Nestlé Commits to Help Boost Cocoa Production in Mexico by 2025

As part of the third celebration of National Cocoa and Chocolate Day in the country, Nestlé announced its commitment to supply up to 40 percent of its cocoa from local Mexican producers by 2025.

On Sept. 1, 2022, Nestlé committed to the supply goal as part of its Cocoa Plan. Nowadays, the famous food and beverages company consumes 20 percent of the cocoa needed for its production. "The company’s minimum purchase of cocoa in Mexico is currently located at around 20 percent to create chocolate, but the bet is to move up to 40 percent, and in addition, a 100 percent of consumption must have a certificate of origin," said Daniela Piza, Marketing Manager, Nestlé Chocolates to El economista.

The Cocoa Plan was endorsed by the Swiss company in 2013 with the purpose to ensure the sustainable production of cocoa, protect the environment and improve the quality of life of cocoa growers. The plan is based on three main lines of action: supply chain, profitability and social development. The program is part of a global initiative by Nestlé to strengthen its supply chain, encourage producers to partner up in cooperatives and improve productivity.

Nestlé has earmarked MX$100 million (US$5 million)  to detonate its chocolate business in Mexico, which supplies the local market and is used for export. "If we look at cocoa production in Mexico, this does not cover more than a quarter of the national demand. Nestlé is currently the main buyer of Mexican cocoa, but this illustrates the potential of the Mexican countryside to grow because the demand is there," said Juan Carlos Peralejo, Vice President, Nestlé Chocolates Mexico. 

According to statistics from the Food and Fisheries Information Service (SIAP) approximately 28,399 tons of cocoa crops are produced in Mexico. Tabasco is the main producer, contributing 64.5 percent of the national production with approximately 30,000 cultivated hectares, followed by Chiapas with 34.5 percent and 18,000ha. The remaining one percent comes in smaller proportions from Oaxaca and Guerrero. 

After the COVID-19 pandemic, Nestlé presented double-digit growth in its Mexican chocolate business, though consumer demand in the US also reflects an increase in its sales. Furthermore, with the upcoming national holidays, Day of the Dead and Christmas, the company is expected to increase marketing by 15 percent by the end of 2022.