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3 Mar 2025

Mexico: Pricing, purchasing practices and poverty cycles for farmers in Nestlé and Starbucks' coffee supply chain

The report 'Exploitation and opacity: The hidden reality of mexican coffee in Nestlé and Starbucks supply chains' by Empower LLC, Coffee Watch, and ProDESC analyzes the Mexican supply chain of Starbucks and Nestlé, companies that control the majority of Mexico's coffee market. Particularly, it examines the pricing and purchasing conditions in the supply chain where intermediaries participate in coffee that is cultivated in Chiapas and Veracruz. These practices allegedly affect farmers who are eventually trapped in cycles of poverty and vulnerability. The report includes recommendations for corporations regarding transparency in the supply chain, crop diversification and sustainable agricultural practices, traceability, and verification, as well as action by the state and civil society. The Business & Human Rights Resource Centre invited companies to respond to allegations regarding their Mexico coffee supply chain. Starbucks, Nestlé, and NKG responded, but AMSA and Casemex did not.

Company Responses

Nestlé View Response
Starbucks View Response
NKG Tropical Farm Management View Response
Agroindustrias Unidas de México S.A. DE C.V.(AMSA)

No Response

Cafés y Semillas de México S.A. DE C.V. (Casemex)

No Response

Nestlé View Response
NKG Tropical Farm Management View Response
Starbucks View Response

Timeline