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Article

21 Nov 2012

Author:
Louise Lucas, Financial Times

Ethical sourcing: Business works with NGOs for the common good

The growing importance of farming to the likes of Nestlé…or…McDonald’s and Starbucks, is evident in a host of initiatives, from model farms…to deals with farming co-operatives in Africa and Brazil…Farmers receive better training and payments – not to mention a guaranteed market, which facilitates their ability to borrow – while the companies receive security of supply at the required quality, with less pricing volatility…The non-governmental organisations that used to rail against “big business”…are now joining both manufacturers and others in the quest to make farming more sustainable…Unilever…has been working with Greenpeace to incentivise companies to move to sustainable palm oil and end deforestation…Nestlé is partnering with the Fair Labor Association…to eliminating sweatshop employment, in probing its Ivory Coast supply chains. However, the big challenge for branded manufacturers will be to find a way to work with their traditional rivals. [also refers to Kraft ADM, Cargill and Olam]