Skip navigation Scroll to top
LGT
Scroll to top

Kennemer Foods International

Kennemer Foods International delivers an end-to-end solution for improving cacao farmers’ livelihoods.

Facts

 Investee Kennemer Foods International, founded in 2010
 Location Philippines
 Sector Agriculture, Employment and Skills
 Funding Start 2014
 Funding type Debt and equity
 Website www.kennemerfoods.com

 

Impact

Context

In the Philippines, approximately 12 million people work in the agricultural sector, where the poverty incidence rate is estimated to be 36.7%. The average wage earned by an agricultural worker is approximately USD 3.50/day, or USD 840/year. Most farmers are unable to access high-quality farm inputs and/or training on best practices to improve productivity, thus leading to low annual yields, and a perpetual cycle of indebtedness and poverty.

Solution

  • KFI delivers an end-to-end solution for improving cacao farmers’ livelihoods: providing them with high-quality planting material, farm inputs, financing for such up-front investments, and ultimately, access to selling into the global commodities markets.
  • KFI’s team of field technicians provide continuous training and on-the-ground technical support through the lifecycle of the cacao tree. Finally, KFI purchases cacao from farmers at min. 70% of the world price.

Impact depth

By 2020, KFI targets to improve 35’000 farmers’ livelihoods, financial and climate resilience by integrating them into its cacao production value chain.

KFI contributes to:

  • Increased household incomes: Smallholder famers increase their household income four times.
  • Increased resilience: Farmers lower the risk of financial/climate shocks due to higher income, ability to save money and the fact that cacao trees are more resilient against typhoons.
  • Improved farming knowledge: Farmers improve their farming practices. Among other benefits, they are able to reduce the need for pesticides, which has both economic as well as environmental benefits.
Impact Reach 2014 2015 2016 2017 2018 2019
# of contract growers (cumulative) 3'700 4'658 8'052 14’989 19'154 20'081
# of cocoa doctors 13 244 563 697 834 850
# of trees planted ('000s) 750 5'439 8'497 14’519 17'312 18'694

SDGs

By investing in Kennemer Foods International, we align with and contribute to four of the United Nations’ Sustainable Development Goals.

“It has been great to have LGT Impact Ventures as a shareholder. The biggest value add is that it’s not just about the funding. LGT Impact Ventures takes an active interest in our business and is more than willing to leverage its network of contacts to help further the business. For a young company that is extremely valuable.”

Simon Bakker, Founder Kennemer Foods International

Awards

Schwab Foundation's "Social Entrepreneurs
of the Year 2016" Award
2016

Singapore Venture Capital & Private Equity Association Award
2015