ofi (olam food ingredients) is enhancing sustainable livelihoods for Indonesian farmers, as well as creating more transparent and traceable supply chains for its food and beverage customers

ofi, a global leader in food ingredient solutions, today announced the Year 1 progress and achievements of its Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry partnership (LASCARCOCO).

LASCARCOCO is a USD8.2 million public-private partnership between the United States Agency for International Development (USAID), PT. Olam Indonesia (ofi Indonesia), Hershey and Rikolto, seeking to promote sustainable cocoa and coffee agroforestry practices in Indonesia. Through LASCARCOCO’s technical assistance delivered in Year 1, 8,634 individuals received livelihood co-benefits, which resulted in improved management of 1,245 hectares of agroforestry farms (1,170 hectares of cocoa and 75 hectares of coffee farms).

Key highlights from LASCARCOCO’s interventions

LASCARCOCO interventions have improved the capacity of 1,800 cocoa farmers and 745 coffee farmers on climate-smart agroforestry farming and land use management. The partnership has also empowered cocoa farmers in Karo, Simalungun and North Luwu Districts in rehabilitating 78.8 hectares of farms by partially replanting high-quality cocoa seedlings to enhance productivity.

Recognizing the crucial role that women play in the agricultural supply chain, LASCARCOCO has also spearheaded the development of two nurseries in the North Luwu District of the South Sulawesi Province. This has helped to boost the participation of female agricultural workers in seeding and planting activities. Engaging them in key nursery operations has also assisted in diversifying their sources of income.

Looking ahead

Globally, Indonesia continues to be a key player in cocoa and coffee production. ofi and partners through LASCARCOCO continue to support the local farming community to adapt and mitigate against climate-induced challenges like fluctuating weather patterns and pest outbreaks that threaten to affect the country’s crop yields and overall output. The partnership works to improve the capacity of farmers with more sustainable agricultural practices so that they can improve production and achieve a more sustained livelihood.

The progress achieved in its first year serves as a foundation and key marker for further future impact, particularly in improving the income of smallholder farmers and the advancement of ecosystem services in reducing carbon emissions. Building on strong awareness and engagement, the second year has started off strongly with field work and on-ground activities in cooperation with key stakeholders and the Indonesian Government. For example, to commemorate Earth Day 2024, 1,800 trees – including coffee, jengkol, durian, jackfruit, avocado, cempedak and mahogany, and more –  were planted across farms in the North Luwu District.

“The United States supports Indonesia’s efforts to balance rural economic growth with conservation of the natural resources that support growth,” said Jeff Cohen, USAID Indonesia Mission Director. “USAID is proud to partner with ofi and Hershey’s to help coffee and cocoa farmers meet international standards by managing their farms more sustainably, which will make their farms more productive and improve their livelihoods.”

The global ambition

The LASCARCOCO partnership is a part of Cocoa Compass, which outlines ofi’s product-specific cocoa sustainability ambition and supports its company-wide sustainability strategy – Choices for Change.  

ofi‘s Cocoa Compass impact report, outlines its global progress and key technological advancements that are integral to delivering targets under Choices for Change – from AI-enabled granular tree monitoring to carbon measurement tools. These provide food & beverage companies with enhanced traceability and transparency of cocoa supply chains to help drive greater sustainability impact and complement specific solutions that ofi is implementing to prepare for the incoming EU Deforestation Regulation (EUDR).

“The LASCARCOCO partnership is a great example of how a landscape approach and climate change mitigation tools can support farmers to adapt and become more resilient to a changing climate while creating a healthier ecosystem,” said Imam Suharto, Chief of Party, LASCARCOCO and Head of Cocoa Sustainability, Indonesia, ofi.

About ofi

ofi (olam food ingredients) is a new operating group born out of Olam Group. 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/news-and-events (privacy statement here). If you do not wish to receive information from ofi please contact [email protected]. Follow @ofi-group on LinkedIn.

About Olam

Olam Group is a leading food and agri-business supplying food, ingredients, feed and fibre to 22,000 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a global network of farmers. Through our purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam Group aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders. Headquartered and listed in Singapore, Olam Group currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST. Since June 2020, Olam Group 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.