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← Producers Direct

2023-12-31-accounts

Company number: 06959165 Charity number: 1133218

Producers Direct

Report and financial statements For the year ended 31 December 2023

Producers Direct

Contents

For theyear ended 31 December 2023
Reference and administrative information 1
Trustees’ annual report 3
Independent auditor’s report 20
Statement of financial activities (incorporating an income and expenditure account) 24
Balance sheet 25
Statement of cash flows 26
Notes to the financial statements 27

Producers Direct

Reference and administrative information

For the year ended 31 December 2023

Company number 06959165 Charity number 1133218 Registered office and operational address: International House, 45-55 Commercial Street E1 6BD, UK

Country of registration England & Wales Country of incorporation United Kingdom

Previous Names Producers Direct legally changed its name from Cafédirect Producers’ Foundation in December 2017. Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Christele Delbe Chair Anthony Wainaina Wendy Chamberlin (Appointed: 12[th] September 2023) Michael Montalvan (Appointed: 12[th] September 2023) Jamie Anderson (Appointed: 12[th] September 2023) John Shaw (Appointed:1st May 2024) Gregory Mugabe (Appointed:1st May 2024) Lebi Gabriel Hudson (Resigned: 12[th] September 2023) Pauline Boit (Resigned: 12[th] September 2023) Lenin Tocto Minga (Resigned: 12[th] September 2023) Key management Claire Rhodes Chief Executive Officer personnel Bankers Triodos Bank Deanery Road Bristol BS1 5AS Barclays Bank Leicester LE87 2BB Solicitors Bates Wells 2-6 Cannon Street London EC4M 6YH

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Producers Direct Reference and administrative information

For the year ended 31 December 2023

Weil Gotshal & Manges 110 Getter Lane London EC4M 6YH Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor 110 Golden Lane LONDON EC1Y 0TG

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

The Trustees present their report and the audited financial statements for the year ended 31 December 2023.

Reference and administrative information set out on pages 1 & 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

Producers Direct is a UK-registered charity, established in 2009, that works with smallholder farmer organisations in Africa and Latin America. Producers Direct’s objects, as outlined in its Articles of Association are to:

Throughout 2023, Producers Direct has operated in accordance with its vision, mission and strategic objectives. These are stated as follows:

Producers Direct’s vision is of thriving smallholder communities, where each smallholder can realise their own vision. We believe smallholders are inherently innovative and have the potential to wield a powerful voice when they operate collectively. We are committed to inspiring smallholders to join forces, share their knowledge and strengthen incomes and resilience, together. Our mission is to increase smallholder farmers’ resilience and power in food systems.

Approach and Model

Producers Direct works directly with smallholder communities and farmer organisations to strengthen resilience, increase incomes, and build farmers’ leadership.

Smallholder farmers in the global south face significant power imbalances in food systems, exacerbated by climate change and its devastating impact on smallholder agriculture. Most smallholders live below the poverty line and struggle to feed their families. Smallholders typically capture less than 30% of the value generated by their crops, while powerful upstream actors and multinationals earn billions of dollars in profits. Furthermore, smallholders still need better access to actionable data and information. Most smallholders do not keep profit/loss records, and continue to manage significant socio-economic and climate risks daily without access to external data. The benefits of burgeoning investments in data-driven agriculture, including AI, remain largely inaccessible to smallholders.

Consequently, market inequity combined with limited access to relevant, affordable data, continues to drive low farm productivity and limited profitability for smallholder farmers. Ensuring fair market access and providing actionable data are crucial for improving smallholders’ incomes

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

and resilience. When smallholders leverage their collective agency, they tackle persistent threats together.

Within this context, Producers Direct’s model addresses three interconnected challenges:

To address these challenges, Producers Direct’s work focuses on three main areas:

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

Activities and services delivered during 2023

All Producers Direct’s charitable activities focus on improving the livelihoods and resilience of smallholder producers, and are undertaken to further Producers Direct’s charitable purposes for the public benefit. Overall, Producers Direct’s activities directly reached 8,541 smallholders in 2023 and, cumulatively, 1,333,117 smallholders since we were established in 2009. East Africa programme activities were delivered by Producers Direct’s East Africa Programme team, based in Nairobi, in partnership with East Africa-based producer organisations in Kenya, Tanzania and Uganda. East Africa programme expenditure totalled £657,321, with donors including the German Development Agency (GIZ FairForward), Bayer AG, OCP Foundation and the Bill and Melinda Gates Foundation. Latin America programme expenditure totalled £828,879 - funded by Pret a Manger, the German Development Agency (GIZ i4Ag) and the Inter-American Development Bank (IDB Lab).

2023 activities and services delivered included:

Market Access

During 2023, market access programme activities continued to grow across East Africa and Peru, through branded and unbranded product sales into local and national markets - with a focus on horticultural crop and honey value chains:

Farmer-led Training and Information Services

In parallel, activities continued to support the 400 beekeepers who originally participated in hive and honey quality management training across East Africa during 2022. This support was delivered through ongoing distribution of trainer-of-the-trainer materials on hive management. post-harvest & honey quality management.

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

benefited from Croppie and received yield predictions and tailored agronomic tips. Tips were delivered via the Croppie Aii, SMS (for non-smartphone users) or WhatsApp. 75% of farmers who accessed Croppie reported an increased confidence to mitigate climate change impacts

During our second year delivering Croppie in Latin America (Peru and Colombia), we focused on improving the accuracy of the AI model and improving the photo-taking protocol to ensure it was farmer-friendly and accessible to all smallholders. 78% of farmers who had received a yield prediction and tailored agronomic tip reported they are now implementing +2 Good Agricultural Practices or Climate-Smart Practices because of the information they received via Croppie. During the second year of the project in Peru, we focused on delivering tailored tips during a seasonally appropriate time, responding to feedback we received in 2022. The API for Croppie is now available, enabling other organisations to benefit from Croppie. Thus far, over 1M data points from smallholders in Latin America were collected and used to train our AI model, which will return benefits to smallholders and strengthen on-farm decision making.

