Responsible Sourcing and Rural Development

Around two-thirds of Nestlé’s worldwide expenditure is on raw materials and nearly 40% of that goes towards three main ingredients – milk, coffee and cocoa.

Many of our commodities rely on complex supply chains, involving large numbers of small-scale farmers in developing countries. We are committed to helping the 540,000 farmers who supply Nestlé directly to increase their productivity, protect the environment and have sustainable livelihoods.

Our 950 agronomists and more than 15,000 extension workers and contractors offer support and training for farmers, governments and NGO partners throughout the world. In 2009, 165,553 farmers worldwide were trained through Nestlé programmes.

We have developed support strategies that meet the specific needs of our farmers. Using regenerative agriculture practices and an integrated approach, we are helping farmers create resilient agricultural businesses with sustainability at their core. This work has meant that more farmers are earning a living wage, more ingredients are responsibly sourced and human rights are more deeply embedded into agricultural supply chains. Most importantly, we have set new global standards showing that when businesses commit to doing the right thing, lives can change.

Moreover, sustainable food systems rely on sustainably produced ingredients. That starts with responsible sourcing, which in turn requires traceability. We make it our business to know not just where our ingredients come from, but how they are produced and the impact they have on the environment. Agriculture – whether crops or livestock – needs land.

We also know that for decades, forests have been cleared to feed rapidly growing populations. This in turn is contributing to climate change. In 2020, we took an important step toward evolving our strategy from a focus on no deforestation to a forest positive approach. This new approach involves sourcing from suppliers who are actively conserving and restoring forests while promoting sustainable livelihoods and respecting human rights.