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China: Investigation Found Multiple Labour Violations in Coffee Farms Supplying for Nestlé and Starbucks

China Labor Watch and Coffee Watch jointly published the investigative report named "'Ghost Farms and Coffee Laundering': labor violations in Starbucks’ and Nestlé’s Chinese coffee supply chain" on 3 December 2024. Findings include instances of child labor, low wages, excessive working hours, no paid leaves, no medical insurance, and no protective gear. Certified suppliers of coffee beans made use of uncertified smallholder farms, paving way to irregular employment and in supply chains. According to the report, both companies were found to fall short of their own ethical standards. In response to The Washington Post's inquiry, Starbucks and Nestlé pledged further investigations and emphasized their existing monitoring systems and supplier compliance requirements.

In August 2025, Business & Human Rights Resource Centre followed up with the companies mentioned in the report (including certification bodies) to respond to the allegations, and to disclose steps that have been taken since the report was published. Starbucks, Nestle and 4C Services GmbH responded; SCS Global Services and Conservation International did not.

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