common fund for commodities annual report

These tailor-made tools take into account the specific set-up of the CFC, the sectors it operates and cover all steps of CFC investment process. The additional income received by the beneficiaries can have a great impact in achieving food security, contributing to the SDG 2. This combined approach is the basis from which the Fund can communicate a credible story of its SDG impact. We provide technical and financial support from field to fork. Governments must reflect on how to do this, rather than pinning all the blame on the resource curse. For three quarters of them, the share of merchandise exports that were commodities exceeded 80%. At UNCTADs first session in 1964, the impact of commodity price volatility was at the top of the agenda, and a discussion on creating a common fund began. Too often companies come in and push communities out of their land, depriving them of their main source of livelihood. As result, the CFC has determined the main indicators to be monitored by its projects in line with its mission. In the short term, productivity depends on the economic situation of producers, who are aware of the benefits of adopting certain practices but struggle to boost the nutrition of their coffee plantation. As a result of their growth, Shalem has been able to repay the CFCs investment and build the credibility they need to access funding from more risk averse local banks. Sustainability is in our DNA, explains Jonna Bickel, Vice President Farmer and Community Programmes. +31 . Projects which are unable to provide such information are normally not recommended for further consideration during the screening stage. But aiming high, doesnt mean Shalem will lose sight of its origins and core purpose. He also hopes that LIFT may inspire others in the coffee value chain to adopt such innovative business models, ensuring that financial returns always go hand in hand with social and environmental impact. Each year we keep striving to do more, because our work is just as important now as it was when the CFC was established. The success of a company is defined by a number of things. Figures may . Newsletter October 2022. The CFC will continue to search for innovative ways to deliver on its promise to make commodities work for everyone in the coming years. Those workers are more likely to be informally employed, have fewer chances to engage in social dialogue and are less likely to benefit from job security, regular incomes, and access to social protection. We act as a bridge between the developing and developed world, transferring technology and innovations from our base in the Netherlands. That experience has left an imprint. However, recognizing the great importance and complexity of this topic, the CFC decided to take a step further, aligning its procedures to the current best practices from the impact investment industry, by developing its own SEMS. My background as a smallholder farmer and my experiences as a child will always influence how we do business, she says. This will lead to a net additional income for each smallholder of USD 263 per year. In rare cases we will consider providing equity, quasi equity, lines of credit and guarantees. Rather than becoming unemployed or shifting to informal jobs, as in previous crises, laid-off employees and self-employed workers alike left the labour force. Most projects experienced disruptions on their value chain, such as logistic challenges and lower demand. The Common Fund's mandate is to enhance the socio-economic development of commodity producers and contribute to the development of society as a whole. In practice this means it should deliver positive economic, social and environmental outcomes to everyone, particularly vulnerable communities in commodity dependent developing countries (CDDCs). The ILO projects that unemployment will remain above its 2019 level until at least 2023. These activities are driven by the communities, and are based on what their needs are, on what they think contributes to their wellbeing. concludes Jonna. Another big worry for her is the anticipation of more effect of climate change. And thats where we decided that we could make a difference. The first step for Kennemer was to turn their existing reforestation efforts into a programme that could benefit the farmers as well as the environment and that, most importantly, they had the skills to monitor. Annual Report 2020. Working together, we grow together, and I feel confident to be part of the LIFT program, says LIFT farmer Donald Blanco, father of three children. For the year of 2021, 16,000 hectares of new land were cultivated and the total area of land under cultivation during the year was 52,000 ha. Copyright | Privacy notice | Disclaimer, You can still access all the information relating to the submission process in this Call for Proposals, but we are no longer able to accept new proposals now under the 2. The CFC contributes to SDG 1 by investing in businesses that improve peoples livelihoods throughout the supply chain, by among others, training and providing stable demand to smallholder farmers in developing countries. 