In Uganda, +350 smallholder farmers received yield predictions for coffee and tailored agronomic tips to strengthen on-farm decision making.

Access to Finance:

Throughout 2023, Producers Direct continued managing the ROTA loans originally disbursed in late 2021. 2021 loans supported beekeepers to invest in their honey enterprises. Instead of the financing being provided in cash, Producers Direct pre-purchased 1,000 hives, which were then distributed as loans to 69 beekeepers across Uganda and Tanzania. Producer partner organisations support the administration and management of the loans to individual farmers. At the end of 2023, the total value of ROTA loans disbursed across East Africa was £55,702.

With support from IDB Lab during 2022, Producers Direct disbursed ROTA loans to the value of £3,446 in Peru. By the end of 2023, the majority of these ROTA loans had been repaid in honey stock, reducing the outstanding balance of ROTA loans in Peru to £265 by end 2023.

Achievements and performance during 2023

During 2023, Producers Direct’s activities directly reached 8,541 smallholder farmers, with 3,301 smallholders trained, 2,489 smallholders benefitting from access to markets and 2,751 smallholders empowered with access to actionable and real time data to strengthen decisionmaking.

In 2023, we scaled out Croppie from Peru and Colombia to also benefit smallholder coffee farmers in Uganda. In Uganda, we worked in partnership with the Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT), who we also partnered with in Latin America, one of our Ugandan Producer Organisation partners, Ankole Coffee Producers Cooperative Union (ACPCU) and M-Omulimisa, an innovative agriculture technology company harnessing the power of mobile technology, farmer networks and strategic partnership to empower smallholder farmers in Uganda with access to agriculture-related services. Together, we delivered coffee yield predictions and tailored tips to strengthen on-farm decision making and inspire data-driven decisions to strengthen resilience to rapidly changing climates. In 2023, we also developed a partnership with Makerere University in Kampala, Uganda and worked with data scientists and specialists in AI to support the delivery of Croppie to smallholders.

Producers Direct is committed to: 1) improving incomes and livelihoods for smallholder farmers across East Africa and Latin America, 2) strengthening resilience to climate change and market

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Trustees’ annual report

For the year ended 31 December 2023

shocks and 3) increasing the collective voice and power of smallholder farmers. In 2023, smallholders who sold produce on our FarmDirect platform improved incomes by 20% (on average). Further, in 2023, 75% of smallholders who accessed Croppie (yield predictions and/or agronomic/financial tips) reported a greater confidence to mitigate shocks linked to climate change and extreme weather events.

2023 also marked an impressive year for our market access activities through FarmDirect. In 2023, $453,392 in sales were made on the platform across Peru, Uganda and Kenya, compared to $28,464 in sales in 2022, demonstrating an impressive increase in sales. In 2023 we also launched the USSD version of FarmDirect, enabling smallholders who do not have access to a smartphone to register surplus crops on our tool using a non-smartphone, increasing accessibility for remote smallholders.

Other non-programmatic achievements during 2023 included:

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

External factors affecting achievement

Producers Direct works principally with smallholder producer organisations located in East Africa and Latin America. Working with these vulnerable producer organisations can affect capacity to deliver on partnership agreements according to defined timelines and targets.

Smallholder farmers represent one of the most vulnerable groups to climate change, with changing climatic conditions continuing to exacerbate the challenges faced by smallholder farmers. Climate-related challenges include vulnerability to natural disasters, prolonged droughts and associated detrimental impacts of these changing climatic conditions on crop production. Current market systems typically do not incentivise the management of climate resilient food systems and agricultural landscapes. With food shocks related to extreme weather events becoming increasingly frequent, smallholders are facing the double burden of increasing productivity and resilience without receiving the information and tools needed for it. Typically, smallholders face and confront climate risks with minimal access to external data.

Beneficiaries of our services

Primary beneficiaries of Producers Direct’s work are smallholder farmers located across East Africa and Latin America. To deliver our activities and impact, we work with a network of 38 smallholderowned producer organisations across Latin America and East Africa. Smallholder farmers across Producers Direct network are diverse in geography, crops and resources. On average, the smallholder farmers we work with earn less than $2 per day and sustain their families on 1.2 hectares (3 acres). Farmers are managing diverse farming systems, including cash, non-cash and subsistence crops. Principal crops include grains, fruits, vegetables, honey, tea, coffee, and cocoa. The average age of our farmers is 60, on average they have 5 dependents and 94% are affected by climate change. On average, 16% of the farmers we work with own a smartphone, and 17% have internet access. Only 48% have a bank account. From our recent survey data, 89% of farmers who responded reported access to finance being a key challenge, and 59% reported market access as an additional challenge - showcasing the importance of our investment in linking farmers to markets. Currently, 82% of the farmers in our network growing food security crops are not yet aggregating these crops for sale at local markets - demonstrating the opportunities our work to support market access via FarmDirect can bring to the smallholder farmers within our network.

We particularly focus our resources on reaching women and youth. For over a decade, we have made significant investments in promoting female farmer leadership across our network and empowering female smallholders to play central roles in the design and delivery of our programme activities, both in-person and digitally. Furthermore, we continue to invest in supporting youth to take up leadership roles within smallholder communities and in the delivery of Producers Direct’s services.

Organisations we work with

In addition to our work with smallholder-owned producer organisations, Producers Direct also continues to work with a number of other organisations at international, regional and national levels to support programme implementation. During 2023, strategic partners supporting programme delivery included the International Centre for Tropical Agriculture (CIAT), Ideo.org, M- Omulimisa, Viamo, Tecnicafe, Makerere University, and Busara Centre for Behavioural Economics.

