Washington, DC, August 18, 2016 -- IFC,
a member of the World Bank Group, Barry Callebaut, a leading manufacturer
of high-quality chocolate, and the Netherlands Sustainable Trade Initiative
(IDH) today announced a $9 million risk-sharing agreement to help up to
100,000 smallholder cocoa farmers in Côte d’Ivoire access credit needed
to grow their production and earnings.
Under the agreement, IFC and Barry Callebaut
will equally share the risk in the $9 million local currency-equivalent
credit facility, which will help farmers purchase fertilizers and lease
large equipment, such as tractors. As farmers increase production and formalize
their operations, they will establish the track records required to borrow
directly from local financial institutions.
The farmers are supplying cocoa to two subsidiaries
of Barry Callebaut: the Societé Africaine de Cacao, and Biopartenaire,
both operating in Côte d’Ivoire.
Antoine de Saint-Affrique, Chief Executive
Officer of Barry Callebaut, said, “Sustainability is at the heart of our
business model and values. The start of this initiative represents an important
step in promoting professional, sustainable cocoa farming, helping subsistence
farmers become entrepreneurs. Barry Callebaut is proud to lead the efforts
to professionalize cocoa farming, and is excited about the support of our
partners in this endeavor.”
Joost Oorthuizen, Executive Director of IDH,
said, “By de-risking investments, we will deepen our direct impact on
farmers. Through this program, we expect farmers to increase their bankability
and ultimately the quality of their livelihood by leveraging public funding
with private sector contributions at a ratio of more than 1:10.”
IFC Director for Manufacturing, Agribusiness
and Services, Alzabeta Klein, said, “IFC’s partnership with Barry Callebaut
and the Netherlands Sustainable Trade Initiative will help farmers in Cote
d’Ivoire gain access to credit and training that will enable them to upgrade
their operations and join value chains linking them to cocoa buyers and
global chocolate consumers. Supporting small businesses is a major focus
of IFC’s strategy in Africa.”
While Côte d’Ivoire leads the world in the
production and export of cocoa, the country’s farmers could vastly increase
their yields with improved training and access to credit. This project
will help thousands of small farmers improve the quality and yield of their
cocoa, thereby improving incomes.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.
About Barry Callebaut Group (www.barry-callebaut.com):
With annual sales of about CHF 6.2 billion (EUR 5.6 billion / USD 6.6 billion)
in fiscal year 2014/15, the Zurich-based Barry Callebaut Group is the world’s
leading manufacturer of high-quality chocolate and cocoa products – from
sourcing and processing cocoa beans to producing the finest chocolates,
including chocolate fillings, decorations and compounds. The Group runs
more than 50 production facilities worldwide and employs a diverse and
dedicated global workforce of more than 9,000 people.
The Barry Callebaut Group serves the entire food industry, from industrial
food manufacturers to artisanal and professional users of chocolate, such
as chocolatiers, pastry chefs, bakers, hotels, restaurants or caterers.
The two global brands catering to the specific needs of these Gourmet customers
are Callebaut® and Cacao Barry®. The Barry Callebaut Group is committed
to sustainable cocoa production to help ensure future supplies of cocoa
and improve farmer livelihoods. It supports the Cocoa Horizons Foundation
in its goal to shape a sustainable cocoa and chocolate future Read
more about Barry Callebaut’s sustainability initiatives in the 2014/15
Chocolate Sustainability Report. .
Follow the Barry Callebaut Group:
About IDH (http://www.idhsustainabletrade.com/):
IDH convenes companies, CSOs, governments and others in public-private
partnerships. Driving the joint design, co-funding and prototyping of economically
viable approaches to realize green & inclusive growth at scale in commodity
sectors and sourcing areas. Approaches are designed to drive sustainability
from niche to norm, delivering impact on the Sustainable Development Goals.
Impact focuses on deforestation, living incomes and living wages, working
conditions, toxic loading and gender. IDH is supported by multiple European
governments, including institutional donors: SECO, DANIDA and BUZA and
over 500 companies, CSOs, financial institutions, producer organizations
and governments in 11 sectors and 11 landscapes in over 50 countries worldwide.