SAFEGUARDING THE FUTURE OF COFFEE
Coffee's volatile environment
Coffee is a commodity that is traded in the stock exchange and its price is highly dependent on the market's behavior. External events such as extreme weather patterns , like droughts or floods can negatively impact coffee's supply and demand. As a result, market volatility is creating income instability making it difficult for coffee farmers to invest for the future. As well as driving younger generation away from the coffee business.
Building resilience hand-in-hand
Through our AAA Sustainable Quality Program , and together with the Rainforest Alliance , we encourage the use of agroforestry to help farmers grow the crops resilience. To further such resilience , we have worked with Fairtrade International to set up social wellfare programs like harvest insurance programs designe to act as a safety net in the event of extreme weather conditions and mitigate coffee farmers' vulnerability to climate change.
Growing a brighter future
The lack of pensions in one of the promary concern voiced by farmers, which is why , along with Fairtrade International and the Colombian government, we have designed a pension scheme. Empowering farmers to actively plan for their retirement and enabling them to retire with dignity, whilst facilitating the generational transfer of farms from parents to their children. A first of its kind in the coffee industry that has seen 2,045 AAA farmers enroll.
Women play a crucial role in coffee production and yet benefit from fewer resources than men do, such as land, credit and information. To help fill the gender gap , we have designed a gender analysis tool to measure the level of gender equality within the AAA Program coffee supply chain but also to provide actionable insights. Training agronomist to analyse , understand and address gender inequalities has helped increase women's access to resources.
The need to grow resilience
Today , rising temperatures and weather shocks from climate change are affecting the environment, the soil and the long- term sustainability of coffee farms. This risk has created the need to transition towards more natural ways of farming to help coffee farmers reduce their environmental impact , make farms healthier and more resilient to climate change and in doing so guarantee their livelihoods.
Encouraging more natural farming
The longstanding relationship we have built with smallholder coffee farmers through AAA Sustainable Quility Program has strengthened our vision for the sustainable future of coffee farming. Together with the Rainforest Alliance , we are promotiong and incentivizing the implementation of nature – based farming by means of regenerative agricultural practices to create healthier and more productive farms.
Safeguarding the future of land
Regenerative agriculture is a collection of farming methods that aims to enrich soils , preserve biodiversity and foster healthier crops through eco-friendly initiatives like agroforestry and organic farming. By reverting to this approach via the AAA Program, we believe over 90% of Nespresso's coffee will be produced from farmers using regenerative methods by 2030. As a result, this means better safeguarding the long-terms future of land.
New Sources of Prosperity
Nature based farming can offer alternative sources of income. For example,beyond providing shade for coffee trees, and absorbing CO2 from the atmosphere, trees planted as part of our agroforestry program can also be leveraged as a source of income beyond coffee. Be it by selling wood, fruits or even honey from bees. Farmers now have the opportunity to unlock new potential from their land and grow resilience through new sources of revenue.
Insuring a way of life
The Impact of climate change can threaten the future of a farm. Building resilience through regenerative agriculture initiatives such as tree planting helps mitigate this threat. However, to further anticipate these resiks, we have worked with Fairtrade International to set up a harvest insurance programs designed to act as a safety net for farmer by compensating them in the event of a poor crop and thereby reducing the vulnerability of climate change.