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

Financial review

As shown in Producers Direct’s Financial Statements, 2023 income totalled £1,097,799 with funds brought forward from 2022 totalling £680,242. 2023 expenditure totalled £1,552,229. During 2023, Producers Direct’s principal funding sources included grants and donations from private foundations, inter-governmental organisations and public limited companies.

Producers Direct ended the year with a total fund balance of £225,813, of which £48,768 was restricted funds and £177,046 was unrestricted funds.

Policies for making social or programme-related investments

Producers Direct typically does not make social or programme related investments and therefore does not have a policy on this.

Investment policy and performance

Beyond interest received on current accounts and fixed term deposit savings accounts, Producers Direct does not currently hold any long-term investments.

Grant making policies

Producers Direct does not openly invite applications for grants and therefore does not have a grant making policy.

Loans

In 2020, Producers Direct secured two 5-year loans to support cash flow management and to invest in testing branded honey sales in East Africa. These were:

Voluntary help and gifts in kind

In previous years, Producers Direct has benefited from pro bono support from legal firm, Weil, Gotshal & Manges. However, no legal advice was required by Producers Direct during 2023 and therefore the value of pro bono services included in Producers Direct’s 2023 Financial Statements is zero.

Throughout 2023, Producers Direct was grateful for the in-kind contributions of smallholder farmers and key staff at the smallholder producer organisations who work with Producers Direct, who invested significant time without financial compensation in order to support the delivery of Producers Direct programme activities.

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

Principal risks and uncertainties

Producers Direct manages a risk register, which identifies major risks and ranks them in terms of their potential impact and likelihood. Trustees review major risks and their rankings quarterly, in order to satisfy themselves that adequate systems and procedures are in place to manage the risks identified. Where appropriate, risks are covered by insurance. From Producers Direct’s perspective, major risks are those which may have a significant impact on its:

Key risk management procedures in place include:

Reserves policy and going concern

Producers Direct’s Reserve Policy focuses on holding sufficient unrestricted reserves to cover at least six months of essential operational costs during a period of unforeseen difficulty. In this context, Trustees consider essential operational costs to include: Core team members across the UK, East Africa and Latin America; IT costs to support effective remote working; and any outstanding contractual commitments to donors and/or service providers.

Under current 3-year cash flow projections, 6 months of essential operational costs are budgeted at £192,638 - with this budget covering core operational and programme staff across UK, East Africa and Peru, associated operational costs and loan repayments due. At end-2023, the balance of Producers Direct’s unrestricted cash and assets totalled £177,046. However, unrestricted funding secured from Cafedirect and the Livelihood Impact Fund during early 2024 enabled Producers Direct to top-up its reserve fund balance to exceed its £192,638 minimum threshold by April 2024. During the remainder of 2024, Producers Direct will continue work to enhance its unrestricted cash reserves through the following strategies:

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

In September 2024, Trustees assessed Producers Direct as a Going Concern on the following basis:

Fundraising

During 2023, Producer Direct’s fundraising activities principally consisted of applications to national and international donors for grants to support programme and organisational development. Fundraising activities are principally undertaken internally by grant writers who are employed by Producers Direct.

As part of our commitment to best practice, Producers Direct adheres to the standards set by the Fundraising Regulator (England, Wales and Northern Ireland), and the UK Chartered Institute of Fundraising. During 2023, there were no instances of non-compliance with the requirements of the fundraising code of practice and no complaints have been received by the charity regarding fundraising activities.

The aim of Producers Direct’s fundraising expenditure on grant writers is to enhance Producers Direct’s annual restricted and unrestricted income for 2023/2024 and future periods in order to sustain and grow programme activities in East Africa and Latin America and support organisational growth. As a result of this annual expenditure on fundraising, Producers Direct received and benefited from funding from the following key donors and social lenders during 2023:

Restricted Income: East Africa

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

the enhanced delivery of digital services to smallholder farmers.

Restricted Income: Latin America

Restricted Income: International

Unrestricted Income

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

Plans for the future

Future Programme Focus Areas

During 2023 and into 2024, Producers Direct reviewed and updated its Theory of Change. Through until 2030, Producers Direct will continue to focus on three key areas of impact:

Key 2024 activities to deliver Producers Direct’s Theory of Change and Impact include:

Future funding

Funds secured to support 2024 programme activities and operations to-date include:

Restricted Income: East Africa

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Producers Direct Trustees’ annual report

For the year ended 31 December 2023

to share data, in order to collectively benefit from stronger data insights across agricultural value chains as a result of sharing the data, and the enhanced delivery of digital services to smallholder farmers.

Restricted Income: Latin America

Unrestricted Income

Additional 2024 priorities include:

Structure, governance and management

Constitution

Producers Direct is an international non-governmental, non-political, non-religious organisation. It was established as a UK private limited company limited by guarantee on 10th July 2009 (Company Number: 06959165) and was registered as a UK charity in December 2009 (Registered charity number: 1133218). The company was established under a Memorandum of Association (10th July 2009) that established its objectives and powers and is governed under its Articles of Association (10th July 2009). Producers Direct also holds local branch registrations in Kenya and Peru.

Trustees

Producer Direct’s Trustees are responsible for setting Producers Direct's strategy and are responsible in law for the running of Producers Direct. The Charity's sole Member, Cafédirect Producers Limited (CPL), is responsible for officially appointing Producers Direct Trustees. Prior to appointment by CPL, existing members of the Producers Direct Board of Trustees are responsible

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for confirming that new Trustees have the necessary skills and capacity to contribute to Producers Direct's governance, and organisational development.

Producers Direct's Articles of Association allows for a minimum of three Trustees to be appointed. As the charity's sole Member, CPL (as outlined in Producers Direct's Articles of Association) reviews the appointment of Producers Direct Trustees each year. A minimum of two Trustees will offer to retire by rotation each year. A retiring Trustee may be re- appointed by the Member. Trustees typically serve a maximum of two three-year terms.

