The International Finance Corporation (IFC), a member
of the World Bank Group, and Olam International, a global integrated
supply chain manager and processor of agricultural products, have signed
a five-year loan agreement worth $120 million to finance the
upgradation and expansion of three food processing facilities operated
by Olam in Nigeria and two in India.
The finance provided by IFC will support the following facilities operated by Olam – Hemarus sugar milling in Kolhapur and spice processing in Kochi (both India, both upgradation); Crown Flour Mill in Lagos, Nigeria (expansion); mechanical cashew processing in Illorin and sesame hulling in Lagos (both Nigeria, both new).
Crown Flour Mill will process imported wheat into flour for domestic bakers. The remaining four facilities will integrate more than 45,000 small-scale farmers from surrounding regions into Olam’s supply chains by 2015, by allowing them to supply their crops directly to the processing units, thereby guaranteeing a market for their products.
IFC‘s agri-business strategy aims to promote food security, inclusive growth and environmental and social sustainability in agricultural supply chains. IFC works with supply chain integrators to provide small farmers and rural businesses with access to finance, access to inputs like equipment and seeds, advice and extension services and access to markets. In fiscal year 2013, IFC invested $4.5 billion.
Atul Mehta, director, global manufacturing, agri-business and services, IFC, said, “Olam is a critical link between small farmers, businesses and global markets. It is a supply chain manager and partner for leading multi-national corporations and recognised brands, all of whom are looking to improve traceability of their sourcing and address sustainability issues in their supply chains.”
Olam International is a leading global supplier for multiple agricultural commodities like cocoa, sesame, and cashew nuts, which are primarily produced by smallholder farmers. The company sources from over 3.5 million farmers and is a major investor in agribusiness in Africa and Asia, including some of the poorest countries in those regions.
A Shekhar, executive director, finance and business development, Olam, stated, “Our partnership with IFC reiterates Olam’s continued focus on enabling economic prosperity and social and environmental sustainability throughout Olam’s operations.”
“IFC’s rigorous environmental and social review has been focussed on the five processing facilities to ensure they meet its stringent loan criteria. However, IFC has also reviewed a range of Olam’s policies, procedures and management initiatives that apply throughout our supply chain, and we will continue to build on these best practices in line with the Olam Sustainability Standard,” he added.
The finance provided by IFC will support the following facilities operated by Olam – Hemarus sugar milling in Kolhapur and spice processing in Kochi (both India, both upgradation); Crown Flour Mill in Lagos, Nigeria (expansion); mechanical cashew processing in Illorin and sesame hulling in Lagos (both Nigeria, both new).
Crown Flour Mill will process imported wheat into flour for domestic bakers. The remaining four facilities will integrate more than 45,000 small-scale farmers from surrounding regions into Olam’s supply chains by 2015, by allowing them to supply their crops directly to the processing units, thereby guaranteeing a market for their products.
IFC‘s agri-business strategy aims to promote food security, inclusive growth and environmental and social sustainability in agricultural supply chains. IFC works with supply chain integrators to provide small farmers and rural businesses with access to finance, access to inputs like equipment and seeds, advice and extension services and access to markets. In fiscal year 2013, IFC invested $4.5 billion.
Atul Mehta, director, global manufacturing, agri-business and services, IFC, said, “Olam is a critical link between small farmers, businesses and global markets. It is a supply chain manager and partner for leading multi-national corporations and recognised brands, all of whom are looking to improve traceability of their sourcing and address sustainability issues in their supply chains.”
Olam International is a leading global supplier for multiple agricultural commodities like cocoa, sesame, and cashew nuts, which are primarily produced by smallholder farmers. The company sources from over 3.5 million farmers and is a major investor in agribusiness in Africa and Asia, including some of the poorest countries in those regions.
A Shekhar, executive director, finance and business development, Olam, stated, “Our partnership with IFC reiterates Olam’s continued focus on enabling economic prosperity and social and environmental sustainability throughout Olam’s operations.”
“IFC’s rigorous environmental and social review has been focussed on the five processing facilities to ensure they meet its stringent loan criteria. However, IFC has also reviewed a range of Olam’s policies, procedures and management initiatives that apply throughout our supply chain, and we will continue to build on these best practices in line with the Olam Sustainability Standard,” he added.
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