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Sustainable Farming – Yu Dao Kou community development

China

Context

Social & business context
China is facing a national concern about milk quality and is suffering a supply shortage, with smallholders no longer able to sell raw milk to factories directly due to quality and safety issues. Overgrazing and grassland desertification in northern China are leading to environmental degradation and poverty. Farmers need to diversify their income and protect their environment.
Danone Baby Nutrition China and Danone Dairy are increasing their production capacity but face raw milk supply shortages at a time when new government regulations for baby food companies require local milk sourcing. They therefore wish to develop a model that supports small dairy farmers and secures their local milk sourcing.

Solution
With support of the Danone Ecosystem Fund, Danone Baby Nutrition China, Danone Dairy China and its local partner, Heifer, co-created the “Sustainable Farming China” project to support small dairy farmers in maintaining their income. A ‘cow hotel’ model was created and an ecosystem of sustainable livelihoods was developed, allowing the farmers to diversify their revenue streams and increase income through sustainable agriculture and beef farming. Access to markets and micro-credit is also supported. 

Social & business impacts
The project secures and increases farmers’ incomes through diversifying farming to include beef production and agriculture.  
Danone BNC secures its milk sourcing and develops privileged relationships with farmers, diversifying the supply and increasing the general quality of milk. 
The project improves general farming practices and mitigates the risk of desertification in the North of China by regulating wild grazing. 

Action

With support of the Danone Ecosystem Fund, Danone Baby Nutrition China, Danone Dairy China and its local partner, Heifer International, co-created the “Sustainable Farming China” project to support small dairy farmers in maintaining their income. A ‘cow hotel’ model was created and an ecosystem of sustainable livelihoods was developed, allowing the farmers to diversify their revenue streams and increase income through sustainable agriculture and beef farming. Access to markets and micro-credit is also supported. 

News


Social 
The project secures and increases farmers’ incomes through diversifying farming to include beef production and agriculture.  

Business 
Danone BNC secures its milk sourcing and develops privileged relationships with farmers, diversifying the supply and increasing the general quality of milk. 

General interest 
The project improves general farming practices and mitigates the risk of desertification in the North of China by regulating wild grazing.