Agronomika Finance Corporation, recently launched in The Philippines is an innovative agricultural finance company exclusively set-up to finance Cocoa trade in the Country.
Agronomika Finance Corporation, is to finance tailor made cocoa loans directly to small cocoa farmers. Agronomika is expected to fund about 17,250 hectares of newly established cocoa farms.
By providing financing to establish new cocoa farms and ensuring a buy-back mechanism for beans, the company is expected to provide a regular and reliable income source to cocoa farmers.
Agronomika Finance Corporation is incorporated as a Finance Company under the Financing Company Act of 1998 by the Securities and Exchange Commission of the Republic of the Philippines, Department of Finance. The company secured start-up capital through an equity investment by IncluVest (a Netherlands-based Impact Investment Fund) and through debt funding by FMO (the Dutch Development Bank) and IDH,
Agronomika, which is owned by Kennemer Foods International Inc., enables Kennemer to expand more quickly, rapidly and efficiently. It also allows Kennemer to meet the needs of the growers with tailored made credit and insurance products.
Kennemer intends to help farmers achieve high quality beans and high yields, enabling them to have sustained improvements in income and quality of life. Smallholder farmers that follow their directed practices may achieve a fourfold increase in yields. By 2025/26 Kennemer expects to be working with 24,000 farmers who will have planted 40 million trees. They are expected to produce 33,000 metric tons of cocoa beans.
Kennemer Foods International Inc., established in 2010, is an agribusiness company specializing in the growing, sourcing and trading of cocoa beans sourced from smallholder farmers. Kennemer has a long-standing commercial and strategic relationship with Mars, Inc. Mars is Kennemer’s biggest customer. Mars and Kennemer began a partnership in mid-2012, which involves the sharing of planting research and technology, as well as best practices for cacao growing, harvesting, fermentation, and drying. This is the first such expansion of new cocoa production in the Philippines.