Welcome to ODF
ORGANIC DEVELOPMENT FINANCE
Affordable finance to organic agricultural SME’s in emerging countries to increase organic production and achieve sustainable impact for environment and people.
Welcome to ODF
ORGANIC DEVELOPMENT FINANCE
Affordable finance to organic agricultural SME’s in emerging countries to increase organic production and achieve sustainable impact for environment and people.
About us
ODF, Organic Development Finance was initiated to provide affordable finance to certified organic agricultural companies in low-income and emerging countries. The objective is to enhance local supply chains for organic crops in order to realize environmental and social benefits of organic production. Current core investors/partners are tradin organic (a specialist in the sourcing, processing and distribution of organic ingredients), usaid and giz.
ODF works closely with a number of Buyer Partners to support their suppliers with flexible working capital financing and expertise and during its ‘proof of concept’ phase made 8 investments with 7 suppliers across 6 crops and countries. ODF is now ready to scale and has partnered with FOUNT, an experienced Impact Fund and Investment Advisor.
The affordable working capital is offered to the AgriSME’s in a standardized way and ODF offers revolving facilities to investees ensuring a simple process for follow up loans. Recognizing the seasonal demands of SME’s, particularly during peak harvesting periods, the fund ensures timely disbursement of funds. This enables SME’s to get access to international export markets and to adequately and punctually compensate farmers in line with the bustling harvesting season.
ODF ‘s Product Offering :
Affordable and flexible working capital loans
for the sourcing of organic commodities by supplier companies and based on a standardized approach and longer term contracts to enable for repeat deals.
Access to international export markets:
ODF collaborates with strategically chosen Buyer Partners, establishing Long Term Partnerships connecting Buyer Partners, SME’s, and ODF.
E&S impact expertise: Bringing Environmental and Social (E&S) expertise to relevant business.
Tailormade Technical Assistance:
Delivering focused technical assistance that covers environmental and social impact alignment, certification and compliance guidance, comprehensive management support, as well as training and education initiatives.
Supports smallholder farmers, encourages job creation for women and youth
We provide affordable finance
for sustainable agriculture
and farmer livelihood
We provide affordable
finance for sustainable
agriculture and farmer
livelihood
Unique Approach:
Find out everything you need to know and more about how we create our business process models.
Standardized investment approach- based on long term partnerships between Buyer Partners, investees and ODF and revolving transactions – key for efficiency.
Facilitating access for organic suppliers and farmers to international commodity markets and supporting sustainable organic agricultural practices.
ODF has already disbursed several loans to organic producers working closely with smallholder farmers in countries such as Togo, Sierra Leone, Brazil and Mexico for products including orange juice, soy, cocoa and cashew nuts, in its ‘proof of concept phase’ and is now ready to scale-up operations. ODF has an active risk and portfolio management approach. This involves actively selecting, monitoring, and adjusting the fund’s investments based on geographic, crops seasons, impact etc. in a strategic manner.
ODF has a blended capital structure including first loss, mezzanine and senior debt capital and is looking for interested investors to grow the fund to a target capital of EURO 30 million.
Impact
ODF is founded on the proposition that organic agriculture brings benefits to the environment and can provide a safer work and a better livelihood for smallholder farmers through price premiums.
Key impact objectives are:
- Strengthen organic and regenerative agricultural value chains.
- Sustained, improved livelihoods of farmers and workers.
- Promote high social and environmental standards
- Create employment opportunities, especially for women and youth
ODF contributes to SDG 1, 5, 8, 12, 13 and 15.
Organic
Organic agriculture is a holistic production management system which promotes and enhances agroecosystem health, including biodiversity, biological cycles, and soil biological activity. It emphasizes the use of management practices in preference to the use of off-farm inputs. This is accomplished by using, where possible, cultural, biological and mechanical methods, as opposed to using synthetic materials, to fulfil any specific function within the system.
ODF is founded on the proposition that organic agriculture therefore brings benefits to the environment through improvements in soil quality and resilience; reduced risks of polluting surface and ground water; increased biodiversity and carbon sequestration compared to conventional farming; and can provide a safer work and a better livelihood for smallholder farmers through price premiums.
Strategic Partnerships
with Buyer Partners
ODF is aiming at a number of long-term partnerships with Buyer Partners to obtain a balanced and diversified portfolio. Jointly with these Buyer Partners, ODF will identify potentially repeat clients for different crops in different countries and build a long-term relationship with both Buyer Partner and related supplier companies with the aim to provide adequate finance in a timely and affordable manner and to support on increasing impact. The cooperation would be formally registered by means of a Partnership Agreement between the Buyer Partner and ODF.
Collateral
Each ODF loan to a supplier company will be supported by purchase agreements from one or several Buyer Partners, who then sign a Sales Rights Assignment (“SRA”), where in principle up to 60-70% of the contract will be financed by ODF, as part of a tripartite transaction between ODF, the local supplier and the Buyer Partner. The Buyer Partnership agreement provides standard risk mitigation. A credit agreement between ODF and the supplier will then be signed.
Strategic Partnerships with Buyer Partners
Collateral
Flexible seasonal working capital product
USD or EUR loans secured on buyer contracts.
Loan amounts up to a certain percentage
of the value of your contract depending on the product, minimum € 300,000.
Tenor aligned
with the seasonal needs of your business.
Fair interest rates
calculated continuously based on actual loan amount outstanding.
Flexible drawdowns based on need
Repaid capital can be drawn down multiple times throughout the season.
Supply Chain Support Services
Management Board
Jos Adriaanse
Director/owner
at Guardian Management
Consultancy BV
Bas Kalshoven
Owner / Director
Fair Value Collections BV
Management
board
Jos Adriaanse
Director/owner
at Guardian Management
Consultancy BV
Bas Kalshoven
Owner / Director
Fair Value Collections BV
Fount is a leading impact investment firm, providing strategic advisory and investment management services, to drive social and environmental impact, alongside reasonable financial returns in emerging markets.
Fount is a leading impact investment firm, providing strategic advisory and investment management services, to drive social and environmental impact, alongside reasonable financial returns in emerging markets.
Fund and Investment Advisor
Partners
News
The ODF team and management board are all @ Biofach 2023!
Attention all organic industry players and investors! The Organic Development Finance Fund (ODF) is proud to announce its representation by Walter Hetterschijt, Jos Adriaanse and Bas Kalshoven on Wed 15th and Thu 16th at the booth of our buyer partner,
Press Release – Cocoa Sierra Leone
ODF’s commitment to making a positive impact on the world through sustainable and ethical investments has led to our latest investment into Sierra Leone’s organic cocoa industry.
Interested?
Do you share odf’s vision and want to become part of odf? Please get in touch with us. Join our journey.
Grievance mechanism
ODF takes all reasonable precautions to conduct its operations in a manner that avoids complaints to the Fund.
Any grievances about the environmental or social aspects of ODF operations should be presented by email or writing to: info@organicdevelopmentfinance.com.
