The CSP allows ofi to model the outcome of different decarbonisation interventions tailored to local contexts, so it can work with its customers to plan and cost out climate actions. It helps ofi customers tackle the complex and challenging issue of Scope 3 emissions which occur in a company’s value chain and make up the bulk of the food and beverage industry’s carbon footprint.

Dr Christopher Stewart, global head of sustainability at ofi, said, “We’re delighted that Food Ingredients Europe has chosen to recognise the progress we’ve made. For our customers, knowing where carbon emissions are coming from in their supply chains is critical to understanding how to reduce them cost-effectively, and meet science-based climate targets. The Carbon Scenario Planner translates ideas into detailed, robustly modelled scenarios that can deliver long-term greenhouse gas reductions.”

The tool is embedded into ofi’s sustainability management system, AtSource, which provides customers with data and insights for use in reporting their environmental, social, and economic impacts. ofi recently used the tool with a global coffee company to whom it supplies Guatemalan coffee beans. It modelled a 32% carbon reduction scenario to help support the customer’s climate commitments, identifying three impactful scenarios: using training for farmers to help them upcycle coffee waste, replacing chemical fertiliser with organic, and providing farmers with semi-mechanised tools to improve yields.

The post ofi wins FIE Sustainability Innovation Award appeared first on Tea & Coffee Trade Journal.

Last week I visited Indonesia with a group of international journalists, organised by ofi (formerly Olam) to learn about the green coffee supplier’s regenerative practices and decarbonisation strategies in Aceh (12 hours by car from Medan). ofi is one of the top three suppliers of green coffee globally and operates in 18 growing origins across Africa, Asia, Central and South America. ofi has been in Indonesia since 1996, and today buys coffee, cocoa, nutmeg, and black and white pepper from more than 400,000 farmers, collectors and suppliers throughout the archipelago. Presently, ofi exports Arabica and Robusta, and has a combined market share of approximately 15%.

ofi’s Coffee LENS 2022 impact report (published in November) noted that in 2022, the company introduced regenerative land practices to an area equivalent to 47,000 football (soccer) fields, increased the share of renewable energy in its processing facilities to more than 50%, and achieved over 81% traceability to farmer/farmer group/regional level. ofi’s availability of sustainable coffee stands at more than 40% (directly sourced).

On the coffee farms throughout Aceh, we observed farmer training sessions on agroforestry, composting, and other regenerative practices in action (including fertiliser made from fruit that is safe for human consumption). We also participated in a mock polygon mapping, which ofi has been doing as part of its sustainability practices but this also meets EU requirements for traceability and environmental due diligence. We then had the opportunity to learn about post-harvest processing at wet and dry mills, and cup a variety of coffees (some were truly amazing, at least according to my limited palate).

The trip fell amid the peak of the second harvest period, when farm activities, post-harvest practices and processing were in full swing. During this time, ofi hosts its annual Farmers’ Day celebration, which, designed by its Indonesia team, acknowledges and rewards the efforts and engagement of the farmers in ofi’s supply chain in Aceh. Activities will include games, cultural displays, and distribution of premiums to the farmers. One of the more interesting awards was given to farmers in the cooperative who have downloaded – and are using – a banking app, in order to encourage more farmers to do so.

It is always beneficial to be able to interact with the farmers and politely pepper them with questions about being a coffee farmer – the rewards and challenges – what it is like working with new technologies and learning new coffee-growing methods and techniques, and of course, implementing the growing number of sustainability strategies, as well as to see how they operate and often, where and how they live (unlike many coffee-growing regions, in Indonesia, the farmers do not live on their coffee farms). And while speaking with the farmers, their children are most often not far behind, eyes wide open with curiosity. Some of the brave will come up – always in a group, never alone – and ask questions in the English they are learning. Then they giggle and run away, which is adorable.

On the occasion of ofi’s third Farmers’ Day, our group was treated to a special performance by the children, choreographed just for us. It was beautiful, fun and heartwarming.

When we visited Aceh, the prolonged and heavy rains had delayed the bulk of the harvest (some coffee had been picked), and while stressful for the farmers, on this special day celebrating them, the joy on their faces was evident, knowing that they were being appreciated for their efforts.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

The post Farmers’ Day: celebrating coffee farmers in Indonesia appeared first on Tea & Coffee Trade Journal.

