Nestlé Launches 2023 Latest Coffee Development Plan!

Nestlé Launches NESCAFÉ Plan 2030 with CHF 1 Billion Investment for Sustainable Coffee Supply

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According to Jiemian News, food giant Nestlé issued a statement on October 4th launching the NESCAFÉ Plan 2030. The statement commits the brand to invest over CHF 1 billion in the NESCAFÉ Plan by 2030 to ensure coffee supply and expand its sustainability efforts. Nestlé is working with coffee growers to help them transition to regenerative agriculture while accelerating its decade-long work under the NESCAFÉ Plan.

This support comes from Nestlé's regenerative agriculture financing, following the group's accelerated transition to regenerative food systems and its ambitious goal of achieving net-zero greenhouse gas emissions. To this end, the brand aims to help farmers plant over 20 million trees on or near their coffee farms to absorb carbon. It is understood that this investment is more than double the amount invested in the past decade, as climate change is bringing threats and pressure to coffee-growing regions.

Building on a Foundation of Sustainable Investment

It is understood that this investment will build on the existing NESCAFÉ Plan. In 2010, Nestlé launched the NESCAFÉ Plan—an initiative aimed at creating value for all stakeholders in the coffee supply chain, from coffee farmers to consumers to Nestlé. The plan includes a series of goals to optimize Nestlé's coffee supply chain. Building on the CHF 200 million invested over the past decade, Nestlé will invest an additional CHF 500 million in its coffee program by 2020.

Nestlé had previously committed to sourcing all coffee sustainably by 2025. The company now aims to have 20% of its coffee grown using "regenerative" agricultural methods by 2025. In its statement, Nestlé said the company will provide support to "farmers who bear risks and costs during the transition to regenerative agriculture" and help them increase their income.

Addressing Global Coffee Challenges

As global coffee demand continues to rise, other crops are also competing with coffee for limited farmland. This means farmers face severe challenges in terms of profitability and the impacts of climate change on coffee-growing regions worldwide. Nestlé is making relentless efforts to continuously improve its green coffee supply chain and enhance the sustainability of every cup of coffee.

According to Reuters, a coffee report published last year stated that the coffee industry has a retail value of $200-250 billion annually, but producing countries receive less than 10% of the revenue when exporting coffee beans, with farmers receiving even less. Additionally, according to data from the non-profit organizations Fairtrade and Technoserve, approximately 125 million people worldwide depend on coffee for their livelihood, while an estimated 80% of coffee growers live at or below the poverty line.

Nestlé: A Global Coffee Leader

Nestlé is the largest coffee brand and one of the world's most popular coffees. Founded in 1867 by Henri Nestlé, the company originated in Vevey on the shores of Lake Geneva, Switzerland. With over 500 factories worldwide, it is a world-renowned food and beverage manufacturer. Initially starting with baby food production, it became famous for producing chocolate bars and instant coffee.

Industry Leadership and Transformation

Philipp Navratil, Head of Coffee Strategic Business Unit at Nestlé, stated: "As the world's leading coffee brand, NESCAFÉ aims to make a tangible impact on the global coffee sector. We want coffee growers to thrive, and we also want coffee to have a positive impact on the environment. Our actions can help drive transformation across the entire coffee industry."

Supporting growers in transitioning to regenerative coffee cultivation—regenerative agriculture is a cultivation method that utilizes nature's existing self-healing and resilience, primarily focusing on improving soil health and fertility while protecting water resources and biodiversity. Healthier soil is more resilient to climate change impacts and can increase yields, helping to improve farmers' livelihoods. NESCAFÉ provides growers with training, technical assistance, and high-yield coffee plants to help them transition to regenerative coffee cultivation methods.

Building on Past Success

Continuing to move forward on a solid foundation, today's statement builds upon Nestlé's sustainability efforts in coffee production. With the significant progress achieved through the NESCAFÉ Plan's sustainability investments since 2010, this initiative will likely accelerate development trends.

Image source: Internet

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