The Organic Development Finance Fund (ODF) has disbursed $500,000 to an organic orange juice processing company in Mexico. This transaction supports 68 local certified-organic farmers and the employment of 170 workers from the local community. This investment is ODF’s first in Latin America since the launch of our innovative impact-first supply chain finance fund in January 2022.
With its roots in the cooperative movement, our client has a firm commitment to sustainable and ethical practices; their business model is built around maximising the revenues that its farmers can realise from their organic citrus orchards. This company has long-term partnerships with its farmers that cross generations, and those farmers are now shareholders in the company. Quality is assured through engagement with a local research institute to promote responsible agricultural practices, such as organic farming and water conservation. ODF’s facility allows timely payments for our client’s network of certified organic farmers.
Globally, citrus is one of the most popular fruit crops. Of the more than 140 countries growing citrus, Mexico is one of the top producers. The sector generates numerous jobs and contributes to the national economy. However, many hired workers on Mexican farms have little education, face poor labor conditions, and are exposed to harmful chemicals that are used in conventional farming.
With ODF’s investment, our client in Mexico is poised to continue their positive social impact journey, benefiting 68 local farmers, providing employment for 170 workers from the local community, promoting sustainability, and setting an example for responsible business practices in the region. Through the growth of companies such as ODF’s client, Mexico’s export-oriented agriculture can become a vehicle to create decent jobs for farm incomes.