Sourcing sustainability

We want to operate in a way that improves the quality of life for communities, help the environment and ensures a consistent supply of our raw materials.

HEINEKEN signed a Public Private Partnership in Ethiopia in February 2013, to launch the Community Revenue Enhancement through Agricultural Technology Extension (CREATE) program, a 4- year Malt Barely Program with ATA( Agricultural Transformation Agency) and EIAR( Ethiopian Institute of Agriculture Research). The aim is to improve thenational self-sufficiency by substituting imported barelyby locally produced barely in Ethiopia. The program will support 20,000 small holder farmer families for the production of malt barely; this will result in 120,000 direct beneficiaries. So eight new variety of barely seeds were tested under memorandum of understanding with EIAR. Improved seeds are needed to achieve quality and yield of local malt barely production. Two barely seeds varieties. TRAVELER and GRACE have been officially approved by the National Variety Release Committee (NVRC)

Our CREATE local sourcing program which supports farmers in Arsi, WesterArsi and Bale increased smallholder farmers’ income and livelihoods, and improves their yields by providing training and better seeds. The program is an example of successful public private partnership approach, whereby companies partner with NGO’s and government.

Through a Public- Private- Partnership (PPP) project, we are stimulating a sustainable local barely supply chain in Ethiopia. As the project moves closer to its 2017 objectives, a participating ferment highlights how he is benefiting from being involved.

With an altitude frequently above2,000m, Ethiopia is one of the few countries in Africa where barely can grow successfully. This combined with rapid growth in the Ethiopian beer market, providing the impetus for our malt barely value chain project. The CREATE project is a PPP between HEINEKEN, the Duth government and NGO EUCORD, with important local partner including the Ethiopian government and Ethiopia’s Agricultural Transformation Agency. The Project aims to reach 20,000 smallholder farmers in the country by 2017, generating 20,000 tons of barely annually. To help farmers increase their yields, the project is giving them access to top quality malt barely seeds plus support through agronomic advice, training, access to finance, provision of improved inputs and access to a market to sell the products.

Ato Faye Tesema one of the more than 10,000smallholder farmers who have joined the project since its 2013 launch explains how the project made an impact on him.

In 2015, I planted malt barley on four hectares of land – a big increase from one in 2014. In the 2015 harvest season, I got seven tons per hectare, whereas I used to only get two. And, because my barley is of the highest grade, I can sell it for more money per ton. My total income from the 2015 barley harvest was more than 400% higher than in 2014.”

Stimulating increased agricultural production naturally gives rise to challenges, along with successes. It takes time to help participating farmers understand how contract farming works and what it means and to give training to avoid minor occurrences of diseases like Net Bloch and ensure input are used with care and control for maximum quality. It is also important farmersreceive ongoing training and coaching to keep improving productivity.

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