Developing a sustainable local supply chain 15 The Millennium Development Goals were adopted in 2000 by all the world's governments as a 'blueprint for building a better world in the 21st century' and to seek to promote the reduction of poverty and environmental sustainability, among others. All UN member states have pledged to meet these goals by 2015. Heineken has also committed itself to contribute to these goals as part of its sustainability strategy. Sub-Saharan Africa is a region in which Heineken operates and to which it has demonstrated a long-standing commitment as an employer. In this context, Heineken has developed projects to alleviate poverty among the millions of poor smallholders in Sub-Saharan Africa. One of these projects was to develop a sustainable local supply chain for the local subsidiary of Heineken in Sierra Leone, Sierra Leone Breweries Ltd, that would help local sorghum farmers compete against imported grains. It has the advantage of a shorter supply chain, diversification of sources and hence reducing risk, the saving of scarce foreign currencies and the stimulation of the local economy. The competitiveness of the local sorghum sector could be increased. The second major goal was to raise farmers' income derived from sorghum and hence alleviate poverty. Previous projects to increase productivity were typically supply-driven and lacked a clear demand pull. Key to the success of this project is a demand-led approach and the identification of stakeholders in the value chain that directly trade with consumer groups. This project - supported by the Common Fund For Commodities (CFC) - introduced better production technologies, facilitated secure access to markets, organised farmers in order to reduce transaction costs and facilitated access to credit. The project has also introduced best agricultural practices among farmers. Hence, the average income per family increased and Heineken has adopted an Africa-wide strategy to procure at least 60 per cent of their raw materials from local sources. This project demonstrates that building a local supply chain is a multi-step process where the confidence of the stakeholders along the commodity value chain is increasing. Heineken N.V. Annual Report 2010

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2010 | | pagina 18