Title: The World Food Prize International Symposium October 2006 Des Moines, Iowa, USA
1The World Food PrizeInternational
SymposiumOctober 2006 - Des Moines, Iowa, USA
- Sustainable Agriculture The Food Industry
- Dr. Hans Jöhr
- Corporate Head of Agriculture, Nestec SA.
2Sustainable Agriculture The Food Industry
3Sustainable Agriculture The Food Industry
1
- Setting the Scene
- The Challenge for the Food Industry
- How is Nestlé engaged?
- Summarizing
- Conclusions
2
3
4
5
4Emerging economies are set to boost the GLOBAL
DEMAND and SUPPLY for consumer goods
1
Setting the Scene
Source OECD
5Processed, storable food at high demand
1
Setting the Scene
Source OECD
61
Setting the Scene
- Natural resources are limited and locally
eventually overexploited - land, water, energy
- Caloric food demand increases fast
- Geographical decupling of supplyand consumption
(logistic / infrastructure / legislation)
"What does it mean for the Food Industry?"
72
The Challenge for the Food Industry
- The Food Industry relies on the increasing
supply of safe agricultural raw materials in
quality and quantity
- However, respecting the limits of natural
resources and weakening of rural societies
threatens agricultural production
- Consumers confidence depends on the quality
safety of the food supply chain
? Need for the development of Sustainable
Agriculture
8The Food Industry Response The SAI Platform
Our definition
Sustainable agriculture (SA) is a productive,
competitive and efficient way to produce
agricultural products, while at the same time
protecting and improving the natural environment
as well as the socio-economic conditions of local
communities
9SAI Platform
- Principles
- Work on a pre-competitive basis between food
chain stakeholders and other interested parties - Include all valuable concepts and initiatives
contributing to Sustainable Agriculture
- Activities
- Support the development of Sustainable
Agriculture principles and practices - Raise overall peoples awareness about
Sustainable Agriculture
10SAI Platform
113
How is Nestlé engaged?
The The The Concept of Shared Value Creation
12All inclusive value chain approach linking to
markets
3
13Corporate Social Responsibility built into
Nestlés strategy
3
14Creating shared value in practice
3
15Our Impact
3
- Purchasing of agricultural raw materials US
13'000 mio/yr. - Interactions with more than 400 000 farmers
directly supported by more than 800 sourcing
agronomists and 3'500 technical staff working at
farm level and in supply chain. - Running more than 150 Sustainable Agriculture
projects worldwide with many different
stakeholders.
16Summarizing Current situation needs
Harmonization for Sustainability, Food Safety and
Quality Assurance
4
non exhaustive list...
Consumer
Trade Retail
Food Industry
Trade Processor
Farmer
Input Providers
17Summarizing
Standardization Urgently Needed
4
- Benefits of Process / Verification
Standardization - Safety, compliance and quality assurance at
higher awareness level, decreasing risk
potentials, - Lower overhead costs due to identical
documentation, training material and information
systems across the organization, - A company's supply chain with standardized
processes presents one face to its suppliers and
customers, reducing transaction costs to both, - More flexibility and responsiveness of the supply
chain.
18Summarizing The way forward
4
- Implementation of harmonization processes through
Strategic Alliances throughout the food value
chain. - But, standardization is only successful if
- Communication between stakeholders is very
effective and based on trust and credibility, - Agreement on which schemes, standards,
guidelines being used is reached, - Farmers, Cooperatives, Suppliers (trade
primary-processing companies) work together, in
order to achieve common goals and to secure
common interests.
19ConclusionsSustainability is a business case
5
- Sustainable sourcing practices are widely
accepted by leading Business Research
Institutions as being the way forward to
successful business
20Conclusions
5
Sustainable Agriculture leads to
21Conclusions
5
- The big challenge today is breaking the link
between economic growth and negative
environmental impact. There are clear limits to
the earth's natural resources capacity.
Thank you for your attention !
- Further information on http//www.nestle.com/Our_R
esponsibility - or/and
- hans.johr_at_nestle.com