Nestlé Paddy Club

Location: Malaysia

Impact Area

  • Nutrition
  • Water
  • Rural Development
  • Environmental sustainability
  • Compliance
  • Community engagement
  • Gender balance & diversity
Apr 4, 2013, updated April 2013

Nestlé Paddy Club
Nestlé Paddy Club:Agricultural officers inspecting the paddy seedling planted in the trial box.

Nestlé Paddy Club, which aims to provide additional income to the paddy farmers in Kedah while bringing about environmental benefits through more efficient water usage and reduction of greenhouse gas emission, by the commercialisation of the Semi Aerobic Rice Intensification (SARI) method.

Programme description

An innovative farming collaboration with biotech company Organica Biotech, the Nestlé Paddy Club’s core objectives are to provide significant benefits to three main areas – People, Planet and Profit – by using environment-friendly supplements that effectively deliver incremental yields.

  • People: Provides a safe, easy and environmentally friendly way to increase yields and promotes knowledge sharing for farmers to share experiences and best practices amongst their peers  
  • Planet: Provides the benefits through the promotion of the eco-friendly planting methods, which reduces water usage and methane emission by about 30-40%. Additionally, the food stewardship programme with Du Pont involves recycling of all used agriculture-input containers  
  • Profit: Aims to deliver for farmers as it provides a potential for them to get extra income from increased yields and/or lowered costs, rather than from outright price difference and by maintaining the quality of the rice production and ensuring traceability and reliability in the supply chain, the farmers will have sustained access to a niche market, which contributes to longer-term profitability

Value to Society

On behalf of the Nestle Paddy Club members, I would like to thank Nestle for providing this initiative that will generate more income for the farmers, as well as sharing their expertise and knowledge on rice farming to provide higher quality raw materials which are safe to consume. Mr. Sabri Nayan, ProTem Chairman, Nestlé Paddy Club

The pilot programme started in October 2010, enrolled a membership of 20 farmers, cultivating over 49 hectares of paddy field.

Within just a month the number of participants increased to 104 and the total area cultivated had increased to 273 hectares, with the average yield currently well above its target yield of 5 metric tonne per hectare.

Value to Nestlé

Through Nestlé Paddy Club, we are able to ensure the highest quality ingredient for our Infant Cereals, as we are able to rely on the Club to supply the raw material which are of high quality, stable-priced, reliable, safe and traceable.

To-date there are 289 farmers and the total area cultivated has increased to 784 hectares, with a last average yield of 6.8 metric tonne per hectare.

Next Steps