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IFC, Citi Partner for Sustainable Supply Chain

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IFC and Citi have signed a $2 billion global sustainable supply chain finance program (GSSCFP).

The partnership is the first GSSCFP project focused on emerging markets.

The global program is designed to address the finance gaps for SMEs and to expand access to sustainable finance.

For a start, the partners have agreed to implement a $500 million facility in Mexico.

Nathalie Louat, Global Director, Trade and Supply Chain Finance, IFC, said, “The role of trade and supply chain finance in facilitating the goods and services essential for sustainability is paramount, and this program will enable suppliers in Mexico, some of whom may not traditionally be considered bankable, to receive such financing.”

Murat Demirel, Head, Financial Resources and Risk Management, Trade and Working Capital Solutions, Citi, said, “Mexico is a great start to launch this joint initiative and Citi is looking forward to expanding this initiative into other emerging and frontier markets.”

 


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India Enhancing ESE Aspects of Castor Production

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India is enhancing castor production’s economic, social, and environmental (ESE) aspects through a traceable and sustainable supply chain.

The country announced the establishment the World Castor Sustainability Forum (WCSF) in February 2024.

Castor facts:
  • India, producing around two million tons of castor seeds annually, accounts for 90% of the global supply.
  • Annual exports of castor oil and its derivatives, valued at over ₹12,000 crore, significantly contribute to the global market of over $4 billion in castor derivatives.
  • Nearly 30 Farmer Producer Organizations (FPOs) have agreed to collaborate with WCSF.
  • The collaboration represents about 25,000 farmers joining the movement in its inaugural years, committed to adopting the guidelines set forth by WCSF
Benefits:

The Indian Companies Act allows companies to adopt WCSF’s sustainability protocols.

The benefits include enhanced brand recognition, competitive advantage, cost reduction, easier capital access, regulatory compliance, risk mitigation, and sustained value generation.

Castor and sustainability:

There is potential for promoting intercropping, introducing research-based seed varieties, mechanized harvesting, Eri silk farming, and sustainable castor production. Policymakers are also focusing on reducing carbon footprints and promoting greener products, noted Shailesh Baldha, Chairman, SEA Castor Promotion Council.

Castor meal, a green fertilizer with high NPK content, is limited in India’s use but is exported to Korea, Taiwan, and Japan. It also serves as a fuel replacement for coal due to its calorific value and green nature.

Castor, a pest-resistant, drought-tolerant, and suitable for marginal land cultivation, is a potential investment for future vegetable oil production.

The production of castor oil from Ricinus produces significant press cake, husks, and crop residues, which can be utilized as by-products in a bioeconomy framework.


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Turning the green tide

Renjini Liza Varghese


I grew up listening to stories of hardships my grandparents, parents and others in their generation faced for food during World War II, especially in 1943-44.

What was more inspiring was their narratives for survival. Each tale resonated with changing times and changing patterns of cultivation. I vividly recall my father speaking about how the community protected the local produce. Moreover, they also adapted to the new changes and added a newer variety of crops to the farm.

Like them, many framers across the country swiftly learned how to produce more regional indigenous crops, including millets. The milk co-operative movement (Amul) led by Mr Verghese Kurien in Gujarat and the Green Revolution led by Dr MS Swaminathan with the support of favourable policies enabled India to walk the long path to self-sufficiency.

Cut to today. According to the UN, India’s announcement to prohibit rice exports can trigger a global food crisis. The numbers say it all: India stands tall as the world’s largest rice exporter, accounting for 40% of international trade by volume — 22m tonnes. The country exported rice to more than 140 countries in 2022. That is a testimony that Indians have mastered the art of food security in the past 7 to 8 decades.

All the same, the global picture, including in India, is gloomy. The hard reality is that one-third of the total food produced globally is wasted, according to the United Nations data. Food waste is in multilayers, starting from waste during harvesting.

