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Business News of Monday, 26 June 2023

Source: www.legit.ng

Nestle Nigeria moves to replace corn starch use with cassava in products over high import

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Due to the pressure on foreign forex reserves in many African countries, Nestle is swiftly migrating its raw material sourcing to mitigate production costs.

The move has been in the pipeline since the beginning of the COVID-19 pandemic, which disrupted global supply chains and caused consumer goods firms to adapt their raw materials closer to production facilities and consumer markets.

According to a Reuters report, Nestle is currently substituting imported corn starch with cassava and actively assisting local suppliers in improving their capacity and quality standards.

Nestle said: “The next step is to expand the localization journey across the region, including Cote d’Ivoire, Cameroon, and Senegal.”

In addition to substituting corn starch with cassava starch, Nestle is also trying to develop local suppliers for spices, which it imports from Asia.

The spices used in its Maggi brand include onion powder for Senegal and Nigeria and turmeric for Nigeria.

“In the area of grains, we have successfully developed local farmers and processors through training in good agricultural practices, harvesting, warehousing, and cleaning practices.

“We are now taking the next step to introduce these farmers to regenerative agriculture as part of our sustainability journey and commitment,” the company said.