21st Call for Proposals. Prior to the onset of the pandemic, informal employment represented 60% of global employment. Engaging with LIFT, therefore, strikes as something more than a mere transfer of knowledge and skills. Common Fund for Commodities | 2,666 followers on LinkedIn. Tel. The CFC provides support to projects investing in commodity value chains to deliver sustainable development impact from "field to the . Shalem has also trained about 20,000 people in some of the areas where it required climate resilient growing techniques. 21st Open Call for Proposals in support of commodity development activities is now closed. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. CFC is at the heart of development. Common Fund for Commodities. And their efforts didnt stop there. Well aware that reforestation alone wasnt going to be enough to preserve the local ecosystem, Kennemer worked on a REDD+ project proposal with 13 communities in Davao Oriental, a rural province southeast of Mindanao. In addition, concentrating heavily on a few commodities has profound social consequences. The additional net income for these beneficiaries goes up to USD 263 per year. We fund projects that are sustainable and deliver measurable development impact within the framework of the SDGs. There is no one-size-fits all formula, which is why we make sure our investments align with the strategies and development needs of each country and area we operate in. This information is provided to the CFC on an annual basis. This kind of commodity dependence makes them vulnerable to economic shocks. To maximize the transparency of its process, an external auditing company verifies Mercons KPIs. In particular, several projects supported by the fund contribute to women empowerment, providing them training, employment opportunities, access to new markets and others. But for centuries the rewards that come from producing and trading commodities have not been shared equally. Cocoa as a product needs healthy and nutritious soil to grow, continues Jonna. But to do more we need larger partners such as the World Bank, IMF, IFC, GCF, EU and the wider UN ecosystem, to de-risk our investments. The projects are expected to report the percentage of female beneficiaries on their projects, the total jobs created for women, share of women in senior positions and of women ownership, among other gender-related metrics. Request Profile Update Download Data $215,062,500 Assets 1 Official Documents Home Profiles Advisor Europe Gender disparities, however, are evident in unequal access to productive resources. The development impact is one of the major criteria for selection of interventions receiving CFC support. And these prices tend to fall faster in tough times, than they rise in better times. Stadhouderskade 55. Lifting the coffee value chain in Nicaragua, Honduras, Guatemala, Brazil and Vietnam. In turn breweries reduced production and the demand for shorgum plummeted, leaving Shalem with hunderds of tonnes of the grain and no one to sell it to. Value chains are influenced by a range of forces on a national, regional and global level. Demand is higher than ever, supply needs to rise to the challenge. A farmer can still bring a bag of maize on a motorbike, or five bags of sorghum on a donkey, to the factory and we will weigh it and pay. Its this accessibility that makes it a lifeline for many smallholders, boosting the prospects of them and their children. After phenomenal success in their cocoa value chain, Kennemer is now using our fund to venture into the carbon credits market. The potential impacts are life changing for many. For example, we expect LIFT farmers from Nicaragua to receive an average annual coffee income of USD 6,706.80, compared to non-LIFT farmers who earn USD 1,474.00. Nonetheless, it is clear that the effects of the COVID- 19 pandemic were still felt across the entire CFC portfolio. The CFC transformed our business from an aggregator to a manufacturer. Since the monitoring of the targets is done on a national and on a global level, it may be challenging to attribute the contribution of a particular organization in advancing specific goals. The CFC provides support to projects investing in commodity value chains to deliver sustainable development impact from "field to the . And the major outcome we see is on the community, something we didnt have before. We offer financing up to USD 2.0 million, which SMEs submit proposals for. Gender disparities, however, are evident in unequal access to productive resources. The impact achieved with the program speaks volume of the potential of a company committed to both its people and the environment a key potential in a world where transparent and sustainable value chains are being increasingly asked for. The success of a company is defined by a number of things. The CFC acknowledges these limitations and tries to give its contribution for the sector to progress towards a robust impact management practice. Take the case of commodities which require long-term investment, such as coffee. similar projects; The CFC systematically follows up the achievements of its supported projects to ensure timely and accurate reporting of the progress and impact. dev.ico.org. In total, it is expected that 80,658 hectares of additional land will be cultivated from the interventions financed by the CFC. Of course, sustainable development is a broad term. It is a trap that UNCTAD rightfully warns these countries will not escape from in the foreseeable future unless they go through a process of technology-enabled structural transformation. This will lead to a net additional income for each smallholder of USD 263 per