Nestlé Malaysia has been partnering with local padi farmers in Kedah and Perlis since 2012 as part of a broader initiative to strengthen domestic food production and support farming communities. The programme currently involves around 200 farmers cultivating over 600 hectares of padi, with two planting cycles annually, to supply rice for the company’s infant cereal, Cerelac, and other products.
The rice harvested from these fields undergoes initial processing at two local mills, Kilang Beras Saudara Ban Eng Hin Sdn Bhd and Chuan Huat Bee Kah Sdn Bhd, where it is dried, dehusked, and polished. It is then sent to Ninamaju Sdn Bhd for further polishing and processing. Ninamaju general manager Tan Chor Eeow emphasized the strict food safety protocols in place, noting that one production line is dedicated exclusively to Nestlé Malaysia to prevent contamination. The rice used for Cerelac is classified as a special "baby grade," meeting rigorous standards to eliminate heavy metals, dust, and other contaminants.
From Ninamaju, the rice is transported to Nestlé Malaysia’s manufacturing facility in Shah Alam, a regional hub for cereal and coffee production, where it undergoes additional quality control before being incorporated into Cerelac and Nestum instant multigrain cereals. Cerelac, a market leader in Malaysia’s baby food segment, provides essential nutrients, including 5.2 milligrams of iron per serving, which is over half the daily recommended intake for infants. It also contains phosphorus, calcium, vitamins A and D, and protein.
Nestlé Malaysia has invested more than RM6 million in the rice development programme, which extends beyond financial support to include technical guidance, training, provision of agricultural inputs, and market linkage for farmers. Chief executive officer Juan Aranols highlighted the importance of agricultural knowledge and appropriate rice varieties in helping raise yields and improve quality. During the August-September 2025 harvest, the programme recorded an average yield of 4.96 tonnes per hectare, increasing to 5.31 tonnes per hectare in the February-March 2026 cycle, surpassing the national average of about four tonnes per hectare.
Farmers involved in the programme, such as Md Nasir Md Saman, have benefited from access to equipment and expertise to reduce the use of chemicals and enhance the safety and quality of their produce. Nasir, who has been part of the programme since it began, said his primary motivation was to produce rice safe enough for infant consumption.
Nestlé Malaysia anticipates producing approximately 2,800 tonnes of rice for Cerelac in 2026. Aranols noted that amidst climate change and global supply disruptions, enhancing local food security and strengthening rural agricultural communities have become critical priorities.
The rice initiative forms part of Nestlé Malaysia’s wider commitment to local sourcing. The company has sourced fresh chillies locally since 1995 and recently achieved 100% local sourcing for its MAGGI chilli sauce. Additionally, Nestlé has expanded agricultural partnerships to include coffee in Kedah since 2019 and cocoa in Borneo since 2023, aiming to engage hundreds of farmers across regions in the coming years.
Nestlé Malaysia is one of the country’s largest food manufacturers, with over 500 made-in-Malaysia, halal-certified products, generating RM6.88 billion in turnover in 2025. In the first half of 2026, local products accounted for RM3.69 billion in revenue, up 7.5% from the previous year. The company operates six manufacturing plants, 55 sales offices, and a national distribution center, employing nearly 5,000 people, all Malaysian.
The company’s local sourcing efforts reflect a commitment to creating a resilient, locally connected food supply chain—from smallholder farmers to the plates of Malaysian consumers.