Improving farm economics and ensuring viable futures for farmers are essential if we are to achieve long-term supplies of safe, quality raw materials.
Improve farm economics among the farmers who supply us
Why it matters
We need to understand farmer needs if we are going to help farmers address their challenges. This allows us to evaluate and demonstrate the results of our activities on farmers’ livelihoods and rural communities.
What we are doing
We’ve focused on training farmers in good agricultural practices, helping them grow safe, high-quality raw materials, and develop resilient, sustainable farms.
Building long-term farming futures
We set up our first factory in India in 1961 in Moga, Punjab, upon the government's invitation to develop a milk economy in the region. From collecting 510 kilograms of milk on the first day of the factory's operations to our current 1.2 million kilograms of milk per day, it has been a collaborative effort with the community of 100,000 farmers. Over the years, Nestlé has implemented a comprehensive support system for dairy farmers who work on the entire value chain till the milk reaches Nestlé's processing plant.
Milk district model
To expand our milk collection drive, we set up the Nestlé fresh milk district model in Moga for direct procurement. This enables us to provide logistic support to farmers, to prevent wastage of milk or compromise its quality during transit. The model helps us ensure that only high-quality milk reaches Nestlé. The following steps were taken to ensure reliable logistic operations:
• Setting up of milk collection centres to check milk quality and ensure fair prices to farmers
• Deploying cold chain to secure the quality of milk during transit
• Collecting milk twice a day to facilitate zero storage expense for the farmer, while ensuring uniform storage condition for milk throughout the value chain.
The benefits of backward integration with community collaboration have reaped multi-fold benefits for all stakeholders. Farmers receive increased income due to increased yield, reduced cost and minimal loss of milk, and prompt fortnightly payments to improve their livelihoods.
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