Agribusiness, Food & Water
A surging global population demands long-term accessibility to affordable food. FMO finances sustainable agribusiness companies throughout the value chain, including farming, processing and distribution operations.
Meeting the food demand for the growing world population is one of the biggest challenges for the future. Stable and safe access to food supply requires a value chain approach in which farming, processing and distribution are brought together. By filling financing gaps in agribusiness, FMO creates investment opportunities and development impact.
Global value chain
FMO takes a global value chain approach when investing in farming, processing and distribution – targeting bottlenecks and strengthening the weakest links.
FMO finances companies throughout the agribusiness value chain:
- Seeds and fertilizers
- Primary production and farming
- Infrastructure (storage, warehouses, irrigation)
- Commodity and food processing
- Trade and distribution (wholesale and retail)
Our client portfolio is located over all four geographic areas (Latin America, Eastern Europe, Africa and Asia) with a particular concentration and focus on the larger agricultural countries.
FMO and Initiatief Duurzame Handel (IDH, or 'Sustainable Trade Initiative') entered a partnership in 2014 in order to co-finance smallholder farmers with the supply chain companies (such as traders and processors) that source directly from these farmers. The partnership focuses on improving farmer livelihoods by supporting the advancement of farmers' productivity, profitability, and bankability (i.e. a credible credit record). The package offered through this partnership is a combination of financing and grants. The financing is used for farmer-level inputs, rehabilitation of crops or critical infrastructure. The grants are for training, farmer aggregation structures and other necessary farmer development mechanisms.
Long term partnership
FMO aspires to be a long term partner to its clients. We bring sector expertise and a broad network. We promote innovation and training. And we assist our clients to adopt and promote international standards in their value chain.
Making a difference
FMO's focus on sustainable agribusiness offers investment opportunities with a high development impact. We add value to our clients’ businesses by promoting:
- Good agricultural practices and resource efficiency
- Corporate governance and risk management systems
- Good labor conditions and minimized environmental impact
- Financial inclusion for SMEs and smallholders
- Privately owned companies and financial institutions
- A relevant, successful 3-year track record
- Proven market position and good prospects
- Commitment to good corporate governance
- Willingness and ability to integrate sustainability (further) into the business (according to the IFC Performance Standards)
- Located in one or more developing countries, with a focus on low-income countries