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Improving Farm Economics for Chilli Crop through Good Agricultural Practices

Farmer Connect: Uplifting Livelihoods in Local Communities
For over 25 years now, Nestlé Malaysia has been working with local farmer’s association board, Pertubuhan Peladang Kawasan Bukit Awang (PPKBA), to support chilli farmers’ business growth and to ensure a traceable and reliable supply of fresh chillies for our MAGGI Chilli Sauces. Though it was first set up in Kelantan, over the years, the NESTLÉ CHILLI CLUB has expanded to other parts of the country namely Dungun, Terengganu and more recently, Kuala Langat, Selangor.

First established in 1995, the programme currently involves 60 farmers in over 32 hectares of land. Through this initiative, we share agricultural expertise with local farmers via training sessions to increase productivity, reduce farm costs, minimise environmental impact as well as enhance work safety measures. Farmers involved are also provided with technological support and technical know-how by our Agricultural Services professionals to enable them to achieve the highest possible yield whilst meeting global standards.

Mek Zaini
“I am grateful to the NESTLÉ CHILLI CLUB for teaching us many new techniques. We were taught to pluck the best chillies. We learned planting techniques to ensure that the soil is fertile and yield top quality chillies, so that only the best produce goes into MAGGI Chilli Sauce.”
Mek Zaini Local farmer, Kelantan

In line with our Nestlé Agricultural Policy, which emphasises promotion of local sources of raw material, over 40% of the chillies produced, approximately 200MT per year, is purchased and used as ingredients in our products.

Minimising environmental impact

Since 2017, we encourage our chilli farmers to use live mulch instead of plastic mulch in order to reduce our environmental footprint. Live mulch is not only an environmental-friendly alternative, but it could also be used as a secondary crop which can be harvested prior to the chillies first harvest and this can provide our farmers with additional income.

These live mulches include groundnuts and Bambara nuts, crops that could be sold profitably at local markets. More recently, paddy straws from a similar farmer connect initiative of ours, NESTLÉ PADDY CLUB, were also used as mulch for these chilli farms. These organic straws help prevent the growth of weeds, maintain soil moisture and decompose naturally after six months. This allows it to become an organic fertiliser for the soil, thus increasing soil fertility.

Promoting second generation of farmers


Pak Noh, a retired local farmer in Kelantan, has been part of the NESTLÉ CHILLI CLUB for over 14 years. Through NESTLÉ CHILLI CLUB, Pak Noh has been able to improve his income and living standards. Over the years, Pak Noh has not only managed to build a home for his family but also put his son, Amir, through tertiary education. Amir has now taken over the chillli farm from his father and continues to supply fresh chillies for Nestlé Malaysia.

Pak Noh - Amir