year. Common Fund for Commodities Grants: The Netherlands-based Common Fund for Commodities (CFC) has issued a call for proposals to support commodity development activities that benefit the poor in more than hundred countries around the world. It also leaves them exposed to price shocks from events outside their control, such as COVID-19. Where there is a dominant player, they are forced to take the price on offer, no matter how low it is. Working in partnership with us from 2017 to 2022, Shalem transitioned from a grain aggregator to an added-value manufacturer, supporting the least privileged people in the surrounding communities. Common Fund for Commodities. After an in-depth assessment, the CFC has mapped the most relevant IRIS+ metrics with its core SDGs. As a secondary school student Ruth Kinoti began her school day by carrying a bag of cereals (Maize beans or sorghum) to the local market. 11 new investments were approved by the CFCs Executive Board, another new high. Even before the pandemic, the number of people going hungry and suffering from food insecurity had been gradually rising since 2014. Measurable and accountable impact is at the core of LIFTs innovative approach. We are based in the Netherlands from where we can harness innovation to act as a bridge between the developing and developed world. We have also made great strides on SDG 5, with women making up 63% of those benefitting from our 2021 investments, compared to 31% in previous years. I look forward to continuing our journey with you. The CFC supports projects that generate employment with decent working conditions. Their focus on training and supporting smallholder farmers, whose produce they have been sourcing and trading since 2010, has both been the key to their success and what has kept them solidly grounded. The Common Fund for Commodities ( CFC) is an intergovernmental financial institution established within the framework of the United Nations. According to agronomists Janira Centeno and Elvin, the Productivity pillar is the most challenging to achieve results for. The COVID-19 pandemic had a dramatic impact on several of Shalems key markets. Not only is Shalem delivering price stability for smallholders by linking them to larger, more consistent markets, it is also providing affordable nutritional food for some of the poorest people in the region. CFCs support came at the right time to put the innovation on a firm footing. Our work is driven by the principle that commodity production, processing and trade should benefit both developed and developing countries alike. Its undeniable, however, that their vision goes beyond their business. Now my children oversee everything related to farm certification, my wife keeps the activities records, while I supervise the field activities. Ever since it was established in Nicaragua in 2016, LIFT has grown to the point that it now involves 4,200 farmers from Nicaragua, Honduras, Guatemala, Brazil, and Vietnam. The pro forma results reflect the combined results of HF Foods and B . Through the programme, which is now in the final stages of verification under the Verra voluntary carbon standard, Kennemer will soon be able to issue carbon credits. In particular, several projects supported by the fund contribute to women empowerment, providing them training, employment opportunities, access to new markets and others. In this manner, the CFC seeks to have a clear portfolio-wide view of its contribution to achieving the SDGs. The indicators should clearly demonstrate the intended level of achievements for each year of the project. The projects are expected to report the percentage of female beneficiaries on their projects, the total jobs created for women, share of women in senior positions and of women ownership, among other gender-related metrics. Selling them was the only way to pay for her bus ticket to a boarding school far away from her home. As the World Economic Forum has recognised, they underpin humanitys survival and progress. The more generous member states are the more we can invest in overcoming the commodity dependence that exacerbates poverty, creating a fairer and healthier world for the benefit of everyone. Fifty-eight years later and the economies of many developing countries are still driven primarily by commodities. This brought much-needed income and positive social impacts to an otherwise impoverished community. Measuring CFC impact across its portfolio. What started as a grain aggregating company, buying sorghum from smallholders to supply to local schools, is now a manufacturer and processor of scale. dev.ico.org. We have also made great strides on SDG 5, with women making up 63% of those benefitting from our 2021 investments, compared to 31% in previous years. We take a closer look at what's driven the Shalem success story. To ensure the best services to their smallholder farmers, LIFT agronomists receive trainings first. This chapter provides more details on the focus of CFCs impact strategy, explains how the CFC has been implementing it, shows the impact highlights for CFC loan portfolio in 2021 and introduces three impact stories from featured CFC projects. The CFC loan of USD 5 million supports Mercon with funding short-term advances to smallholders. