Efforts aimed at supporting 25,000 farmers and 50 Small and Medium Enterprises (SMEs) across Central and West Africa received a boost with the Memorandum of Understanding entered into between Nestle and IDH Sustainable Trade Initiative, as part of the Grown Sustainably in Africa (GSA) programme. The three-year partnership aims to support 25,000 farmers and 50 Small and Medium Enterprises (SMEs), as well as open-up new markets for them in Cote d’Ivoire, Ghana and Nigeria, increasing employment and food security. The collaboration seeks to develop and empower these farmers and SMEs to help Nestlé meet its goal of boosting from 60% to more than 70% by 2022, its responsibly and regionally produced, high-quality raw materials used in the production of Maggi, Milo and Cerelac. By improving local agricultural produce, imports of food crops for local markets will be reduced.
“In line with Nestlé’s Creating Shared Value approach, our new partnership with IDH will increase the capacity of farmers to produce high quality crops that will enhance local supply and help develop local economies – this is all part of our commitment to improving 30 million livelihoods in communities directly connected to our business activities” said Rémy Ejel, Chief Executive Officer (CEO) of Nestlé Central and West Africa Ltd.
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According to the Food and Agriculture Organisation (FAO), the agricultural sector helps to support food security and eradicate hunger in the region, contributing about 15% of total Gross Domestic Product (GDP). However, based on current trends, the food production system in Sub Saharan Africa will only meet 13% of its food demand by 2050. Low productivity means agricultural output in Central and West Africa is only 56% of the world average. Poor quality and high post-harvest losses impact on raw materials production, while a lack of knowledge, inadequate infrastructure and rising youth unemployment all affect sustainable supply.
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The IDH-Nestlé partnership aims to address such challenges by encouraging farmers and SMEs to efficiently produce high quality and high-yield crops using best agricultural practices, and in turn, also help to reduce their environmental impact and the need for natural resources. Such efforts highlight the importance of this year’s Earth Day, which focuses on climate action. In 2019, the company announced a new ambition to achieve zero net GHG emissions by 2050, in line with the UN climate pledge. To guide its efforts, Nestlé identified several key actions: fight deforestation, reduce food loss and waste, and work with farmers to reduce GHG emissions, develop alternative packaging solutions, and help suppliers manage soils through regenerative agriculture and tree planting.
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As part of the GSA programme, the partnership aims to address challenges faced by farmers and SMEs who lack access to affordable finance, technical and management capabilities. In line with Nestlé’s Responsible Sourcing Guidelines and IDH’s vision, the collaboration will enable farmers to become reliable suppliers for other companies beyond Nestlé, increase African trade, and create permanent employment and opportunities for youths and women across the region. For example, Nestlé has already trained over 150,000 farmers, of whom a third are women, providing them with financial stability and increased ability to produce high-quality and traceable crops.
“This partnership pairs IDH’s technical expertise in agriculture value chain development and innovative financing through the EUR 500 million IDH Farmfit Fund (https://bit.ly/2VMSyLv), with commitments from Nestlé’s supply chain. It will help to transform farmers and SMEs into long-term, sustainable operators and have a massive impact on building up the African economy, creating jobs and increasing food security,” said Joost Oorthuizen, Executive Director for IDH Sustainable Trade Initiative. This partnership supports Nestlé’s purpose of enhancing quality of life and contributing to a healthier future.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry