

• Budget for loan administration (now being incorporated in loan

repayment). Staff time due diligence check, monitoring, travel, etc.

• Also for the donor – they also have to abide to non-for profit status!

(minimum interest rate allowed).

• Managing expectations with partners
• Trust is very important

LOAN CHANNELED THROUGH PLUS PLUS

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solidaridadnetwor k.org @solidaridad netw /solidaridadnet work /company/solid aridad

TIM DIPHOORN

TIM.DIPHOORN@SOLIDARIDADNETWORK.ORG

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