Via the Fairtrade Access Fund (FAF), Incofin provided a working capital loan to the Peruvian avocado producer and exporter Phoenix Foods.
The investees of FAF are companies that have demonstrated socially and environmentally friendly agricultural practices, innovative strategies, and business models that radically improve small farmers’ living conditions. This is the case of Phoenix Foods, one of the agro-industrial leading companies in Peru. They are experts in commercialization, processing, and exporting all kinds of fruits and vegetables coming from smallholder farmers. Avocados are by far their most important product, representing over 60% of their total production.
The company is different from other avocado companies because they buy their farmers’ entire avocado crop at a competitive price regardless of the quality or aesthetics of the fruit. Because they transform most of the green fruits to processed products like frozen avocado pulp (which is sold as guacamole), they are not only limited to fresh, perfect looking avocados. The smallholder farmers selling to Phoenix see their income increase by 20%.
FAF recognized the company’s enormous potential to continue expanding and generating more significant impact both in their local and regional contexts, leading by example. For this reason, FAF provided a working capital loan to help commercialize their products as an effective means to improve sustainability throughout the avocado value chain, from production to consumption.