kilas csv_01 2015
TRANSCRIPT
PT NESTLÉ INDONESIA Wisma Nestlé lantai 5 Perkantoran Hijau ArkadiaJl. Letjend. TB Simatupang Kav. 88Jakarta 12520
www.nestle.co.id
1Highlight
FEBRUARY 2015 ISSUE 01
csvkilas
A cocoa field school for cocoa farmers in Mamuju, West Sulawesi.
Fresh milk supply at Milk Collection Center in Pucangsari, Purwodadi, East Java.
One of the crucial factors to keep a factory running is a guarantee of continuous supply of high quality raw
materials. To fulfill its needs of fresh and high quality raw materials, Nestlé Indonesia establishes a partnership with farmers living around its factories.
Nestlé Indonesia’s efforts in partner-ing with local farmers have been in-troduced as well as implemented long before Farmer Connect was created. In Lampung, for instance, a partnership with the coffee farmers in Ngarip was established in 1994. In 2014, Lampung coffee farmers were able to supply approximately 17,500 tons of coffee beans for Panjang Factory. As for fresh milk supply, Kejayan Factory has been partnering with East Java dairy farm-ers since 1975. The factory has even in-stalled the River Osmosis (RO) machine
to increase its absorption capacity of fresh milk in 2011. “Nestlé Indonesia is committed to absorb more fresh milk from local dairy farmers. I hope that these suppliers can then focus on pro-ductivity increase,” said Eko Sugiarto, Kejayan Factory Manager.
To maintain the quantity and quality of the raw materials, Nestlé Indonesia provides training and assistance to the farmers. The company also provides other forms of support, such as finan-cial support for the development of coffee farmers’ joint enterprise groups in Lampung or the installation of wa-ter ad-libitum unit in 1425 barns, dis-tribution of 747 chopper units and 40 cow milking units, as well as other aids to the dairy farmers in East Java. Nestlé Indonesia organizes various trainings, such as field school for cocoa farmers, good agriculture practices for coffee
farmers and financial management for dairy farmers. The trainings and assis-tance for these farmers are fully sup-ported by the Agriservice and the Milk Procurement and Dairy Development (MPDD) teams. This helps ensure the quality of supplied raw materials.
In 2014, Nestlé Indonesia produced more than 300,000 tons of various products including dairy, coffee and confectionery. The partnership be-tween Nestlé and the farmers also contributes to rural development in the area where the farmers live. For example, the dairy farmers are trained and given assistance to build biogas units utilizing cow manure. By using biogas, they can reduce gas consump-tion for cooking. This synergy is a rea-lization of Nestlé Indonesia’s commit-ment to implement Creating Shared Value (CSV).
SuStainable Sourcing from reliable farmers
2 Profile
As part of rural development, one of the concepts that Nestlé deve-lops globally is Farmer Connect. Through the program, Nestlé is
committed to sourcing local raw materials directly from the farmers who meet the com-pany’s standards. To help the farmers meet these standards, Nestlé also provides techni-cal assistance and partnership.
Through the Farmer Connect program, farmers are expected to improve the quality of their lives, as well as that of the local com-munity, by improving the productivity and quality of their produce so that they have an opportunity to earn a higher income.
On a global scale, Nestlé has established partnership with 686,000 farmers through the Farmer Connect as well as other pro-grams, such as the Nescafé Plan or the Co-coa Plan. Among all the farmers involved in the Farmer Connect program, 60% are dairy farmers, 35% are coffee farmers and 5% are cocoa farmers. In Indonesia, Farmer Con-nect has only been implemented for coffee farmers in Lampung and has covered 13.000 farmers to help them obtain the 4C (Common Code for the Coffee Community) certificate.
“Despite carrying a different label, the con-cept of direct partnership with farmers for
local raw materials sourcing has long been implemented by Nestlé Indonesia, for exam-ple in Lampung. We started with providing trainings about quality standard for coffee beans that can be accepted by Panjang Fac-tory. We also encouraged and assisted the creation of Joint Enterprise Groups to allow farmers to collectively supply their harvest to the factory. This partnership still continues until today and has been beneficial for both the farmers and the factory,” said R. Wisman Djaja, Director of Sustainable Agriculture De-velopment & Procurement. The same kind of partnership has also been initiated by Nestlé Indonesia with cocoa farmers in Sulawesi, in collaboration with BT Cocoa.
