Following are the key performance indicators that Nestlé uses to measure its performance in creating shared value through support for rural development.
Helping farmers improve earnings and assuring our supply of quality raw materials
594223 Number of farmers receiving free technical assistance
2-5% Average annual milk district growth rate
29.9 million Value of credit loans to farmers in 2008, in CHF
| Agriculture and rural development |
2007 |
2008 |
GRI reference |
| Farmers trained through capacity-building programmes |
111800 |
158837 |
na |
| Markets covered by Sustainable Agriculture Initiative Nestle (SAIN) programmes |
28 |
32 |
na |
| Suppliers audited for safety, quality and processing |
3400 |
3417 |
na |
Rural development
Nestlé’s involvement with farmers and rural factories has an important impact on the incomes, and therefore nutritional status, of large numbers of people in rural areas.
The company’s commitment to working directly with farmers in rural development is central to its business strategy, to ensure a stable, highquality and safe supply of agricultural raw materials. This is particularly true for our two major ingredients of milk and coffee, but also in other important crops. Our 771 agronomists and 7784 extension workers draw on eight decades of experience to provide 594 223 farmers around the world with free technical assistance and advice, and CHF 30 million of microfinance loans. By adapting our systematic approach to suit developing countries around the world, it contributes to poverty reduction and improved nutrition on a large scale, and creates significant, long-term business success.
Our agricultural supply chain Approximately two-thirds of the raw materials we buy each year, comes from farmers and processors in emerging markets. In 2008 the total raw material expenditure amounted to CHF 22.5 billion, and represented an increase of CHF 1.6 billion over 2007.