1. Rabobank Group 2204058 The Rabobank approach to value chain finance

2. 2 2704093 Global challenges

3. Rabobank Group 2204058 3 Global challenges

4. Rabobank Group 2204058 4 Three units serving worldwide supply chains Rabobank Foundation Rabobank Development Rabobank International Development Phase $

5. 5 2704093 Rabobank target countries

6. Rabobank Group 2204058 6 Considerable support both financial and technical Rabobank main target groups Considerable support both financial and technical by NGOs and Government No financial opportunities and not recognized by support providers

7. Rabobank Group 2204058 7 Agriculture and Agribusiness Source: Rabo India Finance, A. Datta, 2007

8. Rabobank Group 2204058 8 How to turn a supply chain into a value chain?

9. Rabobank Group 2204058 9 Review of the Value Chain Source: Rabo India Finance, A. Datta, 2007

10. Rabobank Group 2204058 10 Value Chain Finance Framework Source: Terrafina/J. de la Rive Box, 2009

11. Rabobank Group 2204058 11 Towards more inclusive value chains Source: Terrafina/J. de la Rive Box, 2009

12. Rabobank Group 2204058 12 Lease contract Down payment Processor Long-term raw materials supply contract Transfer of lease payments Farmer Rabobank InsurerSupplier Equipment purchase contract Insurance contract Buy-back agreement Integrated Agriculture Finance Structure Source: Rabo India Finance, A. Datta, 2007

13. Rabobank Group 2204058 13 Agribusiness risks are complex

14. Rabobank Group 2204058 14 New mitigants are required

15. Rabobank Group 2204058 Chain with small farmers and large institutional processor or retailer 15 Financial dimensions of a value chain Source: Modern Value Chains, K Schwedell Chain with small farmers and small retailers

16. Rabobank Group 2204058 16 Case: Passion fruit from Ethiopia An outgrower incubator approach based upon foreign investment Five experienced Dutch entrepreneurs studied the potentials of Ethiopia and decided to invest almost €12 million in a new enterprise to buy, rehabilitate and expand an existing state- owned fruit farm in the Upper Awash region of Ethiopia. It is a new venture that has set targets to become a major producer and exporter of tropical fruit juices, purees and concentrates from select countries in Africa to the large markets of Europe and the Middle East. An integral part of the project is the active promotion of an Outgrower Scheme, which will result in new producer cooperatives (in total approx. 1300 hectares) to become suppliers to the new processing plant, in effect giving the local farmers efficient access to export markets and much improved access to commercial financing

17. Rabobank Group 2204058 17 Ethiopia: Project Location

18. Rabobank Group 2204058 18 Ethiopia: Schematic of end objective Fruit Juice products $ Fair Trade premium Export market banks Community “Trust” coop union prod. coop1 prod. coop2 aJ processing aJ plantation Social development collateral repayments loans for growth equity dividends inputs & support Micro finance opportunity etc

19. Rabobank Group 2204058 19 Case: Cooperative Banana Farmers in Peru Banana farmers in Northern Peru organized in a cooperative take up pre-export processing and fair trade certification. Whereas historically they supplied large multinationals, they now do the quality control, washing, packaging and exports by themselves, thus almost doubling farm incomes. CEPIBO is a Union of Small Producers of Organic Bananas in Northern Peru established in 2007. It represents 1500 small producers of bananas with an average of approximately one hectare each. It is responsible for marketing of organic products (both locally and exports) and it has the organizational and technological capacities that allow them to promote fair trade throughout the commercial chain and diversify the productive system in a sustainable manner.

20. Rabobank Group 2204058 20 Cooperative Banana Farmers in Peru

21. Rabobank Group 2204058 Case: Women milk farmers, India

22. Rabobank Group 2204058 Rabobank Foundation “ Making a difference “