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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TANGA FRESH  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 = opportunity for development in Tanga region 9

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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 15

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FROM Dairy Hub Dairy processor Dairy farms Milking, cooling, services secured and profitable market: 365 days \\\ service providers … % per year

TO MCC’s Tanga Fresh Ltd Dairy farms Milking, cooling, services secured and profitable market: 365 days \\\ Mruazi Farm & service providers … % per year

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 - Program management Solidaridad - Support to farmers / farms - Business development / calculations - partnerships - Development finance and investment program, connection impact investors 20

BUDGET Contribution budget percentage € 999,130 Achmea Foundation 66% € 200,000 Rabobank Foundation 13% € 50,000 DOB Equity 3% € 100,000 Solidaridad (Flexiplan) 7% € 158,527 Own contribution TFL / Mruazi 11% €1,507,656 Total NB: Part of contribution Achmea Foundation is loan: € 261,723 21

GRANT/LOAN FRAMEWORK  Total Grant from donor: 999,130 EUR  261,723 EUR as loan 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 107,500 EUR 100% loan - 7 year term, 1.75% interest. Direct Production to Solidaridad, repayment by Mruzai via Centre revolving fund. Grace period of 3 years -thus effective annual rate of 0.75% interest Dairy Farm 101,187 EUR 10 year term, 1.75% interest, Direct to settlements Solidaridad, repayment by TFL via revolving fund 22

LOAN CHANNELED THROUGH PLUS PLUS  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 23

TIM DIPHOORN TIM.DIPHOORN@SOLIDARIDADNETWORK.ORG solidaridadnetwor /solidaridadnet k.org work @solidaridad /company/solid netw aridad 24