Supply Chain Partnership to Aid Small Ag Businesses Impacted by COVID

While vaccines continue to emerge, theoretically winding down the COVID-19
crisis that swallowed
2020, those most affected by the pandemic on an economic level will undoubtedly
be working to regain their ground for the indefinite future. Business and brand
leaders have been stepping up to help throughout the pandemic — and, most recently, Visa
extended its
support
of minority-led small
businesses;
and 45 members of the Consumer Goods Forum committed to provide local aid
to
communities
that have been hardest hit by the pandemic.

Now, Root Capital has
launched
the three-year Partnership for Sustainable Supply Chains — in collaboration
with Keurig Dr Pepper,
the US Agency for International Development (USAID) and Ezrah
Charitable Trust — to help tackle the complex challenges faced by farmers of
commodity crops relied on by the food and beverage industries. The
Partnership will provide financial support and advisory services to agricultural
businesses such as coffee — representing 150,000 farmers in 12 countries across
Africa, Latin America and Indonesia — to help them to survive the
current pandemic and build their resiliency for years to come.

“With the onset of COVID-19, the ability of small and growing businesses in the
agriculture sector to provide critical employment, continued income generation,
protection of vulnerable ecosystems and essential services to rural communities
has never been more vital,” said Willy Foote, founder and CEO of Root
Capital. “From Peru to the Democratic Republic of Congo, these
enterprises are under enormous strain. Yet, with support, they have met the
challenge head-on — not only maintaining their business operations, but also
protecting both the lives and livelihoods of their farmers and
employees.”

Over the next three years, the Partnership will focus on helping smallholder
farm businesses withstand the immediate COVID-19 crisis, recover in the
medium-term and re-imagine their strategies for growth and success in the
long-term “next
normal.”
Together, the Partnership will aim to strengthen smallholder farmer resilience
through:

• advisory services that respond to the most urgent challenges of smallholder
  farm businesses, adapted to this era of remote service delivery;

• small grants to address cash-flow constraints and meet the emergency needs
  of rural communities; and

• flexible credit via patient loan terms, interest rate relief and debt
  forgiveness for enterprises most at risk.  

“By leveraging our longstanding partnership with Root Capital, we were able to
quickly pivot to support those in our supply chain most vulnerable to the
threats of COVID-19 and ongoing challenges such as climate change and food
insecurity,” said Monique Oxender, Chief Sustainability Officer for Keurig
Dr Pepper. “Our contribution to the Partnership for Sustainable Supply Chains is
an extension of our deep-rooted commitment to partnering with our coffee-growing
communities to improve livelihoods and safeguard the future of coffee; and will
help to support business continuity and resiliency for our coffee suppliers.”

The Partnership for Sustainable Supply Chains builds on the progress and lessons
learned from the Partnership for Sustainable
Coffee
— a three-year collaboration in which Keurig Dr Pepper, Root Capital and USAID
reached 330,000 smallholder coffee farmers and their families through Root’s
lending and advisory services.

The Partnership for Sustainable Supply Chains will be complemented by a $35
million loan guarantee from the US International Development Finance
Corporation, to improve Root Capital’s lending capacity by mitigating the
perceived risk associated with lending to these agricultural businesses.