NESTLÉ AND COFFEE
The global coffee market is subject to regular price fluctuations and recently prices have been low due to a global surplus. This has resulted in a disturbing increase in poverty among some coffee farmers and their families. As with any market, where there is a surplus, the price goes down. Nestlé is committed to paying fair prices for all raw materials. Wherever possible, Nestlé operates a direct purchase scheme that ensures a reasonable return to the farmer. We are the largest coffee manufacturer buying approximately 100,000 tonnes in this way (14% of our total requirement).
- Wherever possible, Nestlé operates a direct purchase scheme that ensures a reasonable return to the farmer
It is in the interest of Nestlé and the growers to ensure a guaranteed supply of quality coffee. We therefore have a long track record in encouraging production methods that contribute to sustainable agricultural raw material production. For example, Nestlé Agricultural Services provides free technical assistance to farmers to help them improve the quality of their crops. We are also part of several initiatives comprised of industry and non-industry members working towards guidelines and codes for sustainable coffee growing. Nestlé is keen to find a sustainable solution to address the supply/demand imbalance. To this end, we constantly aim to increase demand by investing in product development and innovation to increase coffee consumption. In addition, we have repeatedly spoken out on the need for market reform including phasing out tariffs and subsidies, which effectively discourage farmers from cultivating other crops.
- Nestlé is keen to find a sustainable solution to address the supply/demand imbalance
Nestlé believes that the core supply and demand issue needs to be addressed in order to eliminate poverty and suffering in the developing world. We welcome Fair Trade as one alternative and are pleased to announce the launch of our first Fairtrade certified coffee, NESCAFÉ Partners' Blend.
Click here for more information on Nestlé and Fair Trade.
