Food Staples and Packaged Foods – Capitals snapshot
Social: Sugar JV opens opportunities for farmers
- The investment by Mitr Phol Sugar Corporation in Far East Agri, which operates a sugar refinery in Indonesia, combines Mitr Phol’s strong milling expertise with Olam’s farmgate, sourcing and manufacturing capabilities to better cater to the growing demand for sugar in Indonesia.
- Far East will explore the development of a green-field sugar milling facility in East Java, which in 2020 will source 1.2 million MT of cane from farmers.
Social: Packaged Foods Business continues to support nutrition needs in West Africa with fortified foods
- Olam is taking measures to improve nutrition among consumers in Africa. As well as mandatory fortification of products such as flour and edible oils, this included 98 million servings of Milky Magic biscuits and 821.5 million servings of Tasty Tom tomato paste in Ghana and 16.8 million servings of FreshYo yogurt in Nigeria.
Manufactured and Social: Animal Feeds facilities inaugurated in Nigeria
- With a combined investment of US$150 million, the poultry feed mill and day-old-chick facilities in Kaduna State, together with the integrated poultry and fish feed mill at Ilorin, were inaugurated by Nigerian President Buhari.
- To further stimulate and support the market, the team is improving the availability of expert support to farmers. Internships are being offered to 100 veterinary, aquaculture and agronomy graduates who will receive hands-on learning opportunities over a 2-year period.
- Local sourcing of raw materials such as soybeans, corn and cassava for the animal feed is estimated to positively impact more than 300,000 smallholder crop farmers. Production requires maize as an input and there was some confusion when it was reported that Olam had imported GM maize for human consumption. The maize was imported for animal feed due to a poor local harvest.
Human: Crown Flour Mills (CFM) invests in local talent
- CFM has been running a graduate training programme, providing on-the-job training for Nigerians, many of whom have now taken up roles previously held by expats. Also in 2017, CFM sponsored 2 millers from Nigeria and Senegal for a 1-year residential programme at the Central Food Technology Research Institute – a renowned training school for millers.
- Also in Nigeria, the country team responded in full following a request by the Senate Joint Committee on Customs, Excise, and Tariff and Marine Transport to many international and national companies regarding import payments. The team presented all documents and continues to engage with the Senate.
Human: Skills transfer to Gabonese palm workers
- Olam Palm Gabon (OPG) employs around 7,700 Gabonese nationals to work on plantations. While current management roles are filled primarily by expat Malaysian and Indonesian palm industry experts, a Nationalisation Policy led by the OPG Training and Development team will ensure that Gabonese nationals fill many of the roles by 2025.
- The GRAINE smallholder programme which supports national food security through industrial agricultural skills transfer and investment under the SOTRADER JV1 launched a broad public consultation on its learnings since its inception 2 years ago. A number of recommendations were made to recalibrate the programme and embrace non-GRAINE cooperatives.
Human: Livestock management protocols and training contributes to Uruguay dairy performance
- Olam Uruguay completed 11,466 hours of employee training, with a focus on strengthening operating procedures, safety across operations, and technical training in relation to various work processes.
- Individual cow productivity achieved the highest levels compared to previous years. The improvement derives from better body condition of the herd at calving. Livestock management protocols implemented during 2016 significantly reduced livestock mortality and continued to prove successful during 2017.
Natural: Reducing Greenhouse Gas (GHG) impacts for Dairy and Rice
- Methane has at least 28 times the global warming potential of carbon dioxide2. In Dairy, the Cool Farm Tool is helping to establish a baseline of GHG emissions – 72% of Uruguay Dairy GHG emissions are from enteric fermentation – the cow’s digestive process. Reduction is a key factor of the CR&S Dairy strategy being developed in 2018.
- With the Better Rice Initiative Asia, development agency GIZ, Bayer and the Thai Rice Department, Olam Rice has increased its pilot programme to reduce methane growing farmer outreach from 70 farmers in 2016 to more than 1,000 in 2017. The programme has produced the world’s first verified sustainable rice.
- Olam Rice is now aiming to improve the livelihoods of 36,000 farmers in Southeast Asia with GIZ under the Market-Oriented Smallholder Value Chain (MSVC) by 2021. In addition, Olam remains the only private company partner of the Thai Government’s Nationally Appropriate (GHG) Mitigation Action (NAMA).
1. 51% Republic of Gabon and 49% Olam