Nestlé has signed a Memorandum of Understanding with 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 Nigeria, Cote d’Ivoire and Ghana, 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 regionally produced, 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.
The IDH-Nestlé partnership aims to address challenges faced by farmers and SMEs to efficiently produce high-yield crops using best agricultural practices.
As part of the GSA programme, the partnership aims to address problems encountered by farmers and SMEs who lack access to affordable finance, technical and management capabilities.
In line with Nestlé and IDH collaboration, farmers are 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.
The IDH-Nestlé partnership will be delivered in three stages.
The set-up phase will define the project structure, before analysis is carried out to assess and identify farmers and SMEs, in line with Nestlé’s business model. Next, the technical team will hold regular meetings with each farmer and SME to provide them with long-term support to build on their local sourcing capacities. When SMEs graduate and start providing reliable quality supply, IDH’s Farmfit Fund will help provide them with affordable working capital to scale up their businesses.
The IDH Grown Sustainably in Africa programme supports companies such as Nestlé to increase local sourcing and further incorporate local farmers and SMEs into their supply chains for African markets and beyond.
Under the programme, IDH partners with retailers, brands and buyers to form broader long-term partnerships, with the aim of commercializing and improving business operations of potential SMEs and farmers in Africa who can supply these companies.
