Mar 31, 2014, updated March 2014
Worldwide demand for coffee continues to grow, and our coffee businesses are focused on ensuring that supplies in the long term are able to meet increasing consumption on a sustainable footing. However, the challenges we face include volatile prices, declining yields and strong competition for raw materials – with coffee growing being challenged by alternative crops considered by growers as better commercial prospects.
The Nescafé Plan is a global initiative that brings together our commitments and activities that support the responsible farming, production and supply, and consumption of coffee. The Nescafé Plan promotes responsible farming in four main ways:
- Training: We are committed to training farmers on the techniques and guidelines that comprise our Better Farming Practices, and by the end of 2013, the cumulative total of farmers trained since the inception of the Nescafé Plan (2010–2013) reached 198,752.
- Visits from sourcing staff: Our team of more than 220 sourcing staff visited more than 30,000 coffee farmers in 14 countries to provide expertise and help to implement good practices in the field.
- Farmer Connect: Purchasing green coffee locally in an efficient way helps us to develop local supplies for our factories, and to work with growers to make improvements at a farm level. By 2015, we aim to source 180,000 tonnes of green coffee from Farmer Connect farmers, all of which will comply with 4C’s baseline sustainability standard. By the end of 2013, we had sourced 148,198 tonnes of coffee from Farmer Connect farmers, and approximately 48% of this coffee (71,493 tonnes) was 4C-compliant. We also intend to source 90,000 tonnes of green coffee compliant with Sustainable Agriculture Network (SAN) principles by 2020, and activity towards achieving this longer-term goal will start after 2015.
- Ensuring the future of coffee farms: We’re investing in improving coffee trees through plant science, largely through our R&D Centre in Tours, France. It’s key to quality and yields, so that farmers see coffee growing as an attractive, viable means of earning a living, ensuring a long-term supply of the right quantity and quality of green coffee on which our brands depend. We also work with farmers on the ground, with our initiative to propagate and distribute plantlets. We will distribute 220 million high-yield, disease-resistant coffee plantlets to farmers by 2020 and 21.4 million plantlets were distributed in 2013.
Value to Society
In 2013, we launched the Nescafé Plan in Central America (Guatemala, Nicaragua and Honduras), extending its scope beyond the 10 countries where the plan was already in place, to 13.
Nescafé has also inaugurated a new coffee centre of excellence in the Philippines to improve the quality and quantity of the coffee crop in a country where demand far outstrips supply. The facility was set up as a one-stop shop for coffee growers in the region to give farmers access to the best of Nestlé’s coffee-farming technology and training. The facility also houses a buying station where farmers can sell their produce directly to Nestlé. An estimated 3,300 farmers are expected to sell their green coffee annually at the centre’s buying station.
Read more about our comittment to Roll out the Nescafé Plan.
Value to Nestlé