Supply Chain Integrity: 2011 Highlights
- ADM’s Socially and Environmentally Responsible Agricultural Practices program, or SERAP, reached more than 22,000 farmers in Côte d’Ivoire, who together delivered approximately 24,000 metric tons of high-quality, responsibly grown cocoa. Since 2005, SERAP has provided more than US$10 million in grower premiums, US$4 million in seed money, and tens of millions of additional dollars in revolving funds to promote sustainable cocoa cultivation and better living standards for farmers and communities.
- ADM announced the expansion of the SERAP program to Indonesia, another important cocoa-growing nation.
- Following the civil conflict that impacted cocoa growers in Côte d’Ivoire for seven months in 2010-11, ADM met with cocoa cooperatives to offer support in restoring production and marketing operations. An ADM team comprising agricultural engineers, marketing representatives and cocoa farming specialists traveled throughout the country, assessing the additional assistance cocoa farmers needed to resume full production.
- ADM has provided financial assistance to Opportunities Industrialization Centers International–Côte d’Ivoire (OICI-CI) to fund bridge and well construction projects in cocoa-farming villages. The projects include the construction of 16 clean-water wells and eight small culvert bridges. Despite the delay caused by the civil conflict, four of the wells and six of the bridges had been completed as of Sept. 1, 2011. The remaining projects are slated for completion in 2012.
- The first two phases of Doing it Right—a program developed by ADM and Aliança da Terra, a Brazilian sustainable agriculture group founded by farmers—were completed. Approximately 120 Brazilian soy producers from the state of Mato Grosso participated, and more than 380,000 hectares of ADM suppliers’ farmland were mapped and assessed. Growers were then provided with assistance to help them transition to more sustainable farming practices. Doing It Right aims to help soy farmers improve yields and profits on existing land in socially and environmentally sound ways that can prevent the need to expand into ecologically sensitive regions.
- The company launched Phase 3 of Doing It Right, which will more than double the amount of farmland mapped and assessed in the first two phases by adding an additional 400,000 hectares.
- ADM achieved the International Sustainability and Carbon Certification to supply the European market with sustainably grown soybeans that meet the EU’s Renewable Energy Directive requirements. ADM began processing certified-sustainable soybeans at its Hamburg and Mainz, Germany, oilseeds plants in fall 2011.
- In addition, we are spearheading a pilot program that will help restore native vegetation on degraded riverside areas within soybean farms that participate in the Doing It Right program. ADM is working with several fellow industry participants, as well as Aliança da Terra and the Environmental Research Institute of the Amazon, to advance the initiative.
- ADM is a signatory to an industry moratorium on soy grown in areas of the Amazon biome after July 2006. The moratorium is led by ABIOVE, the Brazilian vegetable oil industry association, and ANEC, the Brazilian cereal exporters’ association, and is intended to meet global demand for sustainable soy.
- ADM announced a sustainable palm oil production and processing venture in Pará, Brazil — an investment developed in cooperation with local farmers and the Brazilian government. The operation will encompass approximately 12,000 hectares of oil palm plantation land, 6,000 of which will be owned and operated by about 600 smallholder family farmers. ADM will provide these farmers with technical assistance focused on sustainable agricultural practices. The processing facility is slated to commence operations in 2016.
- Around the world, we continued to extend and expand supply agreements to secure our access to palm oil that has been certified sustainable by the Roundtable on Sustainable Palm Oil. The majority of ADM palm suppliers are now RSPO members.
- We broadened our sustainable palm oil product portfolio to include various blends of soft oils (such as soybean and sunflower oils), tropical oils and their fractions.
- After RSPO-certified auditors determined that ADM’s European palm oil production facilities were consistent with the organization’s supply chain standards, the plants began participating in a second round of audits intended to allow them to supply segregated sustainable oil to customers.