Project detail - Isik Tarim Urunleri Sanayi ve Ticaret Anonim Sirketi

Who is our prospective customer?

Işık Tarım Urunleri Sanayi ve Ticaret A.S. (“Işık Tarım”) is a Turkish company, engaged in an integrated value chain for organic fruit-based food and consumer products in dried fruit, hazelnut, and frozen fruit segments. Fruits are originated from over 4,000 contracted farmers in Türkiye, processed in its processing facilities and fully exported to international markets. Işık Tarım promotes organic farming and integrates smallholder farmers into their organic agri-production network through their “Happy Village Program”, which is supports farmers through technical assistance, input supply and organic certification processes, amongst others.

What is our funding objective?

Potential USD 18 mln funding from FMO will finance Isik Tarim in relation to their procurements from the contracted farmers within their Happy Village Program. Long term-financing will address the permanent working capital requirements arising from their integrated supply chain and long cash cycle.

Why do we want to fund this investment?

The investment is 100% Green Label in view of the organic supply chain of Isik Tarim and 100% Reducing Inequalities Label in view of the Company’s support to the contracted farmers with an average land size of 1-10 Ha through its Happy Village Program. Also, FMO financing will enable Isik Tarim to purchase farmers’ products in larger quantities and process and export larger volumes, i.e., more economic activity in rural Türkiye through contribution to direct and indirect employment.

What is the Environmental and Social categorization rationale?

The E&S risk category of this investment is B+. This is based on limited and site-specific environmental and social risks and impacts at the processing plants and supply chain. These risks and impacts can be easily avoided or mitigated by incorporating good international industry practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the operated plants. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security, PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is only applicable for risks associated to the supply chains. FMO will periodically review the project’s ongoing compliance with the Performance Standards.