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts. Producers Direct's Trustees are not paid and are not remunerated for their role. Typically, travel expenses associated with Producers Direct Trustees attending Board meetings are reimbursed. However, Producers Direct’s Board meetings continued to be convened virtually rather than in-person throughout 2023. Subsequently, no travel expenses associated with Board meetings were incurred during 2023.

The Producers Direct Board of Trustees is responsible for approving Producers Direct's annual work plan, budget and long-term strategy development. The day-to-day management of Producers Direct is delegated to Producers Direct's CEO – Claire Rhodes, based on a strategy, annual work plan and budget approved by the Trustees. Claire Rhodes has served in this role since the establishment of Producers Direct (previously Cafédirect Producers’ Foundation) in 2009.

Typically, Producers Direct’s Board of Trustees meet at least quarterly, with the CEO reporting to the Trustees on activities undertaken in managing Producers Direct and providing updated financial reports that explain Producers Direct's financial position. During 2023, a total of 5 Board teleconferences were convened and update reports provided. During 2023, Lebi Hudson served as the Producers Direct Chair until stepping down from the Board in September 2023. From September 2023, Christele Delbe has served in the role as Chair.

In previous years, Producers Direct has operated a Board Procurement Sub-committee. During 2023, there were no operational Board sub-committees. Procurement decisions requiring Board attention were addressed during Board meetings.

Financial controls are determined by Producers Direct's financial procedures and procurement policies, which outline the level of authority of Producers Direct Trustees and the Producers Direct CEO over Producers Direct's financial procedures. Conflicts of Interest are managed in accordance with the Producers Direct's Articles of Association and Producers Direct's Conflict of Interest Policy. A Register of Trustees’ and Senior Team member’s Interests has been established and is updated annually.

Employees

During 2023, Producers Direct employed 23.2 FTE staff across the UK, East Africa and Peru as follows:

UK: 4 full-time and 1 part-time UK-based staff members included:

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Trustees’ annual report

For the year ended 31 December 2023

Kenya: Producers Direct maintained its local branch status in Kenya for the majority of 2023, with 11 full-time and 3 part-time, Nairobi-based employees. Kenya-based senior team members included:

Peru: Producers Direct maintained its local branch status in Peru throughout 2023 with 5 full-time employees and part-time employees. Peru-based senior team members included:

During 2023, Producers Direct contracted a range of support services, including user-centred design and financial management services, and support for the coordination of programme activities with smallholder producer organisations in Latin America and East Africa.

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

USA: Throughout 2023, Producers Direct’s COO was employed through Producers Direct Inc, a USregistered non-stock company established by Producers Direct to support the growth of Producers Direct’s operations and expansion of US-based fundraising opportunities for Producers Direct. The COO is responsible for strategic oversight and management of Producers Direct’s impact, programmes and organisational development. (Note - The COO was previously UK-based prior to transitioning to work for Producers Direct from the USA from 1st September 2021).

Employee Remuneration

Producers Direct staff salaries are reviewed annually for all employees, in accordance with Producers Direct’s Staff Salary Review policy. Staff salaries are structured within salary bands across different roles and levels of responsibility. Key considerations include: Employee’s annual performance; level of responsibility, skill and knowledge required to carry out the role; comparable salary ranges in the geography and market in which the team member is working. The salary bands used to determine both current and new staff have been developed, and are benchmarked using a combination of publicly available compensation data and/or purchased datasets for equivalent roles (skill set / level of seniority), and are adjusted for cost of living variances across the countries where Producers Direct operations and teams are located. Salaries for new team members are benchmarked during the recruitment process. For the CEO, the Chair of Producers Direct is responsible for proposing the salary adjustment to the Producers Direct Board for consideration and approval, based on their review of the CEO’s performance and salary benchmarking with non-profit organisations of similar size, scope and resources to Producers Direct. For all other Producers Direct staff, annual salary adjustments are based on annual performance reviews undertaken by Line Managers, with proposed salary adjustments falling within established salary bands. The CEO is then responsible for proposing the overall salary adjustment budget to the Producers Direct Board for approval.

Appointment of Trustees

To recruit and appoint new Trustees, the Producers Direct management team reviews and shortlists potential candidates based on the key skills sought from the new Trustees and each candidate’s potential suitability for the role. Existing Producers Direct Trustees are then responsible for reviewing the short-list of candidates and identifying top candidates to be interviewed by current Trustees. Trustees then recommend selected candidates to the sole member of Producers Direct, Cafédirect Producers Limited (CPL). As the sole member of Producers Direct, Cafédirect Producers Limited is responsible for the final appointment of new Trustees to the Producers Direct Board.

Trustee induction and training

When new Trustees are appointed to Producers Direct, they will be given an induction to Producers Direct and are given the information they need to fulfil their role, including information about their role as a Producers Direct Trustee and on charity law. Trustees are also encouraged and supported to attend external training available for new and existing Trustees on key responsibilities associated with serving as a Trustee of a UK Charity.

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Trustees’ annual report

For the year ended 31 December 2023

Related parties and relationships with other organisations

Related parties include:

Producers Direct Inc: Producers Direct Inc is a US-registered non-stock company that was established by Producers Direct to support the growth of Producers Direct’s operations and expansion of US-based fundraising opportunities for Producers Direct. In 2022, Producers Direct Inc. secured US 501c3 non-profit status. From September 2021, Producers Direct’s COO has been US-based and is employed by Producers Direct Inc.

Cafédirect Producers Limited (CPL): CPL is the sole Member of Producers Direct. CPL is a limited company (Company Number 4804115) owned by the smallholder producer organisations who hold shares in Cafédirect plc. CPL activities focus on enhancing the role of producer organisations as shareholders in Cafédirect plc and advancing the role of producers in the governance of Cafédirect plc.

