Nestlé would like to thank the FAO Global Forum on Food Security and Nutrition for giving us the opportunity to participate in this discussion on how value chains can improve nutritional outcomes for society. The private sector is an important partner that can work with governments and civil society to develop initiatives throughout the value chain from the sourcing of food, to manufacturing and delivering safe and nutritious foods to close the nutrition gap.
Within this context, we hope these brief examples stimulate further discussion on how value chains can contribute to improving nutrition so that more solutions and actions can be taken to address this challenging issue.
Responsible sourcing
We source supplies of ingredients from millions of farmers globally. By understanding and managing where and how our ingredients are produced, and the issues farmers and their communities face, we can better support rural development and farmer livelihoods.
Our sourcing strategy has two main components, delivered through Farmer Connect and responsible sourcing. Farmer Connect helps to ensure the supply of high-quality agricultural raw materials, along with providing traceability back to farm level. It enables us to engage with 719,000 farmers globally so that we can develop a supply chain that meets our social, environmental and ethical requirements. It also helps towards establishing consistent and fair pricing, improved yields and reduced environmental impacts, while empowering farmers and improving their livelihoods through activities such as training, developing alternative income streams and supporting women and young farmers.
Responsible sourcing consists of sourcing our raw materials and paper in compliance with our Responsible Sourcing Guideline (RSG) criteria, and is aimed at achieving traceability and transparency throughout our supply chains. It also sets minimum standards for economic, social and environmental issues that can affect supply, livelihoods and sustainability in our sourcing activities.
Enhancing farmer livelihoods
We understand that many farmers live on low incomes and farming is not always seen as a desirable career option. However, safe, high-quality food goes together with healthy farms and communities, which is why we are focused on addressing the root causes of these issues and creating an enabling environment to enhance farmers’ livelihoods.
We use a range of diagnostic tools such as our Response-Inducing Sustainability Evaluation (RISE) and Rural Development Framework (RDF) to assess and understand farmers’ needs. These tools help us identify and understand areas for intervention. The findings then guide our work to address issues that challenge farmers. Through our flagship Farmer Connect programme we engage directly with farmers to source our raw materials, all the while enhancing their livelihoods. For example, we are designing programmes to support farmers and their families to improve food availability and diversity. We train farmers on nutrition, promote intercropping, and help farmers develop and maintain kitchen gardens and livestock.
In 2016, we introduced the concept of house gardening and growing vegetables for home use in Indonesia. We are also taking our Nestlé Healthy Kids programme to rural areas in Indonesia, the Philippines and Kenya. We continue working with Solidaridad to improve food security for farmers in Kenya and Ethiopia by increasing production and incomes. Solidaridad trains farmers on nutrition and coffee production, and developing intercropping to improve incomes, while we are developing training and support for kitchen gardens to improve nutrition.
Fortification
We fortify foods and beverages such as condiments, children’s milks and cereals to provide additional nourishment for vulnerable groups such as school-age children and expectant mothers.
These products are all effective carriers for micronutrient fortification because they are consumed widely and frequently, building on existing eating habits. We focus our efforts on regions that face some of the largest burden of micronutrient deficiencies such as Africa and South East Asia. Of the 207 billion servings provided in 2016, 121 billion were fortified with iron (an annual increase of 23%), 113 billion with iodine (an 8% increase), 27 billion with zinc and 42 billion with vitamin A. Products can be fortified with one or several micronutrients.
For example, the popularity and market reach of our Maggi product range give us a solid platform for helping tackle micronutrient deficiencies at scale. Almost 103 billion individual servings of Maggi soups, condiments, seasonings and noodles were fortified in 2016, of which 59 billion were fortified with iron.
Biofortification
Through our engagement in support of biofortification, we use and promote varieties of crops that are naturally rich in micronutrients. Beyond their use in Nestlé products, these crops are intended for populations, particularly in developing countries, that conventional fortification (with nutrients added during food processing) may not be able to reach.
Biofortification is a lengthy process that involves breeding and selecting enriched crop varieties, and engaging with distribution partners and farmers. Establishing biofortified crops in local markets can take a decade or two. In the past few years, we have worked with other society stakeholders to develop supply chains for biofortified crops, and we have started using these materials in some of our recipes.
We are focusing on the most promising biofortified crops - maize, wheat, sweet potato and rice. For example, we are establishing a supply chain for vitamin A-rich maize in north Nigeria, where the average yield of maize in Nigeria is only 1–2 tonnes per hectare. These new varieties, developed by HarvestPlus through the CGIAR centers, have higher yields. By creating the commercial pull by using these fortified crops in our own supply chain, this will help to improve the nutritional status of the local communities and farmers since part of the crop is used for their own consumption. The goal is to replace common varieties of staple crops with nutrient-rich alternatives, improving access to nutrition almost by default.
Thank you for giving us the opportunity to share with your our work. The health of our company is intrinsically linked to the health and resilience of the society we operate in. For more information please visit http://www.nestle.com/csv/what-is-csv
Mme Helen Medina