Givaudan sets up Indonesian patchouli oil collection network

 

IN efforts to secure and protect natural perfumery ingredients, Givaudan has set up a collection network in Sulawesi. This complements the exclusive farming partnership agreement the company closed with GaiaOne Sdn Bhd and Gaya Naturals Sdn Bhd in Borneo in January 2014, and forms part of Givaudan’s strategic initiatives to establish direct presence at the source of patchouli oil production and ensure long-term supply.  

 

Almost all of the about 1,000 tonnes of patchouli essential oil produced every year comes from Indonesia. Givaudan has established a dedicated procurement Origination Team on the island of Sulawesi. Connected with hundreds of individual patchouli oil producers, the team forms a collection network that will supply most of the firm’s patchouli oil requirement. 

 

Company field buyers will be present in Sulawesi throughout the year to work with local farmers and distillers. In addition to establishing a direct regular outlet for patchouli crops and income for the grower communities, the field teams can provide advice and support in terms of harvesting, preparing, and distilling techniques to boost oil yield and quality. 

 

The field teams will also collate crop information and data on oils purchased in the Givaudan-developed I-Source program using tablets. This will facilitate quick access to data and their efficient monitoring, all of which can help enhance market knowledge and enable adjustments, if necessary. 

 

Givaudan is investing in dedicated teams in countries of origin, known as Procurement Origination teams, encouraging agricultural best practice and ensuring that grower communities benefit in the long-term from supplying the fragrance industry.

 

Complementing the collection network in Sulawesi is an exclusive farming partnership agreement on the northeast of the island of Borneo in Malaysia. This collaboration, which involves a large land owner’s farm, dedicated distillation plant, and open-air laboratory, will enable Givaudan to develop special, totally traceable qualities of essential oil for its perfumers. The company has funded the installation of plantation machinery and production equipment, and the creation of new homes for workers in the farm.