LONDON, UK – Olam International Limited (“Olam’’) has announced the 2014 achievements of the Olam Livelihood Charter (OLC), including a record four-fold increase of agricultural products sourced from OLC farmers over the past year to one million metric tonnes.
Now in its fourth year, the OLC sets stringent standards for supporting smallholder communities in Olam’s networks through financing, improved yield, labour practices, market access, quality, traceability, social investment and environmental impact.
Only by meeting all eight Principles can a sustainability programme be awarded OLC status. Since its launch in 2010, the number of farmers benefiting from the eight OLC Principles has increased to reach 350,147 small-scale producers, about a fifth of whom are women, spanning 623,150 hectares of smallholder land.
Other highlights from 2014’s results include:
- 10 new initiatives granted OLC status to bring the total number to 30
- Countries: Cameroon, Colombia, Congo Brazzaville, Côte d’Ivoire, Ghana, Honduras, India, Indonesia, Mozambique, Nigeria, Papua New Guinea, Vietnam, Zambia, and Zimbabwe
- Products: cashew, cocoa, coffee, cotton, chilli, pepper, sesame and sugar
- US$183.7 million in short and medium-term interest-free financing for smallholders
- 224,352 farmers trained in Good Agricultural Practices, of whom 44,340 were women
- US$21.2 million quality premium paid
- Over US$1.5 million social investments in community health, education and infrastructure
Commenting on the OLC’s progress and significance for the business, Sunny Verghese, Olam’s Co-Founder, Group Managing Director, and Chief Executive Officer, said: “Applying the Olam Livelihood Charter Principles whenever we have a direct relationship with smallholders enables us to address challenges together in a holistic way, reflecting the landscape approach we take across our operations.
This is not philanthropy but a sound business model that will help us to ensure we can supply the quantity and quality of raw materials demanded by our customers on a sustainable long-term basis.”
The OLC initiatives only represent one part of Olam’s social investments, with a total of 190 initiatives underway in 30 countries, supporting productivity, education, health and rural infrastructure.
The OLC is aligned with the United Nation’s Millennium Development goals to maximise impact and drive inclusivity. Download the full report here.
