This article is presented by Olam
What is Olam Agri’s vision for its contributions to the future of global food systems, particularly regarding affordability, accessibility, and sustainability?
As a leading agribusiness with a vast sourcing network spanning various staple foods and agricultural products, enhanced by strong processing capabilities and significant presence in rapidly developing markets, we are positioned to source vital staple crops like rice and wheat from regions of surplus and supply them to areas of high demand, processing as needed to fulfill the food security requirements of numerous markets.
This ability allows us to deliver food and agricultural products to several nations and their populations while ensuring they remain affordable, even amid trade challenges where we must frequently adjust our sourcing strategies to satisfy demand. Additionally, we partner closely with diverse countries to identify prospects for domestic crop production, enhancing their agricultural strategies and food security, particularly in Africa, where we have built our leadership in food and agriculture over the last 34 years.
Our driving force is our mission to transform food and agriculture for a future that is more food-secure and sustainable. The wellbeing of farmers is essential to our business, and we actively support them, especially smallholder farmers who are often more vulnerable, by ensuring they maintain viable and productive operations while either adopting or considering climate-smart farming techniques and enhancing soil health through regenerative agricultural practices. This is crucial for establishing sustainable agricultural supply chains capable of securing food production for future generations.
In light of agriculture’s vulnerability to climate change, how is Olam Agri supporting farmers in achieving a balance between agricultural productivity and environmental sustainability?
We directly engage with hundreds of thousands of farmers, witnessing the severe impacts of climate change and erratic weather patterns on agriculture and their livelihoods. The year 2023 recorded unprecedented levels of heatwaves, droughts, wildfires, and floods, both in terms of intensity and frequency, and the outlook suggests worsening conditions. Smallholder farmers in the Global South often endure the most significant repercussions due to their limited access to resources and assistance in transitioning to more sustainable farming practices.
Our core objectives when collaborating with farmers, either directly or via our partners, include improving their livelihoods through increased productivity, yields, and profits; embracing agricultural practices that promote climate mitigation and adaptation; and employing regenerative agricultural techniques that foster soil health.
In our rice supply chain operating in major exporting countries like India, Thailand, Vietnam, and Nigeria, we work with over 50,000 smallholder farmers to impart effective farming methods, such as alternative wetting and drying, which reduce water use, limit fertilizer application, and lower greenhouse gas emissions. These initiatives not only enhance their climate resilience and improve soil health but also increase their profitability.
Furthermore, we empower farmers by providing access to high-yield, climate-resilient seed varieties and encouraging crop diversification. These measures help farmers increase their household incomes and strengthen their resistance to climate change impacts.
For example, in Nigeria, we have recently introduced a new heat-resistant and early-maturing durum wheat variety well-suited for cultivation during the dry harmattan season. This development allows wheat millers and pasta producers to shift from imports to locally sourced wheat, which is part of our Seeds for the Future initiative.
Olam Agri is a strong advocate for regenerative agriculture and biodiversity. Could you share specific initiatives that demonstrate your commitment to these principles?
We believe that regenerative agriculture and biodiversity are vital for developing sustainable and resilient food systems. This methodology improves soil health through practices like cover cropping, crop rotation, no-tillage, reduced chemical usage, enhanced fertilizer application, and holistic grazing. These methods enhance soil fertility, improve water retention, promote biodiversity, sequester carbon, and lead to more resilient agricultural systems.
By applying regenerative agriculture at the landscape level, farmers and stakeholders can collaborate with local communities to rehabilitate natural habitats and sustainably manage water resources. This holistic strategy positively affects farm-level outcomes and the surrounding ecosystem, ensuring a sustainable and productive agricultural future.
In 2024, we launched the largest certified regenerative agriculture program globally in the cotton supply chain to meet the growing demand for traceable and sustainably sourced cotton. This initiative includes cotton grown in the United States and Côte d’Ivoire, with Australia and Brazil slated for future expansion. Through practices such as rainwater harvesting, minimal soil disturbance, application of organic manure, and agroforestry, Olam Agri is empowering cotton farmers to enhance their resilience to climate change.
In the Asia-Pacific region, since 2016, Olam Agri has partnered with public and private sectors to expand the reach and effectiveness of its regenerative agriculture initiatives. These efforts manifest through various sustainable rice programs currently active in India, Thailand, and Vietnam, the three leading rice-exporting countries that together account for nearly 70% of global rice production. In pursuit of a scalable sustainable global model, Olam Agri collaborates closely with governments, donors, civil society, clients, and key players in the rice sector to implement these programs. These initiatives underscore our significant commitment to integrating regenerative agriculture and biodiversity conservation into our operational model, benefiting not just the environment but also the communities we serve.
How does technology influence Olam Agri’s medium-term growth and sustainability objectives? Are there particular innovations that you find exciting?
Technology is fundamental to Olam Agri’s aspirations for medium-term growth and sustainability. Our commitment to leveraging advanced technologies is integral to our strategy for improving operational efficiency, reducing environmental impact, and driving sustainable growth.
One significant domain where technology profoundly impacts our operations is in our Monitoring, Reporting, and Verification (MRV) processes. By utilizing cutting-edge digital tools and platforms, we can accurately gather, analyze, and report data. This capability not only assists in tracking our advancement toward sustainability objectives but also supports compliance with regulatory standards and enhances stakeholder confidence.
We are particularly excited about several innovations that promise to revolutionize our operations:
Digital Footprint Calculator: This tool, integrated within our AtSource sustainability management system, allows us to accurately measure the carbon footprint across our supply chains. It provides detailed insights into emissions at each stage, from farm to final product, facilitating the identification and execution of effective carbon reduction strategies.
Terrascope: Our enterprise-scale, end-to-end decarbonization platform empowers entities across the food, beverage, and agriculture sectors to chart credible pathways to net-zero emissions. By combining proprietary data resources and AI models with extensive industry and sustainability knowledge, Terrascope guides companies on the most impactful emission reduction actions they can undertake.
Zero North Platform: Within our freight division, we have invested in the Zero North platform to improve operational efficiency and reduce emissions. This integrated application supports enhanced route planning, vessel performance monitoring, and bunker optimization, contributing to significant emission reductions.
Satellite Monitoring and Remote Sensing: We employ satellite technology to observe land use changes, deforestation, and crop health in real time. This approach assists in ensuring compliance with sustainability standards while furthering our efforts to protect natural ecosystems and biodiversity.
