A Corporate Perspective on Agricultural Sustainability

Transcription

1 2 nd SDSN Mediterranean Conference A Corporate Perspective on Agricultural Sustainability Dionys Forster Corporate Operations Agriculture Siena, 5 March 2015

2 Feeding 9+ bio people by 2050 threats or opportunities? Soil fertility Breeding Energy pricing Water Management Technical Assistance Policy interventions 2

3 Sustainable Agriculture Initiative Nestlé (SAIN) LAND WATER ENERGY CLIMATE PEOPLE To ensure supply we have to smarter use natural resources by Not wasting Not polluting Not destroying and a good start is eradicating the worst and promoting better Sustainable Agricultural Practices. Producing more food from the same area of land while reducing the environmental impacts requires what we call Sustainable intensification of Agriculture. NO FOOD WASTE 3

4 What our consumer / stakeholder want to know 4

5 Strategic raw materials in Farmer Connect Dairy Nescafé Plan Cocoa Plan 29 Farmer Connect Markets 10 Farmer Connect Markets 7 Farmer Connect Markets 413,000 farmers supply milk 176,000 farmers supply green coffee 33,800 farmers supply cocoa 7.3 bio liters of fresh milk in ,200 tons of green coffee sourced 62,299 tons of cocoa sourced mio. coffee plantlets distributed 1 mio. cocoa plantlets distributed Data: Milk (2012) Green Coffee & Cocoa (2013) 5

6 Continuous improvement through sustainability assessments Developing opportunities for farmers by encouraging reflection about all three dimensions (economic, social and environmental) of sustainability. RISE (Response-Inducing Sustainability Evaluation): indicator-based method for holistic sustainability assessment of farms attempting to make sustainability measurable communicable and tangible RISE is not a control or certification system. 6

7 Overview on RISE assessment at Nestlé Total No. Dairy Coffee Cocoa Fru&Veg Total No. of Nestlé Markets: Total No. of farms assessed: Data Source

8 Sustainable tomato production techniques, Spain Overall Objective Ensure sustainable tomato production by establishing a improved management system which includes economic, social and environmental aspects. Objective i. Set up on-farm validation trials with traditional and improved farming practice including soil preparation, integrated pest/disease and water management. ii. Evaluate best suitable tomato varieties for growing and processing. Outcome Similar yields were obtained in term of quantity and quality from traditional and improved farming practices. Strong reduction of irrigation water used Nitrogen and potassium were strongly reduced in the improved approach. 8

9 SAIN support instruments in Farmer Connect Technologies Fodder/feed production & conservation, planting material Animal health and welfare Biodigesters, irrigation Financial Support Schemes Pre-financing Investment credits Bank guarantees Economy of Scale Bargaining power Price reductions through scale effects in procurement of agricultural inputs Market Access and Price Stability Organisation of Supply Chain, Logistics Transparent pricing schemes and improve price stability Education, Training & Extension Good agricultural practices Standards (e.g. 4C, Utz, Rainforest Alliance, Organic) Vocational schooling, further education, agripreneurship Policy Dialogue and Advocacy Governments NGO Industry, Competitors Conf. e.g. World Economic Forum 9

10 SAIN * and Farmer Connect some figures Markets with Farmer Connect / Direct Procurement activities 29 milk markets 10 coffee markets 7 cocoa markets 51 countries Direct sourcing staff: Supply chain support staff: Farmers supplying directly to Nestlé: Farmers received training: Collection centers: Crop demonstration plots and validation trials: Farmers benefitting from financial assistance: Budget for financial assistance (CHF): Source: CSV Reports 2012 and 2013; internal reporting documents Mio 2013 > > > > > > 900 > > 50 Mio * SAIN (Sustainable Agricultural Initiative Nestlé) 10

11 Summary Develop farmers & suppliers Building capacity for growth Sustainability Compliance Secure availability of adequate agricultural raw materials Ensure safety & quality of raw materials Long-term access to raw materials at competitive prices and specific quality 11

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