AtSourceV and AtSource+ were one of the first private schemes recognised by the Global Coffee Platform in 2021. It offers ofi’s customers – global roasters and retailers – granular data on key sustainability metrics that allows customers to build their brand by demonstrating impact to consumers, building in 3^rd party verification on sustainability performance, end-to-end traceability, carbon footprint calculations, and risk assessments that customers can address through interventions with ofi’s teams to drive change for people and planet.

Juan Antonio Rivas, global head – sustainable business development, ofi, said, “This recognition marks ofi’s ongoing efforts to drive greater transparency in the sector and accelerate sustainability impact in coffee farming communities and landscapes in line with key sector concerns such as farmer prosperity and climate change.

“For our coffee customers, it allows them to report AtSource purchases as “sustainable” in line with the GCP Collective Reporting on Sustainable Coffee Purchases, thereby supporting their commitments and targets.”

As part of the equivalence process, GCP partner, the International Trade Centre, assessed AtSourceV and AtSource+ against the GCP Coffee SR Code for alignment with its principles of sustainable coffee production and the needs of the sector.

Annette Pensel, GCP Executive Director, added, “We’re thrilled to have had ofi continue their coffee sustainability advancement with GCP. With the GCP recognition of AtSourceV and AtSource+ as equivalent to the Coffee SR Code, 2^nd party assurance, ofi is highlighting the importance of and dedication to sustainability in their work for their customers and for coffee farming communities around the world.”

Discover much more about what ofi and AtSource has to offer at atsource.io

The post Global Coffee Platform recognises ofi’s sustainability systems appeared first on Tea & Coffee Trade Journal.

The support covers training, technical assistance, fertiliser and seedlings, and access to higher value markets, and has translated into various productivity and income improvements for farmers under ofi’s managed sustainability programmes. These include 32% average yield increases for farmers in San Martín, Peru and certification premiums worth US$830,000 distributed amongst 14,000+ farmers in Aceh and North Sumatra regions in Indonesia.

These achievements are part of Coffee LENS (Livelihoods, Education and Nature at Scale), ofi’s sustainability ambition for the future of coffee and published in the first impact report. It sets out the progress made in collaboration with customers and partners across 40+ sustainability projects against its 2025 goals, which include targets on farmer livelihoods, child labour prevention, and climate action.

Since the launch of these targets in October 2020, coffee prices have recovered from a four-year low to reach record highs. However, Vivek Verma, CEO, Coffee at ofi, points out that this will only offer temporary respite to the world’s 12.5m smallholders and is therefore a compelling reason to maintain focus on scaling up action: “The already ‘better off’ farmers with larger farms are those that stand to benefit most from periods of high prices. Meanwhile, the increasing volatility of the coffee price cycle that we’ve witnessed for over 40 years, combined with the impacts of climate change, are raising questions over the viability of smallholder coffee production.

“Coffee LENS is challenging us to do more to contribute to a fairer, more resilient coffee future, while continuing to deliver high-quality sustainable ingredients to our roasters and manufacturing customers.”

The report also shares other key milestones including the introduction of a digital child labour monitoring and remediation system (CLMRS), planting two million trees to promote regenerative agriculture, rejuvenating soils across land equivalent to 11,000 football fields, and the ability to offer customers verified traceability for 100% of its directly sourced coffee. The data collected by ofi at farm level, feeds into the sustainability insights platform AtSource, providing customers with the social and environmental footprint of their coffee purchases, which then informs continuous improvement programmes.

Verma continues: “The level of data and insight we now have at our fingertips helps us identify how and where to act with our partners. Now, we need to bring in more partners – from industry, governments, and NGOs – to our existing programmes to scale up impact. I’m confident that together, we can build on what we’ve achieved to deliver our longer-term goals while supporting our purpose to be the change for good food and a healthy future.”

Erica Kostense-Smit, Rainforest Alliance, added: “We welcome the public commitments ofi has set for its coffee business. Big businesses have the power and resources to implement sustainability solutions on a massive scale – catalysing positive change for critically important landscapes and the livelihoods for millions of rural people. We invite ofi to continue the journey with Rainforest Alliance towards a world where people and nature thrive together.”

