Testimony 8 - Nestlé
• We welcome the introduction of Fair Trade products as an extension of consumer choice.
• In the ‘Fair Trade’ system a social premium is paid on top of a set minimum price for the beans and these are bought direct from the farm. Fair Trade benefits some cocoa farmers but it is not the only way to support them.
• We support cocoa farmers in many other ways; by helping them develop sustainable crops of quality beans which are sold at reasonable prices; thus creating a long- term stable market.
Our activities include:
• Supporting essential research into cocoa growing.
• Helping to develop integrated pest management (IPM) programmes for cocoa growers.
• Involvement in key initiatives – such as the International Sustainable Cocoa Programme and the Small Tree Crops Programme - to encourage cocoa sustainability.
• We do buy some cocoa directly from individual farmers. But even with increased liberalisation it is likely to remain impractical to buy direct the quantities we need. In some areas the supply chain is simply too long and complex – there are more than 600,000 cocoa farms in Cote d’Ivoire alone. Plus, we buy most of our cocoa semi processed.
• We too want farmers to have a fair income. But paying more for cocoa across the board does not work. Cocoa prices are governed by supply and demand; previous attempts to set prices have failed.
• We are encouraging the development of more farmers co-operatives. This will bring farmers further benefits and should enable them to retain a greater share of the world market price.