Olam integrates Australian almond business

Olam International has given notice to Select Harvests Limited that it will not be extending Select’s Almond Orchard Management Agreement beyond the initial term, which is due to expire in June.

Under the AOMA, Select currently manages nearly 30,000 acres of planted almond orchards on behalf of Olam in the Sunraysia district of Victoria, Australia, providing orchard management, harvesting, processing and marketing services.

After assessing the various alternatives, including evaluation of Select’s strategies and plans, Olam has determined that the best strategic and economic outcome for Olam’s Australian almond business is to in-​source all aspects of orchard management, harvesting, processing and marketing activities.

In line with this, Olam has decided to set up its own almond processing facility in Victoria (US). This state of the art facility will be capable of producing high quality and food safe almonds, meeting the exacting standards of Olam’s discerning customers globally.

It will have a capacity to hull/​shell and process 40,000 MT of almond kernels, sufficient for the total estimated annual production of Olam’s orchards at full maturity. The energy efficient facility is likely to cost between AUD$50 to 55 million and is expected to be ready for the harvest in the first quarter of 2013.

The AOMA transition period until June 2012 provides Olam enough time to strengthen its Australian Almond team, ensuring a smooth transition and efficient management of the entire operations in the future.

Source: Olam

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