Nestlé to drive coffee sustainability in Vietnam

By Neil Merrett

- Last updated on GMT

Related tags: Coffee

Nestle is to invest in sustainable coffee production within Vietnam
in order to protect the quality and competitiveness of its brands
in the growing markets of Asia.

With Vietnam now the second largest exporter of coffee, the move marks the increasing importance to processors of protecting their raw material supplies against adverse environmental and economic conditions. As the World's leading producer of soluble coffee products, Nestle will work with producers in the country to optimise sustainability in their operations to safeguard the quality and supply of the product. In August last year, processors faced marked increases in the prices of coffee from Vietnam as unfavourable climatic conditions saw a decline in exports from the country. Nestle hopes that increasing its focus on sustainable production techniques will protect its operations in the country from further instability, while at the same time ensuring a more consistent quality in its finished product. This increasing focus will involve water optimisation techniques in the cultivation of coffee beans, along with a number of post-harvesting procedures. The group also announced it would provide expert training for local farmers on better production techniques. A nestle spokesperson said that the move was a hugely significant step for the company as it looks to meet growing demand for coffee products in the region. "East and South East-Asia are among the fastest growing coffee consuming region in the world,"​ they said. "Asian consumers are starting to appreciate a wide range of coffee beverages and as a result, Nestlé, as the owner of the NESCAFE brand, has a particular responsibility in fulfilling this market need." ​Pablo Dubois of the International Coffee Organisation (ISO) told​ that he welcomed the initiative by Nestle as a positive step for the future of the Vietnamese coffee industry. He explained that the majority of Vietnamese coffee was used to fulfil demand for lower priced coffee, particularly to be used in instant blends. This he added had resulted in less importance being placed on the quality of the product in the country. "The quality of coffee fromVietnamis a particular problem, especially in terms of the industry's drying and processing techniques,"​ said Dubois By acting to improve overall production quality, Dubois is confident that the company could significantly improve the fortunes for coffee in Vietnam. "Nestle's plans, particularly if they lead to improving post harvesting techniques like drying, are a very good step in promoting economic stability,"​ he said. "If these areas are addressed successfully, then the investment could be very positive for the future of the Vietnamese coffee industry."

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