Our Mission
Fair Supply Chains for
a Better Future
Alleviating poverty in farming communities
Financing the sustainable development of the Fairtrade ecosystem is our passion and core business. To overcome the typical financing gaps in inclusive supply chains, we use our resources, skills, and creativity. We are committed to making smallholder farmers in the Global South benefit from our work, in the best interests of our investors.
Context
Situation
Smallholder farmers in the Global South often face low productivity. They usually rely on middlemen to sell their products at the local market price or below. The tiny margins they earn keep them locked in poverty.
By joining their strengths, farmers can create organizations that leverage on group power to collect, process and export their products. Farmer organizations that get certified and promoted by the Fairtrade Max Havelaar system obtain better prices and access to global markets.
Key Challenge
However, liquidity remains a critical issue. Smallholder farmer organizations need substantial capital to build up inventory for export and pay farmers on time while investing in their infrastructure to improve their production process.
Our Solution
By providing loans to agricultural organizations in regions with inefficient financial sectors, FairCapital fills the existing gap in sustainable supply chains financing in the Global South.
Short-term
loans for working capital enable organizations to pay smallholder farmers upon
delivery of their product. This ensures timely payments and facilitates direct
access to international markets. When the organization can sell more products
at fair trade conditions, smallholder farmers receive an incremental and stable
income. They also receive premiums that they can then invest in the
sustainable development of their communities.
FairCapital provides long-term loans as well. Farmer organizations typically need to invest in the improvement of their infrastructure, the adoption of sustainable practices, the maintenance, and renovation of their crops, or the transformation into more efficient supply chains, among other things.
How We Work
Strategy and Innovation
Innovative
Solutions
We develop innovative financing solutions for the benefit of smallholder farmers in the Global South.
Financial
Partner
We act as a strategic financial partner of certified producers, offering solutions for each stage of their value chain.
Strategic Collaboration
To multiply our impact, we continuously collaborate with strategic partners and other investors.
Sustainable
Growth
Our mission focuses on creating sustainable growth opportunities within a fair trade ecosystem.