Cafédirect Producers Trust: The Cafédirect Producers Trust was established by a Trustee Deed dated 10th December 2003 to permit producer organisations who sell products to Cafédirect plc to hold shares in Cafédirect plc. CPL is one of the Trustees.

Cafédirect plc: Producers Direct is legally independent from Cafédirect plc. Cafédirect plc and Producers Direct have been linked through a Donation Agreement, dating from 28th September 2009, which outlines the terms under which Cafédirect plc makes an annual donation to Producers Direct to support producer programmes, and to strengthen Producers Direct's operational capacity. This donation agreement was extended for an additional 3-years from January 2020, and further extended through until end 2023. In 2023, the value of related party transactions between Cafédirect and Producers Direct was £108,550 - the 2023 annual donation from Cafédirect to Producers Direct of £100,000 and £8,550 of reimbursed Peru travel expenditures for Cafedirect staff, originally paid by Producers Direct.

Wefarm Ltd (Closed August 2022): Wefarm originated as a project of Producers Direct and operated as a Producers Direct project from 2010-2015. In January 2015, Wefarm was incorporated as a Private Company Limited by Shares. Until October 2020, Producers Direct was represented on the Wefarm Board and held the right to a Wefarm Board seat. In October 2020. Producers Direct sold 610,825 of its 800,000 shares in Wefarm at a price of £1.908 per share, enabling Producers Direct to realise £1,165,465 unrestricted funding from its investment in Wefarm. As part of this 2020 investment round, Producers Direct relinquished its rights to a Wefarm Board seat. By the end of 2021, Producers Direct’s shareholding in Wefarm was less than 1%. In August 2022, Wefarm Ltd went into administration. As part of the administration process, Producers Direct purchased a number of Wefarm assets from Wefarm Administrators, Kroll Advisory Ltd. Assets acquired included the SMS- and online technology platform, associated database, and Wefarm brand. The value of this asset purchase, paid to Kroll Advisory Ltd in November 2022, was £7,000 plus VAT.

Statement of responsibilities of the Trustees

The Trustees (who are also directors of Producers Direct for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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Producers Direct

Trustees’ annual report

For the year ended 31 December 2023

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2023 was 1, Cafédirect Producers Limited being the sole member of the charity (2022: 1). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ annual report has been approved by the Trustees on 18 September 2024 and signed on their behalf by

Christèle Delbe Chair, Producers Direct

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Independent auditor’s report

To the members of

Producers Direct

Opinion

We have audited the financial statements of Producers Direct (the ‘charitable company’) for the year ended 31 December 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Producers Direct's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or

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Independent auditor’s report

To the members of

Producers Direct

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

21

Independent auditor’s report

To the members of

Producers Direct

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we

22

Independent auditor’s report

To the members of

Producers Direct

will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Noelia Serrano (Senior statutory auditor) 19 September 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

23

Producers Direct

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2023

Note
2
3
3
4a
4a
4a
Net expenditure and net movement in
funds
Total funds carried forward
Reconciliation of funds:
Total funds brought forward
Raising funds
Charitable activities
Africa Programme
Latin America Programme
Total expenditure
Latin America Programme
Investments
Total income
Expenditure on:
Income from:
Donations and legacies
Charitable activities
Africa Programme		 Unrestricted
£
195,135
32,516
592
292		 Restricted
£
-
406,951
462,314
-		 2023
Total
£
195,135
439,467
462,906
292		 Unrestricted
£
331,281
26,786
1,011
179		 Restricted
£
-
194,228
1,001,723
-		 2022
Total
£
331,281
221,014
1,002,734
179
228,535 869,265 1,097,799 359,257 1,195,951 1,555,208
24,278
247,200
83,219		 41,732
483,155
672,645		 66,010
730,355
755,864		 12,618
315,758
180,681		 57,363
763,590
391,770		 69,981
1,079,349
572,451
354,697 1,197,532 1,552,229 509,058 1,212,723 1,721,781
(126,162)
303,208		 (328,267)
377,034		 (454,429)
680,242		 (149,801)
453,009		 (16,772)
393,806		 (166,573)
846,815
177,046 48,768 225,813 303,208 377,034 680,242

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17a to the financial statements.

24

Producers Direct

Company no. 06959165

Balance sheet

Balance sheet Company no. 06959165 Company no. 06959165
As at 31 December 2023
Note
Fixed assets:
10
Current assets:
12
11
Liabilities:
13
Creditors: amounts falling due after one year
14
17a
Total unrestricted funds
Unrestricted income funds:
General funds
Total charity funds
Total net assets
The funds of the charity:
Restricted income funds
Creditors: amounts falling due within one year
Net current assets
Programme related investments
Debtors
Cash at bank and in hand
Tangible assets		 £
£
19,175
19,175
55,967
136,329
156,417
348,713
(120,074)
228,639
(22,001)
225,813
48,768
177,046
177,046
225,813
2023		 £
£
18,099
18,099
59,148
173,260
535,832
768,240
(80,419)
687,822
(25,679)
680,242
377,034
303,208
303,208
680,242
2022
19,175
228,639		 18,099
687,822
348,713
(120,074)
(22,001)
177,046		 768,240
(80,419)
(25,679)
303,208
225,813 680,242
48,768
177,046		 377,034
303,208
225,813 680,242