The post ofi reaffirms commitment to a more resilient coffee supply chain appeared first on Tea & Coffee Trade Journal.

“Consumers are increasingly interested in where their ingredients come from, but traceability is notoriously challenging in coffee supply chains because of their fragmented nature. The beans are sourced from smallholder farmers scattered across remote areas and often change hands multiple times before reaching the roaster,” said Florian Schmidt, general manager, coffee, at ofi.

“This is why we’re innovating with our customers to deepen our digital presence on the ground to improve traceability. This benefits both farmers and coffee lovers, who are becoming increasingly quality-oriented and experience-driven,” Schmidt continues.

At farm level, ofi sources high-quality lots via its proprietary smartphone app from smallholder farmers located in the south-central region of Guatemala. It allows farmers to negotiate and transact with ofi directly. Each transaction is tagged with the farm location and date and provides the source data for Melitta’s SAP material traceability tool, using blockchain technology.

The sustainability insights platform AtSource adds a layer of transparency for customers. The social and environmental footprint of a coffee purchase can be measured across 100+ metrics, at various stages of the supply chain journey – at farmer group level, through processing and logistics, up to the roaster.

For the final consumer, scanning a second QR code on the back of a Melitta specialty coffee bag – like this one for a Guatemala Honey from producer Yoni Garcia – directs them to the unique story of the farmer and processing method behind their coffee.

Jörg Lehmann, head of green coffee management/logistics at Melitta, said: “Using SAP´s material traceability technology together with ofi’s digital tools and Scantrust’s Connected Packaging Platform and QR Codes, we can take consumers on a virtual journey from our manufacturer in Bremen, Germany, all the way back to the farms in the Guatemala highlands where their arabica beans were grown. For these three selected coffees from Guatemala, they can access videos of the farmer explaining everything that goes into producing these quality beans. They can learn about the specific processing method used and how it shapes the desired aroma and flavour. We’re connecting the people who drink our coffee, with the people that grow it.”

The post ofi and Melitta partner to offer consumers differentiated and fully traceable coffee appeared first on Tea & Coffee Trade Journal.

Brought to life in ofi’s recent ad and dedicated website, the brand is more than just a new look. It further underlines ofi’s thrust and focus as it shakes up the market with fresh thinking and ingredients that help food and beverage companies meet the growing consumer demand for natural, healthy, and sustainably sourced cocoa, coffee, dairy, nuts, and spices products.

Shekhar, CEO of ofi, said: “The new ofi brand carries the strong origination and supply chain heritage of Olam but equally signals our exciting aspirations for the future. It conveys the distinct and accelerated changes being made in the business to continuously improve and deliver a differentiated customer value proposition.

“We are innovating across all areas of our business, right from plant to palate. Ongoing investments in application development and R&D expertise will unleash the full natural potential of our highly complementary portfolio to deliver further value-added ingredients and solutions for our customers. This could be replacing hydrogenated vegetable fat in a cream wafer with a specially formulated natural nut paste; or sourcing single origin Ecuadorian cacao beans delicately flavored with a hint of spice in artisan chocolates.

“At the farm level, we are investing further to deepen the physical and digital presence in sustainable sourcing that we are already well known for. We are also increasingly helping our customers to fast track their journey to net zero, providing specific programs for carbon reduction by working closely with smallholder farmers and other communities across the chain. Bringing all of this together underlines our new company purpose to ‘Be the Change for Good Food and a Healthy Future’, along with all our customers, partners and other stakeholders.”

Briony Mathieson, chief marketing officer, who along with her team, led the development of the new brand, said:

“The new brand helps us deliver on three critical areas: giving greater clarity about all the ways in which we can support our customers’ growth; unifying and inspiring the ofi team to keep innovating across the business to create more customer value; and helping all other stakeholders and civil society to better understand the role we play on the ground in delivering various sustainability programs and catalysing real impact. We believe that no company can do it alone and we want the new brand and purpose to convey our continuing commitment to collaborate with others to scale that impact – and together, we can make it real.”

Discover much more about what ofi has to offer click below.

Visit ofi.com

The post Olam Food Ingredients launches new brand to underline its customer proposition appeared first on Tea & Coffee Trade Journal.