Launched in 2010, the NESCAFÉ Plan is a global initiative that helps ensure a sustainable supply of quality green coffee. Through this program, Nestlé Philippines aims to increase supply of local Robusta coffee while helping local farmers increase their yield and their income from coffee farming. Through the program, coffee farmers get high yielding plantlets at cost, technology transfer through training across the country, a support network of agronomists and strategically located buying stations close to coffee areas so farmers can sell directly to Nestlé.
For years, the NESCAFÉ Plan has collaborated with farmers, stakeholder groups, and the government. Nestlé partners with government through the National Convergence Initiative (NCI) consisting of the Department of Agriculture, Department of Agrarian Reform, Department of Energy and Natural Resources and the Department of Interior and Local Government. The NCI partnership with Nestlé which started in 2011, is a joint technical and commercial cooperation for the further development of the coffee industry.
The NESCAFÉ plan in the Philippines helps farmers through the following:
1. High yielding plantlets production and distribution
Nestlé adopts technology from the Nestlé Research and Development center in Tours France. These varieties are of excellent quality and have been certified by the Department of Agriculture’s Bureau of Plant Industries.
Nestlé grows these plantlets in Nestlé and Department of Agriculture facilities across the country:
- Tagum, Davao del Norte -Nestlé Coffee Plantlet Production and Training Center (NCPPTC)
- Lipa, Batangas -Lipa Integrated Coffee Center (LICC)
- Aglipay, Quirino -Quirino Integrated Coffee Center (QICC)
- Malaybalay, Bukidnon -Bukidnon Integrated Coffee Center (BICC)
- Trento, Agusan del Sur -Trento Integrated Coffee Center (TICC)
- Carmen, South Cotobato -Carmen Integrated Coffee Center (CICC)
2. Capacity building technical training for farmers
Nestlé conducts the Coffee Production Technology Training (CPTT), a three-day training course that covers basic coffee growing skills. Coffee farmers are taught coffee propagation, nursery & farm establishment, fertilization, care and maintenance, harvesting & post-harvest operations, quality control & marketing, coffee rejuvenation & regeneration. The training also covers coffee farming sustainability following the NESCAFÉ Better Farming Practices (NBFP) and 4C Code of Conduct.
The NESCAFÉ Better Farming Practices (NBFP) is a set of coffee farm practices designed to increase productivity while assisting farmers to meet basic social and environmental criteria, as defined by the Common Code for the Coffee Community (4C) and Sustainable Agriculture Network (SAN) standards. The 4C Code of Conduct is a set of codes which include the 10 unacceptable practices and 28 principles covering social, environmental and economic aspects of sustainable coffee production. The 4C orientation includes farm management and productivity, environmental conservation, health and safety, and quality, traceability and profitability modules. 4C verified farmers and suppliers are provided incentives for farmers to develop sustainable agricultural practices as well as seek and maintain verification.
Nestlé conducts the CPTT training in 3 sites: Tagum, Davao del Norte Nestlé Coffee Plantlet Production and Training Center (NCPPTC), Lipa, Batangas Lipa Integrated Coffee Center (LICC) and Malaybalay, Bukidnon Bukidnon Integrated Coffee Center (BICC). Nestlé conducts 4C training in the field closer to where the farmers till the land.
3. Buying Stations Nationwide
Seasonal buying stations are opened across the country to make it easier for farmers to sell to Nestlé. The buying station in the Nestlé Cagayan de Oro factory is open year-round.
Farmers are updated with prices regularly through text messages with different grade coffee and the incentives of each grade.
The company also established the Farmer Connect program which is a direct sourcing program that ensures traceability up to farmer level by buying either directly from farmers, cooperatives or selected traders applying Nestlé good agricultural standards, principles and practices, with engagement in capacity building and training. Nestlé abides by world market price.
The buying stations can be found at the following locations:
- Silang, Cavite
- Lipa, Batangas
- Diffun, Quirino
- Davao del Norte
- Maramag, Bukidnon
- Tagbina, Surigao del Sur
Farmers bring their produce to the buying station where a sample is collected on delivery to assess quality of beans. Farmers get paid with 8 banking hours upon receiving a receiving report from the buying station upon delivery.
Results to date
Over the years, the Company has increased the number of farmers trained. Since 2012, Nestlé has trained 49,990 farmers. Through partners, Nestlé has distributed 11,722,334 plantlets. The volumes of sustainably sourced coffee has increased through the years. 4C volumes have increased by 379% increase in the last 3 years. Of the 14,000 farmers covered directly by agronomists and technicians, 9,129 are now 4C farmers. In the last 3 years the Company has steadily increased its local purchase of Robusta coffee by 165% since 2015.