Olam commits to Zim agriculture

Olam’s South and East Africa operations Mr Moochikal Ramesh said recently that the company is dedicated to the improvement of the local agricultural sector.
“We are committed to supporting the growth and development of agriculture in Zimbabwe and to work towards economic improvement for the country as a whole.
“We are going to use our well-known international strength and diversity to stimulate and enhance economic progress,” he said.
Olam started operating in Zimbabwe in 2005 with interests in cotton production.
Following dollarisation of the economy, the company diversified into grain imports, including wheat, maize and rice.
Olam is currently involved in the production of edible nuts such as cashews and peanuts, spices, beans, food staples, packaged foods such as cocoa and coffee, confectionery, industrial raw materials and a range of commodity financial services.
“In the cotton industry, Olam’s debut in 2005 saw the introduction of its input scheme model, with a spot cash payment system for cotton farmers, improved and timely provision of inputs, as well as better and more competitive prices paid to the farmers,” said Mr Ramesh.
He added that the company has adopted the slogan “Shamwari Yemurimi – the farmer’s friend”.
Mr Ramesh said that during the times of hyperinflation in 2006, a ginnery was set up at Nembudziya in Gokwe and provided 400 employment opportunities for the locals.
“A ginnery was set up at Nembudziya, Gokwe one of the least developed areas of the country and its establishment has contributed to the economy and has provided employment to over 400 people,” he said.
He noted that Olam became the third largest cotton operator in Zimbabwe in 2007 and the second largest after the Cotton Company of Zimbabwe, in 2009.
“We believe we are in a very attractive industry with strong growth prospects.
“The strategic initiatives that we have taken and the configuration of assets that we have built by acting counter cyclically during the crisis, position us well to build market leading positions in the industry,” said Olam’s group managing director and chief executive, Sunny George Verghese.
The company has 14 functional depots countywide, supporting 50 000 hectares and 25 900 farmers.
Olam is also involved in local maize and soya procurement, providing immediate cash to farmers.
It takes wheat imports for millers and provides credit facilities during low liquidity periods.
The company moved into rice production last year supplying products to pre-packers and wholesales in 50kg bags.
The company uses its global sourcing skills and the Mozambique market to ensure supply.
Olam is a leading global supply chain management organisation and a processor of agricultural products and food ingredients.
The company operates an integrated supply chain of 20 products in 65 countries, employing more than 18 000 people, delivering these products to over 10 000 customers worldwide.