Published 1 month ago.
About a 4 minute read.
Image: Quyen Luong
Nestlé is piloting a weather-insurance program for over 800 smallholder farmers in Indonesia and has contributed
to a guide for coffee farmers to shift to regenerative practices.
Climate change is putting many commodity-growing regions under pressure. Many smallholder
coffee farmers around the world are now at the mercy of irregular weather
conditions that can affect their crops.
Major coffee brands are taking action: Last month, for example, Starbucks
announced the development of six new coffee-tree
that are resistant to some of the impacts of climate change.
Now, Nestlé has
it is piloting a weather-insurance program for more than 800 smallholder
farmers in Indonesia that supply coffee for its Nescafé brand. Launching
in collaboration with Blue Marble — a specialist
in climate insurance — the program provides financial protection to help farmers
cope with unpredictable, crop-battering weather patterns including rainfall and
"This weather insurance helps to establish a support mechanism for smallholder
coffee farmers in Indonesia,” says Marcelo
Burity, Global Head of
Nestlé's Green Coffee Development. “It allows them to access financial resources
to re-establish their crops in the event of irregular weather conditions while
building resilience in coffee farms."
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The insurance uses satellite-based climate data to determine when coffee output
has been impacted by either too much or not enough rainfall during key phases of
the crop cycle. Payments are issued automatically to registered coffee farmers
that have been affected, according to the severity of the weather.
"Smallholder coffee farmers in Indonesia are vulnerable to climate risks and
need access to insurance to protect against extreme weather events," said Blue
Marble CEO Jaime de
Piniés. "We are
proud to partner with Nestlé and its brand, Nescafé, to develop innovative
ways to support the climate adaptation of smallholder coffee farmers and their
This initiative will help further Nescafé Plan
— the brand's vision to support the long-term sustainability of coffee and to
help improve farmers' livelihoods. Based on the results of the pilot, Nestlé
will determine whether to expand the approach to other Nescafé sourcing
locations around the world.
Speaking of climate-resilient farming: As more and more global food and beverage
producers are acknowledging every day, a shift toward regenerative agriculture
helps farmers restore soil health, reverse biodiversity loss, strengthen
ecosystems and reduce the amount of greenhouse gases released during farming.
But changing agricultural practices requires access to knowledge and time to
learn and implement.
Having committed to sourcing 20 percent of its key ingredients through
regenerative methods by 2025 and 50 percent by 2030, Nestlé has already begun
shifting some of its agricultural supply chains — including
— to regenerative practices. Now, hot on the heels of the release of SAI
— which offers a much-needed globally aligned definition of regenerative
agriculture, to which 30 agriculture co-ops and 170 companies (including Nestlé)
have committed — Nestlé has contributed to Regenerative Agriculture for
Low-Carbon and Resilient Coffee
Farms, a guidebook developed
by the Alliance of Bioversity International and the International Center for
Tropical Agriculture (CIAT). The guidebook
— which Nestlé says complements its own Regenerative Agriculture
— provides field agronomists, trainers and professionals working with coffee
farmers with a set of best practices that they can use and adapt to different
farming contexts, helping farmers transition to regenerative practices —
including agroforestry, intercropping, soil conservation and cover
integrated weed and pest management, integrated nutrient management, efficient
water use, waste
landscape actions and the rejuvenation of coffee trees with well-adapted
Pascal Chapot, Global
Head of Sustainable Agriculture Development at Nestlé, said: "The guidebook
gives coffee farmers a set of field actions they can implement tomorrow to help
them become more resilient to climate change and to diversify their sources of
income. Knowledge is key; and we hope that this guidebook makes these
regenerative-agriculture practices more accessible to farmers and supports an
accelerated transition towards them — this is essential to tackling the climate
Published Oct 10, 2023 2pm EDT / 11am PDT / 7pm BST / 8pm CEST