NB PLC partners farmers on local raw materials

As part of efforts to improve productivity of cassava starch, sorghum and others, the Nigerian Breweries PLC (NB)‎ has announced plans to increase the sourcing of local raw materials to 60 per cent by 2018.

The Manager, Corporate Communications and Brand Public Relations of NB Plc, Mr. Patrick Olowokere, stated this during a factory tour of one of the firm’s major raw material suppliers in Ado Awaiye in Iseyin area of Oyo State.

According to him, ‎our global target is to achieve 60 per cent by 2020, but we have said to ourselves that by 2018 we can achieve that target.”

“By 2020, Nigerian Breweries would have finalised plans to increase its sourcing of raw materials from 57 to 60 per cent, the margin is small but apt.‎”

He further explained that the company was sourcing about 57 per cent of its raw materials locally and that it had started partnering with local farmers in different parts of the country to increase the percentage.‎

“The company was always looking at ways to partner with local farmers and processors to develop agricultural value chains that will strengthen the economy and save foreign exchange.‎”

“Over 250,000 sorghum farmers benefited in the Northern agronomical zones as at 2013, producing over the 100,000 tons the company needs annually.‎”

Olowokere, stressed that ‎the company was currently sourcing about 99 per cent of its packaging materials locally and is keen to work with more indigenous companies to boost local food production.

Olowookere said that the percentage covered locally manufactured cans, crown corks, crates, bottles and labels among others, which were all part of strategic partnerships with local manufacturers.

“Before now, we used to source our canning materials from Europe and as time went by, we realised that it was not sustainable.‎ We decided to look at backward integration which is the only way to promote sustainability and local content development.” he said.

‎Affirming the position of NB is the Managing Director, Psaltry International Company Limited, one of the firm’s major supplier of cassava starch, Mrs. Yemisi Iranloye, said that NB Plc, is the biggest buyer of its cassava starch.

“NB is one of our major client off-taking 60 per cent of our Food Grade Starch used as binding agents in producing most beverages, foods, cosmetics and pharmaceuticals.

According to her, the country has started benefiting from its investment as the import substitution policy of the Federal Government in cassava starch has earned it $4 million in the 2016 financial year.

“Farmers in the community have been empowered over the years to increase production to 500 hectares through the Credit Agric Scheme of the CBN driven by us, and in the first year remitted 95 per cent.