Nestlé is helping to revive South Africa’s chicory industry by committing to increase local sourcing of the plant for use in its Nescafé Ricoffy chicory-based coffee brand, in a move that will create 870 new jobs by 2019.
Through a memorandum of understanding (MOU) with the nation’s Department of Trade and Industry (DTI) and the Eastern Cape Government, Nestlé will work with the authorities to encourage farmers in the country to grow the plant, to help them generate an income and revitalise the rural economy.
South Africa’s chicory industry has declined in recent years as imports of the plant have risen, and through the five-year MOU, Nestlé has committed to buying chicory from local farmers at a competitive price, and to providing technical support for farmers and lab-based testing services.
Rob Davies, South Africa’s Minister of Trade and Industry, said at the signing ceremony for the MOU that Nestlé’s decision to increase its local procurement of chicory for Nescafé Ricoffy would have a “significant impact” on the economy of the Eastern Cape.