Approved by the trustees on 18 September 2024 and signed on their behalf by

Christèle Delbe Chair, Producers Direct

25

Producers Direct

Statement of cash flows

For the year ended 31 December 2023

Note
£
£
Cash flows from operating activities
(454,429)
3,640
36,931
39,655
(374,203)
3,181
(4,715)
(1,533)
Cash flows from financing activities:
(3,678)
(3,678)
(379,416)
535,832
156,417
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Cash inflows from new borrowing
Net cash used in operating activities
Cash flows from investing activities:
Cash received / (paid) on repayment / (issue) of
programme related investments
Purchase of fixed assets
Net cash used in investing activities
2023
Net expenditure for the reporting period
(as per the statement of financial activities)
Depreciation charges		 Note
£
£
Cash flows from operating activities
(454,429)
3,640
36,931
39,655
(374,203)
3,181
(4,715)
(1,533)
Cash flows from financing activities:
(3,678)
(3,678)
(379,416)
535,832
156,417
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Cash inflows from new borrowing
Net cash used in operating activities
Cash flows from investing activities:
Cash received / (paid) on repayment / (issue) of
programme related investments
Purchase of fixed assets
Net cash used in investing activities
2023
Net expenditure for the reporting period
(as per the statement of financial activities)
Depreciation charges		 Note
£
£
Cash flows from operating activities
(454,429)
3,640
36,931
39,655
(374,203)
3,181
(4,715)
(1,533)
Cash flows from financing activities:
(3,678)
(3,678)
(379,416)
535,832
156,417
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Cash inflows from new borrowing
Net cash used in operating activities
Cash flows from investing activities:
Cash received / (paid) on repayment / (issue) of
programme related investments
Purchase of fixed assets
Net cash used in investing activities
2023
Net expenditure for the reporting period
(as per the statement of financial activities)
Depreciation charges		 £
£
(166,573)
2,415
(80,723)
(86,531)
(331,412)
(13,124)
(15,140)
(28,264)
(40,073)
(40,073)
(399,750)
935,582
535,832
2022		 £
£
(166,573)
2,415
(80,723)
(86,531)
(331,412)
(13,124)
(15,140)
(28,264)
(40,073)
(40,073)
(399,750)
935,582
535,832
2022
(374,203)
(1,533)		 (331,412)
(28,264)
(3,678) (40,073)
(3,678)
(379,416)
535,832		 (40,073)
(399,750)
935,582
156,417 535,832

26

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

1 Accounting policies

a) Statutory information

Producers Direct is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is: International House, 45-55 Commercial Street, E1 6BD, UK

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. This is based on Trustees undertaking a review of the following Going Concern Assessment Criteria: In September 2024, Trustees assessed Producers Direct as a Going Concern on the following basis: 1.) A review of internal management information, including a budget and cash flow forecast through until at least December 2025 - with planned scenarios in the event that fundraising income is significantly lower than plan; 2.) An analysis of external factors and risks, as outlined and managed through Producers Direct’s Risk Register; 3.) Producers Direct currently holding sufficient unrestricted eserves to cover at least six months’ of essential operational costs to enable operations to continued during a period of unforeseen difficulty.

Key judgments that the charity has made which have a significant effect on the accounts include: Recognition of income in accordance with the terms of the grants made to the charity, where income is granted to the charity over the period greater than one year, and is linked to performance within the project, there is some degree of judgment is assessing the stage of completion and hence the income recognised.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

27

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

1 Accounting policies (continued)

h) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

i) Expenditure and irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

2023 2022  Africa Programme 44% 69%  Latin America Programme 56% 31%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

3 years straight line

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

28

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

1 Accounting policies (continued)

p) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Pensions

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities.

2 Income from donations and legacies

Donations Unrestricted
£
195,135		 Restricted
£
-		 Total
2023
£
195,135		 Unrestricted
£
331,281		 Restricted
£
-		 Total
2022
£
331,281
195,135 - 195,135 331,281 - 331,281

3 Income from charitable activities

Bayer AG
OCP Foundation / African Plant Nutrition Institute
GIZ FairForward
Honey Sales : Peru
Latin America Programme:
Bayer AG
GIZ i4Ag
CIAT
Pret a Manger
World Food Programme
Inter-American Development Bank - IDB Lab
Sub-total forLatin America Programme
Total income from charitable activities
Bill and Melinda Gates Foundation
MercyCorps AgriFin
Innovate UK
Honey Sales: East Africa
Sub-total for East Africa Programme
East Africa Programme:		 Unrestricted
£
-
-
-
-
-
-
32,516
 £
-
161,072
86,713
-
159,166
-
-
Restricted		 Total
2023
£
-
161,072
86,713
-
159,166
-
32,516		 Unrestricted
£
-
-
-
-
-
-
26,786		 £
76,694
-
76,694
97
95,378
22,059
-
Restricted		 Total
2022
£
76,694
-
76,694
97
95,378
22,059
26,786
32,516 406,951 439,467 26,786 194,228 221,014
-
-
-
-
-
-
592		 -
-
-
100,000
-
362,314
-		 -
-
-
100,000
-
362,314
592		 -
-
-
-
-
-
1,011		 178,952
397,325
(46)
125,000
20,310
280,182
-		 178,952
397,325
(46)
125,000
20,310
280,182
1,011
592 462,314 462,906 1,011 1,001,723 1,002,734
33,108 869,265 902,372 27,797 1,195,951 1,223,748

29

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

4a Analysis of expenditure (current year)

Staff costs (Note 6)
Direct programme expenditure
Office costs
Audit, legal and professional fees
Support and governance costs
Total expenditure 2023
Total expenditure 2022		 Raising
funds
£
32,109
34,012
-
-		 Charitable activities Charitable activities Governance
costs
£
-
-
-
11,100		 Support
costs
£
136,464
105,386
50,544
-		 2023
Total
£
756,565
704,789
79,867
11,100		 2022
Total
£
648,391
863,411
63,629
146,351
East Africa
Programme
£
264,807
241,186
17,097
-		 Latin America
Programme
£
323,185
324,205
12,226
-
66,121
-		 523,091
134,230		 659,616
169,264		 11,100
(11,100)		 292,394
(292,394)		 1,552,322
-		 1,721,781
-
66,121 657,321 828,879 - - 1,552,322 1,721,781
69,981 1,132,371 519,429 - -

