Supply Chain Coverage
We help prevent disruption for retailers with supply chain control and enable them to appeal to eco-conscious consumers as we have the people and programs in place to offer traceability and sustainability.
In agriculture, you learn to expect the unexpected. Thanks to our global presence and diversified sourcing, we can always adapt so disruption to your supply is minimized.
Farming can be unpredictable. A harvest might be lower than anticipated. Prices can drop or climb dramatically due to over- or undersupply. But, thanks to being spread across the world and sourcing ingredients from multiple origins, at ofi we can manage these risks. Which means you get reliable supply.
Our diversified global presence also helps to insulate us from supply shocks that may disrupt the production of a particular crop in a particular location in any particular year. It allows us to offer certainty of supply and provide the requisite food safety and quality assurance to our customers through adaptive solutions.
This is supported by our team of risk experts who have deep understanding of agricultural commodities and financial instruments trading to help manage the price changes and volatility that can create a difficult operating environment for producers and supply chain participants. We focus on building long-term partnerships with our customers and offering tailored solutions.
Consumers increasingly want reassurance about where their ingredients come from. Thanks to ofi’s superior traceability, you can give them exactly that.
Providing traceability for agricultural raw materials can be challenging given the complex and fragmented nature of many ingredient supply chains, because many crops tend to be grown by small-scale farmers who sell to an intermediary, who may then sell on to another intermediary, mixing sacks from different sources along the way. With the aim of reducing complexity in our supply chains, we make every effort to work directly with farmers, organising buying stations and local cooperatives.
This way of working not only provides us with the data we need to trace our supply back to the farmer groups we work with, but also provides opportunities to create positive impact by implementing sustainability programmes with customer, government, not for profit and development finance institution partners. With traceability, we can also reduce social and environmental risks such as deforestation and human rights abuses.
We also work closely with large-scale growers such as in California for our onions and garlic. Here, we have long-standing relationships with multi-generational farmers passionate about their crops and stewardship of their land. We provide them with proprietary world-class seeds and our ag operations teams and crop supervisors help support production, harvesting and logistics. Of course, with our own farms and estates such as almonds, black pepper and dairy farms, we offer full traceability and absolute control.
Action includes:
Ensuring all suppliers sign the Supplier Code – which also applies to their suppliers
Training farmers through our sustainability programmes
Providing advice and guidance through our digital applications
ofi’s unique technologies play a vital role in improving traceability:
Olam Direct: the app that lets farmers do business directly with ofi
Olam Farmer Information System (OFIS): putting isolated smallholder farmers on the digital map.
AtSource: our sustainability insights platform which gives you more supply chain transparency than ever before
You expect consistent functionality of ingredients. That’s why we have our own people on the ground at every stage of the supply chain.
Getting better performance from food ingredients starts with the best seeds and seedlings. This is an ongoing mission for our plant scientists and agronomists in their support to farmers. One of our seeds, developed by the Spices team, produces onions with more dry matter—boosting yields and reducing the amount of water, fertiliser and pesticide needed per acre. A great example of the power of plant science.
In our smallholder farmer networks, our sustainability teams provide training on how to get the best quality crops with the lowest environmental impact. For example, with careful use of fertilisers and pesticides, replacing synthetic chemicals with natural alternatives wherever possible.
In addition, our own custom developed planting and harvesting equipment has shown significant reductions in our carbon footprint. We also provide training on how to protect crops post-harvest, providing equipment such as drying mats and tables which help prevent contamination from the soil.
This combination of superior seed, expertise and reduced inputs provides our farmers with well-managed crop risk and yield. All made possible thanks to our global reach and teams working together at every step of the supply chain.
Making sure our ingredients are delivered to customers without contamination or adulteration is our top priority.
We achieve this by:
Operating highly integrated supply chains working with both large-scale growers and smallholders
Providing training and quality seeds to help farmers reduce the risk of contamination
Maintaining the highest standards of quality and food safety control at our processing plants
Continuously investing in safety, health, quality and sustainability
Putting in place food quality and safety systems including GMP and HACCP
Read ofi news
Author | Andrew Brooks | Head of Sustainability, Cocoa, ofi
World Chocolate Day, a day to not only indulge, but to remember the people and landscapes that grow the cocoa that goes into our favorite products. Both are vital to help maintain a sustainable future for cocoa production. That’s why as part of our Cocoa Compass sustainability ambition, we collaborate with our customers and partners on multi-stakeholder partnerships to drive collective action and lasting impact.
