T Farmers involved in Bralima's sourcing initiative have seen average annual incomes increase more than three fold In 2010, HEINEKEN made a firm and measurable commitment to a sustainable future with the launch of its 'Brewing a Better Future' initiative. Among the targets outlined in the plan, the company committed to expand the local sourcing of raw materials in Africa to 60% by 2020. To contribute to this, HEINEKEN increased or set up a number of local sourcing projects. Bralima's rice cultivation project is one of many successful initiatives currently in progress. Bralima was established in 1923 in what is today known as the Democratic Republic of the Congo and remains the nation's top brewery. In 2007, one of HEINEKEN's oldest African markets was faced with increasing logistics and IT infrastructure difficulties relating to the import of raw materials such as rice. Matadi Port, the DRC's chief seaport, had become increasingly congested over the years and its inability to host large vessels due to lack of dredging and the excessive bureaucracy for businesses had made matters worse. These challenges encouraged Bralima to look for alternatives closer to home, namely Bumba, which had once been the rice-producing region of the nation. Despite many years of war in the DRC, the rice plantations around Bumba still had enough potential to supply three of Bralima's six breweries. Two-Step Strategy Bralima adopted a two-step approach. Firstly, it prepared the ground and succeeded in convincing farmers to resume rice cultivation. It also provided the necessary basic equipment such as seeds, tools, generators, oil lamps, computers, trucks, motorcycles and mobile phones. Next, it created awareness among local non governmental organisations (NGOs) and soon people started to clear the roads by cutting grass and removing debris and obstacles that had piled up during the war. Bralima also guaranteed reliable and timely transportation from the fields to the processing plants, and from the rice mills to the breweries based in Kinshasa, Mbandaka and Kisangani. The second step was to get international partners involved. International NGO EUCORD was selected to implement the Bralima Foundation's Rice Cultivation Project. In 2007, the Schokland Fund joined with HEINEKEN to become the international partners of the Bralima Foundation Rice Cultivation Project. The Schokland Fund is a public-private partnership between the Dutch government and various industries, which focuses on poverty reduction, environmental sustainability and building global partnerships. The project has recently become self-sufficient, guaranteeing steady and regular deliveries to Bralima. Moreover, through the project, farming associations have been revitalised, improved seeds have been introduced and through continued training of locals, yields continue to increase and profitability keeps rising. In 2008, Bralima was using 2,000 tonnes of locally produced white rice; in 2011 that figure had increased to more than 12,000 tonnes. The number of production areas has increased from one province in 2008 to ten in 2011 and includes provinces where Bralima has no production sites. Win Win Win As well as providing Bralima with a secure supply of quality locally produced raw materials, many others have benefitted too. The Bralima Foundation has been able to reinvest its savings in other sustainable development initiatives. Farmers have increased their production and performance by using higher quality and varieties of seeds and improved production practices and knowledge (through training), and seen their annual average income triple from $56 to $170. They are now able to upgrade their children's 26 World of HEINEKEN Quarter A 2012

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World of Heineken | 2012 | | pagina 26