We took these individual farm results and then modeled them at a portfolio level investment of 10,000 farmers. This approach helped us make assumptions on loan size considering financing needs and compensation for income loss to the farmer as well as loan disbursement and repayment schedules to model project level cash flows (Figure 2).
Of course, there is no one-size-fits-all solution. Cocoa farming is highly farm specific so precise prescriptions might not be appropriate for all farmers. This exercise, however, allows us to quantify investment needs and to engage in conversations with cocoa companies and investors around the magnitude of investment needed across their supply chains. The next step is to find the delivery mechanisms that work for smallholder farmers while minimizing financial and other risks. We are working with partners such as the IFC and IDH to begin considering specific delivery mechanisms.