Nicaragua

Nestlé’s offensive in favour of low quality coffee crops

Giorgio Trucchi

03/04/2011

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Thousands of coffee growers protest against the Swiss multinational’s underhanded tactics.

Nicaraguan coffee growers have united to demand a government ban on Robusta coffee crops. This low-quality crop is currently being promoted by the Swiss multinational Nestlé, following their purchase of Presto, the leading national and regional instant coffee brand from Café Soluble SA (CSSA) in 2006.

In Nicaragua, coffee production accounts for 33% of agricultural GDP and 5.7% of overall GDP. Average annual earnings amount to US$200 million, or 25% of total exports.

Over 36,000 Nicaraguan families make a living directly from Arabica coffee crops. This high-quality coffee is responsible for 31.5% of the jobs in the agricultural sector, and 13% of the jobs overall.

According to Eddy Gutiérrez, who represents coffee growers in the Nueva Segovia region, Nicaragua’s high-quality Arabica coffee has long benefitted from an international reputation.

Recently, however, Robusta, “a new low quality variety”, has entered the market. “It is mostly used to make instant coffee and espresso blends,” he says.

The Nicaraguan Ministry of Agriculture (MAGFOR) adopted a resolution limiting Robusta crops and maintaining them at experimental levels. Nevertheless, some growers are increasing their production.

Most coffee growers claim the multinational Nestlé is behind promoting this crop. The company owns the instant coffee brand Presto, which is produced by Café Soluble SA (CSSA). CSSA’s president is also the head of CISA Exportadora, another company promoting this business.

Currently, Robusta coffee crops cover over 500 hectares, “mainly owned by farmers in need or with little coffee growing experience who are being taken advantage of,” says Gutiérrez.

“In addition to being very fragile, the species must be grown outdoors, which means cutting down trees and other negative impacts on the environment.”

Currently, Nicaragua is one of the countries producing the highest quality coffees. The offensive by Nestlé and its partners could jeopardise this image.

Nestlé seeks to cut costs

Martha Estela Gutiérrez, who represents coffee growers in Matagalpa, says there is tremendous pressure coming from Nestlé.

“At the Consejo Nacional del Café (National Coffee Council or CONCAFE), the majority passed a resolution supporting a ban on Robusta coffee crops. But Nestlé has still managed to pursue its agenda. The pressure coming from Nestlé is considerable. Producers face structural difficulties because they lack financing and technical assistance. Nestlé, on the other hand, has the ways and means to reach its goals”.

As Gutiérrez explains, “Nestlé needs to produce goods at the lowest cost. Its main factory is in Toluca, Mexico but Nicaragua is the only country in the region where it is able to produce Robusta coffee with no restrictions.”

Consequently, thousands of coffee growers from all over Nicaragua travelled to the capital to call for a halt on promoting and financing Robusta coffee crops. They also asked deputies to issue a decree banning Robusta coffee crops and forcing Nestlé to compensate the growers involved in its scheme.

- Giorgio Trucchi - Rel-UITA

http://www.rel-uita.org/

(Translated from the Spanish by Rhonda Campbell)

Original article published 09-10-2010

https://www.alainet.org/fr/node/149659?language=en