Three cotton farmers from the Sababougnounam Co-operative in Ouangolo village, Côte d, Ivoire

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1 Three cotton farmers from the Sababougnounam Co-operative in Ouangolo village, Côte d, Ivoire Olam Livelihood Charter 2013

2 We are committed to ongoing leadership in developing the livelihoods of farmers within the global supply chain Corporate Responsibility & Sustainability We aim to bring prosperity to our farming communities We build long-term relationships based on fairness and trust We seek to transfer skills and knowledge through partnerships We support the UN Millennium Development Goals Olam endeavours to create economic prosperity, provide social welfare and manage our stewardship of the environment in a sustainable way so as to ensure real long-term value for all our stakeholders. We call this Growing Responsibly. Olam has an extended network of 3.5 million farmers worldwide, predominantly smallholders working 1-3 hectare plots. Where we have a direct relationship with these farmers, we apply the Livelihood Charter Principles with the goal of pulling as many into the Olam Livelihood Charter (OLC) as possible. Only by fulfilling all 8 Principles can a programme move into OLC status. These farmer relationships are only one aspect of the overall Corporate Responsibility & Sustainability programme which covers the entire breadth of Olam s operations. We balance environmental and social factors as we work towards building sustainable supply chains from seed to shelf. This effort spans our business, from our own upstream operations, to sourcing, processing, storage, logistics and delivery to our customers. This is the Olam Sustainability Standard. We realise our goals can only be achieved through partnership - with our communities, national governments, our customers, funding partners, NGOs and many others. By Unlocking Mutual Value through these relationships, we continue to achieve enduring positive change. Olam has 145 corporate sustainability initiatives. 20 of these achieved Olam Livelihood Charter status this year as all 8 of our stringent principles were attained.

3 Charter Principles Finance We offer farmer groups both short and long-term finance at 0% interest for crop production, purchasing and asset investments Key activities - short-term: microfinancing and short-term advances for crop purchases (less than 1 month) Mid to Long-term: investment in farming inputs and assets (equipment, warehousing) that improve farmer productivity and quality Improved Yield We invest in training and support farmers by the supply of inputs Key activities - implementation of Good Agricultural Practices (GAP), structured training modules through learning centres and extension providers, establishment of model farms and farmer field schools, provision of seedlings, free grafting, fertiliser and crop protection products Labour Practices We educate farmers on child labour, safety, gender and financial issues Key activities - campaigning within communities and educating farmer groups to adhere to a no child labour policy, facilitating the opportunity for primary education, training in the use of safety equipment, gender equality awareness and promoting personal financial and business management skills Market Access We offer farmers a fair and competitive price Key activities - regular communication of prices which move in line with world markets, continued local presence through the entire crop season, direct payments (including by mobile phone), aggregation of produce on farm, transportation services and constant liquidity for products Sustainable cotton production in Zambia: 65,125 farmers provided US $1.9 million in pre-finance for seeds, crop protection, sprayers, animal-drawn ploughs and transporters Côte d Ivoire, Olam and Blommer (CIFOB): through inputs and training, farmer yields have increased 34% (484kg/ha to 650kg/ha) Olam Zimbabwe Cotton Initiative: invested US $60,000 training 17,300 farmers in safe chemical handling, gender equality and our no child labour policy Raising Cashew Farmer Livelihoods in Ghana: increased producers from 8,900 to 26,000 and paid that network of farmers US $22.5 million Quality We encourage farmers to produce good quality to enable best prices and premiums to be paid Key activities - farmers engaged with pricing that reflects good quality, promotion of defined quality parameters, premiums paid relative to average quality Traceability We ensure products can be tracked to source and certified where required Key activities - operating close to the farm gate enables a full chain of custody to be followed, enhanced by technological advances and individual farmer record keeping. All to independent auditing standards Social Investment We support rural health, education and infrastructure Key activities - investing in community based projects to contribute to social development, such as building primary schools and health units, HIV/AIDS awareness training and water and sanitation improvements Environmental Impact We are improving our overall environmental footprint across the supply chain Key activities - working with farmers to maximise production on existing farms so reducing future deforestation, water management and reinforcing sustainable agricultural practices The Cocoa Plan (Nestlé), Côte d Ivoire: US $2.85 million paid to reward premium quality, received by 5,730 cocoa farmers Garzon Dorado Group Coffee Initiative, Colombia: all coffee produced in this initiative is traceable back to the farmer level through three certification programmes (Rainforest Alliance, 4C and C.A.F.E.) Promotion of Sustainable Arabica Coffee in North West Cameroon: rehabilitated 11 schools and provided materials benefiting 2,100 students; conducted a long-term HIV/AIDS programme for 10 villages and 10 youth groups Promotion of sustainable production of Cashew through certification, Côte d Ivoire: 3,183 farmers obtained certification for 17,014 hectares and 7,780 tonnes of organic raw cashew nut

