Regional : Louis Dreyfus COVID-19 Climate-Resilient Smallholder Farmer Recovery Project
Senior unsecured 3-year USD bullet loan of $100 million to finance LDC's working capital needs in Asia for the sustainable procurement of coffee, cotton, and rice. The transaction will preserve the livelihood and climate resilience of [60,000] smallholder farmers affected by COVID-19 in the five project countries. A complementing TA (funded by trust funds) will establish 80 farmer groups and train 160 farmer group educators with an aim to help farmers obtain sustainability certifications.
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- Agriculture, natural resources and rural development
|Project Name||Louis Dreyfus COVID-19 Climate-Resilient Smallholder Farmer Recovery Project|
|Borrower / Company||Louis Dreyfus Company Asia Private Limited
Louis Dreyfus Company B.V.
|Country / Economy||Regional
|Location||India - Nation-wide; Indonesia - Nation-wide; Pakistan - Nation-wide; Viet Nam - Nation-wide|
|Type or Modality of Assistance||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP7: Fostering regional cooperation and integration
|Sector / Subsector||
Agriculture, natural resources and rural development / Agro-industry, marketing, and trade
|Gender||Effective gender mainstreaming|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Nath, Kiron|
|Description||Senior unsecured 3-year USD bullet loan of $100 million to finance LDC's working capital needs in Asia for the sustainable procurement of coffee, cotton, and rice. The transaction will preserve the livelihood and climate resilience of [60,000] smallholder farmers affected by COVID-19 in the five project countries. A complementing TA (funded by trust funds) will establish 80 farmer groups and train 160 farmer group educators with an aim to help farmers obtain sustainability certifications.|
|Objectives and Scope||The project will provide working capital financing to LDC for the procurement of crops in India (coffee, cotton, and rice); Indonesia (coffee); Pakistan (cotton and rice); Thailand (rice); and Viet Nam (coffee and rice). LDC's continued operations in the project countries will help keep food supply chains secure and functioning and mitigate the pandemic's ongoing impact on vulnerable groupsparticularly for more than 50,000 smallholder farmers that supply to LDC in the project countries. By ensuring reliable offtake to farmers, the project will help preserve their livelihoods. The project enables LDC to continue to leverage its significant warehouse network to hold inventory, thereby offsetting the impact of supply chain disruptions.|
|Linkage to Country/Regional Strategy||
The project is consistent with ADBs Strategy 2030s operational plans for priority 1 by preserving the livelihoods of smallholder farmers during the COVID-19 pandemic; priority 2 through gender interventions targeted at women workers and farmers; priority 3 by promoting the climate resilience of farmers; and priority 5, which calls for the integration of farmers, agribusinesses, and consumers into efficient and sustainable value chains. As a regional project, it is consistent with the operational plan for priority 7 as it supports nonsovereign lending for cross-border operations for agriculture value chains. The project is consistent with ADBs country partnership strategies for India, Indonesia, Pakistan, Thailand, and Viet Nam.
The project is aligned with the Operational Plan for Private Sector Operations, 20192024, which calls for working with tier 1 agribusiness companies given their potential to have a widespread impact. The project supports ADB's agriculture-related strategies and action plans of subregional programs. The project is part of ADB's Comprehensive Response to the COVID-19 Pandemic.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for environment. The loan will support working capital needs of the Borrower for the procurement of coffee, cotton, and rice, primarily through aggregators in the project countries. Given the use of proceeds, the project is anticipated to have minimal environmental impacts.|
|Involuntary Resettlement||ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for involuntary resettlement. ADB funding will not be used to acquire land or for any activity that may result in involuntary resettlement impacts.|
|Indigenous Peoples||ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as category C for indigenous peoples. LDC, in principle, does not source goods from indigenous land and has set out practices to avoid impact on indigenous peoples in its supply chain.|
|Stakeholder Communication, Participation, and Consultation||LDC engages with various aggregators in its supply chains, such as individuals, cooperatives, and companies. LDC also uses non-governmental organization (NGO) information portals to identify potential issues and regularly interacts with NGOs to obtain inputs on possible non-compliances with LDC's sustainability commitments and principles.|
|Timetable for assistance design, processing and implementation|
|Credit Committee Meeting||-|
|Approval||13 Dec 2021|
|Last PDS Update||07 Nov 2023|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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|Title||Document Type||Document Date|
|Louis Dreyfus COVID-19 Climate-Resilient Smallholder Farmer Recovery Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2021|
|Louis Dreyfus COVID-19 Climate-Resilient Smallholder Farmer Recovery Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2021|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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