FY 2024 Q1 REPORT: Feed the Future Honduras Coffee and Community Partnership

Two loans were for general working capital and two were for seasonal working capital. The general working capital loans disbursed this quarter totaled $864,780, representing 4.3% of the annual target of $20 million. The seasonal working capital loan disbursements totaled $570,000. The low percentage of general working capital loan disbursements was due to original targets established in 2021-2022, when coffee prices were higher. Additionally, low market demand in this quarter resulted in a slow start to the harvest, and El Niño climate pattern rains impacted drying times and led to delayed harvests for clients across Central America, including Honduras. The majority of advisory days (89%) focused on Digital Business Intelligence (DBI) and Business Management (BMA), with Lending/Risk Support, Agronomic and Climate Resilience (ACRA), Youth Inclusion, and Resilience Grants delivered to a more limited extent. Root Capital provided 50.65 days of customized advisory to 13 agri-SMEs, including 27.27 days of Digital Business Intelligence and 17.63 days of Business Management Advisory. The advisory services focused on product design and technical implementation, data management and integration, data monitoring and quality control, and data analysis and interpretation for DBI, and agribusiness diagnostics, strategic and financial planning, and accounting for BMA. Root Capital made one $5,000 Resilience Grant and disbursed $1,434,780 in loans to three lending clients. The Resilience Grant was provided to one client (COPANEX) to strengthen bankability. Technical assistance and training were provided to 243 producers, with a focus on the implementation of climate change adaptation and mitigation practices. Improved management practices were implemented in 425 hectares of coffee, and training on management plans for coffee farms in protected areas was provided to 8 technicians. Agricultural Enterprises Have Strengthened Business Management Capacity to Improve Access to Financing Eleven of the 15 agricultural businesses served during FY2024 Q1 completed a total of 17.63 days of customized Business Management Advisory (BMA). Agribusiness diagnostics were in greatest demand, followed by financial planning, accounting, and strategic planning. Root Capital complemented these BMA services through providing loan application support and a monitoring visit on behalf of Lending/Risk to one of its advisory clients (RAOS). Root Capital also approved a $5,000 Resilience Grant in October for an additional client (COPANEX) to strengthen its administration and accounting through acquiring and implementing accounting software. Youth Inclusion advisory services were provided for the first time during this quarter. Root Capital enrolled 245 youth (49% women) in the 60-hour Skills for Life training module, with 111 youth (65% women) completing the first cohort. Participation of 111 youth from 9 cooperatives in the Entrepreneurial Challenge established alliances with local governments and partner cooperatives. Implementation of Climate Change Adaptation and Mitigation Practices Technical assistance and training were provided to 243 producers, with a focus on the implementation of climate change adaptation and mitigation practices. Improved management practices were implemented in 425 hectares of coffee, and training on management plans for coffee farms in protected areas was provided to 8 technicians. Field activities with 280 producers at 28 model coffee farms, 5 exchange tours, and 7 field schools were conducted. Data collected and soil sampled and mapped from 62 research plots. Disbursements and Advisory Services Root Capital made disbursements totaling $1,434,780 to three agri-SMEs during the reporting period. The majority of advisory days (89%) focused on Digital Business Intelligence (DBI) and Business Management (BMA). Root Capital provided 50.65 days of customized advisory to 13 agri-SMEs, including 27.27 days of Digital Business Intelligence and 17.63 days of Business Management Advisory. The advisory services focused on product design and technical implementation, data management and integration, data monitoring and quality control, and data analysis and interpretation for DBI, and agribusiness diagnostics, strategic and financial planning, and accounting for BMA.