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August 2011 | Adam Leach
company Nestlé plans to source 30,000 tonnes of coffee from Vietnamese farmers once it has
established a new factory in the country.
aims to provide business to 16,000 local farmers once it has built a $270
million (£167 million) coffee-production facility in the Dong Nai region. This
factory will use coffee supplied by the farmers to produce products for its Nescafé brand, which will be sold both in the local
market and for export.
CEO Paul Bulcke, said this week: “This investment is fully aligned with the
global Nescafé Plan, launched just a year ago, which brings our commitment to
support responsible coffee farming, production and consumption together.”
investment is part of a wider CHF 500 million (£419 million) programme, which
aims to increase sustainability in the Nescafé supply chain by 2020. Two of the plan’s key
objectives are to increase the amount of produce the company buys directly from
local farmers and improve farming methods.
week the company also released its half-yearly results. It reported an
operating profit of CHF 6.2 billion (£5.7 billion), up 0.2 per cent, despite
input costs increasing by 1.2 per cent, compared with the same period in 2010. The
company said expansion into Asia was one of the key areas driving growth. Part
of this was a push to broaden the distribution chain to enable it to break into
rural areas. Soluble coffee was identified as one of the best-performing
product categories in the region.
This will be the company's fifth factory in Vietnam but the first to produce coffee. It will start to produce coffee in 2013 when the factory is operational.
January a report conducted by the
Consumer Foods Group, which Nestlé is a member
of, said that by 2020, the public will create demand directly from their
homes, on mobile devices or in store. It said consumer awareness about
sustainability demands a more CO2-friendly supply of products and services.