Nestlé wins accolades in Vietnam (BEST PRACTICE)



Michael Porter, in his recent Vietnam address, stressed the need for a Corporate Social Agenda.


Somewhat surprisingly, he used the example of Nestlé, which entered the poor Moga region of India in 1962.


In this case study, the local milk supply was hampered by small parcels of land, poor soil, periodic droughts, animal disease, and lack of a commercial market. Nestlé therefore established local milk purchasing organizations in each town, and invested in improving the competitive context as follows:


§          Collection infrastructure such as refrigerated dairies was accompanied by veterinarians, nutritionists, agronomists, and quality assurance experts to assist small farmers.

§          Medicines and nutritional supplements were provided to improve animal health.

§          Monthly training sessions were held for local farmers.

§          Wells to secure water supply for animals – with financing and technical assistance from Nestlé.


Nestlé has now built a productive milk cluster in Moga, buying milk from more than 75,000 farmers through 650 local dairies. Moga has dramatically improved social conditions.


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