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Olam's entry into the spices business has been the result of growth through 'adjacencies'. Since beginning in 2002, Olam has emerged as a dominant global player in pepper, cloves, ginger, cassia, nutmegs and mace and also deals in a host of other spices and dehydrates.
The key to achievement of this unique position in the industry has been the company's ability to leverage 3 key strengths to its advantage.
Olam uses a combination of physical presence in multiple origins (Vietnam, Indonesia, India, China, Brazil, Nigeria and Madagascar), enhanced origin product processing e.g. EtO and Steam sterilization of pepper, Aflatoxin screening of ginger, Reconditioning of Nutmegs, Cracking and cleaning of Cassia, and Destination delivery and VMI solutions though its global marketing and distribution network to provide a compelling value proposition to downstream participants in the Spices business.
Physical origin presence and farm gate buying enables us to select the right quality at the right price and eliminate middlemen from the procurement supply chain. Origin processing enables us to ¡°tailor make¡± the product according to discerning buyer specifications. VMI and destination delivery solutions enables buyers to obtain Just-in-time deliveries.
Olam Future Strategy
Olam's future plans involve consolidation of its global position in the spices industry through integrating up the value chain through enhanced processing at origin e.g. grinding of spices at origin, strengthening the customer base in USA, Europe, Middle east through a network of representative offices in different countries and increasing the basket of spice offerings to the market through expansion of the product range into seed spices and dehydrates.
In addition, we will endeavour to enhance value to customers by providing a bundle of services with each offer made such as consistency of product quality, product customization, improved Food Safety and Hygiene standards, ability to offer material on far forward basis from FOB to free delivered basis, guaranteed contractual performance and reliable proprietary market intelligence.
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