Memorandum submitted by Nestlé
UK
Please find below Nestlé's written submission
to the International Development Select Committee's inquiry into
the World Food Programme and Global Food Security.
While Nestlé does not currently partner
with the World Food Programme, as the world's largest food and
beverage company we are greatly concerned, and have a vested interest
in the effect rising food prices are having on the world's economy
and poorest people.
In 2007, Nestlé's Chief Executive and
Chairman, Peter Brabeck-Letmathe gave his starkest warning about
food prices noting that they are set for a period of significant
and long-lasting inflation. We believe this is largely owing to
population growths, rising demands from China and India, and the
increased use of crops for biofuels.
Nestlé is particularly concerned about
the growing reliance on biofuels and their social and environmental
impact. The dependence of biofuels on crops such as maize and
wheat has already led to significant price increases, which we
believe will create food shortages for millions of consumers for
whom basic food stuffs need to be affordable.
In addition, any large scale expansion in the
use of agricultural raw materials for biofuel production will
undoubtedly aggravate the problem of water scarcity. This over
time will cause an unsustainable boost in the use of freshwater
by agriculture, which statistically already uses over 70% of available
sources.
Despite our concerns, however, Nestlé
is a strong supporter of sustainable and efficient energy use,
especially those made from materials that have no impact on the
availability and affordability of food crops such as agricultural
and industrial by-products, algae or wood.
Alongside sustainable energy, we would also
strongly advocate the use of sustainable agricultural practices.
The continued depletion of natural resources, and problems faced
by rural communities are undoubtedly affecting agricultural and
food productivity. Nestlé's practice of sustainable agriculture
seeks to address the environmental, social and economic dimensions
of farming and sourcing.
In practice this means helping to promote farming
methods that preserve soil, water, air, energy and genetic diversity,
minimising the risk of contaminants in raw materials; improving
productivity and yields; boosting farm income through transparent
pricing; improving labour conditions; and helping build traceability
systems. These initiatives help to secure food supplies and ensure
we can maintain production of quality products.
While some checks on the rapid development and
reliance on biofuels, and the promotion of sustainable agriculture
techniques will go someway to mitigate rising food prices, we
feel that companies such as ourselves have an additional role
to play in helping combat hunger on the ground. This is done by
ensuring that lower income populations, particularly in developing
countries, can access affordable and nutritious food.
As a result, Nestlé has reiterated its
commitment to focus its efforts on the bottom of the pyramid,
and has renewed its "Popularly Positioned Products (PPPs)"
initiative. This ensures that we can reach further into disadvantaged
segments of society with our products and help improve their quality
of life whilst also obviously growing our business in these areas.
As an example, in 2007 Nestlé opened
a factory in Feira De Santana, Brazil, to produce and manufacture
affordable Ideal powdered milk, which is enriched with iron, calcium
and vitamins A, C and D.
Simultaneously, to increase availability of
PPP products, Nestlé has trained low income women to be
successful door to door distributors with pushcarts in Brazil.
Thus far, some 4,000 women have been trained to distribute healthy
food such as the Ideal milk, yoghurt, fortified noodles etc. Schemes
such as these work not only to provide women with a good income,
but to supply products with better nutritional value at a lower
cost.
Other examples of PPPs include our Maggi Sopa
Crecimiento, a chicken and noodle soup which contains protein,
vitamins and minerals needed for child development, and our Maggi
bouillon cube made with iodised salt, which is Nestlé's
fastest growing product in Africa.
Alongside our own operations, Nestlé
additionally support specific community projects tailored to local
needs and with the aim of tackling hunger. In South Africa, for
example we support WARMTH (War against malnutrition, TB and HIV),
a series of 50 community kitchens run as small businesses which
offer over 14,000 low cost nutritionally balanced meals on a daily
basis. Together with monetary support, Nestlé train kitchen
staff in basic hygiene and cooking skills.
In Thailand meanwhile, we have partnered with
the Department of Health and Ministry of Public Health to promote
health and wellbeing in primary schools by working with teachers
and school food providers to improve the nutritional quality of
food for students.
These make up only a small number of the initiatives'
that Nestlé promote and support to help alleviate global
hunger, and tackle food security. We recognise that there is still
much to be done to help improve nutrition and the quality of life
of the world's most vulnerable people, and respect and value the
role that organisations such as the World Food Programme play.
We strongly believe, however, that without business interaction,
know-how and engagement, will we not achieve long-term sustainable
solutions to hunger and malnutrition.
Rupert Maitland-Titterton
Head of Public Affairs
Nestlé UK
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