Agri-business firm, Olam, offers interest-free N536m to farmers

Olam Nigeria Limited  has announced the provision of over N536 million as financing at zero interest rate to 12,000 Nigerian cocoa, cashew and sesame farmers under its Olam Livelihood Charter (OLC).

In a press statement by Ade Adefeko, head corporate and government relations, Olam Nigeria, the agri-business company revealed that the programme was in collaboration with TechnoServe, Washington, New York-based Rainforest Alliance and other local agronomists in Nigeria.

He added that the OLC, which enters its fourth year, sets stringent standards for supporting smallholder communities in Olam’s networks through eight principles: financial support, improved yields, better labour practices, market access, improved crop quality, traceability, social investment and minimising environmental impact.

According to plan, three of Olam International’s 30 flagship OLC initiatives are in Nigeria, where Olam works with cashew, cocoa and sesame smallholder farmers.

The initiatives provide zero-interest financing and agri-inputs, training on good agricultural and labour practices, as well as social investment in the community.

“Such investment include providing educational materials, creating bore wells for safe water, building a police station and school, development of local roads and the installation of solar-powered lighting.

“Since the OLC’s launch in 2010, the number of Nigerian farmers benefitting from all eight OLC principles has risen to over 12,000 small-scale farmers, spanning almost 25,000 hectares of cultivated land.”

Highlights from 2014 OLC initiatives in Nigeria include working with 12,000 farmers in Osun, Ondo and Cross-River for cocoa; Kwara and Oyo farmers were assisted for the production of cashew; while Jigawa, Bauchi, Nasarawa and Benue farmers were supported for sesame, with about 18 percent of the total farmers being women.

Other highlights include: 24,140 hectares of land under cultivation, N536 million in finance to farmers (including short-term micro-financing), advances for crop purchases and mid-term loans for the procurement of farming inputs.

In addition to the OLC programmes, Olam Nigeria has launched an outgrower programme around its rice farm in Nasarawa state, in collaboration with USAID and the national agricultural development programme.

Rice farmers in the surrounding areas of its farm are also supported with training and high-quality seeds from Olam in order to improve their paddy yields purchased by Olam at a fair market price and sold locally.

Currently, 3,000 farmers are engaged in the programme, with a target of 16,000 by 2018.

Mukul Mathur, country head, Olam Nigeria, said Olam Nigeria has grown a lot in its 25 years of operation.

“We’ve grown from exporting cashew to investing along the whole agri-supply chain, from wheat milling and rice farming to manufacturing family favourites such as Tasty Tom tomato paste – employing around 8,500 Nigerians.

“And where we are able to work directly with smallholders, we are proud to see the principles of the Olam Livelihood Charter helping them to increase yields and quality.

“Our commitment to Nigeria and its ambition to provide food security is unshakeable.”