ADM expands sustainable cocoa program to Indonesia

Archer Daniels Midland Company (NYSE: ADM) today announced the expansion of its flagship cocoa sustainability program, Socially and Environmentally Responsible Agricultural Practices (SERAP), into Lambandia, South East Sulawesi, Indonesia. The SERAP program provides training and financial incentives to help cocoa farmers implement sustainable farming practices.

In Indonesia, the SERAP program will work with the Indonesian Cocoa and Coffee Research Institute (ICCRI) to educate cocoa farmers about responsible and sustainable farming methods that enhance cocoa quality. SERAP will also foster collaboration among farmers as they work to address social and environmental issues.

“The SERAP program uses a unique approach—combining technical training, financial incentives and a focus on social responsibility—to help improve the quality of life for cocoa growers and their communities,” said Scott Walker, vice president and managing director, ADM Cocoa International. “By addressing the holistic needs of cocoa growers, ADM is working to ensure cocoa farming is a viable way of life now and for future generations, while also advancing the supply of high-quality products for our customers.”

ADM will collaborate with cooperatives to provide Indonesian farmers with technical training on bean fermentation, quality standards, cooperative management and market access. SERAP also includes a financial incentive scheme for cocoa farmers that awards bonuses to participants who continually achieve high-quality cocoa while simultaneously adhering to responsible social and environmental practices. ADM will also provide cocoa farmers with information regarding appropriate labor practices, the safe use of farm chemicals and disease prevention.

Dr. Ir. Teguh Wahyudi, director of ICCRI says: “As the third largest cocoa-growing nation in the world, Indonesia holds sustainability as an essential principle to ensuring the long-term future of our nation’s cocoa industry, and we are supporting a number of initiatives to advance this. Through this partnership with ADM’s SERAP program, we are giving cocoa farmers the best incentives to produce even higher quality cocoa beans so they can seek a better price for their crop and significantly improve their standard of living.”

According to Ang Jing Chai, ADM’s vice president of operations in Southeast Asia and Indonesia sustainability project manager: “One of the main goals of the SERAP program is to enhance the livelihood and welfare of Indonesian cocoa farmers while at the same time encouraging sustainable cocoa production. In the future, the SERAP program will allow ADM to offer our customers cocoa products made from certified sustainable Indonesian cocoa.”

In addition, ADM has established a cocoa bean origination center in the “Cocoa City” of South East Sulawesi, Kolaka, to provide an easily accessible, central location for cooperatives to deliver cocoa before it is shipped to ADM processing facilities in Singapore, Brazil and the United States.

About SERAP

The Socially and Environmentally Responsible Agricultural Practices program provides training and financial incentives to help cocoa farmers implement sustainable farming practices. Initially developed in Côte d’Ivoire in 2005-2006 crop year, it has provided more than USD$6 million in premiums to cooperatives and their members. Participation in the program has tripled since its implementation, with approximately 18,000 farmers who together delivered more than 22,000 metric tons of sustainable SERAP cocoa in Côte d’Ivoire in the 2010-2011 growing year.