Sustainability in third-party supply chains
Where we grow our own crops - almonds in Australia and the USA, and black pepper in Brazil and Vietnam - we have complete control. We apply international standards and advanced technology to maintain the highest quality.
But the vast majority of the crops we buy are grown by smallholders in fragmented supply chains, which can make traceability more challenging. This is how we influence our third-party supply chains for the better:
Our Supplier Code is a detailed set of conditions that our suppliers must meet. These conditions are the basis for producing ingredients in a way that’s socially responsible, economically profitable and environmentally sustainable.
Working closely with smallholder farmers, we run sustainability programs covering areas like improving yields and quality, diversifying crops to increase income, improving health and education, and much more (see our Priority Areas). We currently support around 420,000 smallholders in such programmes.
Technology for responsible and sustainable sourcing
This was created to put isolated smallholders on the digital map. We use it to survey farms so we can support farmers better and identify risk hotspots.
Powered by data from OFIS, AtSource gives you unique insights into the lives of farmers and the crops they grow, as well as environmental footprints for the product right up to the door of your manufacturing or retail facilities. AtSource not only improves transparency and traceability, it fuels change for people and planet.
A mobile app that allows farmers to transact directly with ofi and gain access to invaluable advice and support. Olam Direct increases traceability while also helping farmers to control their sales and earnings.
The policies underpinning it all
Our approach to responsible and sustainable sourcing is underpinned by a number of policies.
The Living Landscapes Policy supports a ‘Net-Positive’ approach to sustainable development in agricultural supply chains and landscape management. It adopts principles to support the co-existence of prosperous farmers and food systems, with thriving communities and healthy ecosystems, with the aim of putting more back into food and farming systems than is taken out.
The Plantations, Concessions and Farms Code defines the process and standards for managing the environmental and social requirements of acquisitions and new and existing upstream developments across the entire project lifecycle. It’s applicable for ofi-owned and operated projects as well as partnerships and joint ventures in operating upstream enterprises, and applied with the Living Landscapes Policy.
We fully support high animal welfare standards. These include not only good health, but mental wellbeing and the ability of animals to exhibit species-specific behaviour.
We aim to build long-term relationships with suppliers based on responsible business practices and trust. The Supplier Code sets out our expectations to support our goal to purchase raw materials and products produced in a manner that is socially responsible, economically profitable and environmentally sustainable.
Read ofi news
Forests are vital to sustainable cocoa production. Not only do they help to improve biodiversity and mitigate against climate change, they also help to improve cocoa yields and raise farmer incomes. By improving tree cover, cocoa farmers can increase the yields and life expectancy of their cocoa trees and generate additional income from more diverse crops.
In a move by the Global Coffee Platform (GCP) to advance transparency and sustainability in the coffee value chain, two tiers of Olam International’s sustainability insights platform AtSource – AtSource Entry Verified1 and AtSource Plus - have been added as new sustainable sourcing schemes to the GCP Reporting on Sustainable Coffee Purchases programme2.
Are your supply chains sustainable?
Speak to ofi about sourcing high-quality food ingredients and improving your sustainability credentials today.
