responsAbility adds Suminter to private equity portfolio
responsAbility-managed private equity vehicle focusing on food and agriculture has completed its second investment and taken a minority stake in Suminter, organic products supply chain management company which sources, processes and exports certified 100% organic and GMO-free products from Asia and Africa.
The global organic food market has reached a critical mass and is growing fast, expected to reach $321bn by 2025, which reflects a 10-year compound annual growth rate (CAGR) of 13%. The long gestation periods for converting conventional farmland into organic farmland and for obtaining global certifications leads to entry barriers for companies who want to become active in the market.
Suminter’s inclusive business model integrates smallholder farmers into global supply chains and currently works with close to 50’000 certified farmers. It enjoys entrenched farmer relationships helping farmers obtain organic certification, providing training on safe and sustainable organic farming practices with the objective of reducing costs and increasing yield, and providing a reliable market for their produce.
This is the third round of external funding for Suminter. The company previously raised funding from Nexus Venture Partners and Capricorn Investment Group. Suminter will use the proceeds of this round to fund its capacity expansion plans and for working capital financing.