A little-known fact about Dutch beer-brewing company Heineken is that it sources half of its raw materials from local, small-scale farmers for its African operations.
A barley harvest from a local sourcing partnership Heineken initiated in Ethiopia.
By sourcing locally, multinationals can save on import costs, preserve foreign exchange and contribute to the economic development of the continent.
Yet, buying raw materials from smallholder farmers is not done overnight. Rather, it is the end-result of a multi-faceted commitment that can span up to 10 years.
Not as easy as opening the brewery door
Throughout the continent, the company sources about 50% of its agricultural needs locally, including from approximately 150,000 smallholder farmers. The brewer aims to increase that to 60% by 2020, according to Paul Stanger, Heineken’s local sourcing director for Africa and the Middle East.
Beer is typically made from malted barley, hops, yeast, and water (for most lagers), but other…
