CSV initiatives aided hedge against imbalances in economy, says Nestlé
While many industrial firms that depend heavily on importation for raw materials continue to grapple with challenges in the operating environment, Nestlé Nigeria Plc has attributed its edge and improved local sourcing to its Creating Shared Value (CSV) initiatives.
According to the firm, efforts are underway to leverage the initiatives to further strengthen the development of local content in its products.
The company restated that it aspires to continue to increase the percentage of local sourcing of raw materials from the current attainment of about 80%.
By deploying the initiatives, the company noted that it was able to hedge the foreign exchange crisis and also improve the quality of raw materials locally sourced.
Under the CSV initiatives, Nestlé, together with its partners, including International Fertiliser Development Centre (IFDC)/2Scale, USAID, VEGA and CNFA, aims to continue to work with farmers within its value chain to improve grain quality and productivity.
Corporate Communications and Public Affairs Manager of Nestlé, Mrs Victoria Uwadoka, in a chat with journalists explained that the partnerships are also helping farmers to improve their livelihoods by empowering them on sustainable farming practices under the Sorghum and Millet in the Sahel and Feed the Future Nigeria and Nestle Maize Quality Improvement projects.
“In our firm belief that the sustainability of our company is tied to improving livelihoods and creating shared value in the communities within which we operate, Nestle launched the Cereal Plan to empower farmers to improve grain quality and increase productivity”, she said.
“By creating shared value for all parties, we are not only empowering value chains, we are growing an ecosystem that works”, she said.
Although infrastructural challenges remain, especially in the movement of raw materials to the factory, Uwadoka noted that some of the issues were being addressed by the government.
“Today, about 80 per cent of the agricultural input in our production is sourced locally, thanks to the investments we have made towards increasing local sourcing since 2011.
“Currently, Nigerian farmers’ supply 100 per cent of the grains and legumes used in Golden Morn, the malt in MILO is made from sorghum supplied by smallholder farmers who cultivate the grain in north-western Nigeria.
“Other inputs sourced locally include Soya Beans, Cocoa Powder, Palm Olein, Maize and Millet,’’ she told journalists.
“Over seven years ago, Nestle launched its Cereal Plan to increase local sourcing of grains, cereals and legumes for its production.
“For a manufacturer like Nestle that is a food and beverage manufacturer focused on nutrition and wellness, our area of competence is not farming”, she added.
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