Nestle is conducting a pilot program to provide cash incentives to coffee farmers who grow beans sustainably as part of its efforts to reduce greenhouse gas emissions in its coffee business. The initiative aims to address growing pressure on consumer goods companies to improve their supply chain practices. Nestle, the world's largest packaged food company, has committed to investing $1 billion by 2030 in sustainable coffee sourcing, which now includes supporting farmer income. Under the program, approximately 3,000 coffee farmers in countries like Ivory Coast, Indonesia, and Mexico have been offered conditional cash rewards to encourage the adoption of regenerative agricultural practices. These practices involve using organic fertilizers, planting shade trees to protect coffee beans, and intercropping to promote biodiversity and create additional income sources for farmers. Initial assessments have shown positive outcomes, including increased adoption of regenerative practices. The move comes amid concerns raised by a 2021 report indicating the limited impact of current efforts to protect human rights and the environment in the coffee industry, with most farmers lacking the resources for sustainable farming. The European Union has also introduced legislation to combat deforestation linked to imported commodities. Despite the coffee sector's significant value, producing countries and farmers receive a small fraction of the retail revenue, with many coffee-farming families living in poverty.

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