SINGAPORE - Manufacturers will now be able to trace the journey of their agricultural raw materials and food ingredients from farm to table - thanks to Olam International's new sustainable sourcing solution, AtSource.
AtSource presents data through a digital dashboard which tracks the social and environmental footprint of a product. These supply chain insights and data will drive "transformational change for farmers, rural communities and the planet", Olam said.
AtSource will also enhance Olam's ability to assess and positively influence the environmental footprint of the 4.7 million farmers in the company's supply chain, the majority of whom are smallholders growing crops such as cocoa, coffee and cashew in emerging markets, Olam said.
AtSource will initially begin with five product supply chains, with more gradually coming on board. These products include: cocoa and cashew from Cote d'Ivoire in West Africa; coffee from Brazil and Vietnam; as well as onions and garlic from the US.
Said Olam's co-founder and group CEO, Sunny Verghese: "Leading companies in the food sector have been investing significantly in social and environmental programmes to source their raw materials more sustainably, but change is not happening fast enough... It is the old adage that if we cannot measure it, we cannot improve it."
Added Mr Verghese: "With AtSource we can now deliver the critical sustainability factors for the long-term resilience of a crop or ingredient from a particular producing country or region. Using this information we can drive meaningful improvements through the supply chain from farm to customer.
"Make no mistake, capturing this information at scale and across all our supply chains will be a huge and costly task. But as the company closest to the farmer, we believe AtSource is a key driver in helping us to re-imagine global agriculture, by starting to mainstream sustainability before it is too late."
Looking ahead, Olam's vision is for all of its products and ingredients to be "AtSource ready" by 2025.
As at 11.59am on Tuesday, shares in Olam were trading at S$2.34 apiece.