Workshop 6: Access to Finance at The Caribbean-Pacific Agri-Food Forum 2015 (CPAF2015) taking place 2-6 November in Barbados with support from the Intra-ACP Agricultural Policy programme, organized in partnership with the Barbados Agricultural Society (BAS) and the Inter-American Institute for Cooperation on Agriculture (IICA). http://www.cta.int/en/news/caribbean-pacific-agri-food-forum.html

1. A brief on our experience, providing financial
services to small-holders farmers and groups
engaged in agricultural value chains in the
Dominican Republic
Presented By:
Mariano Frontera,
SME and Agri-Business Product Coordinator
Barbados, November, 2015

2. Our History
Adopem was created in 1982.
Originally founded as a Non Profit Organization, dedicated
to support dominican woman with credit and training. Until
2000, our credit and services were oriented only for woman.
In 2004, Banco de Ahorro y Crédito Adopem, S. A., was
created to give continuation to our commitment, operating
since then as a regulated Banking Institution.

3. Our Market Focus Client’s Progress
Clients at Sep-2015
Number of Outstanding loans 214,043
Savings Clients 374,533
Number CD’s and Time Deposits 8,152
Money Remittances Delivered 54,451
Micro-Insurance Sold 44,820
6.5% AEP
Average Loan Amount US$491.68
Credit Rating (Fitch) A+ DOM
MicroRate Social Rating 4.5
MicroRate Financial Rating +
Nearly 1,200 employees (More than 50% are Credit
Officers )
8% of the
NFS Clients
In Amounts at SEP-2015 DOP USD$
Outstanding Loan Portfolio 4,767,456,142.87 105,241,857.46
Savings Deposits 656,945,474.26 14,502,107.60
CD’s and Time Deposits 1,753,205,831.79 38,702,115.49
Money Remittances
Delivered 712,467,812.00 15,727,766.27
Micro-Insurance Sold 11,012,185.00 243,094.59
Credit Portfolio Information USD$
Number of Credit Officers 566
AVG Portfolio per Credit Officer DOP
8,423,067.39 185,939.68
% Outstanding Portfolio <30 days
Default
3.62
% <31 days past-due loan
collection
2.42
Our Numbers at a Glance
72%
Women
87%
Vulnerable
Population
41%
Young
Population
58%
Just take
credit with
ADOPEM
93%
Had
created
new jobs
9% / Yr
Sustained
Increased
In surplus
Fidelity
14% / Yr
Sustained
Increased
In Assets

4. Our Coverage in the Dominican Republic
69 Branches and 61 banking agents distributed
all acrross the country; in the National District
and in other 29 provinces. (Remaining 2
provinces projected to have branches by 2016)

5. A view to the agriculture and livestock sector
in the Dominican Republic
8%
Of GDP
25%
of exports
14%
of the labor
force (Nearly
243,000 people
but aging in
most of the
cases)
Farmers with
low level of
technical and
commercializa-
tion skills
Most of the
value added and
price benefits
stays in
intermediaries,
not in producers.
Only 3% of the
outstanding
credit portfolio
in Regulated
Banking its
dedicated to
the sector.

6. 3.7 %
Of Total Credit
Portfolio
Dedicated to
Finance
Agriculture and
Livestock.
(8% of total C.P.
Allocated in Rural
Regions)
What we have done in Adopem to give
financial access to the Sector?
Began in 2010 with
specific projects directed
to small farmers in
collaboration with
different institutions:
CODESPA FOUNDATION,
REDOM FOUNDATION,
AECID, and recently with
C.T.A.
Specialized
Products,
training and
credit
technology
for Agri-
credit officers.

7. How we give Agri-Business Access to Credit?
We have developed an Android based application that
allows credit officers to evaluate credit applications on
the field. It is completely integrated with our banking core
system, and even allows credit collections and payments
receipt printing. This strongly reduces process time and
improve credit assessment.
Each agricultural product and livestock has its own
harvest time and commercialization characteristic. This
generates a cash flow, and the credit re-payment program
should be adjusted to that cash flow. It means: Don’t do
“pre-packed re-payment programs” each crop or livestock
has its own cash flow.
Intensive Training on Specilized Credit Officers

8. What are we doing to advance more in the field
Implementation of insurance based on rainfall index
Training our clients in responsible, climate resilent and sustainable
production practices
Creating new products, specialized for specific Crops, I.E.: Platain,
Banana, Macadamia , among others
Working in value chain financing
Growing even more on our geographical scope

9. Keys to Success Financing Agriculture
• Give access to formal credit, applying best corporate governance practices.
• Credit to Agri-Business should always be speciliazed.
• Use of technology to ease credit access, give more agility to it, and be cost
effective.
• Do Strategic Alliances with related institutions in the field.
• Consistence of Training (for your clients and your credit officers too).
• Don’t let client waiting; harvest seasons passess and they need financing at the
moment.
• Value Chains are not only important; It’s key role in the model.
• Keep growing on you portfolio offer; develop new products constantly.
• Share your knowledge and lessons learned; even with your competence if
necessary.

10. Thanks for your Attention!