World bank invests in cocoa trader
15 May 2012 – IFC, a member of the World Bank Group are investing $55 million in Armajaro Trading, a soft-commodity supplier, to support the ethical sourcing of cocoa. The project will help develop sustainable farming practices and improve traceability within its supply chains.
Increasing traceability of commodities and promoting sustainable farming are integral to Armajaro Trading’s business model. These allow consumers to access sustainably cultivated products while contributing to the long term social and economic development of farming communities. The project will help the company maintain closer contact with farmers and co-operatives and offer value-added services such as long term supply agreements and price risk management.
“Working with IFC will help Armajaro Trading become the partner of choice in the agri-commodity supply chain,” says Richard Ryan, CEO of Armajaro Trading. “IFC’s support will enable us to grow our business while ensuring that we continue to lead the sector in traceability and sustainability.”
Vipul Prakash, IFC director for Manufacturing, Agribusiness, and Services, Asia-Pacific, says, “IFC’s investment represents a unique opportunity to partner with a global business leader that is active in improving the livelihood of its emerging-market farming communities and developing traceable and sustainable supply chains.”
Sujoy Bose, chief investment officer and head of the IFC ALAC Fund, says, “Armajaro’s extensive sourcing network, deep customer relationships with global buyers, strong expertise in the commodities it trades, and focus on traceable and sustainable products has put the company in a unique position to build on this platform and seek out growth opportunities in new territories and other soft commodities.”
