Diageo to source 80% of raw materials through sustainable agricultural supply chains
One of the world’s leading beverage alcohol providers has unveiled plans to increase its spending on local raw materials in a bid to improve its sustainable agricultural supply chain commitment.
Diageo announced in a statement this week that it will be reaffirming its commitment to African farming communities as it looks to source 80% of its raw materials locally by 2020.
As part of its reaffirmation, Diageo will work with at least 100,000 farmers in eight countries as the company increases its local expenditure. These include Nigeria, Kenya, Tanzania, Ethiopia, Ghana, Cameroon, South Africa and Uganda.
Diageo’s revamped strategy will provide a collaborative framework to increase farm yields more sustainably and secure markets for African smallholder farmers. Through key strategic partnerships with Syngenta, Bayer, Yara, World Food Program and regional banks, Diageo will expand efforts to deliver data-driven interventions in key areas such as seeds, agronomy, insurance, access to credit, soil nutrition and market access.
The new strategy will create commercially, socially and environmentally sustainable farming communities that can thrive whilst delivering supplies to Diageo’s growing business in Africa.
Related stories:
Sustainable fishing supply chain partners with luxury resort Soneva Jani
The Green Supply Chain CITI Index ranks supply chains by sustainability
SAP Ariba - driving ethics and sustainability in supply chain transformation
In markets such as Kenya and Nigeria, smallholder farmers are already benefitting from a comprehensive package that includes improved seeds, access to credit, insurance and mechanization, and Diageo will work with partners to expand such benefits across all eight African markets.
“We are a proud partner of farmers in Africa, helping to create sustainable local businesses through our local raw material sourcing programme. The wellbeing and vibrancy of the communities and our local suppliers we work with is our upmost priority. With 79% of raw materials sourced locally in Africa we are almost at our 80% target but remain restless to do more and this refreshed strategy will take us further along this journey,” said David Cutter, Chief Sustainability Officer at Diageo.
