Sustainable Agriculture Toward Shared Value for All Players in the Food Supply Chain
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1 Sustainable Agriculture Toward Shared Value for All Players in the Food Supply Chain Hal Hamilton, Sustainable Food Lab Elizabeth Keck, Wal-Mart Stores, Inc. Diane Holdorf, Kellogg Company Erin Fitzgerald, Innovation Center for U.S. Dairy
2 6.7 billion people 50% of habitable land global agriculture 1 billion employed 70% of fresh water
3 Among our challenges.
4 Double output using much less energy and water.
5 Manage the commons.
6 Enable producers and workers to benefit
7 Replenish as much water as is removed.
8 Increase the soil s capacity to sequester carbon and hold moisture
9 September 2011 Walmart s Sustainable Agriculture Platform Beth Keck, Senior Director Sustainability
10 Walmart s global presence Canada 320 Units United Kingdom 377 Units Mexico 1,561 Units U.S. 4,387 Units China 295 Units Japan 414 Units Central America 528 Units Chile 264 Units Brazil 450 Units Argentina 51 Units India* 3 Units Total Units8,650 *India Bharti Franchises (83) not included in total As of September 30,
11 Walmart s broad sustainability goals To be supplied 100% by renewable energy To create zero waste To sell products that sustain people and the environment 11
12 Sustainable Agriculture: Three Areas of Focus Support farmers and their communities Produce more food with fewer resources, less waste Sustainably source key agricultural products 12
13 Sustainable agriculture commitments In emerging markets, sell $1 billion in food sourced from 1 million small and medium farmers In emerging markets, provide training to 1 million farmers and farm workers in our food supply chain, of which we expect half will be women In emerging markets, raise income of small, medium farmers we source from percent In US, double sales of locally sourced produce, accounting for 9 % of all the produce we sell Accelerate agricultural focus of the Sustainability Index and ask GFS top producers to complete a Sustainable Produce Assessment in 2011 Invest more than $1billion in the next five years in our perishable supply chain Reduce food waste in our emerging market stores, clubs by 15%; in other markets by 10% Require sustainably sourced palm oil in all of our private brand products globally Expand to entire Walmart supply chain commitment to source beef from Brazil that does not contribute to deforestation of the Amazon In US require all fresh and frozen, farmed and wild seafood suppliers to submit a plan to become third party certified as sustainable using MSC, BAP or equivalent standards by
14 Food and Agriculture Sustainable Value Network Champions Shawn Baldwin Sam s Captains Paul Kelly ASDA Pam Kohn WMT US DeDe Priest WMT US Chris Brown ASDA Ron McCormick WMT US Russ Mounce Sam s Chairs Lead goal resource teams 14
15 Sustainable agriculture a global and long-term commitment Launch: Goals Strategy Education Plans Focus Areas: Local and small/medium farmer programs Produce assessment for select produce categories Food waste reduction in stores, clubs and supply chain Deforestation: palm oil, beef from Brazil Sustainable seafood Future: Expand areas of focus to address other pressing issues and hotspots 15
16 Results for the business Food security Improved environmental, social performance Fresher, higher quality food 16
17 GMA-FMI Sustainability Summit Kellogg and Sustainable Agriculture September 13, 2011 Presented by Diane B. Holdorf 17 Chief Sustainability Officer, VP Health & Safety Bringing our best to you.
18 Global Brands 18 Bringing our best to you.
19 Global Manufacturing Locations Battle Creek, MI Grand Rapids, MI Wyoming, MI London, ON Belleville, ON Chicago, IL Chicago, IL Seelyville, IN Cincinnati, OH Kansas City, KS Allyn, WA Omaha Clearfield San Jose Augusta, GA Columbus, GA Rome, GA Linares Queretaro Toluca Lancaster Blue Anchor Pikeville Rossville Memphis Atlanta Colombia Ecuador Zanesville Muncy Guatemala Venezuela Manchester Portable Foods Wrexham Germany Spain Cary, NC Charlotte, NC Florence, KY Louisville, KY Baltimore, MD Vyazma Pskov Gorohovets Voronezh Krasnodar Russia Tyumen India Fushun China Qingdao Korea Yishui Thailand Japan Cereal Non-Cereal Snacks Brazil S. Africa Australia - Charmhaven - Botany - Sydney 19 Bringing our best to you.
20 Corporate Responsibility Report 20 Bringing our best to you.
21 Rice 21 Bringing our best to you.
22 Wheat 22 Bringing our best to you.
23 Corn Inputs Ag Production Aggregation Intermediate Processing Food Processing Distribution Consumption Seed Fertilizer Grower 23 Bringing our best to you.
24 Corporate Responsibility Journey Consumers count on Kellogg to provide consistent, high-quality, great tasting and wholesome food Consumers trust companies like Kellogg to care about the things they care about In an increasingly challenging and resourceconstrained world, companies are expected to develop innovative solutions 24 Bringing our best to you.
25 Dairy Industry from grass to glass Toward a Shared Value for All Players in the Food Supply Chain
26 Meet Ryan and Susan Anglin 26
27 Geospatial mapping and water impacts 27
28 Record keeping 28
29 Collaborating around the dinner table 29
30 Sustainability Council Producers Alliance Dairies Clauss Dairy Farms Fair Oaks Farms Fiscalini Farms Foster Brothers Farm Gar-Lin Dairy Farm Graywood Farm Haubenschild Farms Inc. Maddox Dairy Medeiros & Sons Dairy Nobis Dairy Farms Prairieland Dairy Spruce Haven Farm Stauffacher Highway Dairy Werkhoven Dairy Associations/ Government Processors/Manufacturers Retailers Co-opsops Crop Production Milk Production Transport Processing Packaging Distribution Retail Consumer/Academic NGO
31 A life cycle approach Processing Packaging Milk Transport Distribution Milk Production Retail Feed Production Consumer 31
32 U.S. Fluid Milk Carbon Footprint 1 Thoma et. al, Greenhouse Gas Emissions of Fluid Milk in the U.S., University of Arkansas, Based on environmental and consumption data from Carbon footprint of 1 gallon of fluid milk consumed is 17.6 lbs. CO 2 e. Ranges from 15.3 to 20.7 lbs. CO 2 e due to natural variability and uncertainty. The total fluid milk carbon footprint is approximately 35 million metric tons, with a 95% confidence range from 30 to 45 million metric tons. 32
33 Innovation Center for U.S. Dairy 32 Dairy Industry CEOs and Chairpersons Committed to the first voluntary goal 25% by 2020 GHG reduction for fluid milk $238 million Estimated business value across industry 33
34 From farm to retail 6
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