In May 2023, the Organic Development Finance Fund (ODF) disbursed $500,000 to an organic orange juice company in Brazil. This transaction will be used to pay 79 organic orange farmers in Brazil timely with a 20-30% premium. At ODF, we will continue supporting organic production to encourage the climate and economic resilience of farmers. This is already the eighth deal since the January 2022 launch of our innovative impact-first supply chain finance fund.
Our client decided many years ago to focus on organic citrus production because of the positive impact it has on farmers, the land, and along the supply chain. They have been working hard to spread their vision. They pay partner farmers a 20-30% premium on their organic oranges. Coupled with year-round agronomist support for necessary technical assistance to incentivize sustainable agricultural practices and ensure compliance with organic certification requirements. Starting with 6 small family-owned farms almost 2 decades ago, the company now sources from 79 producers cultivating a total area of about 500ha. ODF’s client indirectly reaches many more citrus growers in the region through outsourcing its juice processing to a local citrus cooperative; the rental of the cooperative’s facility contributes to the sustainability of this organization and increased incomes for its members.
Brazil is the largest producer and exporter of orange juice globally, the amount produced in Sao Paulo alone exceeds that of the 2nd largest producer, China. However, in recent years, Brazil’s orange and orange juice production has been adversely affected by climate change, particularly droughts. Organic production encourages climate and economic resilience for farmers relying on their citrus harvests for their livelihoods.
This investment demonstrates how ODF aligns its social goals of supporting organic value chains and farmer livelihoods.