Sustainable Agriculture Initiative

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Sustainable Agriculture Initiative

• Fundación Mexicana para la Investigación
• Agropecuaria y Forestal, A.C.
• First International Symposium
• Challenges of Agriculture in the 21st Century
• A Food Industry Response
• Mexico - November 19, 2003
• Dr. Hans Jöhr
• Corporate Head of Agriculture
• Nestlé S.A., Switzerland

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What is SAI?

• An initiative launched by the Food Industry
• Aiming to actively
• support the development of SA
• communicate worldwide about SA
• Involving food chain stakeholders other
  interested parties

3
Drivers of change

• Changing consumer expectations

• Growing population
• diet changes
• Limited resources
• land water
• Globalisation
• trade manufacturing

???
perceived quality
environment, technologies (GMOs), animal
welfare ...
4
Challenges in upstream supply chain

• ... transparency, traceability from farm to table
  to avoid negative effects on

Consumer
Trade Retail
Food Industry
Trade Processor
Farmer
Input Providers

• quality safety
• efficiency productivity
• consumer perception
• company image
• branded products

???
ethics, fair trade labor issues, rural life,
politics ...
environment, technologies (GMOs), animal
health welfare, ...
5
Challenges for Food Industry

• Food Industry
• relies on long term supply of safe quality
  agricultural raw materials
• consumer confidence depends on quality safety
  of food chain
• damages on natural resources environment may
  affect agricultural productivity
• need for development of sustainable agriculture

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What is Sustainable Agriculture?

• "Sustainable Agriculture (SA) is a productive,
  competitive and efficient way to produce
  agricultural raw materials, while at the same
  time protecting and improving the natural
  environment as well as the socio-economic
  conditions of local communities

Definition of founding Members of SAI
Platform Group Danone, Nestlé and Unilever
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The 3 pillars of SA

• People(society)

quality confidence social issues growing food
needs
Sustainable Agriculture to tackle the problemat
the source
pollution biodiversity natural resources habitats
for wildlife
prices farmers income sustainable
business company rating / image
Profit (economy)
Planet(environment)
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Integrated strategy
Food Industry Initiative support development of
SA communicate worldwide involve food chain
stakeholders mainstream agriculture
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SAI Platform members
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SAI key actions tools

• Build manage knowledge
• gathered from members, from meetings, literature
  ...
• Raise awareness
• website, newsletters
• participate in workshops, conferences
• Involve stakeholders, build cohesion
• individual consultation
• thematic working groups
• Support implementation of SA practices in supply
  chain
• raw materials specific guidelines

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Support of SA practices

• Working Groups (today)
• Cereals - chaired by Danone
• deliverable position paper practices by end
  2003
• Coffee - chaired by Neumann Kaffee Gruppe (strong
  involvement of Nestlé)
• deliverable mission statement, position paper
  and practices by end 2003
• Palm Oil - lead by Unilever
• Roundtable August 21-22, 2003

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Examples Unilever Bestfoods

• UBF programs
• Peas and spinach U.K., Germany, Italy
• Tomatoes Brazil, Australia, USA (California)
• Palm Oil Ghana, Ivory Coast
• Palm Oil First commodity multi-stakeholder
  dialogue global roundtable on sustainable palm
  oil - Malaysia, August 21-22, 2003
• Tea India, Kenya, Tanzania
• Sus Ag guidelines developed, implementation in
  sourcing policies in progress, more crops to
  follow (e.g. rapeseed, soya, sunflower)
• Info www.growingforthefuture.com

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Examples Group Danone

• Participation in the Charter for wheat production
  (1999)
• Quarterly Security Audit of dairy farms (France,
  Europe later USA / America)
• Three pilot projects in France (milk, cereals,
  fruit)
• Participation in SAI
• Working Groups on milk and cereals

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Examples of Nestlé achievements

• Milk
• Australia, China, France, Holland, Turkey, UK,
  Pakistan ...
• ensure sustainable supply

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Nestlé Road Map

• Understand what enables sustainability
• Set up tools to make sustainable performance
  tangible
• KPIs for supply chain
• Joint studies with Universities and RD
• Implement measurement management system in
  supply chain
• Collaborate in SAI working groups (Coffee, Milk,
  Palm Oil, Cereals ...)

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Elaborate sustainability indicators

• Lead by University Bern - study indicators at
  farm level
• collaboration of SHL
• Example milk supply in N.E. China (smallholders
  lt1ha)

Actual
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Supply chain sustainability
SHL
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Supply chain sustainability

• Important questions for the food industry
• Is production of the raw materials sustainable?
• Which risks are associated with the supply chain?
  
• Which external factors could put supply at risk?
• How vulnerable are production and supply?
• Are improvements of framework conditions possible?

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Call for Action

• Sustainable Agriculture
• a moving target in an ever-changing environment

Worldwide initiatives active collaboration of
all stakeholders needed to make SA a success