A recent report by NGO, Empower, alleges that coffee farmers in Nestlé’s supply chain in Mexico do not receive a fair income. Is this true?
We believe that the allegations in this report misrepresent the nature of our coffee sourcing approach in Mexico. We strongly believe that coffee farmers should earn a sufficient income to maintain a decent standard of living for them and their families. In Mexico, the price we paid to the coffee mills (our direct suppliers) in the 2024/2025 buying season is historically the highest we have ever paid, reflecting the high global market price for Robusta beans.
How is the coffee price set for farmers in Mexico who supply to Nestlé?
We buy coffee from our suppliers aligned with the global market price and we pay premiums for the quality specifications we require for our coffee. Nestlé does not purchase coffee directly from the farmers; we buy directly from suppliers who mill and prepare the coffee for our factories. We maintain ongoing communication with our suppliers to help ensure that farmers get fair prices and premiums for their coffee.
How does the Nescafé Plan benefit smallholder farmers in Mexico?
The Nescafé Plan focuses on three key drivers: increased productivity, reduced cost of production (crop inputs), and income diversification (to help provide alternative revenue streams for the farmer). We provide on-the-ground training through our agronomists and technical assistance to help coffee farmers (most of whom are smallholders) achieve efficiencies, reduce input costs (e.g., of organic fertilizers), and provide them with new coffee plantlets to help increase yields. We also encourage them to grow other crops to boost their income. Nestlé places great importance on ongoing dialogue and engagement with farmers, who continue to see the benefits from the Nescafé Plan.
A survey conducted among coffee farmers by Rainforest Alliance shows a high satisfaction rate among farmers in Mexico participating in the Nescafé Plan, with average farmer revenues increasing significantly thanks to higher farm yields and more efficient fertilizer use (reducing costs). Read the assessment: Rainforest Alliance & Nescafé Plan
Does Nestlé purchase coffee in Mexico through intermediaries/middlemen?
We confirm that Nestlé does not buy coffee through intermediaries/middlemen as alleged in this report.
The report claims that growing Robusta coffee in Mexico promotes deforestation and is environmentally damaging. What’s your response?
Robusta coffee is more productive with more coffee produced per hectare cultivated. We promote the growth of Robusta coffee beans in an agroforestry farming model (i.e., grown in the shade).
Over the past decades, the new Robusta coffee growing areas have been converted from other crops such as sugar cane or pastures (e.g., for cattle) – not because of deforestation. In addition, some areas were converted to Robusta coffee farming because the land at a lower altitude is less suitable for growing Arabica coffee beans. In these cases, the land farmed continued to apply agroforestry farming models to cultivate Robusta beans. In all cases, we promote regenerative agricultural practices which aim to improve soil health, water cycles, and biodiversity in an integrated way which help to lower CO2 emissions and increase farmer income.
How is Nestlé ensuring the human rights and land rights of indigenous communities in its coffee supply chain in Mexico are respected?
As set out in our Responsible Sourcing Core Requirements (pdf, 2Mb), we require our direct suppliers to demonstrate evidence of Free, Prior and Informed Consent (FPIC) from local communities for the raw materials we source. Our requirements also require that workers are treated with respect and dignity and are not discriminated against. Where there are claims that our standards have not been met, we work with our suppliers to investigate immediately and take action as necessary.
The report alleges Nestlé used undue influence with local authorities to promote and expand its coffee activities in Mexico. What’s your response?
This allegation is unfounded. Our engagement with the local authorities on matters relevant to our business activities follows our Corporate Business Principles and Code of Business Conduct.
