Olam acquires ADM’s cocoa business
OLAM International, one of Ghana’s largest agri-commodity companies, has acquired Archer Daniels Midland (ADM) Company’s worldwide cocoa business.
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With the acquisition, all former ADM employees in Ghana, including the major processing plant at Kumasi, now come under Olam Cocoa which has become one of the top three global processors of cocoa products, as well as one of the world’s leading buyers of cocoa beans.
Olam’s Country Head for Ghana, Mr Amit Agrawal, said, “Ghana is strategically significant to the future success of Olam Cocoa. Through this acquisition we have not only increased our farmer buying networks but we now have our first processing facility in Ghana which, thanks to the skill of the Kumasi team, produces cocoa liquor to exceptionally high standards.”
Mr John Scott Donkoh, the Plant Manager of the Kumasi facility, added that “everyone here is very happy to be part of the Olam Cocoa family. We have heard about the success they have had in cocoa and we are, therefore, excited to be part of a team that will advance the processing business here in Ghana”.
Farmer livelihoods
Olam has pledged that it will continue to put farmer livelihoods at the heart of its sourcing efforts. This year alone, 10,500 cocoa farmers in Ghana have benefited from the Olam Livelihood Charter programme, collectively receiving US$10,446,477 in short-term, interest-free microfinance; US$588,000 in premiums on top of the government price for certified product and 145,000 cocoa seedlings.
All 10,500 farmers, including over 4,088 women, received training in good agricultural practices, and 1,000 farmers have received training in business skills.
Olam’s Cocoa Sustainability Manager in Ghana, Mr Kennedy Ntoso, commented that “the programmes are positively impacting 151 communities and 10,500 farmers. The adoption of sustainable farming practices has improved farmer incomes and enhanced community resilience to climate change”.
About Olam
The acquisition of ADM Cocoa adds to Olam’s continuing investment in Ghana. Olam began operations in 1994, supporting cashew and cocoa farmers and investing in infrastructure for the manufacture and distribution of low-cost essentials, including tomato paste, biscuits and wheat flour.
Olam now has around 800 permanent staff and a further 900 seasonal staff working around the country and in its offices in Accra, Tema, Kumasi, Takoradi, Tamale and Sampa.