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Rwanda: Nespresso Eyes 80,000 Rainforest Alliance Coffee Farms by 2013

Posted by Flora Sawita Labels: , , , ,

Source: Reuters
10/11/2009

New York, Nov 10 - Nestle Nespresso aims to buy coffee from 80,000 Rainforest Alliance Certified farms by 2013, as the company takes steps toward ensuring its product's long-term availability and high quality, a company spokesman told Reuters.

Nespresso currently buys coffee from 25,000 farms which are part of its AAA Sustainable Quality Program, developed together with Rainforest Alliance, that will account for 40 percent of the total purchases in 2009.

By 2013, 80 percent of Nespresso's coffee purchases will be from AAA Program farms certified by Rainforest Alliance in Central America, South America, Africa and India.

"We have to more than triple the amount of farms," said Guillaume Le Cunff, International Marketing and Strategy director for Nestle Nespresso SA.

"We are convinced at Nespresso that creating long-term value for the farmers is definitely the best way to say we have a long-term supply of the highest quality coffee," Le Cunff said.

Le Cunff, who is based in Paudex, Switzerland, spoke to Reuters on the phone from Boston, at the Third Nestle Nespresso AAA Sustainable Quality Coffee Forum.

Nespresso sells coffee in packaged capsules that people make at home with machines that shoot hot water through the capsules to brew individual cups of espresso and coffee.

By 2013, 80 percent of Nespresso's coffee purchases will be from farms certified by Rainforest Alliance primarily in Central America and South America, as well as some in Africa and India, Le Cunff said.

Rainforest Alliance is a New York-based international, nonprofit conservation group that certifies farms that meet its criteria for economic, environmental and social sustainability.

The Nespresso AAA Sustainable Quality Program follows specific quality and sustainability guidelines in exchange for a premium price.

"We have to source the best of the best beans. We are looking for the 1 percent best beans in the world. We have to create value for the farmers because if not, we will not have the beans," Le Cunff said.

Nespresso pays at least 30 percent premium above the market level, said Karsten Ranitzsch, head of Green Coffee for Nespresso.

"We are buying very rare varieties and they, by definition, demand a premium," Ranitzsch said.

The company is looking at what it calls Real Farm Income, after the South American business school INCAE completed a study that looked at short-term economic barriers that kept farmers from investing in sustainable farming.

The study was commissioned by Nespresso and involved 510 farms in Brazil, Guatemala, Colombia and Costa Rica.

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