Olam currently imports and exports/trades Natural rubber in blocks, sheets and latex form. With a direct sales presence in the markets of China, India, Europe and Singapore and sourcing offices in Indonesia, Malaysia and West Africa, it provides a valuable service in connecting the small rubber processors to consumers and manufacturers around the world. By being an effective counterparty to transactions, leveraging its hedging skills on the Singapore and Tokyo exchanges and providing contract liquidity in forward future months, it endeavours to create value for all participants in the market.
In addition, the business has committed itself to supply chain traceability, a first for the industry. 72% of our third party suppliers have already signed the Olam Supplier Code (OSC). This commits them to upholding social and environmental principles, including human rights and ensuring that forest and other surrounding biodiversity is respected. We aim to have full sign-up to OSC by our 3rd party suppliers by 2018.
However, we recognise challenges in tracing the rubber supply chain, Today, 80% of latex is produced by rubber smallholders. We have adapted the Olam Farmer Information System (OFIS) to map our farmers’ supply. In 2016, we began this mapping working with more than 200 farmers located in Côte d’Ivoire and we will ensure rubber products are not sourced from areas encroaching into a national park or protected area. Labour practices and the farmers’ access to public facilities, including heath centres and schools are also monitored.