Inka's Berries

Debt : March 2023

BIO has granted a USD 15 M loan to Inka's Berries, a Peruvian company dedicated to the production and commercialisation of blueberries seedlings and of fresh blueberries for export.

Amount

€ 14,131,500.00

Type of investment

Debt

Development impacts

Local economic growth
Private sector consolidation/innovation
Food security & rural development
Fight against climate change and preservation of natural resources
Promotion of ESG best practices
Gender

Beneficiary locations

Latin America and Caribbean: Peru

Investment field

Enterprises

Activity

A01.29 Growing of other perennial crops

Organisation

Inka's Berries

Website

https://inkasberries.com.pe/en/home/

Domicile

Peru

Inka’s Berries SAC (IB) is a vertically integrated Peruvian company founded in 2009 and specialised in the development of new blueberries varieties and in growing and exporting premium blueberries. The company is domiciled in Huarua, Lima, and produces blueberries on approx. 400 ha of land, split in two production sites.

IB recently concluded an agreement with a peasant community in the Peruvian coastal region to incorporate a land of 200 ha owned by the community into the company in exchange for preferred shares of the company. The agreement with the community foresees that IB will do the necessary investments to make the land suitable for blueberries cultivation and that the community will be paid under an established dividend distribution plan and have preferential access to jobs and annexed activities generated by the project.

This agreement will allow the community

to get revenues from unused land
to have access to new jobs opportunities (directly and indirectly), and
to benefit from infrastructure improvements (roads, sewage system, drinking water).

Development impacts

Local economic growth
Export revenues: export-oriented company with revenues mainly in USD, revenues thereby supporting export revenues and trade balance improvements, in a sector that is crucial for Peruvian economy i.e. 7% to 8% of GDP and nearly 24% of export earnings.

Job creation: IB expects to create approx. 200 permanent jobs and 1,000 seasonal workers, through formal contracts and under good working conditions.

Local economic opportunities: poor community gets preferential access to direct and indirect jobs in a remote environment with limited economic opportunities.
Private sector consolidation/innovation
Access to high value-added export market: develop blueberries cultivation in an area that did not benefit from big national irrigation projects

Upgrading the blueberries value chain: IB contributes to: 1) show best practices to the industry (waste management, reduction of use of pesticides, general formalization, etc.) 2) develop new varieties of blueberries, contributing to higher quality, resistant and cost-efficient products, thereby supporting the competitiveness of Peru.
Food security & rural development
Rural development: increased economic opportunities and revenues for a rural Community most relying on subsistence agriculture thanks to the dividend scheme and the preferential access to formal direct jobs and to new businesses around the new plantations.

Improved infrastructure: the community will have access to better infrastructure as IB committed to improve roads and set up sewers, drinking water systems with the Public Works Tax Deduction mechanism.

Long-term development perspective: IB is committed to ensure good governance practices and developing a long term community development plan.
Fight against climate change and preservation of natural resources
Water-use-efficiency: blueberries are a low water-intensive crop compared to other traditional crops such as sugarcane, pepper and avocado and IB uses a drip irrigation system which, combined with the cultivation in bags, minimises water usage.

Renewable energy generation: IB will, amongst others, put solar panels on the rooftop of the breeding area

Innovative and efficient use of fertilisers and pesticides in an environment where organic production is not a viable option.
Promotion of ESG best practices
Certifications: IB already has BRC for its packing plant, and Global Gaap traceability + breeding, SMETA 2022 and Grasp + ISO 17025 for the laboratory. IB also has the certificate “campio limpio” for the responsible disposal of chemicals. BIO aims to contribute to further certifications.

Environmental friendly initiatives: IB will, amongst others, use of carton clamshells instead of plastic, reduce the use of pesticides, measure its carbon and water footprint, and optimise the use of combustibles.
Gender
IB does not qualify for 2X challenge as it has no women in senior management positions, 25% of women amongst the shareholders, 36% of female employees and up to 60% of female agricultural workers.

ESAP requirement on gender: IB’s environmental and social action plan includes the requirements to develop HR policies and procedures with a gender lens. This should be facilitated thanks to BIO's expertise and TA.

E&S Impact

Inka’s Berries SAC will develop a Governance Plan to manage the relationship and engagement with the Chambara community by hiring a community relations expert and by creating a Community Management plan and a Corporate Social Responsibility plan.

Situation at the time of investment

Inka’s Berries SAC has strong management systems, best in class agricultural practices and provides good working conditions for their permanent and temporary employees. The recent land acquisition from a nearby community has highlighted certain socials risks that need to be managed.

Risk Category: B+