Agri-finance as catalyst for value chain integration of smallholder farmers
The Philippines-based cacao contract grower Kennemer Foods has established a close partnership with rural finance company Agronomika Finance Corporation in order to provide smallholder farmers with long-term farm establishment financing.
In the Philippines, the smallholder farmers (SHF) have land holdings between 1 and 5ha. While they earn their main income through agricultural activities, most are not integrated in organized and sustainable value chains and are often dependent on local markets and traders with volatile prices and oﬀ-take capacities.
The case shows how Kennemer Foods and Agronomika Finance Corporation helped increase the resilience of smallholder farmers by increasing their income and diversifying their income sources through multi-cropping. Farmers benefited from fairer and shorter value chains as well as improved farming technology for diﬀerent crops through Kennemer and accessed aﬀordable financing for their farms through Agronomika and other local providers (e.g. the Cooperative).
This case study was conducted by Simon Bakker from the Kennemer Foods / Agronomika Finance and distributed in the 2nd MKLF organized by IFAD in Bangkok, Thailand from 10-12 July 2019. Download for details at Philippines – Kennemer Foods