4 Charter s 2013 Olam s heritage was founded on collaborating with smallholder farming communities. The Olam Livelihood Charter (OLC) has structured and formalised our activities drawing from experience gained in emerging countries. In 2010 we launched the OLC to help improve the viability of the many smallholder farmers living near subsistence levels. In the last three years we have increased the number of qualifying initiatives from six to twenty and the number of farmers involved in the OLC has increased 388% from 64,290 to 313,476. The Charter is gathering momentum as we manage to align an increasing number of our programmes against all eight of the Principles. OLC initiatives ,476 per farmer 1.65 with mobile phone 73% Seedlings 1,425,850 Total hectares 516,425 Farmer groups 7,664 Women farmers 19.2% Seeds 7,626 MT Insecticide & herbicide 579,263 L This year our OLC farmer network brought 200,000 tonnes of product to market through sustainable value chains on farms covering over 500,000 hectares. The level of mobile phone ownership and women in farming are particular highlights in this year s Charter. Mobile phone ownership demonstrates farmers need to promptly access market prices and crop information, as well as receive payments. Olam s increasing focus on developing women farmers who have traditionally had difficulty accessing land and finance has proven that women, once trained, put new practices into use. The money they earn is also more likely to provide for the family. Our efforts to positively impact the lives of farmers and communities were recognised in 2012 when we were awarded the Leadership in Sustainable Investment in Africa Award. GPS mapped farms 37,682 of GPS mapped farms 10.6% Training days 5,583 Investment in sustainability employees & their costs US $7.7m Fertiliser bags 344,562 Financials 2013 Finance Short-term Micro-financing & advances for crop purchase Finance Long-term Farm & asset investments Market Access Farmer income Quality Premium paid Training Invested Inputs Value supplied Social Investment Community development US $117.1m US $1.5m US $267.2m US $13.9m US $3.8m US $19.1m US $1.6m Community Development Education Primary schools School materials School rehabilitation 14 School scholarships 15 Financial support for education Health Health centres Medical laboratory Maternity unit 2 built 20,979 pupil beneficiaries 1,200 beneficiaries (200 women) 3 built 1 built 1 built HIV/AIDS & long-term programmes 99,681 beneficiaries Provision of basic healthcare Vaccines for immunisation 3,142 Infrastructure Post-harvest warehouses 7 Seedling nurseries 94 Solar dryers 252 Farmer district centres 6 Bore holes 4 12,035 beneficiaries All data as of March 2013

5 Product Initiatives Within our OLC initiatives, we work in collaboration with commercial partners: Blommer Chocolate, COSTCO and Nestlé; and donors including: Bill & Melinda Gates Foundation, BMZ and Douwe Egberts Foundation s Key Facts Name US $88.7 million provided to farmers at 0% interest to cover inputs and for financial liquidity for crop purchase 1.3 million seedlings distributed to 13,000 farmers US $10.8 million paid to farmers in premium (above market prices based on quality) US $100.1 million paid to farmers for certified cocoa Over 60,400 farmers trained in good labour practices Women with mobile phones 83,532 8% 92% 161, Côte d Ivoire Olam and Blommer (CIFOB) The Cocoa Plan (Nestlé), Côte d Ivoire Sassandra (Costco), Côte d Ivoire Rainforest Alliance Cocoa Certification Programme, Nigeria Sulawesi Alliance of, Olam and Blommer Chocolate (SAFOB), Indonesia Sumatra Alliance of and Olam (SUMAFO), Indonesia Supplied inputs worth over US $18.6 million (fertiliser, seeds, crop protection products) 896 model farms US $46.3 million spent on total crop purchase Healthcare and HIV/AIDS programmes and distribution of materials benefited 60,760 rural community members 10,200 farmers BCI certified (Better Cotton Initiative) Women with mobile phones 177,978 26% 68% 233,954 4,571 Improving livelihoods, security and living conditions for cotton farmers in Côte d Ivoire (SECO) Revamping Cotton in Upper West Region of Ghana Cotton Extension, Production and Concession Management, Mozambique Olam Zimbabwe Cotton Initiative Sustainable Cotton Production in Zambia US $29.98 million spent on total crop purchase (up from US $9 million last year) Invested US $192,500 in education, healthcare and social infrastructure initiatives, reaching over 87,000 people US $1.8 million paid to farmers in premium (above market prices based on quality) Procured 20,505 tonnes of traceable raw cashew nuts Women with mobile phones 46,480 12% 55% 114, Sustainable Cashew Growers Programme, Côte d Ivoire Promotion of sustainable production of Cashew through organic certification, Côte d Ivoire Improving Community Earnings through Direct Sourcing & Toll Processing in Kwara & Oyo States, Nigeria Olam Mozambique Sustainable Cashew Initiative Raising Cashew Farmer Livelihoods, Ghana 38% of coffee farmers in this network are women 1,167 women farmers trained in best agricultural practices (28.6% of all coffee farmers trained) Women 4,925 38% Promotion of Sustainable Production of Arabica Coffee in the North West Region, Cameroon Garzon Dorado Group Coffee Initiative, Colombia 1,100 tonnes of certified coffee beans (up from 364 tonnes last year) with mobile phones 82% Basrizal Supply Chain, Indonesia 125,250 coffee seedlings issued to 1,250 farmers 6, Average of US $178 provided to each farmer at 0% interest to cover costs of crop production US $12,000 invested in 8 villages (Sustainable Villages Fund) for social and economic initiatives Women with mobile phones % 62% Olam Sustainable Villages Project, Nigeria

