news - FMO supports inclusive supply chain management

USD 20 million subordinated debt facility for Ecom Agroindustrial Corp. Ltd.

FMO supports inclusive supply chain management with a USD 20 million loan to Ecom Agroindustrial Corp. Ltd. (ECOM), a global supply chain manager committed to responsible leadership in coffee, cocoa, cotton and other commodities.

ECOM is a family business with over 167 years of experience in supply chain management. The company’s origin is in Europe’s industrial revolution’s emergent cotton industry, supplying raw cotton and woodenbarrels to manufacturers in Barcelona and surrounding regions. Late in the nineteenth century, ECOM expanded its operations to the US and established itself in several countries in the Americas, after which the company transformed itself into a coffee and cocoa merchant. Today, ECOM is active in over 40 countries and has become a leading merchant in its businesses. ECOM plays the leading role in sustainability and is continuously increasing its efforts to improve its sustainable supply chains, which is why it caught the attention of FMO in 2012 and has been a well-respected client ever since.

FMO’s financing will support ECOM’s inclusive business model, which includes close cooperation with the more than 800,000 smallholder farmers from which it sources products. As a local processor, ECOM’s success largely depends on the farmers’ ability to supply products in right quantities and quality to meet its clients’ needs. For this reason, ECOM works extensively with farmers to help them improve yields, quality and in turn, their income. ECOM’s competitive advantage lies in its ability to offer traceable and certified products to its manufacturing clients and end-buyers. ECOM’s close collaboration with the farmers includes providing guidance and technical know-how on product quality improvement and financing of their production. Additionally, it proactively analyses the biodiversity of smallholders’ local environments and addresses environmental issues, including adaptation measures to climate change.

Chocolate and coffee are primarily consumed in developed countries, where its fans have become increasingly interested in, and conscious about, how and where their products have been produced. Progressively, the industry is concerned about the social and environmental practices of its primary producers. With its traceable and certified product offering, ECOM has a strong competitive advantage which is expected to grow over time. This is in line with FMO’s strategy to support companies that have positive impact on the agricultural supply chains. Suzanne Gaboury, Director Agribusiness at FMO, explains: “FMO finds it important to support ECOM’s direct impact on cocoa, coffee and cotton farmers and their families.We have built a strong relationship with the company and look forward to further cooperation in the future for a most sustainable supply chain.”