Agricultural Products Enterprise Invests in Full Value Chain
Olam International, based in Singapore, is a U.S.$10 billion enterprise that operates integrated supply chains for 20 agricultural and food products in 64 countries. In the cashew industry, for example, Olam is the only fully integrated player in the supply chain with a presence in 15 producing countries, processing and packaging facilities in seven countries, and marketing offices in all key destination markets. In Mozambique, Olam is helping to spur on the country’s economic development while providing jobs and enhancing agricultural production.
Ujjwakanta Senapati, explains that Olam Mozambique is active in the production of cashews, cotton, peanuts, sesame seeds and other products. “We buy products from local farmers at market value and then export these products to Europe, the United States and South Africa,” he says.
In all its markets, Olam invests in every segment of the product value chain, from sourcing to value added processing and distribution. Concerning cashews, for example, Olam is the only global enterprise involved in every aspect of the industry, including sourcing and marketing the raw nut, processing raw seeds to extract blanched kernels, and marketing and distributing the kernels to end users.
New cotton gin to boost capacity
Active in Mozambique since 1999, Olam has made a number of recent investments there, including U.S. $6 million in a new cotton gin. Olam Mozambique already has cotton concessions in several provinces and, with the new gin, the company aims to raise its cotton production from around 12,000 tons to 60,000 tons.
Olam Mozambique announced in July this year that it would invest U.S. $35 million in rice production operations in Mozambique. “We also want to get involved in maize production,” Mr. Senapati says. Over the long term, he adds, “Olam wants to help ensure food security for Mozambique and to help make the country prosperous.”