Climate change is among the biggest challenges in growing cocoa. In Indonesia, for example, intensive rainfall, drought, rising temperatures, and an increase in related pests, threatens farmer yields and erodes their livelihoods, including those of women and indigenous groups that depend on their crops for subsistence. Yet many farmers struggle to access the support they need to adapt and become more resilient.
A climate-smart agroforestry system is key to addressing and mitigating climate change risks, which is why we co-created the Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee (LASCARCOCO), a three-year partnership with USAID, non-profit Rikolto, the Hershey Company, and the Indonesian Government, to help 6,500 farmers increase yields by 25% and conserve 14,000 hectares by late 2025.
Through the partnership, we have developed a new curriculum to train farmers in Good Agricultural Practices and climate adaption, promoted sustainable agroforestry – where forest and shade trees are planted alongside cocoa and coffee to restore forest covers – and provided farmers with seedlings. It’s already making a difference – in year one of the project, approximately 8,600 individuals were reached directly or indirectly via the program. The LASCARCOCO USAID ofi project has successfully bridged a constructed collaborative action with stakeholders involved in the project such as farmers, forest communities, government, and forest authorities to deliver an agroforestry program.
Good landscape governance is also critical to protect the land and the incomes of the farmers who work it. In Ghana and Côte d'Ivoire, we’re working with the Rainforest Alliance and USAID on the Resilient Ecosystems and Sustainable Transformation of Rural Economies (RESTORE) project. This not only promotes regenerative and sustainable cocoa production; it also aims to strengthen Landscape Management Boards (LMBs).
These boards are important because they bring key stakeholders together – community members, local farmers, the Ghanaian Forestry Commission, and COCOBOD – and give the local community a say in how the land is managed. We provide ongoing support and training to LMB members on everything from management and financial literacy to climate-smart farming and forest-friendly enterprises such as beekeeping and piggery.
Whilst we’re proud of the impact we have made so far, there is still much more to do. We remain focused on working with customers, civil society, national governments, and other stakeholders to support farmers and to protect landscapes across origins – so when consumers pick up their chocolate bar or cocoa-flavored treat, they can be confident that it’s been produced in a way that supports people and helps protect the planet.
Author | Billie Elmqvist Thurén | Human Rights ofi Sustainability & Cocoa Lead
Accessible education is an effective way to reduce the risk of the incidence of child labor as well as providing a foundation for protecting children’s rights. Through our Child Labor Monitoring and Remediation System (CLMRS), we monitor and identify the specific needs of communities across our nine global sustainable sourcing regions.
From providing access to schools closer to home to initiatives that empower cocoa households to be more economically resilient, here are a few ways we are removing barriers for children in our cocoa supply chain to attend school and develop their future potential.
- New 2030 social and environmental targets set for ofi’s global operations which span ~50 countries, building on the existing product-specific strategies for cocoa, coffee, dairy, nuts, and spices.
- Strong focus on supply chain excellence to enhance supplier engagement, mitigate supply chain risks, and give customers more rigorous, verifiable data for sustainability decision-making and reporting.
- Impact will be achieved in partnership with farmers, governments, civil society and ofi’s customers, backed by clear action plans and methodologies outlined by ofi.
ofi, a leading supplier of naturally good food and beverage ingredients, today unveiled a new sustainability strategy – ‘Choices for Change’ and ambitious 2030 targets.
Global food brands and retailers are facing growing consumer demand for sustainable products, with increasing weather related and other challenges in the food supply chain and significant new sustainability linked legislation coming up. With ‘Choices for Change’, ofi will provide these companies and their consumers with specific choices to deliver long-term impact across four critical pillars: Prosperous Farmers, Thriving Communities, Climate Action, and Regenerating the Living World.
Every 2030 target in the Choices for Change strategy delivers on key customer needs, including:
- Delivering enhanced livelihood support to one million farmers, helping them to be more productive and deliver better quality ingredients.
- Cutting scope 3 emissions by 30% to offer customers verifiable, low-carbon products and ingredients and contribute to net-zero commitments.
- Bringing 2 million hectares of land under regenerative farming practices to create long-term farm resilience and products with verified positive natural impact.
To give customers more rigorous, verifiable data for sustainability decision-making and reporting, the strategy incorporates a focus on supply chain excellence. This brings traceability, data insights, risk mitigation, verification, and in-depth supplier engagement together to enable the right choices and includes ofi’s suite of award-winning tech tools like AtSource - the sustainability management system and its built in Carbon Scenario Planner for planning and costing climate action.
Do you want to make it real?
Speak to ofi about securing reliable sources of high-quality,
traceable food ingredients for your business.