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. A disproportionate impact on informal workers was reflected in a decline in the informal employment rate in some countries at the height of the crisis, which has left informal workers and their families in a highly precarious position, exposed to sudden income losses and heightened risks of falling into poverty. The CFC supports interventions in developing countries, giving special attention to projects targeting vulnerable regions and countries, such as the Least Developed Countries (LDCs). And of course, I want to thank our team at the CFC for making all our achievements possible. 5 were here. As a global green coffee supplier, Mercon has developed a sustainability strategy, for which the LIFT multi-services Program for farmers has been essential. The formula allows us to use a different mix of grains, depending on whats available, without compromising on the quality which creates a stable demand for farmers and a nutritious product for consumers, explains Ruth. Whether Kennemers ability to foresee and embrace change will be their key to long-term success, only time will tell. 1072 AB Amsterdam. They trusted us when we didnt have collateral to afford the financing for a factory. The CFC invests in projects in the worlds most vulnerable regions, helping people to earn a fair share of the global value created from commodities, thereby reducing inequality. In turn breweries reduced production and the demand for sorghum plummeted, leaving Shalem with hundreds of tons of the grain and no one to sell it to. Through its LIFT services, Mercon aims for farmers to reach minimum 80% in the LIFT Index within the first three years of program participation. Read more. Unless they go through a process of technology-enabled structural transformation, it warned, they are unlikely to break free. CFC is a membership-based organization comprising of 105 countries and . expected to receive an average increased annual coffee income (average simulation is USD 6,706.8 for LIFT farmers, compared to non-LIFT farmers who can earn as low as USD 1,474.2). Each project received through the Open Call for Proposals is expected to provide indicators of its intended impact. With LIFT we know that being a coffee producer is more than just producing coffee; here we are all united and we all get benefits. Preamble We, the G7 Foreign Ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America, and the High Representative of the European Union, have met today in a fundamentally changed strategic and security environment. So how does this journey start? [.] In turn this will reduce the poverty many of them experience. Currently, there is no official guideline for the private sector and the civil society to report on their work related to the SDGs. All of which were considered commodity export dependent. The CFC has always considered the Environmental, Social and Governance (ESG) risks when assessing a project. Structure of the United Nations organization. Webinars are also held to keep up with the development on certain issues such as nutrition and integrated pest management. With LIFT, Mercon demonstrates how a business can grow alongside its farmers through a circle of prosperity. It is a vestige of the proposed New International Economic Order. commodities and provide information on the opportunities for introduction of new and innovative approaches in the field of The end of year 2012 was a pivotal. Also, 455 women were receiving full-time employment opportunities from the projects supported by the CFC. Here are some examples of specific areas we target: Production, productivity and quality improvements, Technology transfers, upgrades and innovation, Measures to minimise physical marketing and trading risks, Risk management, such as price and weather volatility. The project agreement assures that the project will aim to achieve the intended outcomes and will report specific impact indicators, as agreed with the CFC. This involved an outlay of USD 114.3 million, including USD 18.9 million of CFC contribution. We are always looking to support the most vulnerable in the least developed countries, the LDCs, LLDCs, SIDs and the likes. The Russian war of aggression against Ukraine is a watershed moment for the 21st century and carries dramatic consequences far beyond . Connecting consumers with producers in the digital era. 11 new investments were approved by the CFCs Executive Board, another new high. The projects supported by the Fund expect to create 5,619 new jobs, giving employment opportunities to people living in vulnerable conditions. At the beginning of every year, they assess their knowledge on different issues and strengthen it accordingly. +31 20 5754949. By prioritizing the support of projects promoting gender equality (e.g. In other words, we have enough raw commodities but we must do a much better job producing, processing, marketing and consuming them, to prevent hunger and build fairer societies. The CFC works to address the imbalance in the distribution of bargaining power, where coffee producers are the weakest participants in the value chain, keeping their prices consistently low. Coffee brings more than a sensorial experience to its consumers it also carries a history of environmental and social impact in coffee growing communities. The CFC finances commodity development projects in developing states. Besides measuring the positive impact its projects help to create the CFC understands the importance of also considering the potential social and environmental risks of its