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Making the difference from farmer to consumer

Making the difference from farmer to consumer. Eric AGBODJAN ECEA Conference , Addis Ababa. November, 8 th 2012. Nestlé Roadmap. 1938. 12% of WW GC. 5500 cups / sec. From Farmers to Consumers. #1 Coffee Brand. Why Sustainability and what does it mean ?.

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Making the difference from farmer to consumer

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  1. Making the difference from farmer to consumer Eric AGBODJAN ECEA Conference , Addis Ababa. November, 8th 2012

  2. NestléRoadmap

  3. 1938 12% of WW GC 5500 cups / sec From Farmers to Consumers #1 Coffee Brand

  4. WhySustainabilityandwhatdoes it mean? • What matters at farm level? • Basic income to support the family • Ethiopia produces some of the finest coffees in the world, but has the lowest yield • -aged tree stock, ageing farmers lack of husbandry and support • -It is not just about price!!!!!! • Price is important but stable income is more important for the long term • Investment in GAP and PHT training, knowledge transfer, capacity building • Having the right tools to do the work empowering the community to collectively work together • Buy in from national and local government entities.

  5. Why Sustainability, and what does it mean? • Build in and on Existing Good Agricultural Practices – Social, Economic & Environmental Dimensions – Differentiating Element • Sustainable – Yield: Quality & Quantity – Land Use (intercropping), Water, Pollutants & Climate aspects • Why do coffee roasters ask for sustainably sourced coffees for their products? – Compliance, traceability, stakeholders-internal-external, NGO’s, consumers needs........ • – Credibility and accountability • Brand equity and heritage

  6. Growing demand for sustainable coffee. • Does certification/verification guarantee increase and improvement of farmer livelihoods? NO • How many sustainability schemes are there and what do they represent? • Is the farmer and the consumer confused?YES • By 2020 Global Green coffee demand is likely to be 160m bags the world needs another Vietnam, or 3or 4 Colombia’s therefore Ethiopia can contribute to fill the supply gap. • Similar land mass under coffee as Colombia and Vietnam but less than one third of the production of Vietnam and 50% of Colombia

  7. Good Agricultural Practices Post Harvest Treatment Productivity/Quantity • Trees renovation, renewal and proper pruning • Optimal plantation density • Effective use of inputs Quality • Improved coffee farming practices such as better shade and soil management. • Improved harvesting, post harvesting practices & processing Water Conservation/Management • Reduce water utilization in washed coffees. • Irrigate more with less water Future considerations Climate as it affects coffee-adaptation • Programs to monitor changes in carbon and water footprints as the new practices are implemented. • Practices to increase carbon sequestration in soils, shade trees and coffee bushes and help farmers adapt to climate change in their area

  8. Fuellinglongtermgrowth… Make Coffee Farming economically more attractive Produce more from less Improve and increase Quality and Productivity = increased income and improves livelihoods

  9. The NESCAFÉ Plan • Global initiative by Nestlé S.A. • Securethe future generations of coffee. • Launched in August 2010, a CHF 350 million investment • Sustainability across the value chain. • In line with our Creating Shared Value Principle • Women and Youth participation in leadership

  10. Making the difference from farmer to consumer A 3 pillars plan: THE NESCAFE PLAN: CHF 350 Mio (2010- 2020) Responsible farming Responsible production and supply Responsible consumption • Farmers: • Direct Procurement: • 180 000T • 170 000 farmers • 4C compliant • 90 000 T of SAN • Micro finance • Plantlets :220 mio plantlets distributed by 2020 • Better yield • Better Quality • Disease resistant • Promote bio-diversity • Soluble: • - 20% energy / ton • - 30% water / ton • Systems (NDG) • NP • Develop socio economic impact • Promote consumption • Educate consumer on issue coffee is facing • Help consumer to reduce its footprint and and To fuel the growth and give a competitive advantage

  11. NESCAFÉ Plan in Kenya Kenya Nescafé Plan started in October, 2011 with a focus on the responsible coffee farming practices

  12. NESCAFÉ Plan in Ethiopia. • Environmental friendly coffee bean pulping and washing equipment • Fair price • Sustainable agricultural practices • Improved Infrastructure and living condition of farming communities. • Help communities to emerge from extreme poverty and hunger

  13. THANKYOU.

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