Unilever sustains network expansion of local supply chain

NUEVA ECIJA, Philippines — British-Dutch transnational consumer goods giant Unilever continues to sustainably source agricultural crops locally to help expand the value chain of the smallholder farm industry.

Its local unit in  the Philippines has started sourcing cucumbers from farms in Nueva Ecija.

Sixty-five year old farmer Ramon Palomo leads the 300 farm workers who plant and harvest cucumbers in 11 barangays in Nueva Ecija which will be used for Unilever Philippines’ dressing condiment brand, Lady’s Choice.

The first large-scale harvest of cucumbers are  later processed as gherkins, in the towns of Bongabon and Rizal.

This will cover 100 percent local production of sweetened relish, one of the ingredients of the well-known sandwich spreads brand.

“Our trial last year yielded good results. We were able to supply what they needed and we were given enough purchase orders. A lot of farmers are really benefitting from this partnership,” Palomo said.

The plantation, which covers 80 hectares, is expected to produce 1,200 metric tons (MT) of cucumber this summer or in about 35 to 45 days.

It operates in partnership with Sunrich Farms,  a Unilever Sustainable Agriculture Code (USAC) certified partner, ensuring the  implementation of best agricultural practices.

Palomo heads the entire 80 hectare farm and has one assistant, who is in charge of supervising each barangay.

“Before, we just sell to the markets here, the volume is not that big and the price is also low. But now, the farmers have additional income to send their kids to school and the women farmers get to have a job as well,” Palomo said.

A beneficiary of the comprehensive agrarian reform program, Palomo received 15 hectares from the government, 10 of which he eventually distributed among his four children.

He planted the remaining five hectares with cucumber, palay and watermelon.

With the Unilever partnership, Palomo is expected to earn an additional P300,000 at the end of  summer for planting cucumbers.

This will be added to his average income for palay of P700,000 for the main harvest season in September and P500,000 for watermelon.

“This additional income  is really good for us. My wife is undergoing dialysis for five years now and more importantly, a lot of farmers are now benefitting from this,” he said.

The cucumber seeds, which  are provided by Unilever are imported from the Netherlands and produce a seedless variety and provide a higher yield.

Since cucumber is a seasonal crop, farmers are able to have a stable flow of income by utilizing the land for intercropping harvesting rice, onion, and garlic during peak season and cucumbers when land is idle.

Several manufacturing companies used to import majority of cucumber needs from India since there is no huge demand for the commodity in the Philippines.

“We don’t import much considering that the window for planting and the harvest season is very short,” Unilever Philippines procurement head Mervin Yapan said.

Given increased yields, Unilever is already looking at doubling production in the next few years and eventually exporting to its counterparts across the globe, particularly in France and Netherlands.

“We have to localize and look at the Philippines as a central hub for local sourcing. There is a bigger potential to expand this for our smallholder farmers. We are scaling up because we see the potential for growth,” Yapan said.

Unilever continues to work closely with its supply chain network, including farmers and plantation owners, as well as processors, refiners, and traders of raw materials, to transform farming practices and encourage a wider move towards sustainable sourcing.

Among the other 100 percent locally sourced crops by Unilever are mango, strawberry, pineapple, and jackfruit for its ice cream products; and tamarind, turmeric, taro, pepper, onions, and tomato for its food business.

To date, Unilever has engaged over 1,700 smallholder farmers in its value chain and is looking forward to reaching more lives through its sustainable agriculture agenda.

Unilever sources more than 80 percent of its agricultural raw materials locally and sustainably, inching closer to its goal of 100 percent by 2020.

“As a company that caters to consumer needs, it is within our capacity to make our supply chain more inclusive to our local farmers, helping our business grow while improving their way of life,” Unilever vice president for Sustainable Business and Communications Ed Sunico said.

“As part of the Unilever Sustainable Living Plan, we are working hard to be able to utilize local sources as part of our commitment towards a sustainable way of doing business, ultimately contributing to more meaningful growth for more Filipinos,” he added.

USAC adheres to sustainable agriculture principles such as producing crops with high yield and nutritional quality, minimizing environmental impact, using renewable resources when possible, and enabling communities to protect and improve their well-being and the environment.