Press Release

    Olam launches The Livelihood Charter – a commitment to link small-scale farmers to the global supply chain

    Press release

    Today Olam International will announce a new Charter that pledges long-term commitment to rural communities. The Livelihood Charter is a framework based on 8 Principles which aims to link small-scale farmers in emerging countries to the global supply chain in order to enhance the quality of life for the community.

    “We have worked in these countries for a number of years now and have been able to develop a Livelihood Charter that we know will create economic prosperity as well as providing social welfare in the context of good environmental stewardship,” said Gerry Manley, Chair of the Olam Corporate Responsibility and Sustainability Committee. “We are also committed to give assurance to our customers through the responsible and sustainable supply of products.”

    The 8 benchmark Principles that are the foundations for the Livelihood Charter are:

    • Finance – pre-finance of crop purchase and capital advances
    • Improved Yield – investment in training and supply of inputs
    • Labour Practices – education about child labour, gender and safety issues
    • Market Access – commitment to a fair and competitive price
    • Quality – encouragement of good quality by enhancing value to farmers and customers
    • Traceability – tracking of products to source
    • Social Investment – support of rural health, education and infrastructure
    • Environmental Impact – improvement of our overall environmental footprint

    Olam has set the criterion that all 8 Principles must be adhered to in order for one of their Initiatives to be included in the Livelihood Charter. At present there are 6 Initiatives across Cocoa, Rice and Coffee from Cote d’Ivoire to Indonesia and Peru that qualify out of a total of 100 programmes that exist within Olam’s Corporate Responsibility and Sustainability portfolio. Within these 6 Initiatives, there are nearly 65,000 farmers represented who farm collectively 111,000 hectares. Olam’s training budget for these farmers amounted to US$2.4m on model farms and field schools. They were also provided with 441,000 seedlings, which in some cases accounted for the US$3.5m premium that was paid over and above the crop buy back total of US$98.2m.

    Chris Brett, Head of Corporate Responsibility and Sustainability at Olam commented “Our commitment to these farming communities is demonstrated by the fact that our Crop and Loan Financing in the 6 qualifying initiatives amounts to over US$20m and in addition we will soon complete building our third primary school.”

    Olam plans to work with other key Initiatives within their product portfolio in emerging countries to increase the number of farmers who could benefit from The Livelihood Charter.

    About Olam International Limited

    Olam International is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, sourcing 20 products with a direct presence in 64 countries and supplying them to over 12,000 customers. With direct sourcing and processing in most major producing countries for its various products, Olam has built a global leadership position in many of its businesses, including cocoa, coffee, cashew, sesame, rice, cotton and wood products.

    Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam currently ranks among the top 40 largest listed companies in Singapore in terms of market capitalisation and is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index. Olam is the only Singapore firm to be named in the 2009 and 2010 Forbes Asia Fabulous 50, an annual list of 50 big-cap and most profitable firms in the region.

    It is also the first and only Singapore company to be named in the 2009 lists for the Global Top Companies for Leaders and the Top Companies for Leaders in the Asia Pacific region by Hewitt Associates, the RBL Group and Fortune.

    About Olam International’s Corporate Responsibility and Sustainability

    Olam endeavours to create economic prosperity, provide social welfare and manage its stewardship of the environment in a sustainable way so as to ensure real long-term value for all its stakeholders.

    Over 100 separate initiatives have been developed for the general wellbeing of small-holder farmers in 27 emerging countries. These initiatives have benefited nearly 1.5 million farmers globally through income generation; food security; local infrastructure development; health awareness and primary education programmes.

    Olam works in close partnership with the public, private and NGO sectors to create lasting, positive social and economic change in rural communities. This partnership model is essential in the delivery of the multitude of programmes underway at any one time. Key partners include; USAID, Bill & Melinda Gates Foundation, GIZ, Technoserve, ACDI VOCA, SOCODEVI, Winrock, Rongead, ARD, Rainforest Alliance, UTZ Certified, Fairtrade, Soil Association, DE Foundation, Better Cotton Initiative and PharmAccess.

    For Olam International’s Corporate Responsibility & Sustainability Report 2010 click here:Olam_CSR_2010

    Subscribe to Our News Alerts

    Subscribe to our Olam monthly newsletter.