USAID, ofi, The Hershey Company and Rikolto launch new partnership
USD 8.2m project aims to support 6,500 smallholders in Indonesia to sustainably boost yields
The United States Agency for International Development (USAID) has launched a new project to promote sustainable cocoa and coffee production in Indonesia with The Hershey Company, Rikolto, the Indonesian government, and PT. Olam Indonesia - part of olam food ingredients (ofi) - a global leader in food and beverage ingredients.
From heavy rains and rising temperatures, climate change is one of the biggest threats to the future of coffee and chocolate. In Indonesia, many smallholders who grow these crops struggle to access the proper support to adapt to the conditions and protect their livelihoods.
The Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry (LASCARCOCO) project is a joint investment from the partners of USD8.2m that will aim to assist 6,500 cocoa and coffee farmers in increasing their yields by 25% while conserving 14,000 hectares of the watershed and riparian buffers by 2025.
It is one of six existing projects and USD50 million of investment that USAID, ofi, and other partners are jointly implementing to help farmers be responsible stewards of their environment.
To achieve its aims, the LASCARCOCO project will work towards:
Improving sustainable livelihoods through training on Good Agricultural Practices and climate-smart agroforestry, where cocoa and coffee are grown alongside other income-generating crops.
Promoting climate-friendly landscape management to enhance smallholders' and local communities' awareness, capacity, and involvement in climate change adaptation.
Creating transparent and traceable supply chains with all farmers registered on ofi's OFIS app, providing complete visibility of the environmental and social credentials of the cocoa and coffee from the project.
Building an evidence-based blueprint for scaling up agroforestry techniques.
Ravi Pokhriyal, President, and Regional Head – Asia Pacific, at ofi, said: "Smallholders are on the frontlines of the climate crisis. Without the right resources and inputs, they can't grow enough to earn a living, and the world could face a shortage of the coffee and chocolate we all love.”
He continued, “This new partnership demonstrates how the private and public sectors can unite to address these dual challenges. And it’s an example of how ofi is living its purpose to Be the Change for Good Food and a Healthy Future under its Cocoa Compass and Coffee Lens sustainability strategies. For nearly two decades, we’ve collaborated with our customers and partners to deliver positive impact across the value chain in Indonesia, from supporting over 80,000 cocoa and coffee farmers in our programs to co-creating on-trend products consumers in APAC will love from our processing facility in Indonesia and Singapore Customer Solutions Center. And now, we’re excited to bring our presence on the ground, end-to-end expertise, and digital tools to the LASCARCOCO project.”
“USAID supports Indonesia’s efforts to balance economic growth and conservation,” said USAID Indonesia Mission Director Jeff Cohen. “This new partnership will encourage cocoa and coffee farmers to adopt sustainable agroforestry practices that increase forest cover and diversify their crops, strengthening their ability to adapt to climate shocks.”
Discover much more about what ofi has to offer at ofi.com
About ofi
ofi (olam food ingredients) is a new operating group born out of Olam. ofi offers sustainable, natural, value-added food products and ingredients so that consumers can enjoy the healthy and indulgent products they love. It consists of industry-leading businesses of cocoa, coffee, dairy, nuts, and spices. ofi has built a unique global value chain presence including its own farming operations, farm-gate origination, and manufacturing facilities. ofi partners with customers, leveraging its complementary and differentiated portfolio of ‘on-trend’ food products, to co-create solutions that anticipate and meet changing consumer preferences as demand increases for healthier food that’s traceable and sustainable. To subscribe to the ofi newsroom, please visit www.ofi.com (privacy statement here). If you do not wish to receive information from ofi please contact media@ofi.com. Follow @ofi-group on LinkedIn.
About Olam
Olam is a leading food and agri-business supplying food, ingredients, feed and fiber to 17,300 customers worldwide. Its value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a sourcing network of an estimated 5 million farmers. Headquartered and listed in Singapore, Olam currently ranks among the top 30 largest primary listed companies in terms of market capitalization on SGX-ST. Since June 2020, Olam has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency. The FTSE4Good Index Series identifies companies that demonstrate strong Environmental, Social and Governance (ESG) practices and is used by a variety of market participants to create and assess responsible investment funds. More information on Olam can be found at www.olamgroup.com. To subscribe to the Olam Newsroom please visit www.olamgroup.com and read the Privacy statement here. If you do not wish to receive information from Olam, please contact media@olamnet.com.