International Coffee Day: Nescafé's Regenerative Farming
Nescafé, the flagship coffee brand of Nestlé, is steering a course to an ambitious set of targets by the end of the decade.
With its mid-term sustainability strategy, entitled Nescafé Plan 2030, Nescafé is focusing on reducing emissions, improving farmers' livelihoods and driving regenerative farming across the 20 countries in which it operates.
Specifically, the coffee provider hopes to source at least 50% of its coffee through regenerative farming by 2030.
- Vicki Hird, Strategic Lead for Agriculture at The Royal Society of Wildlife Trusts, describes regenerative farming as "an approach to farming that, in theory, allows the land, the soil, water, nutrients, and natural assets to regenerate themselves, as opposed to conventional approaches to farming that can deplete these natural resources."
A billion dollar commitment
Kickstarted in 2022, the Nescafé Plan 2030 proposes a US$1.18bn investment in regenerative farming as the company vies to achieve net zero. This initiative greatly extends upon the foundations laid by the original Nescafé Plan in 2010.
David Rennie, EVP for Nestlé Coffee Brands, highlighted the critical nature of this undertaking post-launch. He said:
"Climate change is pushing coffee-growing regions to their limits. Leveraging the Nescafé Plan, we're propelling our efforts to combat climate change and navigate social and economic obstacles within the Nescafé supply chains."
Is Nescafé making any progress?
The latest Nescafé Plan 2030 Progress Report unveiled in May 2024 showed promising signs in the company's journey towards sustainable sourcing. Over 20% of Nescafé coffee now originates from farmers practicing regenerative agriculture - a big boost in terms of environmental footprint.
Interestingly, this more considerate approach to farming has actually improved yields. When the time came to harvest the coffee in 2023, farmers in Honduras, India, the Philippines, Thailand and Vietnam observed a yield 5-25% higher than in 2022.
These findings were ratified independently by the Rainforest Alliance, who also certified a 15-30% reduction in greenhouse gas emissions for every kilo of coffee Nescafé harvested. Nescafé says this is thanks to mulching and better fertiliser use, proving that little changes can deliver big results.
Putting the S in ESG
Antonia Wanner, Nestlé's Group Head of ESG, Sustainability Strategy and Deployment, hails the comprehensive nature of the Nescafé Plan 2030. She says the strategy is "not solely about premium coffee production – it's also focused on nurturing the communities behind it.
"Boosting farmer incomes plays a pivotal role, with many areas like Vietnam witnessing up to a 25% rise in yields."
In 2023 alone, Nescafé has handed out 21 million coffee plantlets to farmers, aiding in the revamp and rejuvenation of coffee plots. This endeavour not only enhances output but also strengthens the supply chain resilience at the source.
Deeply invested in ESG principles, Nescafé is tackling gender disparities within its operations. The company is determined to uplift female farmers who encounter distinct obstacles in the predominantly male coffee sector.
Pham Phu Ngoc, Nestlé Vietnam's Agro Service Manager, discusses Mai Thi Nhung, a coffee grower from Vietnam's Central Highlands enveloped by the Nescafé Plan since 2015. He says:
“With over 34 years in agricultural production management and engineering across Vietnam, enhancing the lives of female coffee cultivators is a gratifying dimension of the Nescafé Plan work.
“We're delighted to witness and share our achievements globally in brewing exceptional coffee and supporting cultivators like Mai Thi Nhung. With coffee as her principal crop, her dual-acre farm also thrives with intercropped pepper and durian trees. This diversification escalates her earnings, bolsters biodiversity, and reinforces farm resilience. Annually, she gathers a notable yield of coffee, black pepper, and durian."
Strengthening the supply chain: A win-win-win scenario
The Nescafé Plan 2030 is actively confronting the complex challenges faced by coffee farmers, incorporating the effects of climate change and economic constraints. In Vietnam alone, the strategy collaborates with upwards of 21,000 coffee-farming families, a significant number helmed by women, to promote regenerative practices and provide indispensable training.
With farmer training programs benefiting nearly 150,000 farmers across 16 nations, this exchange of knowledge is crucial for empowering farmers with the skills needed to augment their incomes and thrive.
As Nescafé perpetuates its supply chain transformation, its impact ripples across the coffee industry. This plan is positive for the farmers, for Nescafé and for the consumers, who will be able to enjoy a cuppa in the knowledge that it's sustainable.
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