This pioneering research has enabled us to provide practical support
Much discussion of smallholder coffee farming economics has traditionally centred on financial factors: the price paid per pound of coffee, and market price volatility.
Extreme swings in the market price destroy value at the farm gate, having a significant impact upon sustainable farming.
Nespresso is working with partners to look at price volatility risk. In 2009, Nespresso launched an innovative research program with the Center for Intelligence in Markets and Sustainability at INCAE Business School in Costa Rica. The program aims to construct profit and loss accounts for farms in five South and Central American countries.
This pioneering research has enabled us to provide practical support and training to farmers to improve bottom line performance, as part of our Real Farmer Income package. This includes quality and yield improvements, and use of precision agriculture to reduce expensive inputs.
According to data collected and audited by CRECE, prices for AAA Sustainable Quality™ farmers are higher than for non-affiliated farmers, with net income levels on average 46% higher. Farmers recognize, and are satisfied with, the premium paid for AAA Sustainable Quality™ coffee.
Most coffee farmers focused on sales price as their main driver of profitability
Productivity is the key driver of profitability
Farmers appreciate that their relationship with Nespresso supports higher coffee quality and leads to greater price transparency.
In 2013 in Australia, we announced a partnership with highly awarded international recycling company TerraCycle. In addition to recycling points at all Nespresso Boutiques nationally, this partnership provides another way for Club Members to recycle their used capsules.
Find your nearest recycling point