Nestlé: Rural Development in India

Ensuring Thriving Farmers and Communities while Respecting Natural Capital

June 17th, 2016

“Our relationships are based on the understanding that our investments should result in long term sustainable growth and economic and social progress for the community as well.” Today, Nestlé works with around 100,000 milk farmers and collects over 300 million kilograms of high quality milk every year across the States of Punjab, Haryana and Rajasthan.

Nestlé has been a partner in India’s growth since 1912, establishing a special relationship of trust and commitment with its people.

When Nestlé India set up its first manufacturing plant in Moga in 1961, the local milk economy was virtually non-existent. On the first day, it collected only 511 kgs of milk from 180 farmers.

Since then, Nestlé has set up milk collection centers which ensure prompt collection and which pay fair prices. This has transformed Moga into a prosperous and vibrant milk district. By supplying milk to Nestlé, farmers have benefited from the assurance that the collection centers will purchase their entire quantity of milk, however big or small, as long as it meets Nestlé’s stringent quality standards. Furthermore, farmers are paid monthly, guaranteeing them a regular income that would not be possible with seasonal crops. Since there is continuous demand from Nestlé for milk throughout the year, their occupations are stabilised and they are assured of long term relationships and fair prices.

“Thus in addition to collecting milk and implementing our milk district model successfully to ensure a stable livelihood for local dairy farmers, we also support the sustainable development of our farmers by assisting them to increase milk productivity and expand their herds via: financial assistance, technical assistance regarding feeding practices, breeding, mechanisation of dairy farms and making veterinary services available through our team of around 35 veterinarians, promotion of sustainable agricultural practices”

“Even during the blackout days of the Indian–Pakistani war in 1971, Nestlé continued to reach out to the farmers. Nestlé developed the farmers, teaching them how to look after their cattle and handle the milk. If it wasn’t for Nestlé, the Moga region would not have progressed to the extent it has today. ” said Mangal Singh, an employee at Moga.


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Stella Conumello, CD News