Clarmondial is pleased to announce the first Food Securities Fund transaction in Latin America, in addition to a recent loan renewal in a Least Developed Country (LDC) in Africa.
The latest borrower in Latin America sources cocoa from several thousand farmers, predominantly smallholders, who operate in a biodiversity hotspot. The borrower is committed to supporting farmers throughout the year with programs on agroforestry and good agronomic practices, logistics, and certifications. They operate several nurseries and support reforestation with local species across the landscape. The company has a demonstrated commitment to gender equality, with women in several important leadership positions.
The loan will support the company to grow and deepen smallholder farmer engagement on sustainable cocoa, including expanding the number of Rainforest Alliance certified farmers and ensuring EUDR compliance. This deal is backed by a Swiss trader with extensive experience in the cocoa sector, selling to well-known European and North American brands.
The Food Securities Fund also recently renewed a loan to a business active in the cashew and mango sectors in one of the world’s poorest countries. The borrower works with several thousand smallholder farming families and has demonstrated its commitment to responsible social, environmental, and business practices in the first loan, which was successfully repaid.
The loan enables this borrower to provide substantial pre-harvest support to farming families and promote more resilient regenerative agroecological agriculture and agroforestry practices. The company employs over 500 women (80% of staff) and has implemented an innovative revenue sharing model that contributes significantly to farming household incomes.
Clarmondial continues to assess potential investments for the Food Securities Fund to support its growth and diversification.
Clarmondial’s Kaspar Baumann (right) and a smallholder cocoa farmer.