Nestle plans to increase direct purchases from Vietnam coffee farms by as much as five times over the next five years in order to increase overall quality and meet the rapidly increasing local demand.
Nestle, the world’s largest food company, currently buys some 200,000 to 250,000 metric tons of coffee each year from Vietnam, the world’s largest robusta exporter. According to a source in a recent Bloomberg Businessweek report, the Swiss company plans to purchase some 60,000 metric tons of coffee directly from Vietnamese coffee farms within the next half decade, compared to 12,000 to 14,000 tons this year.
“Shortening the supply chain to reach more directly to farmers will improve the growers’ income, as well as traceability of the coffee,” Nestle Vietnam Ltd. Managing Director Rashid Qureshi told Bloomberg. “We can train them, help them increase yield and quality of coffee.”
The full story: Bloomberg Businessweek