IDH Farmfit Fund commits USD 10m to unlock trade finance for coffee and cocoa producer organisations in Latin America and the Caribbean
New risk-sharing partnership with Oikocredit aims to de-risk lending and expand access to affordable credit for smallholder-focused producer organisations.
The IDH Farmfit Fund is pleased to announce a USD 10 million risk-sharing participation agreement with Oikocredit, a global social impact investor and cooperative with a 25-year history of agricultural finance across Latin America and the Caribbean. This transaction is a strategic move to unlock critical trade finance for small and medium-sized producer organisations (POs).
The investment comes at a time of tightening financial conditions, climate impacts, rising Arabica coffee prices, and limited credit access, all of which threaten the stability of the coffee and cocoa sectors. IDH Farmfit Fund’s commitment will enable Oikocredit to expand its regional trade finance portfolio and reach smaller organisations that are in need of financial support.
Trade finance is essential for smallholder producers to meet export demand, sustain operations, and invest in productivity. Our partnership with Oikocredit targets the structural underfinancing of smaller, less-established POs that are most critical to rural livelihoods.
One of the founding investors in the IDH Farmfit Fund and key enabler of this transaction is JDE Peet’s.
At JDE Peet's, we are committed to supporting sustainable agricultural practices and empowering smallholder farmers. Our investment in the IDH Farmfit Fund reflects our dedication to creating positive impacts on both the environment and the livelihoods of coffee farmers in Latin America.
This transaction builds on a long-standing co-investment partnership with Oikocredit aimed at strengthening financing for smallholder-dominated supply chains. Moreover, it is an example of how the Fund can catalyse investment in high-impact agricultural value chains by assuming higher-risk positions where commercial finance falls short.
The coffee industry is navigating complex challenges that require innovative financing approaches and collaborations. Our partnership with IDH Farmfit Fund enables us to provide crucial trade finance to POs in need of working capital amid increasing costs and volatility.
A catalytic investment for inclusive trade finance
While Oikocredit has built a strong regional portfolio, the IDH Farmfit Fund’s participation enables it to take on a higher-risk involvement in a portfolio of trade finance loans focused on smaller, less established POs. This will enable Oikocredit to extend its reach to more underserved communities across the region.
Beyond financial inclusion, the partnership envisages a pilot project for farmer-centred surveys, which will help POs measure farmers’ perceptions of changes in yields, income, and well-being. These initiatives reflect a shared commitment to smallholder farmers, climate resilience, and outcome-based impact measurement.
Strengthening rural value chains through local expertise
Founded in 1975, Oikocredit brings decades of experience and a strong local presence in emerging markets. The partnership taps into Oikocredit’s deep regional knowledge and infrastructure to deliver targeted trade finance, particularly in countries like Colombia, where IDH has launched an Investment Hub to boost local investment readiness.
About Oikocredit
Social impact investor and worldwide cooperative Oikocredit has five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy. Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably. Oikocredit finances more than 520 partners, with total consolidated assets of EUR 1,147 million (at December 2024).
For more information, visit www.oikocredit.coop
About IDH Farmfit Fund
The IDH Farmfit Fund is a public-private impact fund for smallholder farmers, many of whom are amongst the poorest people in the world. The Fund can take the highest risk positions in smallholder farmer related transactions, thereby reducing the risk currently born by borrowers and lenders. By doing so, IDH Farmfit Fund aims to catalyse capital to coinvest 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, leading to improvements in their livelihoods and incomes. The IDH Farmfit Fund is facilitated by IDH, 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
About JDE Peet’s
JDE Peet’s is the world's leading pure-play coffee and tea company, serving approximately 4,400 cups of coffee or tea per second. JDE Peet's unleashes the possibilities of coffee and tea in more than 100 markets, with a portfolio of over 50 brands including L’OR, Peet’s, Jacobs, Senseo, Tassimo, Douwe Egberts, OldTown, Super, Pickwick and Moccona. In 2024, JDE Peet’s generated total sales of EUR 8.8 billion and employed a global workforce of more than 21,000 employees.
Read more about our journey towards a coffee and tea for every cup at www.jdepeets.com