Creating shared value in the supply chain A Nestlé case study
Page 4: Benefits of responsible behaviour
The Cocoa Plan is a clear example of Nestlé Creating Shared Value both for the company and for cocoa farmers, their families and their local communities. Through it, Nestlé benefits from ensuring the supply of high-quality and sustainably sourced cocoa for its products. It also ensures it supports the cocoa farming community development and meets certified ethical and environmental standards.
Nestlé’s focus on improving supply has delivered benefits in many areas:
Investing in plant research - By developing higher quality seedlings which produce typically 50%–200% more cocoa, this enables cocoa farmers to grow more and sustain a higher income. Nestlé has set up a Research and Development Centre in Abidjan in the Côte d’Ivoire to support the development of higher-yielding, disease-tolerant cocoa plantlets.
Investing in training farmers – Training farmers to understand better crop management techniques and pest management, as well as improving their awareness of child labour issues, helps to improve outputs and boosts farmers’ incomes.
Improving social conditions – Nestlé has set up a partnership with the World Cocoa Foundation to build and repair schools within the cocoa farming regions and support cocoa farmers and their families. This will mean that attending school will become a more attractive and viable option for parents and children and that the risk of child labour will be reduced.
The Fairtrade and UTZ labels – Crops are certificated under the Fairtrade label. Nestlé pays a premium for its cocoa beans, which improves the growers’ levels of income and helps to secure the future growth of communities. Nestlé is also the first food company to join the Fair Labor Association (FLA) and has its work in Côte d’Ivoire assessed openly and independently.
The Cocoa Plan is an evolving and growing programme. Each year more cooperatives of farmers are being added to the plan. The plan has also been extended to other countries such as Indonesia, Ghana, Venezuela and Ecuador.
Nestlé | Creating shared value in the supply chain