Frontier Co-op 2022 Biennial CSR Report

Photo: A farmer presents freshly harvested turmeric.

AN ONGOING COMMITMENT

Upcoming Project: Sustainable Spices in Peru We’re excited to share that we’re beginning a new USDA-funded project in Peru, in partnership with NCBA/CLUSA, with the goal of accelerating the development of a sustainable Peruvian spices sector to meet the increasing global demand for ginger, turmeric and oregano, and increase the resiliency and income of the farmers in the region. Over the next five years, this project will increase and improve the supply of spices by improving productivity and enhancing quality and compliance with international regulations and standards.

• Sustainable Production and Farmer Resiliency. Activities will focus on good water man- agement and agricultural practices, integrated agroforestry systems, farm intensification and diversification including intercropping practices, and access to improved inputs.

• Increase Producer Associativity and Strengthen Market Connections. Activities will focus on building or strengthening organizations, such as farmer associations or coopera- tives, increase opportunities for aggregation along the value chain, and improve trace- ability measures, including helping to obtain key certifications.

Regenerative Agriculture for Smallholder Farmers An important part of our source development work will be an explora- tion of the socioeconomic and ecological impact of regenerative organic farming practices with smallholder farmers along our supply chain. We’re excited to work collaboratively with industry partners to identify regen- erative alternatives for traditional farming practices in countries of origin around the world that can provide an opportunity for economic growth for these farmers, and healthier lives for their families and communities.

• Strengthen Capabilities of Institutions along the Value Chain. Activities will focus on strengthening coordination between government bodies and producers and with regional and local governments to identify and implement relevant food safety protocols.

• Increase Product Quality, Sustainability, and Food Safety. Activities will focus on increasing product quality from the farm, aggregation, processing, and exporting level (i.e., a focus on proper drying, other post-harvest technologies, and handling and stor- age practices). There will also be a focus on supporting FSMA compliance and getting certified (i.e., HACCP, GFSI). Frontier Co-op will support this project as a key market partner and buyer of ginger, turmeric, and potentially oregano from these Peruvian cooperatives and other spice processors involved in the project. Our team will provide in-kind support in the form of technical assistance related to US regulatory and food safety standards including a validated steam sterilization process in the planning, set up of a cooperative processing facility and, as relevant, provide market guidance to spice cooperative partners.

RECAP OF SOURCING TARGETS

• SMETA audits conducted in areas identified as high- risk by Sedex assessment • $5MM invested in supply chain development through Well Earth and externally-funded programs by FY26

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