Since cooperating with thousands of farmers at Tanggamus and West Lampung in 1994, Nestlé and its partners have been consistently providing coffee farming training through the NESCAFÉ Plan program. The program is part of the Creating Shared Value Rural Development focus, which also includes delivering nutrition education for the families of coffee farmers with the aim of improving their livelihoods.
Currently, Nestlé has been working with 20,000 farmers where 18,000 of them have received the 4C Certificate which stands for Common Code for Coffee Community, an international certificate from the 4C Association stating that the coffee farmers in Lampung have been implementing sustainable agriculture techniques. “This integrated coffee treatment method is expected to help increase farmers’ income and welfare,” said Nestlé Indonesia President Director Rashid Qureshi, while welcoming Vice President M. Jusuf Kalla to the Panjang Factory, Bandar Lampung on February 13, 2016. The visit to Indonesia’s ‘Home of NESCAFÉ’ was a part of the Vice President’s agenda in a series of meetings on National Coffee Development in Lampung.
Accompanied by the Minister for Agriculture Amran Sulaiman, the Minister for Industry Saleh Husin and Governor of Lampung Muhammad Ridho Ficardo, the Vice President observed the production activities in processing coffee beans at the Panjang Factory. In addition to having a dialogue with Nestlé Indonesia’s management, the Vice President also held discussions with the coffee farmers, as partners of PT Nestlé Indonesia’s AgriService Team. In the dialogue, 26 farmers representing KUB Robusta Prima, KUB Mawar and KUB Tani Alam Lestari Joint Farmers Group elaborated on their cooperation with PT Nestlé Indonesia in developing their coffee farms. In addition to being trained on sustainable agriculture practices, the farmers also explained that they have been receiving both technical and financial support. According to these farmers, PT Nestlé Indonesia’s technical assistance program has been very important in helping them to increase their yield and income.
However, the Farmers also expressed their concerns over a number of issues and challenges; such as the still inadequate transportation infrastructure, which hampers the delivery of coffee beans from the farms to the factories. Listening to this, Jusuf Kalla stated that this year, the Government shall pay more attention to the developing coffee industry in Indonesia. The government will launch a number of programs to increase coffee productivity in 11 coffee producing areas in Indonesia, including Lampung. To note, coffee production in Indonesia only reached 500 thousand tons in 2015 or a 1% increase from the previous year, while global demand for coffee increases up to 15% each year.
A number of programs that have been designed by the Government include efforts to stabilize coffee price and prevent prices from falling significantly during harvest time. This policy will be implemented gradually. The Government’s program is expected to increase coffee production by 100% from the 2015 figures within 5 years. To achieve this target, the Government has allocated 1.5 trillion Rupiah each year in the form of financial credit for coffee farmers.
As one of Indonesia’s coffee producing areas, Lampung coffee beans are known for their high quality and have succeeded in penetrating the international market. Data from the Trade Office of Lampung Province show that Lampung robusta coffee beans exports keep increasing year to year. It is projected that Lampung coffee beans exports will continue to increase, considering that Lampung is the largest robusta coffee bean producer in the country. “Thus far, coffee beans produced by the farmers in Lampung have also been bought by Nestlé factories in other countries. We believe, if coffee farmers keep producing high quality coffee beans, demand for export will continue,” said Rashid Qureshi. The Vice President agreed while saying that in this modern age, drinking coffee has become a life style for global citizens, as shown by the spread of coffee shops. Thus, as the best producer of robusta coffee beans, Lampung should be able to increase its coffee beans export. In an open market, coffee farmers will gain more benefits.