Nestle to invest CHF500m to optimize coffee supply chain
Nestle said that it will invest CHF500m in Mexico City, which includes CHF350m for the Nescafe Plan and CHF150m for Nespresso project to further optimize its coffee supply chain.
Under the Nescafe Plan, Nestle said that it will distribute 220 million disease-resistant coffee plantlets to farmers by 2020 to improve the yield on the existing land and increasing farmers’ income.
Through partnerships with public and private institutions in a number of countries, including Mexico, Thailand, the Philippines and Indonesia, Nestle has distributed over 16 million coffee plantlets over the past ten years.
Nestle is also expanding its technical assistance programs, in which Nestle agronomists provide advice on farming and post-harvest practices, to over 10,000 coffee farmers a year.
The company said that over the next few years it will double the amount of Nescafe coffee bought directly from farmers and their associations, eventually purchasing 180,000 tonnes of coffee from around 170,000 farmers every year.
Nestle CEO Paul Bulcke said that this initiative will creates value across the coffee supply chain, from farmers to consumers to Nestle. Creating shared value is an integral part of Nestle's business strategy.
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