Kellogg Company sources agricultural commodities from around the world to manufacture its
products; the company is committed to enhancing the natural resources and livelihoods of the
areas and people from whom it sources its ingredients. As part of its Project K Initiative, Kellogg
is working to build the global supply chain of the future by making investments in emerging
markets. Kellogg seeks to understand how its current work in Thailand and India (with rice and
corn, respectively) impacts the triple bottom line. Specifically, this research evaluates impacts
on the environment, farmer livelihoods, and with regards to improving Kellogg’s top/bottom
lines and security of supply.
Rice represents a particular sourcing priority for the Asia Pacific and Africa region because it is
needed by every plant in the region and is central for the production of two of Kellogg’s most
celebrated brands: Rice Krispies and Special K. The company uses a specific variety - medium
grain rice - for the production of its cereal. Historically, medium grain rice has grown only in
certain temperate regions; however, increasing climatic stress in these areas and the need for a
reliable medium grain rice supply to meet the needs of the growing Asia Pacific region led
Kellogg to develop its own variety of seed able to grow in tropical climates. In 2014, Kellogg
implemented a medium grain rice pilot program in Thailand.
This project uses farmer and expert survey results and desktop research to determine if Kellogg’s
initiative can provide a viable source of medium grain rice to support the manufacturing of
Kellogg products in Asia Pacific while improving farmer livelihoods through improved
agronomic practices and income security and reducing negative impacts on the environment. The
primary objective of the survey and subsequent analysis was to determine the necessary elements
to create a secure and sustainable supply chain for medium grain rice production in Thailand, and
to present interventions Kellogg Company can implement to improve production.
Corn is the main ingredient incorporated into a number of products including the iconic Corn
Flakes cereal brand. In India, low cost corn, grown with non-GMO seeds, represent
characteristics that are paramount for continued use in Kellogg products. Currently, corn
accounts for 9% of total cereal production in India with numbers doubling in the past decade and
expected to increase. Nonetheless, yields are about half of the global average with climactic
conditions and limited technical resources contributing to lack of capacity to increase quality and
quantity of yields.
Through interactions with farmers and millers, complexities within the corn supply chain have
been better understood. Survey results gleaned from farmer interviews reveal that a combination
of pre-harvest and post-harvest practices contributes to the lessened quality and quantity of corn.
Additionally, senior-level management identified their concerns and willingness to support
proposed strategy interventions based on responses from farmers. Overall, considering farmer
and miller perspectives along with senior-level management provides the opportunity to identify
the most viable intervention strategies that are low cost and will have a net benefit for key
stakeholders.