The Fair Labor Association’s (FLA) Principles of Fair Labor and Responsible Sourcing require that the supply chains of each affiliated company and supplier are subject to FLA’s annual Independent External Assessment (IEA). Olam is affiliated with the FLA since 2013. Currently, Olam’s cocoa and hazelnuts supply chains are under FLA’s scope. As an affiliated member, the company has committed to meet the FLA principles in its cocoa supply chain in Côte d’Ivoire.
The FLA conducted assessments in four cooperatives, including three first time Independent External Monitoring (IEM) visits in three cooperatives that the FLA has not previously assessed, and one Independent External Verification (IEV) in a cooperative that the FLA evaluated in 2016. Each of these cooperatives is part of Olam’s traceable cocoa supply chain in Côte d’Ivoire.
The cooperatives assessed by the FLA are located in cocoa-producing areas that reflect the geographical spread of the Olam supply chain (Table 1). The peak season for cocoa activities lasts between October of each year to January of the following year. For the 2018 annual IEA cycle, the FLA visited the communities and the farms during the transitional period between the end of the harvest period and the establishment of new plots from February 2019 to May 2019. Some cocoa producers were undertaking their last harvest; others were clearing new plots or were waiting for the rains. The timing of the assessment allowed the observation of farmers and workers involved in activities different from those typically seen during the harvest. This document summarizes the data collected, the findings, and the company’s response and provides insights on progress and areas for improvement in Olam’s cocoa supply chain.