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.
