Pre-investment Technical Assistance by LDN TAF
Kennemer is a Filipino agri-sourcing platform that produces and markets high quality agricultural products. It specializes in the sustainable growing, sourcing and trading of different crops and is the Philippine’s leading supplier of cacao beans to the international market. At the core of its inclusive business model is the grower program, which the company developed as a way to source adequate supplies of high-quality produce from small holder farmers. Starting with 200 farmers in 2012, Kennemer has now engaged with thousands of farmers and planted 15 million cacao trees.
The grower program business model of Kennemer is focused on providing services to and sourcing from crop-producing smallholder communities in various regions in the Philippines. Initially focusing on cacao, the grower program is an end-to-end value chain solution for smallholder farmers centered on the provision of financing coupled with on-the-ground support for farmer communities. This includes the provision of access to financing, high-quality farm inputs, technology transfer and ongoing support via a network of trained field supervisors and farmer entrepreneurs, coaching and monitoring of farmers’ performance and access to global markets, with guaranteed off-take.
Crops produced by Kennemer, and the famers they source from, are net carbon positive: the gains from improved practices and rehabilitation efforts exceed the carbon losses of the production.
Kennemer’s Ag technology platform aims to ‘digitize’ farm and farmer management, allowing the company to scale up and better manage risks by bringing complete farm data, product traceability and impact metrics to farmers, buyers, financiers and investors.
Kennemer’s 2025 growth plan is aimed at building the carbon positive sourcing platform and expand sustainable farming operations, farmer financing and the carbon programs. To achieve these growth goals, Kennemer is currently fundraising for an investment plan of app. 13M USD.
- To accommodate the increased complexity of the operations, with expansions planned in two locations in the Philippines, Kennemer will grow its Environmental and Social Management System (ESMS). The LDN TAF will support Kennemer to develop a solid ESMS framework, ready to carry the company’s growth;
- TA will support Kennemer in accessing and structuring their current ‘landscape approach’ with the objective to scale their operations in an inclusive, deforestation and land degradation free way. The outcome of this assignment will be used to develop a plan to implement this landscape approach to the expansion areas of Kennemer and inform next steps of potential post-investment LDN TAF support. Landscape-approach TA for investments is aimed at facilitating and strengthening relationships between the project operator and local communities, public authorities, NGOs, local private actors, and other landscape stakeholders, towards a common land use vision and shared action plan balancing needs to sustainable production and income with social inclusion and natural resources protection;
- Support Kennemer to further build on their understanding of gender dynamics within its organization, to develop an ambitious gender equality strategy and identify intervention opportunities to implement this strategy.
Technical assistance support from the LDN TAF does not constitute a commitment from the LDN Fund, or Mirova, to finance directly or indirectly the project described above. Any such commitment shall be subject to inter alia, a detailed technical, financial and legal due diligence of the company and the project, as well as all required LDN Fund investment committee approvals and satisfactory documentation.