operations. Integrated crop management has really helped me, especially by using organic soil amendments, details Norlan Palacio, a Nicaraguan LIFT farmer who joined the program in 2016 his motto is Healthy soil, plants more productive. I also continue to be inspired by the commitment and dedication of the smallholders and SMEs we work with; despite the challenges they face. Our investment in COOPAC has helped us do this in one of the most challenging geo-political tracts of land, between the Democratic Republic of Congo (DRC) and Rwanda. Moreover, the Common Fund for Commodities (CFC) is an autonomous intergovernmental financial institution established within the framework of the United Nations. The CFC encourages its projects to give special attention for vulnerable groups. They are also expected to provide details of how project activities contribute to the core SDGs targeted by the CFC. Common Fund for Commodities Grants. ALPHARETTA, Ga., Feb. 18, 2021 (GLOBE NEWSWIRE) -- Schweitzer-Mauduit International, Inc. ("SWM" or the "Company") (NYSE: SWM) reported earnings results for the three months and year ended December 31, 2020. Linux is typically packaged as a Linux distribution.. The COVID-19 pandemic made life harder for many of the businesses we invest in, but it also opened the door to new ideas and opportunities to create transformative resilience-building changes. This is our core purpose. In this regard, the Fund engages with several relevant stakeholders in field and tries to keep up to date with the sector best practices. The CFC is an autonomous intergovernmental financial institution,. Built around three key pillars no child labor, no discrimination and fair and equitable payment the program, known as LIFT, involves 4,200 farmers from Nicaragua, Honduras, Guatemala, Brazil and Vietnam. through fortification and theyve reached out to remote smallholders, particularly women, and boosted their incomes. The success of this approach is clear in the figures for 2021, the first year when the benefits of the factory really started to be felt. Instead, they must also invest in their employ- ees, protect the environment, and deal fairly and ethically with their suppliers. Although countries in the developing world face significant technological challenges, their access to scientific and technical knowledge has grown. We are keen to replicate this innovation in other coffee value chains. Linux (/ l i n k s / LEE-nuuks or / l n k s / LIN-uuks) is an open-source Unix-like operating system based on the Linux kernel, an operating system kernel first released on September 17, 1991, by Linus Torvalds. We are proud of our achievements this year. The Central Military Commission ( CMC) is the highest national defense organization in the People's Republic of China. In 2021, this figure reached 63%. We seek to build partnerships with public and private institutions, bilateral and multi-lateral development organisations, cooperatives, producer organisations, SMEs, processing and trading companies, and local financial institutions. Beneath the headline figures the thousands of smallholder suppliers, the rising premiums being paid for their crops and the growing numbers of low-income consumers accessing Shalem products there are other positive stories unfolding too. For this reason, the CFC has partnered with the Social Finance Programme of the International Labour Organization to develop its Social and Environmental Management System (SEMS). Through the programme, which is now in the final stages of verification under the Verra voluntary carbon standard, Kennemer will soon be able to issue carbon credits. Photo: Local produce on sale at an open-air market in Savannakhet. This will take collective political will and the adoption of digital technologies, including blockchain and the Internet of Things, that directly connect producers and consumers. Of course, there were challenges. Of course there are challenges. The designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever on the part of the Secretariat of the Common Fund for Commodities and/or on the part of the countries mentioned on it, concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In the long run, the CFC hopes that LIFT can serve as a blueprint for other businesses driven by accountable environmental and social impact. Distributions include the Linux kernel and supporting system software and libraries, many of which are provided . The main reason behind this limitation is the lack of legal land ownership, consequently hampering farmers access to finance that helps improve farm management. Production, productivity and quality improvements, Technology transfers, upgrades and innovation, Measures to minimise physical marketing and trading risks, Risk management, such as price and weather volatility. COMMON FUND FOR COMMODITIES. Commonfund is an asset management firm founded in 1971. So how does this journey start? In practice this means it should deliver positive economic, social and environmental outcomes to everyone, particularly vulnerable communities in commodity dependent developing countries (CDDCs). What are commodity dependent developing countries (CDDCs)? [31] Goldman Sachs reports its environmental and social performance in an annual report on Corporate social . After 3 years of joining the program, LIFT farmers from Nicaragua are.

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