IDH Farmfit Fund and Oikocredit provide a EUR 3 million syndicated loan to Conacado to strengthen market access for cocoa smallholder farmers in the Dominican Republic
The investment will provide long-term working capital to support cocoa purchases from smallholder farmers, strengthen farmer livelihoods and expand access to premium international cocoa markets.
IDH Farmfit Fund and Oikocredit have committed a EUR 3 million syndicated term loan to Conacado, a leading farmer-owned cocoa company in the Dominican Republic. The investment, comprising EUR 2.5 million from IDH Farmfit Fund and EUR 0.5 million from Oikocredit, will provide affordable long-term working capital to finance cocoa purchases from Conacado's member farmers, strengthening market access and supporting more resilient livelihoods.
The financing will strengthen Conacado's working capital position, enabling it to purchase cocoa beans from its member farmers, ensuring reliable market access and fair pricing. It will also support the company's long-term strategy to enhance traceability, maintain high-quality sourcing standards and expand opportunities for value-added cocoa products.
The investment is expected to meaningfully increase the number of smallholder farmers reached over the four-year investment period, representing a material expansion in farmer reach. Through training, technical assistance, agroforestry practices, and access to premium markets, farmers are expected to improve productivity and incomes while becoming more resilient to market volatility. Farmer-members may also benefit from dividend distributions linked to Conacado's profitability.
Conacado has built a strong track record of connecting smallholder farmers to premium international markets. The company launched its cocoa processing facility in 2019 and continues to strengthen the competitiveness and resilience of the Dominican Republic's cocoa sector through market access, value-added processing and farmer support services.
The transaction marks IDH Farmfit Fund's first cocoa investment in Latin America, supporting the Fund's mission to improve smallholder farmer livelihoods through inclusive agribusiness models while further diversifying its portfolio. It also strengthens collaboration between IDH Farmfit Fund and Oikocredit, combining the strengths of two mission-driven investors to provide financing that is typically unavailable to farmer-owned agribusinesses through local financial institutions.
ENDS
This investment strengthens our ability to provide reliable market access for our farmer-members while continuing to deliver the high-quality cocoa our customers expect. Together with IDH Farmfit Fund and Oikocredit, we are investing in the long-term resilience of our farmers and our business
For smallholder cocoa farmers, income stability matters as much as income growth. Conacado's farmer-owned model means every improvement in market access and processing capacity flows back to its members. Through fairer prices, premiums, and ultimately dividends. That's what long-term capital alongside Oikocredit makes possible
Conacado is one of the Dominican Republic’s leading cocoa producers and exporters. The facility will provide working capital to support cocoa purchases from smallholder farmers. This partnership has enabled the deployment of additional financing while further strengthening the collaboration between both impact investors
About Conacado
Conacado is a leading farmer-owned cocoa company in the Dominican Republic, operating an integrated cocoa value chain that spans the sourcing, processing and export of organic cocoa and cocoa-derived products. Through its network of smallholder farmers across the country's main cocoa-growing regions and its processing facility in San Francisco de Macorís, Conacado supplies premium international markets with high-quality, certified organic cocoa products.
The company's business model combines market access, value-added processing and farmer support services to drive sustainable growth. Working with affiliated organisations, including CONACADO NGO and Coopnacado, it provides farmers with financing, technical assistance, certification support and sustainable agroforestry solutions, helping to strengthen supply chain resilience, improve productivity and enhance farmer incomes.
About Oikocredit
Oikocredit is a global social impact investor and cooperative with 50 years of experience in financing organisations that improve the quality of life of people with low incomes. Working through trusted local partners, Oikocredit invests in financial inclusion, agriculture and renewable energy to strengthen community resilience and expand economic opportunities. Through loans, equity investments and capacity building, Oikocredit supports organisations that create lasting social impact and enable people and communities to build more resilient livelihoods.
About the IDH Farmfit Fund
The IDH Farmfit Fund is a blended finance impact fund for smallholder farmers, many of whom are amongst the poorest people in the world. The IDH Farmfit Fund can take the highest risk positions in smallholder farmer-related transactions, reducing the risk currently borne by borrowers and lenders. By doing so, the IDH Farmfit Fund aims to catalyse commercial capital to co-invest in this sector. These investments will increase the availability of affordable, long-term financing to smallholder farmers, allowing them to invest in their farms, increase productivity and adopt climate-smart agriculture best practices, improving their livelihoods and incomes. The IDH Farmfit Fund is facilitated by the IDH Foundation and supported by a unique coalition of partners, including commercial banks, development banks, government bodies and value chain companies.
For more information, visit IDH Farmfit Fund