tbli europe 2015 - sustainable agriculture investing - martin poulsen
TRANSCRIPT
Str
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Sustainable, Profitable Agro Forestry Projects
TBLI Conference
Zurich, November 20th 2015
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 2
Agroforestry is the spatial or temporal combination of trees and crops or animals, with biological, social and economic synergies.
This provides higher productivity, reduced risks, a more stable income for local populations, and positive environmental impacts.
Tropical agroforestry projects typically combine forestry activities (timber, industrial tree crops or fruit trees) with cattle, food crops, or niche export crops
<+Examples of biological interactions :
Better use of sun light
Better use of water
Biological regulation of pests
Global profitability
Social benefits
Environmental impacts
Best Land Use| Agroforestry
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 3
Agroforestry| Project types
Coffee under shade Sylvopastoralism
Acacia intertwinned with cassava
Permanent crops
(cocoa, tea, coffee etc. )
under tree shade
systems
Sylvopastoralism projects
combining a tree plantation
with cattle, restoring
pastures
Intertwinned agroforestry:
leguminous trees fertilize
soil, enhancing growth of
staple crops
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 4
Moringa | The industrial core / smallholder
model
A core ‘industrial’ plantation
With smallholders motivated by increasing their
income via improved market access
A processing facility to capture value for the
project (sawmill, press…) and smallholders
No cumbersome large scale land acquisition
No land conflict
Reduced capital investment
Optimum cash flow profile
Understanding the outgrowers and their cooperatives is essential
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 5
Moringa is pursuing general and project specific targets. The general targets at the fund level are:
At the project level Moringa will also carry out pre-investment consultations to better understand social needs (child labour, women and status of vulnerable groups, food security in the area).
Other specific targets will be set in place at project level and an action plan at the level of the portfolio company will be established and monitored / audited regularly.
Direct employment Outgrowers Land reforestation
Total Women Familiesimpacted
Total Familiesimpacted
Hectaresreforested
Tonnes CO2 sequestrated
8’000 3’000 35’000 57’500 337’500 40’000 10 million
Impact measurement | Main targets
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 6
Agroforestry provides a sustainable and profitable alternative to the unsustainable land use scenarios that drive deforestation
Compared to these scenarios, well designed and well managed agroforestry projects provide:
better risk mitigation in the short and long run
higher profitability in the long run
Moringa | Why invest in agroforestry?
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 7
Moringa | Why invest in agroforestry?
• Compared to conventional timber and agricultural projects, agroforestry delivers a better risk / return through a more intense land use at reduced costs, with a diversified income base over the investment period
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 8
Portfolio | Cafeteleria Nicafrance
Acquired by the Founder in 1992, Nicafrance is the largest independent coffee farm in Nicaragua, with over 1,000 Ha of land, of which c.660 Ha of coffee plantations
under shade and 115 Ha of forest plantations
The farm consists of coffee plantations, tree plantations, over 1MM tree nursery capacity, wet coffee mills, and coffee & cacao clonal gardens
It also has abundant water, with rivers & lakes that feed the principal 2MW hydroelectric power plant
It has also around 80 km of all year round road infrastructure, worker facilities for over 2,000 people, 1 school, one 800m landing strip and a large fleet of heavy equipment for road maintenance and transportation
Nicafrancefarm
Coffee processing plant of ECOM +
Laboratory
Capital City: Managua where the wood processing facility is located
Flagship agro-forestry coffee farm in Nicaragua
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 9
Portfolio | Example of investment (West Africa)
Description
Development of jatropha / sunflower agroforestry plantations with smallholders organized in
cooperatives
Local processing and sustainable production of edible oil, biodiesel, organic fertilizer,
proteins for livestock
Strong local and industrial (SOFIPROTEOL) partners
Deal summary
Edible Oil, bioenergy
Mali - Burkina Faso -
Tanzania
Equity ticket : 5 M€
6 years
IRR expected : 22%Deal rationale
Excellent balance between products that have different and complementary growth drivers
Solid smallholder basis provides strong local legitimacy
An attractive financial return based on diversified risk
A strong S&E impact and excellent match national development agendas
Fund role and value
Equity investor alongside the local partner and a large agro industrial
Technical support thanks to Moringa’s technical partner ONF International and its science
partners (ICRAF, CIRAD, IRD)
R&D and education programs to reinforce the E&S impact of the project via TA Facility
Impacts
Enhancement of livelihoods of several thousands of farmers in poor, remote areas of Africa
Enhancement of resilience of agricultural land (fertilization of soils, protection against
erosion, etc.) subject to climate change
Production of renewable energy, climate change mitigation
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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 10
Disclaimer
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The project information presented in this document are based on the documentation given by the project operator to ONFI. It has thus not yet been tested
and analyzed by the Investment Advisor. The numbers presented are based on an average scenario.
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