Significant reasons for food waste:
Turning the green tide  

Turning the green tide

  • Disconnect between the end customer and producer resulting in overproduction
  • Procurement hurdles
  • Insufficient storage
  • Inefficient packing
  • Cool chain inadequacy
  • Wastage during transportation
  • Inefficient supply chain
  • Gaps in last-mile delivery

 

 

Additionally, three more factors contribute to the waste. These are:

  1. Unplanned hoarding
  2. Wastage during cooking
  3. Delay in consumption

As per a report released by Economist Impact and supported by Corteva Agriscience, titled ‘Global Food Security Index,’ India ranked 68th out of 113 countries in 2022; in Asia-Pacific, it ranked 14th among 23 countries. “Its performance across all the index’s four pillars is generally consistent, but its score on the availability pillar—62.3—is the highest. The country’s weakest performance is in the Sustainability and Adaptation pillar, in which the country scored 51.2. India’s performance suggests that the food security environment in the country is particularly under threat from climate-change risks. The country needs to better manage these negative impacts on its food security by improving political commitment to adaptation, managing eutrophication in its oceans, rivers and lakes; and addressing the risks associated with the quality and quantity of water available for agriculture.

As per an earlier report published by the United Nations Environment Programme ‘Food Waste Index Report 2021’, 50 kg of food is thrown away per person every year in Indian homes annually.

Wasted food has far-reaching effects, both nationally and globally. It adds to the landfill, no doubt. It is the most significant component of the municipal waste anywhere in the world. 95% of discarded food or waste reaches landfills. The numbers are alarming for the US as well. Up to 40% of all food produced in the US goes uneaten.

How can we reduce food waste?

Perishables contribute a higher percentage in the food value chain. And it is imperative that the focus has to be on the supply chain to reduce food wastage. The maximum wastage, as per different studies, is during transportation. Which, if tackled, can tremendously bring down the wasted food percentage at the global level.


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Nestle Malaysia, MCB Partner for Sustainable Cocoa Farming

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Nestle Malaysia and the Malaysian Cocoa Board (MCB) have partnered to promote sustainable and responsible cocoa farming.

According to the MoU, the two entities will also encourage farmers to adopt regenerative agriculture practices.

The initiative:

The Nestle Borneo Cocoa Initiative (NBCI) is part of the global Nestle Cocoa Plan Initiative (NCPI). The NBCI wants to create a sustainable supply chain to raise the standard of living for farming communities and end child labor. Moreover, it will offer a framework for transparency and traceability, enabling farmers to increase crop yields and quality.

The initiative marks the first expansion of Nestlé Malaysia’s Farmer Connect programme to East Malaysia.

As part of the initiative, Nestle is launching its Nestlé Farmer Connect Responsible Cocoa Sourcing (NFCRS) program in Sarawak in East Malaysia.

Initially, the cocoa produced through this initiative will be used for the manufacturing of KIT KAT products in Chembong, Negeri Sembilan

How will Nestle and MCB help:

Nestle will provide relevant tools, knowledge, technical expertise and training to MCB and participating farmers. It will also engage recognized external auditors to support the verification process.

MCB will conduct on-site farm assessments and share best practices with the local cocoa farmers. It will also support in establishing a robust traceability system to enhance supply chain transparency from farm to traders.

Overall, the focus will be on adopting regenerative agriculture techniques such as agroforestry with compatible species such as palm oil or rubber trees. The training sessions will also incorporate intercropping with durian, petai (stink bean) or other commercially viable fruits and vegetables. This will enable the farmers to create additional sources of income.

CXO bytes:

“With this partnership, we will now be able to expand our effort to empower cocoa farmers with the knowledge and tools they need to cultivate cocoa sustainably. It is truly exciting times for Nestlé Malaysia, as we continue to ramp up our efforts to diversify and expand the availability of locally produced, responsibly sourced high-quality raw materials and ingredients for our products,” said Juan Aranols, CEO, Nestle Malaysia.

“Nestlé Malaysia’s extensive experience and resources, coupled with our network and industry expertise, will undoubtedly create a positive impact on our local farmers and the environment. Together, we aim to establish a model that promotes economic growth through sustainable practices,” said Datuk Ramle Haji Kasin, Director General, MCB.


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