Issue link: https://read.dmtmag.com/i/550322
60 tobaccoasia / Issue 2, 2015 (May/June) Why Sustainability is a Priority "Sustainable tobacco farming has always been an important company policy, not only in Asia, but worldwide," said Sikkel. "AOI's sustainability pro- grams are generating positive economic change and improving access to vital resources in the communities where we operate, but [besides that] we also often find that projects have many unex- pected benefits." For example, the introduction of stringing machines in Thailand increased the ef- ficiency and profitability of farmers growing Ori- ental tobacco. An additional advantage was that it minimized the risk of labor abuses as the number of work hours needed to actually cure the tobacco was brought down. Giving producers the tools and opportunities to create better lives for themselves and their fami- lies is essential to empowering the next generation of growers, said Sikkel. "Through model farms, process enhance- ments, and improved growing techniques, our network of over 1,000 agronomists and field technicians educate producers throughout the world on new ways they can improve their pro- ductivity and efficiency, reduce their impact on the environment, and generate a better income for their families." "Through our education programs we are helping our contracted growers to better under- stand Good Agricultural Practices [GAP], as well as the principles of our Agricultural Labor Prac- tices [ALP] policy," Faasen pointed out. Education is one thing, but monitoring com- pliance with and sustained implementation of the introduced programs is equally crucial. In this regard, AOI resorts to a rather modern, high-tech approach. "[We have] taken a unique approach to moni- toring [our contractors'] GAP and ALP practic- es and identifying room for improvement," said Faasen. Rather than simply visiting farms and manually tracking information, field technicians utilize a global data capture system that provides them with real-time visibility into the grower base. Dubbed "grower's management system" (GMS), it has allowed the company to build a profile of each farmer, including information such as a GPS position of the farm, type of tobacco being grown, curing equipment being used, and GAP and ALP training progress. GMS is incorporated into a handheld mobile device for technicians, who in- put data into the system as they visit each grower. "We can easily generate reports from GMS, which allow the company to identify the greatest risks and develop solutions," explained Faasen. "We have found GMS to be incredibly beneficial in helping us recognize any areas where increased education is needed." The tool also provides AOI with enhanced capabilities to trace tobacco leaf About Alliance One: As a leading independent leaf tobacco merchant, Alliance One International provides worldwide service to the large cigarette manufacturers. Multinational manufacturers of consumer tobacco products rely on independent merchants such as Alliance One to supply the majority of their leaf. The company pur- chases tobacco in more than 35 countries and serve manufacturers of ciga- rettes and other consumer tobacco products in over 90 countries. Alliance One proudly claims broad geographic processing capabilities, a diversified product offering, and an established customer base, which includes all of the major consumer tobacco product manufacturers. It selects, purchas- es, processes, packs, stores, ships, and, in certain developing markets, pro- vides agronomy expertise and financing for growing leaf tobacco. Alliance One's revenues are primarily comprised of sales of processed tobacco and fees charged for related services to manufacturers of consumer tobacco products around the world. The company does not manufacture ciga- rettes or other consumer tobacco products. Alliance One deals primarily in flue-cured, burley, and oriental tobaccos that are used in international brand cigarettes, including American blend ciga- rettes. American blend cigarettes contain approximately 50% flue-cured, 37% burley, and 13% oriental tobacco; contain less tar and nicotine; and taste mild- er than locally-produced cigarettes containing dark and semi-oriental tobacco historically consumed in certain parts of the world. Indonesia's tobacco cultivation is estimated by Faasen at 173,400 hectares in total, comprising FCV, burley, DFC, dark air-cured, and native sun- cured types. "The sun-cured native types domi- nate production area at approximately 150,000 hectares. FCV cultivation covers about 16,000 hectares. DFC and dark air-cured is grown on around 6,000 hectares, and burley on 1,400 hect- ares," he elaborated. Meanwhile, Thailand produces FVC, burley, and Oriental, primarily in the northern region of the country, with an estimated combined cultiva- tion area of 29,077 hectares. This is split into some 13,600 hectares for burley, 8,250 hectares for FCV, and 7,500 hectares for Oriental. Newly planted tobacco in Myanmar