FMO supports Peru’s agricultural long-term growth with a USD 30 million loan to DanPer Trujillo S.A.C. (DanPer), a significant exporter of fresh and canned products.
DanPer is one of Peru’s leading agricultural companies which was established in 1993 and currently produces fresh, canned and frozen asparagus, artichokes, peppers, mango and other fruits and specialty products mainly for export to North American and European markets. DanPer started as a single product and process business and over the years has expanded into a diversified integrated agricultural processor which produces its own products from more than 500 farmers throughout the country. The company is an important vehicle for development as it generates a positive and significant impact to the economy of its suppliers, workers and communities and along its value chain. DanPer spreads geographical its in-country supply sources (north to south) to benefit from different production areas for its products (including altitude differences) as well as distinct harvest windows throughout the year (Peru has a latitude extension equivalent from the north of Germany to the south of Italy). Farmers in the supply chain are trained on Good Agricultural Practices and provided with technical advice in relation to input and water use as well as soil cultivation.
FMO’s financing will support DanPer through its growth phase by enabling a better match between the maturity profile of its assets and funding lines. USD 5 million of the USD 30 million facility, will be provided by the Infrastructure Development Fund (IDF) which FMO manages on behalf of the Dutch Ministry of Development Cooperation. To assist the company in dealing with weather related effects, such as the El Niño effect of 2015, FMO has established a capacity development plan to assist them with an Integrated Water Management Plan to manage the water risks, which is aligned with the Alliance for Water Stewardship Standard. DanPer has adopted IFC Performance Standards and completed Environmental Impact Assessments for all their operations; they already adhere to international certifications (ISO 14001, SA8000, OHSAS 18001 and Global/US GAP). All farms make use of drip irrigation and have reservoirs to store water; waste water is treated and reused and therefore limited amounts are discharged.
DanPer employs up to 8,700 employees depending upon the season which includes a significant number of underprivileged women who before the growth of new agriculture activities in Peru did not traditionally have opportunities for formal employment. The company works together with the local authorities and other institutions (i.e. Health Ministry), with social responsibility programs in order to improve the quality of life in the surrounding communities. The programs include medical health campaigns, improving of community roads and improvement of water supply. DanPer also has a special program teaching local people about businesses principles and giving them loans to start their own business.
Agriculture is the main source of income for about 2.4 million families, representing just over 30% of Peruvian households, and generates some 7.6% of GDP. Agricultural exports from Peru have shown a strong growth trend during the past decade and will remain robust, with a continued demand from the US and Europe. Peru, unlike most countries, benefits from a climate that enables year round production, which with its off-season harvesting window places the country as a key agricultural exporter. Peruvian agricultural exports amounted to USD 5.3 billion in 2015 where the main export destination is the US (31% of exports), followed by the Netherlands (13%) and other EU countries.
Suzanne Gaboury, Director Agribusiness at FMO, explains: “DanPer is a leading exporter of fresh, canned, frozen fruits, vegetables and super Andean grains, and the loan from FMO will support the sustainable growth of their operations. Financing DanPer fits well with our objective of supporting leading companies in the sector who have a positive impact on the agricultural value chain. DanPer’s value proposition to its clients is to offer a large range of products, from frozen and shelf life canned to off season fresh produce, with control over the entire value chain and ensuring quality of product. We are also pleased to support a company which has been recognized for entrepreneurship and sustainability based on best E&S practices.”
