ofi has spent more than a decade implementing programs to improve the environmental and social impact of almonds, cashews and hazelnuts. Most recently, the company has launched dedicated sustainability strategies focused on the specific challenges of each supply chain. This project was the winner of the 2023 INC Excellence in Sustainability Award.
Consumers increasingly want to know that the ingredients in their nut-based products are healthy for the people and landscapes they come from. They want to support a supply chain where farmers make a decent living, their children go to school and nature is protected. However, each nut faces its own challenges:
- Cashews: Cashew farmers are among the poorest in the world. The 2030 targets set out in ofi’s Cashew Trail focus on improving economic opportunity in smallholder communities by increasing average yields by 50% and helping 250,000 households improve their livelihoods, while also addressing health, education, gender inclusion and climate action.
- Hazelnuts: Since 2012, ofi has partnered with governments, NGOs, industry bodies and customers to improve social and labour conditions in Türkiye’s hazelnut supply chain. The 2030 targets for Hazelnut Trail include training 100% of all female seasonal migrant workers on health, nutrition and labor rights; implementing child labor monitoring and remediation in all managed programs; training 100% of farmers on crop residue management; and achieving traceability for 80% of their hazelnut volumes.
- Almonds: Over many years, ofi has invested in practices and infrastructure across its almond orchards in Australia and the United States, focused on water and emissions reduction, carbon capture, bee-friendly farming and carbon footprint reduction. Now the company is working to expand its impact under the 2030 Almond Trail strategy and targets.
How, exactly, is ofi pursuing the ambitious goals set out in its Cashew, Hazelnut and Almond Trails? Having teams on the ground in farming communities and on ofi’s own estates is essential. ofi constantly innovates to deepen the company’s physical and digital presence on the ground.
In parallel, digital tools like Olam Direct help provide farmers with an easier route to market. This app enables farmers to transact with ofi directly and gain visibility into regular market prices, while also providing advice on weather forecasting, planting and fertilization strategies, and inputs. It also allows ofi to digitally trace crops back to the farmers.
Outcomes
ofi formed its first farmer group in Côte d’Ivoire in 2008. With customers and partners such as GIZ, ComCashew and GAIN, the company has supported 50,000 smallholder cashew farmers in Africa and Asia through 24 sustainability projects.
In 2018, ofi worked with farmers and labor contractors in its supply chain to introduce labor contracts for hazelnut harvest workers —a first for the hazelnut sector, and also for Türkiye’s agriculture sector. Contractual agreements were signed by 11 labor contractors and farmers and 535 seasonal workers, with the approval of the Turkish Employment Agency (İŞKUR).
As for traceability, ofi is constantly innovating to gather better data, improve traceability, and plan social and environmental initiatives. Over 9,000 hazelnut farmers are registered on the ofi Farmer Information System (OFIS), which uses GPS and detailed surveys to provide a new level of insight for ofi’s field teams into how to increase farmers’ yields and quality.
In partnership with the International Labour Organization, the Turkish Ministry of Education and local governorships, ofi established 24 summer schools for children of seasonal workers, which were attended by 423 children in 2022. These schools provide safe spaces where children have access to libraries, information technology classes, sports and playground facilities, and healthy daily meals. ofi has also renovated worker houses in selected villages to provide access to basic services such as clean water, electricity and proper toilets.
Since 2013, ofi has had extensive sustainability programs on the ground in Türkiye, supporting over 20,000 hazelnut farmers. By the end of 2022, ofi had trained more than 18,000 farmers on good agricultural practices and 3,500 female seasonal migrant workers on good social practices.
In ofi’s almond business, sustainability programs kicked off in 2014 with bee-friendly farming and continued with initiatives around water, healthy ecosystems and biodiversity, greenhouse-gas reduction and supporting communities in growing regions. In 2020, ofi launched the “More Crop per Drop” trial to gain a better understanding of how almond trees behave under different conditions. The use of innovative technologies to track everything from tree growth to soil health is helping the company understand and reduce its water footprint.
Managed properly, almond production can be effective in capturing carbon. ofi has made its operations more fuel-efficient by reducing shaking and sweeping engine hours. Stepping up orchard carbon-capture activities, processing efficiency and the use of smart-farm technology are the keys to producing more while using less.
Finally, ofi relies on pollinators in Australia and the United States. Balancing pest control while fostering bee-friendly communities is a challenge. The company balances this risk through the controlled use (or non-use) of certain chemicals to deter unwanted pests while focusing on efforts to promote biodiversity and champion bee-friendly farming techniques.
For more information about ofi’s Cashew, Hazelnut and Almond Trails, visit:
https://www.ofi.com/content/dam/olamofi/products-and-ingredients/nuts/nuts-pdfs/ofi-cashew-trail-2022.pdf
https://www.ofi.com/content/dam/olamofi/products-and-ingredients/nuts/nuts-pdfs/ofi-hazelnut-trail-brochure.pdf
https://www.ofi.com/content/dam/olamofi/products-and-ingredients/nuts/nuts-pdfs/Almond-Trail.pdf
Photos courtesy of ofi.