1 tiï O Q, Sustainability Review (continued) Sourcing sustainably (continued) Source agricultural raw materials locally in Africa Looking ahead Report of the Executive Board Report of the Supervisory Board 2020 commitment Deliver 60% of agricultural raw materials in Africa via local sourcing within the continent15 2018 milestone 56% of agricultural raw materials used in Africa to be regionally sourced from within the continent15 Our progress Off track Our contribution to the SDGs: 2.3 Productivity and incomes of small scale farmers We sourced 37%* of agricultural raw materials locally in Africa and the Middle East in 2018 (2017: 42%). We are now sourcing locally in 13 operating companies across 27 different value chains, including six Public-Private Partnerships (PPP). These projects support more than 150,000 farmer households. Our overall local sourcing percentage fell by 4% for the following reasons: Rapid growth in Ethiopia and South Africa combined with a lack of local malting capacity resulted in higher malt barley imports. This situation will be resolved in 2020-21 when new malting plants will open in both countries. Severe weather conditions in North Africa destroyed part of the barley crop, resulting in a lack of malt barley in this part of the region. Many local agricultural value chains are at an early stage of development and cannot yet generate sufficient quantities to supply wider markets after immediate household needs are met. We continue to support smallholder farmers to improve agricultural practices and increase productivity and acknowledge that this will take time to deliver. We extended our Public-Private Partnerships in Ethiopia, Rwanda, Sierra Leone and South Africa to the end of 2019. We started crop trials in Mozambique in advance of our new brewery opening in 2019. We launched a programme aiming to analyse and optimise use of local raw materials across the region. We launched a new Public-Private Partnership in Democratic Republic of Congo (DRC) with NGO partner Agriterra, which specialises in strengthening agricultural cooperatives. For more on our Local Sourcing programme in Africa, progress and initiatives, see our website and case studies. Financial Statements Heineken N.V. Annual Report 2018 Sustainability Review Other Information Brewing a Better World in action Barley project in Ethiopia Our Ethiopia barley project has been extended to the end of 2019 to reach new farmers in partnership with the International Finance Corporation, NGO partner EUCORD and the Dutch Government. The project has given farmers access to higher yielding barley varieties that have improved productivity, farmer incomes and food security.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 133