Fundraising Status:active
Risk Rating:
What to know about this Lending Partner
Impact Category:
Agriculture
Default Rate:
0%
Currency Exchange Loss Rate:
3.97%
Total Loans Raised:
$648,400
Loans at Risk Rate:
0%
Kiva Borrowers:
1,185
Delinquency Rate:
0%
Interests and Fees:
5% APR
Partner description:
Serendipalm Co. Ltd. in Ghana is a sister company of Dr. Bronner’s, the top selling brand of natural soaps in the U.S. It came from Dr. Bronner’s efforts to improve the sourcing of its agricultural raw material, especially palm oil.
Serendipalm, the first organic and fair trade palm oil project worldwide, has goals that include creating fair employment for both unskilled local people and professionals, engaging with local communities in supporting rural development and helping its supplying smallholder farmers improve the productivity of their lands.
Serendipalm also maintains a seedlings distribution program, offering seeds to farmers who want to replant their land with locally adapted oil palm seedlings of higher productivity. Seedlings are financed through zero interest loans, initially by Dr. Bronner’s, later supported by KIVA. Over 120,000 seedlings have been issued under the program and the ones planted first will produce commercially in 2019. To improve yields and sanitation of oil palm and cocoa fields, KIVA has supported over 300 Serendipalm Farmer-Members with over $25,000 as interest-free loans for farm tools and labor costs for the maintenance of their farms.
Since 2017 Serendipalm supports its farmers in planting new fields using highly diverse “dynamic agroforestry”. It offers the farmers higher yields, increased biodiversity and lower pest pressure. Serendipalm expects the number of interested farmers to increase to about 200 farmers by 2021. The higher cost of planting materials and the need for trained labor result in costs of establishment and on-going maintenance of approximately $ 1300 per hectare ($ 520 / per acre) require, an amount unaffordable to farmers without financing. KIVA and Dr. Bronner’s will both support farmers by providing that needed financing.
A unique lending approach:
Serendipalm offers 0% interest loans to small-holder farmers to purchase more productive palm oil varieties. Once trees produce fruits, about 3-4 years after planting, Serendipalm will purchase and process the palm fruits, guaranteeing the purchase of the farmers’ harvests and offering them long-term markets. Kiva financing will enable Serendipalm to offer more loans and increase the production of palm oil on organic and Fair Trade terms.