30

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

4b Analysis of expenditure (prior year)

Charitable activities
Raising East Africa Latin America Governance Support 2022
funds Programme Programme costs costs Total
£ £ £ £ £ £
Staff costs (Note 6) 69,981 267,566 177,449 - 133,395 648,391
Direct programme expenditure - 572,027 291,384 - - 863,411
Office costs - 11,282 971 87 51,289 63,629
Audit, legal and professional fees - - - 10,105 136,246 146,351
69,981 850,875 469,804 10,192 320,930 1,721,781
Support and governance costs - 228,474 102,648 (10,192) (320,930) -
Total expenditure 2022 69,981 1,079,349 572,451 - - 1,721,781

31

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

5 Net (expenditure)/income for the year

This is stated after charging:

This is stated after charging:
2023 2022
£ £
Depreciation 3,640 2,415
Auditor's remuneration (excluding VAT):
Audit 10,895 8,300

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2023
£
672,044
33,488
51,033		 2022
£
577,895
26,540
43,956
756,565 648,391

Two employees earned more than £60,000 during the year (2022: 60,000) - the CEO (2023 and 2022 Annual salary: £68,000) and the Head of Business Development (2023 Annual Salary: £74,828, 2022: £na)

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel, the CEO were £82,249 (2022: £82,687).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: 0). No charity trustee received payment for professional or other services supplied to the charity (2022: 0).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totaling £0 (2022: £0), as a result of Board meetings continuing to be held virtually.

7 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 23.2 FTE, with a total headcount of 24 (2022: 19.4 FTE ).

Staff are split across the activities of the charity as follows (headcount basis):

Raising funds
East Africa Programmes
Latin America Programmes
Support		 2023
No.
1.0
12.4
7.6
3.0		 2022
No.
1.7
10.6
3.8
3.4
24.0 19.4

8 Related party transactions

The only related party transaction is with Cafédirect plc: Cafédirect plc and Producers Direct have been linked through a Donation Agreement, dating from 28th September 2009, which outlines the terms under which Cafédirect plc makes an annual donation to Producers Direct to support producer programmes, and to strengthen Producers Direct's operational capacity.

Aggregate donations from the related party Cafédirect plc were £108,550; (2022: £100,000). All were unrestricted in 2022 and 2023. There were no amounts due at year end.

32

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

9 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10 Tangible fixed assets

Tangible fixed assets
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
At the end of the year
At the start of the year
Charge for the year
At the end of the year
At the start of the year
Additions in year
Cost		 2023
£
31,221
4,715
Computer		 2022
£
16,081
15,140
Equipment
35,936 31,221
13,121
3,640		 10,706
2,415
16,761 13,121
19,175 18,099
18,099 5,375
11
12
Programme related investments
Fair value at the start of the year
Award of new loans
Repayment of loans
Fair value at the end of the year
Investments comprise:
Loans
Ankole Coffee Producers Co-operative Union (ACPCU)
Kayonza Growers Tea Factory
Rungwe and Busokelo Tea Co-operative Joint Enterprise (RBTC)
CAC La Prosperidad de Chirinos
CAC Bagua Grande
Debtors
Trade debtors
Prepayments and accrued income		 2023
£
27,646
108,683		 2022
£
74,857
98,403
136,329 173,260
2023
£
59,148
-
(3,181)		 2022
£
46,024
13,124
-
55,967 59,148
2023
£
18,752
22,072
14,878
166
99		 2022
£
18,752
22,072
14,878
2,154
1,292
55,967 59,148

During 2023, Producers Direct partnered with five smallholder producer organisations in Uganda (Ankole and Kayonza), Tanzania (RBTC) and Peru (CAC La Prosperidad de Chirinos and CAC Bagua Grande), and micro-finance institutions associated with each organisation, to enhance farmers’ access micro-loans to support them take-up or strengthen on-farm beekeeping practices. Interest on loans is being charged below market rates in Uganda, Tanzania and Peru. Loans are being made to further the charity's objectives and not solely to generate a financial return.

33

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
UK Bounce Back Loan
CAF Venturesome Loan
Non-Current Creditors: amounts falling due beyond one year
Trade creditors
Taxation and social security
Loan payments due within a year
Accruals		 2023
£
46,522
1,261
21,349
50,941		 2022
£
28,487
1,261
38,379
12,292
120,074 80,419
2023
£
15,000
7,001		 2022
£
15,761
9,918
22,001 25,679

14 Non-Current Creditors: amounts falling due beyond one year

During 2020, Producers Direct secured two loans to support cash flow management and to invest in testing branded honey sales in East Africa. These were a CAF Venturesome loan for £50,000 of unsecured debt finance, on a 5 year repayment terms at an interest rate of 6% per annum, and a UK Government Bounce Back unsecured loan of £50,000 at a 2.5% per annum interest rate after the first 12 months on 5 year repayment terms.

15 Pension scheme

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities.

