An initiative called Kawá, an investment fund with an innovative technology component for the country’s small cocoa farmers, intends to take advantage of 1,200 farms from Pará and Bahia with about $ 30 million in the first stage. The project aims to reach one billion dollars by 2030 and wants to strengthen a family system and renewal in Brazil. This initiative is the result of the Arapyaú Institute, Violet, NGATABôA Community and Mov Investmentos.
The background name saves the origin of cocoa in civilizations before Colombia, when it was called Kakawa, and is designed in a model known as “financial mixture”, which mixes fatal resources and horses with public and private capital. The Fund will use a more simplified credit methodology and affordable, as well as technical assistance, develop and implement it by Tabôa since 2017.
See more
This methodology has been adopted in the Sustainable Cocoa Cocoa Cocoa Corporation, a leading initiative in the market, and has helped to prove that investing in family agriculture and cocoa gives a financial, social and environmental return. Between 2020 and 2023, CRA directly affected 271 farmers, being a third woman, enhancing increased income (60 %) and productivity (52 %). The virtual rate was close to scratch.
By financing cocoa producers only for agricultural agricultural systems, fruit is cultivated in a union with the forest, the product also helped maintain more than 1100 hectares and store more carbon. “We want to expand the positive economic, social and environmental impacts, and attract the largest investors to cancel the lock of productive models that make the use of sustainable lands and generate income for those who need more than those who keep the forest,” said the director of the vital economy at the Arapyaú Institute, Director of Biological Economy at Vinicius Ahar.
Access to the financial system
According to the Ministry of Agriculture and livestock, out of every 100 cocoa producers in Brazil, there are 85 years on the sidelines of the financial system, with the difficulty of reaching public policies, and 75 technical assistance has not received. At the same time, about 80 % of cocoa production in Brazil depends on small farmers. “Credit experiences along with rural technical assistance were successful. These conditions contributed to increasing productivity, in addition to the failure to pay,” says Tabôa CEO, Roberto Fella.
Another column of the initiative is to stimulate the preservation and renewal of the forests. This is because credit is exclusive to small cocoa producers in Agricultural Agricultural Systems (SAFS). There is also the possibility of trade in carbon credits to save by producers. Selling is run by the ResEED platform, which already has negotiating with an investor to purchase the first credits created by about 100 farms, and enters as a partner responsible for facilitating the marketing of the following credits.
Credit and return on investments
Kawá is suitable for the market as an investment box in agricultural productivity chains (Fiaagro). When getting credit, the product has up to 45 days for investment investment. After this period, there are 36 months to pay, with an average of six months of grace. Useful interest rates are 12 % a year. The application of resources occurs mainly in the cost of fertilization, irrigation, employment, equipment purchase and seedlings intensification.
This project contains a Vert partnership, which will be the Fund official, and the National Association for Cocoa Treatment Industries (AIPC), with cocoa purchase signals for beneficiaries. The initiative also includes an ECF conditions for financing the technical assistance coordinated by Violet, which contributes to its technology platform for monitoring and transparency in fund management.
Technical assistance will be responsible for the Solidad Foundation Foundation, the Baixa South Apas (CiaPra) and agricultural and environmental solutions, the latter at the cost of Susano. Credit will be created by Tabôa. Kawá also re -designed, which will be responsible for the carbon credits created in the characteristics of the beneficiaries.
