In 2019 Olam labeled the coffee plantations in Laos as deprioritised business and will divest from the project.

Olam is growing coffee on 1,300 hectares of land in the rich volcanic soils at the heart of the Bolaven Plateau with plans to expand to 2,000 hectares. [Source: Olam website] In 2019 Olam labeled the coffee plantations in Laos as deprioritised business and will divest from the project The ESIA and land survey were conducted by the District and Provincial government, funded by OBL. These reports identified that, of the 1,300ha surveyed, only 127 ha was being used by communities for farming and 1,173 ha was available for plantation development. No community baseline survey was conducted pre-project for the ESIA. [Source: VFI].

According to company website, through AtSource, the company support more than 2,500 coffee farmers to improve production yields [Source: OFI]

No appropriate social or environmental impact assessments were done, nor was there census undertaken to identify affected people. Before land clearing there was no proper land survey and villagers were not properly consulted. Part of the land clearing took place nighttime. Villagers from the Xekatam estate (6 villages) understand that agreement signed by provincial governor with Outspan was for 150 ha land concession, and this is the area they agreed to in 2010, but not more. Area of land cleared is much more (831 ha in Xekatam). All land clearing was done during 2010, whereas the Concession Agreement was not signed before Dec 2011. Everything was agreed between the company and the government with no meaningful community engagement.

No appropriate social or environmental impact assessments were done, nor was there census undertaken to identify affected people. Before land clearing there was no proper land survey and villagers were not properly consulted. Part of the land clearing took place nighttime. Villagers from the Xekatam estate (6 villages) understand that agreement signed by provincial governor with Outspan was for 150 ha land concession, and this is the area they agreed to in 2010, but not more. Area of land cleared is much more (831 ha in Xekatam). All land clearing was done during 2010, whereas the Concession Agreement was not signed before Dec 2011. Everything was agreed between the company and the government with no meaningful community engagement. OBL stated that they were provided with details of village consultation undertaken by the government and agreements were signed/ stamped by village authorities. [Source: VFI]

The relation between the company and communities is extremely bad due to the way the concession has been implemented. Company is open to offer employment and contract farming opportunities but villagers do not trust the company and currently don't want to interact with it.

The reason there was a farmers' protests was becasue the company expanded its coffee plantation to 1,100 hectares, destroying more than 140 hectares of productive village lands. After repeated protests, the villagers were told early in 2012 that they were free to move somewhere else, an offer repeated in mid-May by officials from the national government sent to investigate the farmers' claims. But according to the National Regulatory Authority, relocating is dangerous, since much of the area's land remains contaminated by the unexploded U.S. bombs from the secret war that continues to maim and kill villagers even today. [Source: CorpWatch]

At the end of a three-year redress process which followed the land conflict in 2010, OBL paid compensation, returned land use rights over part of the concession land (230 hectares), and provided rice to affected households. The OBL established the grievance mechanism, however, Villagers were unable to express a clear understanding as to what they should do when a grievance arises, particularly who they should talk to in either government or OBL. They did believe that District officials needed to become more involved in dispute resolution. [Source: VFI]

So far, the company have distributed 15 tones of rice to compensate villagers in four villages - Nongmek, Nonghin, Nongtheum, Nongtouang for losing their lands and crops. Three villages of Yaisalasinh, Yaisenoi and Houaykong have not received compensation.

So far, the company have distributed 15 tones of rice to compensate villagers in four villages - Nongmek, Nonghin, Nongtheum, Nongtouang for losing their lands and crops. Three villages of Yaisalasinh, Yaisenoi and Houaykong have not received compensation. OBL negotiated compensation rates with the communities around certain base assumptions and government set compensation rates (such as 1,200 coffee trees per hectare, for example, at 30,000 kip per tree). [Source: VFI]

The relation between the company and communities is extremely bad due to the way the concession has been implemented. Company is open to offer employment and contract farming opportunities but villagers do not trust the company and currently don't want to interact with it.

The Out-grower farmer programs commenced in 2013/14 with 10 farmer groups comprising 110 families farming 497ha. By 2015/16 it had expanded to 48 groups farming 1,484ha. In 2016 OBL reports that the company will spend $200,000USD on the program. [Source: Olam Specialty Coffee & VFI]

According the 2016 case study report by VFI & MRLG stated that OBL provided donations to communities in the past 5 years of 570,000,000 kip (around $70,000USD). This includes around $12,000USD for infrastructure in 4 villages near the Xekatam Estate in the 2015. [Source: VFI]

Affected villages followed the national legal framework seeking redress at different government levels. At the end of 2013, at the end of a grievance process (with assistance from NGOs and the Land Information Working Group), the communities received back use rights over some family agricultural lands (as mapped by the District-Provincial conflict solution committee), comprising of 230 hectares, as well as compensation for cleared crops. [Source: VFI]

OBL expected to produce its first crops in 2016, aiming to produce high-quality specialty and certified coffee, with Rainforest Alliance, UTZ and 4C certifications. [Source: VFI]

Export

The coffee is intended for international export to markets worldwide, primarily Japan, America, and European countries. [Source: VFI] Key products in the cultivated area of 1293 ha of Outspan Bolavens are NAGA Coffee, SUPER Coffee, SIHO Coffee and FAI MAI Coffee. [Source: Olam Specialty Coffee ]

OBL undertook primary processing in Laos, exporting its green coffee beans without roasting. [Source: VFI]

OBL states that it is working towards regaining the trust of the communities. OBL’s efforts to improve investor community relationships includes, returning some contested lands, revising the company’s land acquisition processes, and implementing the ‘Enhancing Sustainability of Coffee-based Agriculture’ (ESCA) project. [Source: VFI]