Sociobioeconomy of the Brazilian Amazon
Money does grow on trees. As long as they stand.
Credit and technical assistance for those who produce without cutting down a single tree.
The structure
Two vehicles. One platform.
One fund lends. The other prepares producers, lowers risk and measures results. Catalytic capital takes the first risk so that commercial capital can come in.
Repayable capital
Credit Fund
Two credit products for associations, cooperatives and micro, small and medium-sized businesses: receivables advance and productive credit.
Non-repayable capital
Catalytic Fund
Tailored technical assistance, data-based monitoring and direct grants when credit alone is not enough.
Both reach the same cooperative.
Credit and technical assistance, side by side
Inside the Credit Fund
Two credit products.
Receivables advance
For the association or cooperative that sells to a partner industry. The fund pays on delivery, and industry pays the fund within 9 months.
Productive credit
A direct loan to the association or cooperative to finance the harvest (advancing funds to producers and buying their production) and to invest in equipment, infrastructure, sustainable management, traceability and certification.
The problem · Example 1: receivables advance
The product leaves today. The money takes months.
-
Family
Harvests and delivers
- Credit comes in here
Association
Gathers, stores and sells
-
Industry
Processes and pays on terms
-
Consumer
Buys the final product
Today
100+days
On average, industry takes more than 100 days to pay its suppliers. Without cash, the association cannot pay families on delivery.
With Amazon Food&Forest
0–1day
When the association delivers to industry, the fund pays it on the spot. The association pays families on delivery, and industry settles with the fund within 9 months.
DELIVERYDAY 50DAY 100
How the money moves
-
Fund → Association
Pays the moment the association delivers to industry
-
Association → Families
Pays families on delivery
-
Industry → Fund
Pays the fund within 9 months
Example 2: productive credit
To harvest, you need money first.
The cumaru harvest lasts only a few months, between August and December. Families need cash before they go into the forest, for supplies, fuel and tools. The cooperative needs cash too, to buy the harvest the moment it is delivered.
-
Families
Collect and deliver
- Credit comes in here
Cooperative
Pre-buys the harvest, dries, sorts and sells
-
Industry
Buys the sorted seed
-
Consumer
Buys the final product
Today
Without working capital, the cooperative can only pay collectors after industry pays it. Collectors who need cash to go into the forest end up selling to middlemen for less.
With Amazon Food&Forest
With a loan before the harvest, the cooperative advances what families need to collect, pays for each batch on delivery and invests in drying and storage. It sells dried, sorted seed to the partner industry and repays the fund from that revenue.
How the money moves
-
Fund → Cooperative
Lends before the harvest
-
Cooperative → Collectors
Advances what they need to collect and pays on delivery
-
Cooperative → Equipment
Dryer, scale, storage, transport
-
Industry → Cooperative
Buys dried, sorted seed
-
Cooperative → Fund
Repays from the sale
The loan is the cooperative's; collectors do not borrow from the fund. The Catalytic Fund helps the cooperative plan the harvest and manage its cash. Illustrative example based on real cases.
Who gains
Everyone in the chain comes out ahead.
The families
- Get paid on delivery
- Take on no debt
The association
- Gets paid on delivery or accesses productive credit
- Gets technical and production assistance
Industry
- Up to 9 months to pay the fund, which frees up its cash
- Stronger suppliers
- Lower environmental and social risk: deforestation monitoring is part of the routine with the associations
What changes
From money on time to a standing forest.
- Advanced capital
- Working capital for the association
- Secure income for families
- Families stay on the land
- Territory is monitored
- Stronger local governance
- Standing forest