Agricultural Value Chain Development Project

The project supports Olam's investment plan in Viet Nam, Indonesia, PNG, and Timor-Leste during 2017-2019 by financing midstream coffee and sugar processing expansions and permanent working capital investments for smallholder farmer supply which will promote efficient, inclusive, and sustainable agricultural value chains across a variety of products including coffee, sugar, cashew, cocoa, and pepper. The project helps Olam develop primary and secondary processing plants in origin markets closer to smallholder farmers and in destination markets closer to the customer, adding more value in local markets and rendering more efficient and integrated agricultural value chains. In Viet Nam, Cafe Outspan Vietnam Limited (COVL), a subsidiary of Olam, increased capacity of its soluble coffee plant. In PNG, Olam plans to expand its coffee operations by expanding primary processing facilities in the Morobe and Eastern Highlands provinces and adding storage capacity. In Timor-Leste, Olam's planned investment will help upgrade the coffee primary processing and storage assets that Olam acquired from Timorcorp in 2015. The project includes permanent working capital investments for smallholder farmer supply in Viet Nam, Indonesia, PNG, and Timor-Leste which includes inventory of raw agricultural products procured from farmers and advances to farmers, which will allow Olam to increase its sourcing volumes from smallholder farmers. The project will augment the direct benefits to smallholder farmers by leveraging existing Olam sustainability programs that provide agricultural extension services, training, and livelihood support to smallholder farmers.