Coca-Cola China's Sustainable Sugarcane Initiative

As part of our Company's global sustainable agriculture initiative, Coca-Cola China has partnered with the United Nations Development Programme (UNDP), China International Centre of Economic and Technical Exchanges (CICETE) of the Ministry of Commerce of China, and the Ministry of Water Resources of China at the Guangxi Zhuang Autonomous Region to ease the burden placed on the drought-hit region's sugarcane farmers.

During 2009, Guangxi and four other provinces in southwest China experienced a severe drought that threatened the safety of drinking water in local communities and affected livelihoods. The drought highlighted issues in the infrastructural facilities and agricultural mode: improving water efficiency, providing access to safe drinking water, and developing the capability to react effectively to climate risks became vital issues for the sugarcane farmers.

Guangxi is an important region for China's sugar industry, contributing more than 60% of the national sugar production, and is the main supply source for Coca-Cola China.

Coca-Cola China will focus on infrastructural facilities that support the farmers' work and life directly, such as optimising irrigation facilities and recycling treated wastewater from sugar plants to improve farm production and water use efficiency. The initiative will also provide clean water facilities, which have a positive impact on the living conditions of the sugarcane farmers and their families.

The initiative is an extension of the four-year partnership program -- Improved Water Resources Management and Drinking Water Safety in Rural Regions of China -- that began in 2007. The first phase of this initiative is expected to be completed in 2011, and will provide around 500 million liters of water to rural residents and directly benefit 100,000 rural sugarcane farmers in the region.

Water stewardship has always been key to the Company's sustainability strategy, and the droughts hit southwest China, where much of the Company's sugar is sourced.  With the collaboration, this initiative will help improve water usage efficiency in business operations, and replenish water for environment and communities through watershed protection and community water partnerships.

"In China, The Coca-Cola Company has consistently invested over RMB200m (USD30.4m) in community projects, and water resources protection and management is a significant part of it.  Today, through supply chain, we will share more technology, resources and concepts, making a positive impact on the community and the environment," said Brenda Lee, Vice President of Public Affairs and Communications at Coca-Cola Greater China.

Denise Knight, Director of Sustainable Agriculture for the Company, commented that the sugarcane initiatives are an excellent extension of our ongoing partnership with UNDP, and is a good example of government coming together with communities to address local water challenges. The projects provide reliable access to safe water for household use and to irrigate sugarcane crops, which improve the yields and livelihoods of the farmers.

"These projects are an excellent example of 'Replenish' initiatives that address local communities' need for improved water access" said Knight. "They help to address both the health and the economic prosperity of the community."