Developing the dairy farming sector

Location: China

Impact Area

  • Nutrition
  • Water
  • Rural Development
  • Environmental sustainability
  • Compliance
  • Community engagement
  • Gender balance & diversity
Aug 17, 2015, updated August 2015

Developing the dairy farming sector
RURAL DEVELOPMENT:Helping the farmers who supply us.

We rely on millions of farmers around the world to supply us with the agricultural raw materials we need for our products. More than 695 000 of them supply us either directly or through co-operatives and collection centres. These farmers and farm workers are essential to the ongoing success of our business, so we have a vested interest in contributing to the sustainable development of the rural areas where they work. We therefore assist farmers with agricultural support and capacity-building programmes to increase yields, crop quality and income levels. We have developed a Rural Development Framework to help us align our business activities with local priorities.

Programme description

Nestlé built its factory in Shuangcheng, China, in 1987.  In 2012, having recognised a need to improve the sustainability of our milk supply chain, we committed to establishing the Nestlé Dairy Farming Institute.

Helping farmers to increase their knowledge and skills is a key focus area of our rural development strategy. By adopting best practices, farmers are able to improve productivity, trading relations and cost control. The Institute consists of three demonstration dairy farms, where farm owners and workers attend training sessions to improve farm management skills, learn how to use the latest technology and gain practical experience in expanding their businesses.

In 2014, the Institute launched training programmes covering dairy farm management and dairy cow breeding.

Value to Society

As more people than ever move away to urban areas, we are facing an ageing global farming population. We would like to see rural areas that are attractive to live, work and invest in, so we put the farmer at the centre of what we do, by supporting farming as a business and as a livelihood of choice that offers an attractive income and opportunities for societal advancement.

Value to Nestlé

Nestlé has a huge stake in rural communities around the world, sourcing agricultural raw materials from millions of farmers globally. These farmers are essential to the ongoing success of our business, but the global farming population is ageing and more people are moving away to urban areas.  The Nestlé Rural Development Framework helps align our business activities with local development priorities. In addition to helping farmers access financial assistance, our agripreneurship model provides a training pipeline for farmers to develop their skills.

Next Steps

We want to help attract the brightest and best talent within farming communities, and through our agripreneurship model, we are working towards our own training pipeline for farmers who wish to develop their skills.