16a Analysis of net assets between funds (current year)

Tangible fixed assets
Net current assets
Long term liabilities
Net assets at 31 Dec 2023		 General
unrestricted
£
19,175
179,872
(22,001)		 Restricted
£
-
48,768
-		 Total
funds
£
19,175
228,640
(22,001)
177,046 48,768 225,813

16b Analysis of net assets between funds (prior year)

Tangible fixed assets
Net current assets
Long term liabilities
Net assets at 31 Dec 2022		 General
unrestricted
£
14,933
313,954
(25,679)		 Restricted
£
3,166
373,868
-		 Total
funds
£
18,099
687,822
(25,679)
303,208 377,034 680,242

34

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

17a Movements in funds (current year)

Restricted funds:
Africa - GIZ FairForward
Africa - Bill and Melinda Gates Foundation
Africa - OCP Foundation / APNI
Africa and Latin America - Bayer AG
Latin America - IDB Lab
Total restricted funds
General funds
Total unrestricted funds
Total funds
Latin America - GIZ i4Ag
Latin America - Pret a Manger
Latin America - World Food Programme
Unrestricted funds:		 At 1
January
2023
£
23,326
-
-
68,590
168,279
48,945
68,992
(1,097)		 Income &
gains
£
159,166
161,072
86,713
-
-
362,314
100,000
-		 Expenditure
& losses
£
(156,990)
(159,877)
(86,713)
(68,590)
(149,886)
(407,890)
(168,684)
1,097		 Transfers
£
-
-
-
-
-
-
-
-		 At 31
December
2023
£
25,502
1,195
-
-
18,393
3,369
308
-
377,034 869,265 (1,197,532) - 48,768
303,208 228,535 (354,697) - 177,046
303,208 228,535 (354,697) - 177,046
680,242 1,097,799 (1,552,229) - 225,813

The narrative to explain the purpose of each fund is given at the foot of the note below.

17b Movements in funds (prior year)

Restricted funds:
Africa - Innovate UK
Africa - MercyCorps AgriFin
Africa - GIZ FairForward
Latin America - IDB Lab
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds:
Africa and Latin America- Bayer AG
Latin America- GIZ i4Ag
Latin America - Pret a Manger
Latin America - World Food Programme		 At 31
December
2021
£
(2,869)
13,829
-
223,045
118,206
-
51,166
(9,570)		 Income &
gains
£
22,058
98
95,378
255,646
397,325
280,136
125,000
20,310		 Expenditure
& losses
£
(19,189)
(13,927)
(72,052)
(410,101)
(347,252)
(231,191)
(107,174)
(11,837)		 Transfers
£
-
-
-
-
-
-
-
-		 At 31
December
2022
£
-
-
23,326
68,590
168,279
48,945
68,992
(1,097)
393,806 1,195,951 (1,212,723) - 377,034
453,009 359,257 (509,058) - 303,208
453,009 359,257 (509,058) - 303,208
846,815 1,555,208 (1,721,781) - 680,242

35

Producers Direct

Notes to the financial statements

For the year ended 31 December 2023

Purposes of restricted funds

Africa - Bill and Melinda Gates Foundation: 2022/2023 Funding from the Bill and Melinda Gates Foundation for a total of $US 463,317 over 12 months to support the testing of incentives for farmers and other stakeholders to share data, in order to collectively benefit from stronger data insights across agricultural value chains as a result of sharing the data, and the enhanced delivery of digital services to smallholder farmers.

Africa - OCP Foundation / African Plant Nutrition Institute (APNI): $US 110,990 received during 2023 of a total three-year grant of $US 321,050 from APNI (2023-2025), sub-granted from the OCP Foundation, to support smallholder farmers in Uganda diversify their farming, including through apiculture and horticultural crops, and enhance climate-smart approaches to coffee farming - in order to enhnace their long-term resilience to climate change.

Africa - Innovate UK: Funding from Innovate UK's Agritech 9 funding window over 24 months from August 2020, sub-granted from Climate Edge, to support the expansion of the initial soil kit testing work undertaken in 2019, and trial low-cost advisory services to support soil quality management, and from Innovate UK's Global Challenges Research Fund (GCRF), sub-granted from Climate Edge, to support the testing of software that enables producer organisations to more effectively provide digital advisory services to smallholders. The fund balance of -£2,869 at the start of 2022 was due to a pending payment from Innovate UK for activities undertaken in 2021 that was paid during 2022. Innovate UK project funding closed by the end of 2022.

Africa - Mercy Corps AgriFin / Starbucks Foundation: £66,464 secured for 2021 expenditure to support the next phase of the Covid-19 information campaign that was undertaken during 2020, with focus on targeting updated Covid-19 health and safety materials to smallholder farmers across Kenya. MercyCorps AgriFin / Starbucks Foundation project funds closed by the end of 2022.

Africa - GIZ FairForward: 353,808 Euros secured over 24 months from October 2022 to June 2024 to support the expansion of Croppie development and testing to smallholder coffee farmers in Uganda, in partnership with the International Centre for Tropical Agriculture Centre (CIAT) and M-Omulimisa.

Africa and Latin America: - Bayer AG: 300,000 Euros was secured from Bayer AG in 2022 Q4 to support further 2022/2023 testing and scaling of Producers Direct’s ‘Digital Cooperative’ concept and its potential to support women smallholders in both Peru and Uganda to aggregate and collectively sell their surplus food crops to enhance their incomes.

Latin America - GIZ (German Development Agency) i4Ag: 700,445 Euros secured over 24 Months (2021 Q4 - 2023 Q3) to support the expansion of Croppie - our digital tool focused on data-driven yield predictions for smallholders in Peru and Colombia.

Latin America - IDB Lab (The innovation laboratory of the Inter-American Development Bank): 1,000,000 USD secured over 36 Months from January 2022 for work in Peru to support the development of climate-resilient landscapes, working with 10 smallholder cooperatives to develop the data, training, financial and market access services required to manage climate-resilient farms and landscapes.

Latin America - World Food Programme (WFP) Innovation Accelerator: 2020 and 2021 funding to test Producers Direct’s ‘Digital Cooperative’ concept and its potential to support women smallholders in Las Lomas, Peru, to aggregate and collectively sell their surplus food crops to enhance their incomes. WFP Innnovation Accelerator Project funds closed by the end 2023 Q1.

Latin America - Pret a Manger Coffee Fund : Funding to support Peruvian Partners, particularly Cenfrocafe, to implement a youth leadership training programme.

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. There was one member at 31 December 2023, Cafédirect Producers Limited.

36