Multinational food and drink processing conglomerate Nestlé has announced plans to substitute imported corn starch with locally produced food commodities such as cassava across its businesses in Nigeria and other African countries as an avenue to mitigate production cost amid mounting pressure on foreign exchange, and high cost of importation.
The consumer food giant, stated its commitment to ramping up sourcing of local raw materials like starch and turmeric, a move that may help reduce foreign exchange exposure that has been a headache for the sector.
The company pointed out that in addition to substituting corn starch with cassava starch, it was working to develop local suppliers of vegetables and spices which it imports from Asia for its Maggi products, using onion powder in Nigeria and Senegal, and turmeric powder in Nigeria. It also noted that it is actively assisting local suppliers in enhancing their capacity and quality standards.
The world’s biggest packaged food maker noted that the move has been in the pipeline since the beginning of the COVID-19 pandemic, which disrupted global supply chains and caused consumer goods firms to adapt their raw materials closer to production facilities and consumer markets.
Nestlé, which is replacing imported corn starch in Nigeria with cassava starch,also disclosed that it has helped seven local suppliers to boost capacity to meet the company’s supply needs.
“The next step is to expand the localization journey across the region, including Cote d’Ivoire, Cameroon, and Senegal,” it noted.
In the area of grains, Nestlé said it has successfully developed local farmers and processors through training in good agricultural practices, harvesting, warehousing, and cleaning practices, and is taking the next step to introduce the farmers to regenerative agriculture as part of its sustainability journey and commitment.”
Regenerative agriculture, according to the company, generally involves protecting and restoring soil health, which in turn helps capture more carbon from the atmosphere to reduce greenhouse gas emissions.
To facilitate these transitions, Nestle said it has taken various measures, including issuing letters of intent to suppliers, providing technical expertise, engaging with local authorities to establish quality standards,
