Toward Sustainable Food Production Are 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 1867 1866 1929 1938 1947 Henri Nestlé 1866 1960s 1970s 1980s 1990s 2000s Nestlé NestléSourcing Sourcing of Operations Agricultural Rawat Materials Nestlé Expenditures Pack 9 billion Milk, Total Volume Usage (MT) = 12'200'000 Coffee, Total Volume Usage (MT) = 763'000 Cocoa, Total Volume Usage (MT) = 372'000 SIM 28 billion Agricultural Raw Materials RM 21 billion Coffee Cereals Dairy 58 billion CHF (Cost of Goods Sold) Other RM Sugar Cocoa Oil & Fat Total Raw Materials Source CO-PRO 3 Direct Fresh Milk Sourcing Markets Direct Sourcing Markets Fresh milk sourcing in 30 countries Almost 700 sourcing specialists in milk 7mio tons fresh milk / year Around 300’000 direct supplying farmers little tour A little A tour around thearound world the world.. China India Indonesia Mexico Nicaragua Panama Peru Chile South Africa Our dairy farmers: From one cow in milk…. … to 10’000 cows China:China: training small farmers Training of farmers China: China: improved practices at Practices atfarm thelevel farm India: From small to commercial farms India:India: Improved feeding Improved feeding systems Indonesia: Development of Cooperatives South Africa: Improved pastures and fodder Chile: Farm Assurance Manual •14 Peru: Improved pastures Panama: Spring protection Nicaragua: Nicaragua: Manure management Water and manure management Mexico: Mexico: Smallsmall scale to–large scale farms medium – large dairy farms Towards Sustainable Food Production - Priorities Policy interventions and decisions • Participate in relevant events 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 More Information available at: Web site: YouTube: Linkedin: Facebook: Twitter: www.nestle.com/csv Nestle CSV YouTube channel CSV LinkedIn Group Facebook CSV page www.twitter.com/nestlecsv Questions and Comments?