Presentation Fin4Ag S6 by Lamon Rutten

1. Financing horticulture by leveraging
the value chain – some structures
Lamon Rutten
CTA Revolutionising finance for
agri-value chains
Nairobi, 14-18 July 2014

2. For details on transactions….
http://unctad.org/en/Docs/ditccom200613_en.pdf

3. Pre-shipment finance, Zimbabwe, pre-crisis

4. Post-shipment finance, Zimbabwe, crisis period

5. Latina Farms S.A., Panama – financing SPV for
3 fruit producing companies in Panama and Peru
•The producers farm their own (leased) land, and buy from contract growers; they
produce and export principally pineapples, melons and mangoes.
•Pre-export finance on the back of extensive insurance cover that provided protection
against production and transport risks.
•the facility was structured to provide the producers with the working capital that they
needed at any time, with security coming both from the flow of goods to the buyers, and
from the insurance package. T
•The buyers, large firms like Ffyfes and Dole, were asked to pay into a bank escrow
account, and the performance of the producers in meeting the quality standards of the
buyers was continuously monitored.
•Price risks were managed by the financier by the monitoring of the flow, and the
continuing maintenance of over-collateralization margins.
•Crop insurance was used to manage production risks. It covered all perils based on a
minimum yield per fruit type and an insured value per hectare and per box (in other words, it
secured a minimum production value). Marine cargo insurance was used to cover all risks
associated with the packing and transport of fresh produce from the
producing companies’ packing plants to the buyers in the USA and Europe.

6. Forfaiting

7. Financing for sales on consignment, Côte
d’Ivoire

8. With recourse invoice discounting, Zambia