6 Spotlight Farmer Stories Rainforest Alliance Cocoa Certification Programme, Nigeria While the profile of Nigeria s cocoa sector is similar to its West African neighbours (ageing stock, deforestation and compromised biodiversity etc), the complexities of the operating environment have made it necessary to establish farmer groups. With the support of Olam, smallholder farmers now have access to training in Good Agricultural Practices and group governance, shade tree and cocoa seedling inputs, as well as state-of-the-art GPS farm mapping. Through this initiative, we aim to improve Nigerian cocoa farmers livelihoods by increased yields and sustainable cocoa production. Key Activities Established internal systems for end-to-end traceability of 6,000 tonnes of cocoa Nearly 9,000 GPS farms mapped 4,355 farmers now Rainforest Alliance certified covering 10,916 hectares Established indigenous shade tree nurseries to distribute 2,500 seedlings in partnership with the State Ministry of Natural Resources Increased nearly 3,000 farmers access to improved cocoa planting material with the distribution of 9,000 superior hybrid cocoa pods (generating 300,000 seedlings) Trained over 1,500 women farmers in Good Agricultural Practices, increasing productivity and quality Long-term HIV/AIDS awareness campaign organised with trained youth peer educators from cocoa growing communities Jennifer Abuah CR&S Manager, Nigeria Olam s commitment to the sustainability of Nigerian cocoa production began in 2003 with the establishment of 400 model farms. The Certification Programme is in its 3rd year with more than 10,000 farmers registered. We are seeing a dramatic shift in farmers attitudes as they actively take ownership in seeking to increase their yields. In fact, they are coming to us asking for additional training to further improve their farms Data 13,000 22,843 Pre-Finance, Short-term US $23,375 Farmer Training US $9,000 Elder Adeniyi Akanbi, 49 Nigeria A community elder and cashew farmer for 22 years with four children. With orientation given by Olam, I now understand the crop much better and it has helped me make more money with improved farm practices. Absolom Mhungu, 46 Zimbabwe Farms cotton and also six hectares of maize. He has four children who are being schooled through his farming activities. Thanks to Olam, my yields and income have improved. Over the last three years I have been able to build a modern 5 roomed house, installed electricity and bought a tractor, grinding mill and a truck. Barro Drissa, 58 Côte d Ivoire Has grown cocoa for 28 years and comes from a family with many generations in cocoa farming. He has four children, including a 22 year old son who now works alongside him. Definitely the sustainable programme changed my life: IPM (Integrated Pest Management) helps me to reduce agrochemical usage and my farm looks a lot better. Ndiyun Daria Bubanfila, 42 Nigeria Mrs Bubanfila is a coffee farmer who also grows maize, plantains and beans. She is a mother of four. A year after joining the project, I started my own coffee farm with 2,400 seedlings I received from the project nursery. I m looking forward to earning my own money from the coffee farm.

7 About Olam Olam International is a leading agricultural company present in 65 countries. We are active across the value chain from growing and sourcing, to trading and processing in 16 platforms covering food and food ingredients, as well as industrial raw materials. Our global team of over 18,000 people has built leadership positions in many of our products including cashew, cocoa, coffee, cotton, rice and sesame. We work with over 12,000 customers worldwide. Olam is headquartered in Singapore and listed on the SGX-ST in The company began life trading cashews in Nigeria in 1989, growing to volumes of over 10 million tonnes in our current financial year, with revenues in excess of S$17 billion. For more OLC news, contact olc@olamnet.com Olam International Limited 9 Temasek Boulevard Suntec Tower Two Singapore Olam Corporate Responsibility & Sustainability New Zealand House 80 Haymarket London SW1Y 4TQ crs@olamnet.com C021017