Sustainable Agriculture, Nestle Essay

829 Words Dec 3rd, 2014 4 Pages
From: Sustainable Agriculture, Nestlé
To: Hans Joehr, Corporate Head of Agriculture, Nestlé
Subject: SAIN Update – Corporate Synergy Recommendation
Date: October 24th, 2012

Recommended Action:

I recommend implementation of increasing the amount of resources to help small sourced farmers upgrade their capacities and educate them on environmentally sustainable practices. Sustainable agriculture is not only an issue of supply and quality, but Nestlé should look to update Sustainable Agriculture Initiatives Nestlé (SAIN) to include a greater role with farmers to further decrease environmentally destructive agricultural practices.

Issues:
Agricultural production on the scale that Nestlé is involved in can have several
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SAIN has been able to mesh with Nestlé’s broader existing organizational structure and business practices by creating an even more systematic supply chain, however, it is this structure that has limited the programs progress.
Profits margins have remained constant even after the SAIN program was rolled out, however, it has been a challenge to provide a cost benefit analysis for implementation. The investment really has been minimal, at less than $2,000,000 a year, which is not really a cost or investment issue for Nestlé. The program has proven to be synergistic with Nestlé, giving reason to explore increased investment and oversight on the farmers. Increased participation with small farmers to foster environmental stewardship through analysis in energy renewability and carbon footprint, water use practices, and the ecological impacts of fertilizer and pesticides is

imperative. This integration with small farmers will allow Nestlé to further cultivate their capacity and productivity.
The firm’s formally accepted definition of sustainable agriculture – "Sustainable agriculture is productive, competitive and efficient while at the same time protecting and improving the natural environment and conditions of the local communities" - has also both influenced and constrained the evolution of SAIN. Adopting this conservative definition has allowed Nestlé to adopt an environmentally friendly stance while maintaining a

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