Olam collaboration with Triferto succeeds in nominating for the Global Procurement Award 27th-28th October 2020 EXTERNAL COLLABORATION AWARD
Operating out of Africa, the biggest challenge faced by Olam is competing against the low-cost structure of Oil Palm producers operating out of South-East Asia (Indonesia/Malaysia). Fertilizer cost is one of the significant element of Oil Palm production cost. Apart from relatively high fertilizer prices in Africa market, high inland logistics cost and high labor cost in Gabon make fertilizing is disproportionately a costlier affair than it is in South -East Asia.
Triferto & Olam developed customized fertilizers (NPK blends) which addressed near precise nutrient needs of Oil Palm trees replacing conventional straight fertilizer regime. This resulted in significant cost savings for Olam in multiple avenues such as volume reduction by approx. 35% and application rounds reduced from 8 to 2 per annum
Triferto has increased the efficiency of the factory by installing fully automated state of the art fertilizer blending facility. Benefit of reduction of the processing cost also transferred to Olam as a discount over formula driven price.