Managing labour issues in our supplier network
Olam’s sourcing network of 4 million farmers, of whom the vast majority are smallholders in emerging markets, means that eliminating poor labour practices is an ongoing focus. Poor practices include the potential for:
- Child labour
- Forced adult labour
- Poor management practices, such as not providing protective equipment or instructions
This diagram shows how we have been able to prioritise out-reach given that we cannot physically audit all 4 million farmers. Farmers within the Olam Livelihood Charter are much easier to reach and we provide extensive training.
In our next sphere, where we buy from Licensed Buying Agents, we are asking them to verify their own supply chains by signing the Olam Supplier Code, which will then be subject to audit. This now covers 30% of tonnage (of which 60% is contracted large-scale). You can read more about the challenges of implementing the Supplier Code in the How We Do It Section of this Report.
Crops in our furthest sphere tend to have lower risk and we use the Olam Supplier Code and industry leadership to eradicate issues. Cotton from Uzbekistan is an individual case which we address separately in the sections that follow under Forced Adult Labour.
Next Section: How we tackle child labour