Nigerian Breweries Plc, leading manufacturer of beverage drinks plans to source 99 percent of raw materials from local produce by 2020.
“Two, three years ago, we were close to about 47.5 percent and hopefully by 2018 we should be able to achieve a benchmark of 60 percent and Heineken, our parent company has a commitment that by 2020 we should be able to attain 99 percent local sourcing of raw materials,” stated Nicolaas Vervelde, managing director and chief executive of the company prior to the company’s Annual General Meeting held recently in Lagos.
Towards realizing this goal, the brewery company has made huge investments in sorghum farming in Nigeria.
The latest edition of the company’s publication, “Enhancing the Sorghum Value Chain, issued by her Corporate Affairs Department stated that it partnered with US Agency for International Development (USAID) to improve sorghum yields in the country.
“The huge investments we have made and milestones recorded in the development of sorghum in Nigeria in the last twenty-five years are a reflection of our philosophy of sustainable development with the goal to support our stakeholders, create a better society and foster good living conditions for us and the next generation,” he said.
Industry watchers say Nigeria produces approximately 6.9 million metric tonnes of sorghum; 80% of which is consumed for food while 20% is for cross-border trade and industrial use.
The company’s annual sorghum demand is about 100,000 metric tonnes per annum out an estimated 200,000 metric tonnes industrial consumption.
“Our investment towards the sustainable commercial production of sorghum is in line with our global sustainability agenda – Brewing a Better Future which includes a commitment to locally source a minimum of 60% of raw materials used in our operations by 2020. This further validates our license to operate and supports our standing as Africa’s partner for growth,” said Siep Hiemstra, regional president, Heineken, Africa and the Middle East.
Nigerian Breweries say it assisted farmers cultivate 30,000 hectares of sorghum farmland in 2015 planting seasons.
It currently harvests four tonnes per hectare due to investments it made to improve two varieties of Sorghums in 2006.
In 2006, due to investments made by NB, we have been able to invest in two varieties of Sorghums and now harvesting four tonnes per hectare from one tonnes per hectare.
“Today we have created jobs for over 250,000 farmers through our investments in sorghums and cassava farming. Our target is to make it commercial and we have signed a Memorandum of Understanding with the Federal Ministry of Agriculture to upscale it in the next two to three years and then make it commercially available,” said Vervelde.
ISAAC ANYAOGU
