Is Nestle's Strategy the Right One To Curb Poverty in Africa?

Résumé du document

Nestlé has been actively involved in Africa since the 1880's. Little by little local populations have integrated Nestlé in their everyday life. Nestlé now spreads its activities through the whole African continent. The firm mainly sells food products (coffee, corns, and dairy products). Here are some figures which show the involvement of Nestlé in Africa: 27 factories, 11 500 employees, of which only 120 are not locals; 50 000 suppliers in the frame of supply chains. According to its administrators, the company's work is based on two main principles: food quality and social improvements. There is an interaction between these principles. Indeed a good social framework contributes to high quality products. Moreover, by focusing on these two principles, Nestlé contributes to sustainable development. Milk districts, an initiative implemented by Nestlé in Switzerland, is the main initiative that Nestlé has implemented in order to contribute to development in emerging countries. It consists in a partnership with farmers to improve the quantity and quality of their milk with technical advice on animal nutrition. Milk Districts are also based on the two Nestlé's principles. Nestlé policy concerning development in Africa will be analyzed through those two principles.

Extraits

[...] It is a positive aspect because by focusing on this aspect Nestlé contributes to curb an important issue in Africa. Indeed many people die because of food intoxication. Safety controls concerning the quality of products and the quality of factories are implemented in order to assure food safety. A case in point: Nescafé Abidjan: In this factory an accurate control has been implemented on sample of coffee grains. If the test has negative result on this sample, it is the whole portion that is refused. [...]

[...] Quoting Peter Brabeck, the Nestlé's chairman, can not feed the planet without GMOs” and for sure it represents for them the best way to make profits and to satisfy shareholders. He adds that GMOs are surer than organic food! Without any proof, such speech is unacceptable from a so influent multinational firm. Furthermore, GMOs causes diseases and problems all over the world. Like intensive farming, it is one more time a short-term profitability which reigns in Nestlé means. Nestlé and others multinational food companies want to use their lobbying power to influence European political wills in order to promote GMOs in Africa continent. [...]

[...] Joint venture with local firms New Zealand's Fonterra owned by dairy farmers) C. Nestlé and the millennium developments goals Millennium goals Reduction of poverty Nestlé Actions - Offers high quality food products at an affordable price - Concerning the extensive farming, Nestlé considers that intensive farming is the only mean to succeed in feeding the whole African population. - Contribute to improve primary education through partnerships with schools and associations - Hiring women Example: the project concerning manioc: 700 women hired - Support projects aiming at women autonomy example : Thusanang Development and Training, which encourage family women industry - Social contributions to orphanages and associations (provide food, drinking water, access to medical cares ) Page 8 Education for all Sexual equality Curbing infant mortality Improving maternal health - Contribute to the improvement of the medical structures Example: Nigeria: Duchess Club, prevention concerning nutrition for women - Medical access to the employees and their family, specialized interventions concerning AIDS - Partnership with the Nigerian Red Cross for the prevention to young people to the danger of AIDS - Through the management of the supply chain, Nestlé encourages producers to adopt a sustainable way of labouring the soil. [...]

[...] Is Nestlé's Strategy the Right One To Curb Poverty in Africa? Summary I. Africa's main issues Overview A. The different aspects of poverty on the continent B. Dairy product sector's stakes in Africa II. Nestlé's sustainable development policy in Africa A. Food Quality Food safety Food quality B. Social improvements Settlement in remote areas Training of Africans Others key points of social developments C. Nestlé and the millennium developments goals D. [...]

[...] The rest is sold on the local market. The money comes regularly instead of big amounts at spotted periods, which is encouraging for a sustainable development of their activity to more productive methods. Moreover, milk can be a real asset to the whole continent as it is a real alternative for poorest families who can't afford to buy meat; they could therefore fulfil their lack of protein sources. Still, it is obvious that the success of this development will depend on whether politics manage or not to modernize the sector, from the production tools and processes to the sales and trade rules which are insufficient at the present time. [...]