Toward Sustainable Food ProductionAre there single or mixed options for African agriculture? Large of small farming,

traditional and industrial, organic and chemical, private and public…

13. April 2010

Juerg Zaugg - Nestlé

The Nestlé story – how it all began

1866

Henri Nestlé1866

1867

1929

1938

1947

1960s

1970s

1980s

1990s

2000s

3

Source CO-PRO

RM21 billion

SIM28 billion

Pack9 billion

Cereals

Coffee

Dairy SugarCocoa

Oil & FatOther RM

58 billion CHF

(Cost of Goods Sold)

Total Raw Materials

Milk, Total Volume Usage (MT) = 12'200'000Coffee, Total Volume Usage (MT) = 763'000Cocoa, Total Volume Usage (MT) = 372'000

Sourcing Operations at NestléNestlé Sourcing of Agricultural Raw Materials

Direct Fresh Milk Sourcing Markets

Direct Sourcing Markets

Fresh milk sourcing in 30 countriesAlmost 700 sourcing specialists in milk7mio tons fresh milk / yearAround 300’000 direct supplying farmers

A little tour around the world..

ChinaIndiaIndonesia

South Africa

PeruChile

MexicoNicaraguaPanama

A little tour around the world

Our dairy farmers: From one cow in milk….

… to 10’000 cows

China: Training of farmers

China: training small farmers

China:Practices at the farm

China:improved practices at farm level

India:From small to commercial farms

India:Improved feeding systems

India:Improved feeding

Indonesia:Development of Cooperatives

South Africa:Improved pastures and fodder

Chile:Farm Assurance Manual

•14

Peru:Improved pastures

Panama:Spring protection

Nicaragua:Water and manure management

Nicaragua:Manure management

Mexico: small – medium – large dairy farms

Mexico:Small scale to large scale farms

Policy interventions and decisions• Participate in relevant events

Towards Sustainable Food Production - Priorities

Research and Development• Nestlé Research Centers and collaboration with other research institutes

Water Management• Improve practices at farm level (and also at factory, distribution and consumer level)

Productivity at farm level• Continuous improve of practices at farm – focus on soil fertility

Conclusion• There is no “one fit - fit all” approach• Different farming system in different countries • Support local initiatives – Creating Shared Value

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