Nestlé works directly with small-scale dairy producers and cooperatives to build the supply chain in order to improve storage, cold chain facilities and transportation. The model has been adopted in more than 30 countries, including Brazil, Chile, China, India, Mexico and Pakistan. By building close links with dairy farmers, Nestlé can also advise them continuously on quality and farming practices, helping them maintain and enhance standards, and avoid milk losses.
For example, by collecting milk directly from farmers in India, Nestlé has succeeded in reducing milk losses to less than 0.6%. This effort has been boosted by Nestlé’s CHF 11 million investments in India in storage tanks, chillers and veterinary aid. Nestlé also initiated a milk waste mapping exercise in Pakistan, applying the World Resource Institute food loss and waste protocol. For each stage of the value chain, consultants analysed all potential causes of waste. The total milk loss in Nestlé Pakistani supply chain was estimated to be only 1.4%, significantly lower than the 15% average estimates of the Asian Development Bank for the Pakistani milk supply chain.