Diageo has announced a new local raw material sourcing programme as the beer and spirits maker strives for more sustainable agricultural supply chains in Africa.
The company behind brands such as Captain Morgan, Tanqueray and Smirnoff, said the programme builds on its existing pledge to source 80% of its raw materials locally across the continent by 2020.
Diageo says that the revamped strategy aims to ensure that at least 100,000 farmers in eight countries will benefit from direct local sourcing.
Through the strategy, the firm says it will increase expenditure in the local sourcing of key raw materials like sorghum, barley and maize in Africa.
The strategy will cover the following countries in the coming year: Nigeria, Kenya, Tanzania, Ethiopia, Ghana, Cameroon, South Africa and Uganda.
“We are a proud partner of farmers in Africa, helping to create sustainable local businesses through our local raw material sourcing programme,” said David Cutter, Chief Sustainability Officer.
“The wellbeing and vibrancy of the communities and our local suppliers we work with is our upmost priority. With 79% of raw materials sourced locally in Africa we are almost at our 80% target but remain restless to do more and this refreshed strategy will take us further along this journey.”
Through the strategy, Diageo will provide a collaborative framework to increase farm yields sustainably and secure markets for African smallholder farmers.
Diageo says it will also work to deliver data-driven interventions in areas like seeds, agronomy, insurance, access to credit, soil nutrition and market access, working in partnership with Syngenta, Bayer, Yara, World Food Program as well as regional banks.