S U S TA I N A B L E A G R I C U LT U R E I N I T I AT I V E

Submitted by:
Section A – Group 4
Mridul Jain - 19031
Navyashree P - 19032
Niharika Harish - 19033
Nishant Kumar - 19034
Pallavi N - 19035
Pooja S - 19036
Prabjot Kaur - 19037 Submitted to:
Prakash Kumar - 19038
Dr. Mousumi Sengupta
Prem Chandran T M – 19039
Pushpa Kumari Mandal - 19040
INTRODUCTION
• Founded in 1866 by Henri Nestle
• Nestle is a Swiss multinational food and drink processing conglomerate
corporation headquartered in Vevey, Vaud, Switzerland.
• Nestlé's products include baby food, medical food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food,
pet foods, and snacks.
• CEO of the company Ulf Mark Schneider
• Corporate head of agriculture at Nestle is Hans Joehr
• The company is the leading purchaser of agricultural commodities
• The chairman of the company is Brabeck Letmathe
HISTORY
• In 1860s, pharmacist Henri Nestle used cows milk, sugar and wheat flour To
develop a product that could be fed to babies whose mothers could not breast
feed.
• In 1870’s the company diversified into condensed milk
• By 2003 it had factories in 86 countries and sold $65 billion worth of goods.
• Geographic, product, and functional structures all played roles in Nestle’s
organizational design
• Nestle had always focused on the middle stages of the agribusinesss value
chain.
• The company never integrated downstream into its distribution channels
STRATEGY AND MARKETING
• Redefining its position to become a world leader in Food, Health and
Wellbeing.
• Customer needs were evolving from simply good food to a more complicated
set of product attributes that included perceived nutritional value and a
contribution to a sense of well-being.
• Company was using umbrella branding which was not universal and Nestle’s
executives were doubtful that it would ever extend to all products.
 CONTROVERSIES
• In 1970’s it confronted over its marketing of infant formula in the Third World
• Activist also charged that the company, by selling powered formulas in areas
where drinking water drinking water were contaminated were leading to infant
mortality
• Nestle also published a document called ‘Nestle Corporate Business Principles’
with respect to marketing, communication and business government relation of
infant formula.
NEED FOR SUSTAINABLE DEVELOPMENT &
SUSTAINABLE AGRICULTURE
• In 1980’s govt’s and activists began advocating that societies focus on
sustainable development as a way of integrating environmental and social
considerations with traditional economic concerns like profits and growth.
• Defined as satisfying the needs of the present population without endangering
the capability of future population to satisfy its own needs.
• Emphasis was given on economic growth(GDP)
• To hold the food prices constant
 OBJECTIVES
 Sustainable Agricultural initiative was intended to show that the
company’s own practices were compatible with sustainability.
 The collaborative initiative called SAI Platform was intended to
raise awareness of
– Sustainable Agriculture
– Share best practices across firms
– To support the implementation of mechanisms that would facilitate
sustainability in agriculture
 OBJECTIVES
• SAIN was formally launched in order to ensure sustainability and
competitiveness
• SAIN was also part of operational risk management intended to minimise the
existing risks in raw material sourcing
• It was also intended to contribute positively to the company’s image in the eyes
of external and internal stakeholders
• To increase the appeal of the company and its products to consumers
SAIN ACTIVITIES
• SAIN focused initially on milk, coffee and cocoa
Coffee
• It was one of the most important commodity
• Nestle sought as a part of its initiative to work with farmers to improve their
financial and environmental performance
• It also called attention to its attempts to buy coffee directly from farmers
• Company also helped the farmers to diversify away from coffee into other
products with different climate sensitivities and different economics
COCOA
• It is a very fragile crop, economically, ecologically and socially
• Nestle sought to improve the post-harvest utilization of cocoa
• During 2004, Nestle moved to processing beans only where it required
unusually high quality levels or where the supply chains were so long that the
internal processing was the only realistic option
• For training one farmer to become efficient, it costed around $100
MILK
• Nestle managers had developed detailed quality assurance manuals for the
farmers from whom Nestle purchased milk
• The company was transferring more know-how to the farmers so that they
can get higher quality inputs and thus can spend less at the processing stage
• Higher quality milk-inputs saved Nestle money
 BUSINESS BENEFITS OF SAIN
• An improved prospect of long term supply of quality raw materials at
competitive cost
• Improved quality control and risk management
• Improved communication with growers, politicians, customers and others
• Enhancement of the company’s reputation and image
LEARNINGS FROM THE CASE
• A company should not only emphasize on economic growth but should look
forward in creating a shared value approach
• By taking initiatives for sustainable development a company can improve its
reputation in terms of visibility and social responsibility
• Producing more products with less environmental impact and helping
customers make sustainable lifestyle choices
THANK YOU