Nestlé announces $550 million sustainable coffee plan

Posted by Josette Dunn on 30th August 2010

Nestlé, the world’s biggest buyer of coffee, will invest more than half a billion US dollars (CHF 500 million) in a wide-ranging plan, endorsed by the Rainforest Alliance, that
will address responsible farming, sourcing and consumption across its coffee supply chain.

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Nestlé, which purchases around 780,000 tonnes of green coffee a year, or 10 per cent of the world’s supply, unveiled the Nescafé Plan in Mexico City today. The Nescafé Plan is a global initiative and builds on the US$220 million (CHF 200 million) the Company has already invested in the coffee industry over the past 10 years.

Under the Plan Nestlé will:
• Double the amount of coffee Nestlé buys directly from farmers to 180,000 tonnes over the next five years. In addition 90,000 tonnes of Nescafé coffee will be sourced according to Rainforest Alliance Principles by 2020.
• Deliver 220 million high yielding, disease-resistant plants to farmers over the next 10 years.
• Ensure all directly purchased green coffee will meet 4C sustainability standards by 2015.
• Reduce the environmental footprint of its coffee producing factories around the world.
• Increase the number of agronomists from 24 to 96 and field technicians to 350 who will provide technical assistance and advice on farming and harvesting to 10,000 coffee farmers a year.
• Establish 300 demonstration farms showing best practices.

Tensie Whelan, the President of the Rainforest Alliance, welcomed the initiative and said the Rainforest Alliance looked forward to working with Nestlé to implement the
Nescafé Plan.

“The Nescafé Plan is about looking ahead, to the future of coffee farming,” Ms Whelan said. “We see this collaboration as an exciting opportunity to bring sustainability tools to thousands of farmers, including many who have not had the benefit of training and technical assistance.”

Nestlé CEO Paul Bulcke who announced the plan in Mexico City said: “We are proud that Nescafé, the world’s leading coffee brand, gives its name to this global initiative which creates value across the supply chain, from farmers to consumers, to us. Creating Shared Value is an integral part of our business strategy. For a company to be successful in the long term, it needs to create value at the same time for its shareholders and the communities in which it operates.”