Nestle Nigeria Moves to Replace Corn Starch Use With Cassava in Products Over High Import

• Nestle, the consumer goods giant, is moving away from the use of corn starch to cassava starch in the production
• The company said it is making the changes due to the high increase in imports
• It also revealed that it would use local suppliers for spices in the production of Maggi and other seasonings

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.

Company moves to replace corn starch in its products

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.

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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.

Nestle to stop import spices imports from China

Nestle has taken several steps, including issuing a letter of intent to suppliers, providing technical expertise, engaging local authorities to establish quality standards, and offering financial assistance via advance payments.

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The company’s raw materials and consumable costs have doubled from N163.7 billion to N223.6 billion, indicating the challenges faced by the firm due high price of import and currency instability.

Unilever stops manufacturing Omo, Lux, Vaseline other popular home and akin care products

Legit.ng reported that Unilever Nigeria Plc, one of the leading consumer goods companies, has announced that it will stop manufacturing some of its popular products, including Omo and Lux.

The manufacturer says it will exit two categories, Home Care and Skin Cleansing, which will affect the brands above.

Other brands to be affected include Sunlight, Dove Beauty Bar, Lux soap, Pepsodent Toothpaste, vaseline, Lifebuoy, and Rexona products.

Source: Legit.ng