Nestlé cuts Africa workforce as middle class growth disappoints
Nestlé is cutting 15 percent of its workforce across 21 African countries because it says it overestimated the rise of the middle class. The retrenchment underlines difficulties for foreign entrants into the sub-Saharan markets, which are dominated by family businesses broadly thriving on local know-how and the sale of cheap products tailored to individual countries. Nestlé said turnover in the region had failed to deliver in line with initial growth forecasts set out in 2008. Nestlé has invested close to $1 billion in Africa in the last decade, aiming to double its business every three years. Instead, so far this year, Nestlé has closed its offices in Rwanda and Uganda entirely, is reducing its product line by half, and might close some of its 15 warehouses before September. (CNBC)
FAO launches digital platform on family farming
Recognising the contributions of family farmers to food security and poverty eradication worldwide, the Food and Agricultural Organization of the United Nations (FAO) has launched a new digital platform that aims to become a “one-stop shop” for information, data and legislation on the sector that produces some 80 percent of the world’s food. Gathering together information on public programmes, national and regional legislation, up-to-date statistics, case studies and academic research, the new platform aims to allow governments to build stronger policies in support of family farmers and help policy dialogue with family farmers’ organisations. The initiative is among the main legacies of last year’s International Year of Family Farming, which put the spotlight on the contributions and struggles of family farmers in the global challenge to feed a growing population of 9 billion by 2050. (FAO; Eco-Business)
Environment
Global water supplies are ‘in distress’, scientists warn
More than a third of the world’s biggest aquifers, a vital source of fresh water for millions, are “in distress” because human activities are draining them, according to satellite observations. Scientists from Nasa, the US space agency, and the University of California analysed 10 years of data from the twin Grace satellites, which measure changes in groundwater reserves by the way they affect Earth’s gravitational pull. “Twenty-one of the world’s 37 biggest aquifers have passed sustainability tipping points… they are being depleted,” said Jay Famiglietti, the study leader. “Over a third [13] are so bad that they are experiencing exceptionally high levels of stress.” The problem is most serious in regions where rainfall and snowmelt cannot make up for water extracted for agriculture, industry, drinking and other human purposes. “We need to explore the world’s aquifers as if they had the same value as oil reserves,” Prof Famiglietti said. (FT*)
Human Rights
UN expert group calls for accountability of public and private sectors
The United Nations Working Groupon business and human rights today urged the UN system and all its member states to make globalisation inclusive and aligned with human rights, and called for full accountability of public and private sectors’ activities in that regard. The expert group’s call comes as a number of key international negotiations take place on sustainable development goals for the world, development financing and climate change, as well as a number of policy talks on trade, finance and investment. The Working Group’s report notes that business can affect the full spectrum of human rights in the context of development, “from displacement of communities without proper consultation or compensation, affecting the right to food and life, to pollution affecting the right to clean water and health.” (United Nations)
Consumers
Consumers willing to pay more for sustainable palm oil, study finds
Supermarkets could help save endangered species by increasing prices for products that use eco-friendly palm oil, a new study has found. The research found that consumers would be willing to pay more for palm oil that is sustainably grown. University of East Anglia researchers looked for ways to make conservation profitable as a way to encourage more private companies to become involved. The researchers carried out biodiversity surveys across palm plantations, nurseries, forests and cleared land in Sumatra. They also assessed company financial records to see how setting aside land for conservation affects biodiversity and company costs. The findings highlighted that the location of conservation areas had a major effect on both wildlife and company profits. However, the researchers identified areas to provide the best balance between promoting biodiversity and cutting costs. (Blue and Green Tomorrow)
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