For Nestlé, the Farmer Connect pro-gram can help guarantee the high qua lity of sourced raw materials, thanks to the proximity to the farmers. Farmer Connect allows the company not only to establish and maintain a good relationship with the farmers, but also to monitor its supply chain so that it stays compliant with social, envi-ronmental and ethical requirements. As for the farmers, the program helps establish an equitable and consistent pricing system, improve yields and reduce impacts on the environment.
Farmer ConneCt:
Farmer Connect is our programme for direct
sourcing from farmers, through which we commit
to the local sourcing of raw materials, offering
technical assistance and ensuring co-operation to
meet the highest sourcing standards.
Supporting Farmers and Promoting Sustainable Agriculture Development
Creating
Supply Chaina SuStainable
Farmers
Who are involved?
hoW is nestlé contributing?
Cooperatives, Joint Enterprise Groups Factory
● Good Agriculture Practices
Training:Assistance
Aid
Rp● Post-Harvest Management
● Access to Finance
● Access to Market
What are the benefits?
● The guarantee to receive high quality raw materials for the factory in a sustainable way
● The improvement of farmers’ welfare, that helps improve the community in which they live
To date, a number of 57,000 farmers have directly supplied raw materials to four factories of Nestlé Indonesia.
4 Agenda
KASIH KAryA & SumbAngSiH
Editorial Team
EDITOr-IN-ChIEf: Nur Shilla Christianto
WrITEr: Elizabeth Wairatta
CONTrIbuTOrS:Ade SonyvilleBilly Sandro PrimaditaJenik D.S. AndreasMeriza LenandaValeska Liviani Priadi
We hope this bulletin can be a forum for us
to share stories and improve our engage-
ment with the communities through our
CSV program. We welcome any input or
suggestions from you.
Please feel free to contact the editorial team
On 22 December 2014, approximately a hundred employees of Panjang Factory gathered to promote the importance of water conservation. Taking place at Youth Camp Taman Hutan Raya Wan Abdul Rachman,
Hurun Village, Kecamatan Teluk Pandan, Kabupaten Pesawaran, they planted 75 trees comprising of champak, meranti, blackboard tree, acacia (thorntree), needlewood and umbrella tree. This tree planting activity is a form of water conservation effort, one of the three focuses in Nestlé’s Creating Shared Value (CSV).
The tree planting activity also involved students who received scholarship from Panjang Factory and the community of RT Sinar Baru Dusun Penyan-dingan and was supported by UPT Tahura Wan Abdul Rachman of the Lam-pung Province Forestry Department. “The tree planting activity is a great idea because it allows us to contribute to environmental conservation. It also mo-tivates my child to take part in conserving the forest, and the scholarship mo-tivates him to study harder at school,” said M. Nurranau Windra, one of the factory’s operators participating in the activity.
The program was then followed by the handing out of 45 seedlings of tropical almond, jack fruit, eugenia, and king of fruits from Panjang Factory Manager Budi Utomo to Head of BPLH Bandar Lampung Rejab, SE to help re-forest the city of Bandar Lampung. “I am glad to be able to participate in conserving the environment, es-pecially in my own city, Lampung, through this program,” said Anto-nius Sudiyono, Filling/Packing Ope-rator of Panjang Factory.
This activity is the embodiment of Nestlé’s commitment to create value for the community where it operates. According to Billy Sandro Primadita, HR General Services & Employee Services, it is a good way to motivate employees and their children to get to know the nature closer. Closer means stronger com-passion. “I hope that Nestlé’s com-mitment to CSV will be sustainable and can help boost our motivation to care more about the environ-ment,” he said.
Our Water Resources!Let’s conserve
KASIH, an acronym for Karya
(Deed) and Sumbangsih (Contri-
bution) is Nestlé Indonesia’s CSV
employee volunteerism program
launched in 2013. Employees’ parti-
cipation in CSV activities is expected
to strengthen employee engage-
ment, increase the awareness and
understanding of the company’s
CSV programs and create shared
value for the community.
If you are interested to
support the KASIH program
or to make biopore holes
at home, please contact
Jenik D.S. Andreas (ext. 1528; email
or Faiza Anindita (ext 1526; email