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Acumen Fund helps GADC to rebuild cotton Ecosystem
19 Jan '11
5 min read
In addition to the impact on farmers, the co-investment by Acumen Fund and Root Capital will enable GADC to take full advantage of a year with record highs in cotton prices and a bumper harvest in the region. In the upcoming season, GADC will gin the cotton it buys from both conventional and organic growers and sell the cotton lint to international cotton buyers.
This will provide farmers with much-needed market access in an area with few buyers. GADC will also sell cotton seed, a byproduct of the ginning process, to local merchants for use in oil processing or for export as a garnishing. Additionally, GADC has established a tree nursery and distributed thousands of seedlings to farmers in order to reverse deforestation caused by the cutting of trees to produce charcoal.
To help farmers generate income year-round, GADC will distribute sesame seeds to roughly 2,000 of its farmers at the end of the cotton growing season, as sesame is a high-value cash crop which grows in the cotton off-season. Helping cotton farmers grow sesame is one example of GADC's efforts to build a stable growing environment for cotton farmers in Gulu area. In subsequent seasons, GADC will continue to expand its organic cotton operations, develop its extension services model for its organic farmers, and extend its operations into value-added activities such as spinning and weaving of cotton, as well as other off-season crop processing.
“GADC is passionate about alleviating poverty in the Gulu District and enabling local farmers to attain a sustainable livelihood,” said Bruce Robertson, CEO, GADC. “Acumen Fund and Root Capital's investments will help GADC buy cotton from local farmers, sell the lint to international buyers and provide access to larger markets. All of these components are key to achieving a seamless value chain, maximizing return to the farmers and leading Northern Uganda on its road to recovery.”
“We are excited to make Acumen Fund's first investment in Uganda. The expansion of our investments beyond Tanzania and Kenya will allow us to better serve East Africa and become a truly regional fund,” said Biju Mohandas, East Africa Manager, Acumen Fund.
This will provide farmers with much-needed market access in an area with few buyers. GADC will also sell cotton seed, a byproduct of the ginning process, to local merchants for use in oil processing or for export as a garnishing. Additionally, GADC has established a tree nursery and distributed thousands of seedlings to farmers in order to reverse deforestation caused by the cutting of trees to produce charcoal.
To help farmers generate income year-round, GADC will distribute sesame seeds to roughly 2,000 of its farmers at the end of the cotton growing season, as sesame is a high-value cash crop which grows in the cotton off-season. Helping cotton farmers grow sesame is one example of GADC's efforts to build a stable growing environment for cotton farmers in Gulu area. In subsequent seasons, GADC will continue to expand its organic cotton operations, develop its extension services model for its organic farmers, and extend its operations into value-added activities such as spinning and weaving of cotton, as well as other off-season crop processing.
“GADC is passionate about alleviating poverty in the Gulu District and enabling local farmers to attain a sustainable livelihood,” said Bruce Robertson, CEO, GADC. “Acumen Fund and Root Capital's investments will help GADC buy cotton from local farmers, sell the lint to international buyers and provide access to larger markets. All of these components are key to achieving a seamless value chain, maximizing return to the farmers and leading Northern Uganda on its road to recovery.”
“We are excited to make Acumen Fund's first investment in Uganda. The expansion of our investments beyond Tanzania and Kenya will allow us to better serve East Africa and become a truly regional fund,” said Biju Mohandas, East Africa Manager, Acumen Fund.
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