AN INNOVATIVE INVESTMENT MODEL

Danone, Firmenich and Mars, investors in the Livelihoods Fund for Family Farming, purchase significant volumes of vanilla. They have joined forces with Prova, a supplier to Mars, to scale-up an innovative model. Moreover, they are collaborating with local authorities and NGOs to build an integrated project going beyond vanilla production. Fanamby, a Malagasy non-profit has already developed efficient solutions with vanilla farmers, namely by empowering them with sustainable farming practices and strengthening farmers’ cooperatives. It is in charge of the project implementation and monitoring.

All partners in the Livelihoods-Vanilla project have committed to the project over a 10-year span. The Livelihoods Fund for Family Farming bears the upfront financial risk by providing € 2 million to Fanamby and farmers for project implementation related to sustainable vanilla project production. Danone, Firmenich, Mars and Prova will purchase vanilla produced within the project. The Livelihoods Fund will be gradually refunded through a result-based fee paid by the four companies which buy the vanilla and benefit from the project. Project monitoring and evaluation will be carried out through a shared governance with all stakeholders. This innovative impact investment model is raising interest among public organizations and discussions are taking place between the Livelihoods Fund for Family Farming and development agencies in order to tackle the food security and the conservation components of the project in 2018.
Links to learn more about Livelihoods initiatives are available here.