Unilever: Building Resilient Supply Chains with Smallholders

Unilever relies on smallholder farmers to source many of its key raw ingredients, but these groups face systemic barriers around the globe, putting them in a vulnerable position.

To combat this, Unilever is supporting farmers through regenerative agriculture and livelihood programmes as a way to build their resilience.

Not only is the company helping farmers improve their farming practices and working conditions, but future-proofing its supply chain to withstand global uncertainty.

Global over-reliance

From palm oil in Indonesia to tea in India and cocoa in Côte d’Ivoire, Unilever relies on smallholder farmers around the world to source some of the most important ingredients in its products.

According to WEF, 600m smallholder farmers working on less than two hectares of land produce:

• 28-31% total crop production
• 30-34% food supply on 24% gross agricultural area

This reliance on vulnerable smallholder farmers should not be overlooked, as there is a growing risk of export restrictions, climate risk and domestic food shortages.

Many smallholders face barriers such as access to finance, agricultural training and new markets. As a result, they are limited with what they can do, or how they can grow.

Moreover, if they do not receive vital agricultural training, they cannot implement sustainable practices to offset harmful emissions, thus shortening the lifespan of their farms.

Through gaining insight on resilience-building practices, like regenerative farming these smallholders are able to withstand more risk and actively work to mitigate future issues.

Unilever's pledge

Unilever has pledged to support smallholders globally across 13 crops in seven countries, by providing access and resources to regenerative agriculture programmes.

These programmes will strengthen the farms' resilience and provide them with greater economic opportunities.

Willem Uijen, Unilever's Chief Supply Chain and Operations Officer, says: "I'm proud of the strides we at Unilever have made together with our partners in implementing regenerative agriculture practices. We are making headway towards our goal to cover 1 million hectares by 2030, focusing on key crops like soybean, rapeseed oil, vegetables and rice. 

"This work is not only crucial for restoring soil health, conserving water and enhancing biodiversity. At the same time, it also strengthens our food supply chain, making it more sustainable, reliable and resilient to climate impacts."

The regenerative farming will include techniques such as cover cropping, crop rotation, reducing tillage and avoiding synthetic fertilisers. 

By 2026, Unilever aims to help 250,000 farmers in its supply chain access livelihood programmes, creating more secure chains with stronger farming communities.

Unilever believes collaboration is key to providing the best programmes for its farmers and their communities.

Strengthening supply chains

Unilever is already helping its smallholders, with projects dating back to 2013. 

It has been helping small tea growers in India through the Trustea certification programme, training these farmers in cultivating climate-resilient tea and helping them meet sustainability standards, which also improves their yields. Through this programme alone, it aims to certify between 7,000 and 10,000 farmers each year.

By 2030, Unilever aims to help more than 10,000 smallholder coconut sugar farmers throughout Indonesia. Education is being provided on water and soil conservation, pest management and diversifying income streams.

In India, climate resilient coffee farming is being streamlined in an attempt to future-proof supply chains. Through methods such as intercropping with spices and fruits as well as water conservation, crop yields will improve and emissions will be reduced. 

Moreover, women will be trained to take on leadership roles in farming through field-facilitator roles, offering them independence and confidence. These programmes will support more than 50,000 coffee farmers by 2027.

By working with partners around the world, Unilever is making a lasting impact in smallholder communities, responding to local needs to extend into the community as well as the environment. 

It is giving back to a vital community as well as future-proofing supply chains around the world.