he aim of Nestlé Cocoa Plan is to help farmers tackle the challenges they face across three pillars: better agriculture, better lives and better cocoa. Activities such as training on improved farming practices, distribution of higher yielding seeds, promotion of gender equality and fight against child labor enable farmers to increase the quality of their goods, as well as their income and livelihoods. The Nestlé Cocoa Strategy in Ecuador helps farmers change their business models and become agri-preneurs. Launched in 2017, their training package consists of 15 four-hour sessions spanning six months. In areas such as irrigation, fertilization, pruning and grafting, the sessions include theoretical and practical skills, all of which help farmers enhance their productivity, quality and efficiency. Around 30 percent of more than 370 farmers trained so far are under the age of 30, and 20 percent are women. A survey conducted on a sample of about 100 program participants in 2017 and 2018 found that 40 percent had provided a quality services and said that their revenue improved after the program. Wilson Matamoros, 24, who works on his family's farm in Mocache, Los Ríos province, is one of those young agri-preneurs. He has boosted the cocoa harvest on the family farm after studying pruning strategies through the Nestle program and provides cocoa pruning services to other local farms, hence earning additional income. He is n

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter14: Marketing Channels And Supply Chain Management
Section14.1: Taza Cultivates Channel Relationships With Chocolate
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The aim of Nestlé Cocoa Plan is to help farmers tackle the challenges they face across three pillars: better agriculture, better lives and better cocoa. Activities such as training on improved farming practices, distribution of higher yielding seeds, promotion of gender equality and fight against child labor enable farmers to increase the quality of their goods, as well as their income and livelihoods. The Nestlé Cocoa Strategy in Ecuador helps farmers change their business models and become agri-preneurs. Launched in 2017, their training package consists of 15 four-hour sessions spanning six months. In areas such as irrigation, fertilization, pruning and grafting, the sessions include theoretical and practical skills, all of which help farmers enhance their productivity, quality and efficiency. Around 30 percent of more than 370 farmers trained so far are under the age of 30, and 20 percent are women. A survey conducted on a sample of about 100 program participants in 2017 and 2018 found that 40 percent had provided a quality services and said that their revenue improved after the program. Wilson Matamoros, 24, who works on his family's farm in Mocache, Los Ríos province, is one of those young agri-preneurs. He has boosted the cocoa harvest on the family farm after studying pruning strategies through the Nestle program and provides cocoa pruning services to other local farms, hence earning additional income. He is now aiming to become the leader of the region's cocoa pruning community. 

Source - All cocoa for Nestlé confectionery through the Nestlé Cocoa Plan 

a) Identify and describe the nature of supply chain management procedure and the supply relationship that Nestle has secured up with the farmers in Ecuador? 

b) "Nestle can become a monopoly in cocoa procurement". Do you agree with this statement? Justify your answer by providing the facts relating to supply chain and logistics management of Nestle.

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