IFC, IFC ALAC Fund Support Ethical Sourcing of Agri-Commodities with Investment in Armajaro Trading
Washington, D.C., May 3, 2012 – The ethical sourcing of cocoa and coffee is increasingly driven by strong consumer demand. It allows consumers to access sustainably cultivated cocoa and coffee while contributing to the long-term social and economic development of farming communities.
IFC investee company, Armajaro Trading Limited – a global agri-commodities supply chain manager in cocoa and coffee – will receive $55 million financing from IFC and the IFC African, Latin America and Caribbean Fund to strengthen its sustainable farming practices and improve traceability within its supply chains.
Sustainable Farming Practices
This investment will help the company maintain closer contact with farmers and co-operatives and offer value-added services to grow and lead the sector in traceability and sustainability – both of which are integral to Armajaro’s business model.
“Working with IFC will help Armajaro Trading become the partner of choice in the agri-commodity supply chain,” said Richard Ryan, CEO of Armajaro Trading. “IFC’s support will enable us to grow our business while ensuring that we continue to lead the sector in traceability and sustainability.”
Developing Traceable and Sustainable Supply Chains
“IFC’s investment is a unique opportunity to partner with a global business leader that is active in improving the livelihood of its emerging market farming communities and developing traceable and sustainable supply chains,” said Vipul Prakash, IFC Director for Manufacturing, Agribusiness, and Services, Asia-Pacific at the signing in London.
"Armajaro's extensive sourcing network, deep customer relationships with global buyers, strong expertise in the commodities it trades, and focus on traceable and sustainable products has put the company in a unique position to build on this platform and seek out growth opportunities in new territories and other soft commodities,” notedSujoy Bose, Chief Investment Officer and Head of the IFC ALAC Fund.
The IFC ALAC Fund, a $1 billion fund managed by IFC Asset Management Company, has commitments from six sovereign and pension investors, as well as IFC. It was launched in April 2010 and is focused on making equity and equity-related investments in Africa, Latin America, and the Caribbean.
IFC Advisory Services will continue working with Armajaro’s not-for profit Source Trust to identify specific projects that will improve the welfare of farming communities and develop stronger relationships with NGOs, development agencies, and charities.
Armajaro has commercial operations in more than 20 countries and sourcing operations in the world’s key cocoa and coffee producing countries including Brazil, Colombia, Ecuador, Ghana, Kenya, Indonesia, Nigeria, Tanzania, and Vietnam. For more information, visit www.armajarotrading.com or www.sourcetrust.org.