Coca-Cola increases contract-farming, plans to include tea
The Coca-Cola Company, the world's largest beverage manufacturer, is expanding its contract-farming portfolio to tea, coffee and other ingredients. Contract-farming consists of a company supplying growers with inputs such as seeds and chemicals, and buying back the crop at a pre-determined price. This strategy, used by Coca-Cola in many countries around the world, allows it to protect itself against price fluctuations, control agricultural practices, deliver higher yields and monitor quality specifications. As the company's sales related to tea continue to grow, it now plans to expand this system to tea, especially in Africa, where the availability of arable land is high.