Unilever: Sustainable Farming for Resilient Supply Chains
Unilever relies on smallholder farmers to source many of its key raw ingredients, but these groups can face systemic barriers around the globe, putting them in a vulnerable position.
To combat this, Unilever is supporting farmers through regenerative agriculture and livelihood programmes as a way to build their resilience.
Not only is the company helping farmers improve their farming practices and working conditions, but future-proofing its supply chain to withstand global uncertainty.
Global over-reliance
From palm oil in Indonesia to tea in India and cocoa in Côte d’Ivoire, Unilever relies on smallholder farmers around the world to source some of the most important ingredients in its products.
According to the WEF, 600 million smallholder farmers working on less than two hectares of land produce:
- 28-31% total crop production
- 30-34% food supply on 24% gross agricultural area
Many smallholders face barriers such as access to finance, agricultural training and new markets.
As a result, they can be limited with what they can d, or how they can grow.
If they do not receive vital agricultural training, they cannot implement sustainable practices to offset harmful emissions, thus shortening the lifespan of their farms.
By gaining insight on resilience-building practices, like regenerative farming, these smallholders can withstand more risk and actively work to mitigate future issues.
Unilever's pledge
Unilever has pledged to support smallholders globally across 13 crops in seven countries by providing access and resources to regenerative agriculture programmes.
These programmes will strengthen the farms' resilience and provide them with greater economic opportunities.
Willem Uijen, Unilever's Chief Supply Chain and Operations Officer, says: "I'm proud of the strides we at Unilever have made together with our partners in implementing regenerative agriculture practices.
"We are making headway towards our goal to cover one million hectares by 2030, focusing on key crops like soybean, rapeseed oil, vegetables and rice.
"This work is not only crucial for restoring soil health, conserving water and enhancing biodiversity. At the same time, it also strengthens our food supply chain, making it more sustainable, reliable and resilient to climate impacts."
The regenerative farming will include techniques such as cover cropping, crop rotation, reducing tillage and avoiding synthetic fertilisers.
By 2026, Unilever aims to help 250,000 farmers in its supply chain access livelihood programmes, creating more secure chains with stronger farming communities.
Strengthening supply chains
Unilever is already helping its smallholders, with projects dating back to 2013.
It has been helping small tea growers in India through the Trustea certification programme, training these farmers in cultivating climate-resilient tea and helping them meet sustainability standards, which also improves yields.
Through this programme alone, it aims to certify between 7,000 and 10,000 farmers each year.
By 2030, Unilever aims to help more than 10,000 smallholder coconut sugar farmers throughout Indonesia. Education is being provided on water and soil conservation, pest management and diversifying income streams.
In India, climate resilient coffee farming is being streamlined in an attempt to future-proof supply chains.
Through methods such as intercropping with spices and fruits as well as water conservation, crop yields will improve and emissions will be reduced.
