Nespresso in partnership to pilot an innovative retirement program for coffee farmers

Aguadas, COLOMBIA, 20 March 2014 - Nestlé Nespresso, the Colombian Ministry of Labour, the Aguadas Coffee Growers’ Cooperative and Fairtrade International today agreed to a ground-breaking
public-private partnership to provide a retirement fund to  coffee farmers who take part in the Nespresso AAA Sustainable Quality™ Program. This pilot initiative, supported by the Colombian Coffee Growers’ Federation (FNC), will leverage the national retirement scheme, Beneficios Económicos Periodicos (BEPS), developed by the Colombian Ministry of Labour to reach Colombian workers whose income does not allow them to contribute to a pension in their old age. 

The government will invest funds based on the level of the farmer’s contribution.  They will tap into the extensive network of farmers that Nespresso has created through its AAA Program. The pilot will be launched in the Caldas region, initially with the Aguadas Coffee Growers’ Cooperative, which is Fairtrade certified, and long-term coffee supplier Expocafe/Cafexport.  Nespresso will leverage its network of around 40 agronomists to extend the scheme to about 1,200 AAA farmers.

“This guarantee of welfare for the elderly is part of the profound social transformation this government is driving and comes with support from the private sector. We are delighted to enter into this partnership with Nespresso, which will allow us to leverage the relationships they have built with farmers in Aguadas over the last ten years,” said Labour Minister Rafael Pardo.

“We are proud to be part of this initiative, which fits within our long-term approach to secure farmer welfare and provide social benefits to farmers,” said Jean-Marc Duvoisin, CEO of Nestlé Nespresso SA. “We also believe it will encourage younger generations to continue farming and preserve this essential part of the Colombian economy and heritage.”

In the future, the program may be extended to reach the over 40,000 AAA farmers participating in the Nespresso AAA Sustainable Quality™ Program in the country.

While the Colombian government will match 20% of what farmers invest, Fairtrade International will
work closely with the local farmers’ cooperative that will determine how they can invest their earnings in this scheme, which will enable them to start planning for their retirement. This will strengthen the social dimension of the AAA Program at a community level.

“The farmers have clearly identified their lack of a pension as a key concern. With the average age of coffee famers in Colombia hitting 53, they are unable to retire with dignity because they have no pension. This innovative public-private partnership will start to address this urgent need and could be a really exciting step forward,” said Harriet Lamb, CEO of Fairtrade International.

“What is being implemented today in Aguadas is being watched with interest in all coffee growing regions in Colombia and perhaps in other countries,” said Luis G. Muñoz, CEO of the Colombian Coffee Growers Federation. “Being able to secure a decent standard of living for agricultural farmers is a challenge many countries have and this innovative scheme may very well be the most significant
step to achieve this objective.”

This initiative, first-of-its-kind in the coffee industry, to protect the future of coffee farmers in Colombia is part of the larger collaboration between Nespresso and Fairtrade International announced in July 2013.

CONTACT 

Diane Duperret,
Corporate PR Manager, Nestlé Nespresso SA 

diane.duperret@nespresso.com 

Tel: + 41 21 796 92 89

Cell: +41 79 946 90 24

About the Nespresso AAA Sustainable Quality™ Program

In 2003, Nespresso launched its own unique AAA Sustainable Quality™ Program, developed in collaboration with the Rainforest Alliance. The program seeks to ensure the highest quality while protecting the natural environment and building a future for partner farmers based on long term profitability, enhanced environmental and social outcomes and genuine sustainability. The AAA Program is based on a belief that the best way to protect the supply of Nespresso coffee is to build a more sustainable and equitable outcome for farmers. As part of the program, Nespresso closely works with many partners, such as NGOs, authorities, academics and other businesses. At the end of 2013, Nespresso was sourcing 84% of its coffee through the AAA Program.

http://www.nestle-nespresso.com/ecolaboration/sustainability/coffee

About the Colombian Ministry of Labour

The Ministry of Labour is dedicated to the protection of the rights of 22 million of Colombian workers. It is responsible for adopting and guiding the public policy of the country to contribute to the quality of life of Colombians and guarantee the right to decent work. As an integral part of its strategy, the Ministry of Labour is committed to building more and better businesses, enhancing the quality
of human talent and ensuring that all workers have social protection. The Ministry also aims to boost its old age Protection System through complementary schemes and social services that incorporate the integral Social Security System.

About the Aguadas Coffee Growers’ Cooperative

The Aguadas Coffee Farmers’ Cooperative is a social business company focused on sourcing high quality coffee from more than 1,300 farmers located in 40 districts in Caldas. As a pioneer organization, it joined Fairtrade 16 years ago, the Nespresso AAA Sustainable Quality™ Program in 2003 and Rainforest Alliance in 2010. Through its 47 years of existence the Coop has also developed a wide and strong portfolio of services to its associates, notably on technical assistance, credit, educational, support to 60 rural schools, scholarships for children of farmers, and life insurance amongst others. Its achievements in quality made the Aguadas Coffee Farmers’ Cooperative the winner on the 2011 Rainforest Alliance World cupping competition among 76 coffees from 10 origins and ranked top 5 in the same 2012 event.

About the Colombian Coffee Growers Federation (FNC)

The FNC is a not-for-profit organization founded in 1927 that represents over 500,000 coffee growing families. Considered one of the largest rural organizations in the world, its mission is to improve the well-being and the quality of life of Colombian coffee producers. Under its Sustainability that Matters® programs, the FNC has developed an integral sustainability policy focused on coffee growers that includes productive, social and environmental initiatives. It also develops scientific research, technology transfer and social and industrial processes, supporting Colombian coffee production and
commercialization.

For more information, please visit: www.federaciondecafeteros.org – www.cafedecolombia.com

About Fairtrade International

Fairtrade International is an internationally recognized, non-profit organization that works to secure fairer trade terms so that farmers and workers in developing countries can invest in a better future for themselves and their communities. Fairtrade International is responsible for the strategic direction of the Fairtrade system, setting the international Fairtrade Standards and supporting producers to gain Fairtrade certification. Fairtrade International owns the FAIRTRADE Certification Mark, a registered trademark which shows that a product has met the Fairtrade Standards. Members of Fairtrade International include producer networks who represent the interest of producers in the Fairtrade system and national Fairtrade organizations who promote Fairtrade to business and consumers in the countries of sale. Over 6 million people (farmers, workers and their family members) in 70 countries directly benefit from the global Fairtrade system.

For more information, please visit www.fairtrade.net.