Contract Farming Scheme: Traditional Red Rice

Country : Malaysia

Impact Area

  • Nutrition
  • Water
  • Rural Development
  • Environmental sustainability
  • Compliance
  • Community engagement
Dec 19, 2018, updated December 2018


Contract Farming Scheme: Traditional Red Rice

Nestlé Malaysia is the regional manufacturer for infant cereal, the key ingredient of which is red rice that is prevalent in Sarawak. We partnered with Malaysian Agricultural Research & Development Institute (MARDI), the Agricultural Research Centre (ARC) Sarawak and the Sarawak Department of Agriculture in this contract farming scheme.

Programme description

Value to Society

  • - New income opportunities for the hard-core poor farmers in the local community > Poverty alleviation
  • - Transfer of technology and technological know-how
  • - Exposes farmers to Good Agricultural Practices (GAP), safe and sustainable farming methods
  • - Farmers improve their yield and quality of crops
  • Value to Nestlé

  • - Sourced locally, lowering cost
  • - Red rice produced meets requirements of traditional method for our products
  • - Enhanced raw material upstream traceability
  • Next Steps