Global Supply Chain Safe Food

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1 MADE TO TRADE. Global Supply Chain Safe Food Juergen Matern

2 METRO GROUP: International Presence in stores in 29 countries. 441 stores in 6 countries. 768 stores in 16 countries. 141 stores in 2 countries. Sales of METRO GROUP by regions in 2009: Western Europe 21,0 % Asia / Africa 3,3 % Germany 39,2 % 2,195 locations in 32 countries. Others: 59 locations. Status: December 31, Eastern Europe 33,5 % 1

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4 Requirements of the customer. animal welfare legal environmentally friendly social transparent safe tasty sustainable 3

5 Requirements of the industry demands for the supply chain. Harmonisation of systems and standards once certified - accepted everywhere Lowering complexity and costs for all companies involved Increasing quality of results Building trust by creating transparency and comparability Fulfilling the customers perception 4

6 Consumers Requirements of society. up to

7 World Population and Food Today the world population amounts to 6.5 Billion people, 1 Billion people do not have access to sufficient food, and 20,000 die of hunger every day! For 2050 FAO predicted a rise by about a third up to 9 Billion people but, global calorie demand will increase by 70%. 6

8 Food Demands up to Generally: > 70% Meat: > 80% 2050 >9 billion 2050 >6 people Feed requirements:?? MADE TO TRADE. German-Dutch Roundtable on Fisheries. Jan Kranghand: 21 st September 2010 METRO AG

9 General situation. Dramatic rise of food and animal feed requirements Food and animal feed production to compete with biofuels: Higher costs for food production Climate change High losses from food production to household (50%): Rotting / Vermin Inefficient supply chains Lack of cold chain control Poor local infrastructure Left overs Animal deseases MADE TO TRADE. German-Dutch Roundtable on Fisheries. Jan Kranghand: 21 st September 2010 METRO AG

10 MADE TO TRADE. German-Dutch Roundtable on Fisheries. Jan Kranghand: 21 st September 2010 METRO AG

11 Focus on solution. METRO Group Fruit & Vegs Supply Chain Approach. GAP/Food Safety Mandatory Farming Packaging Processing Logistics/ Platforms Stores Traceability: Mandatory SOCIAL: Future (defined risk countries) GRASP FOOD SAFETY: Recommended 10

12 Focus on solution. METRO Group OB Farmed Fish Supply Chain Approach. FOOD SAFETY: Training and 2 nd Party Assessment GAP/ Food Safety mandatory ENVIRONMENT + SUSTAINABILITY mandatory SOCIAL mandatory (defined risk countries) TRACEABILITY: mandatory FOOD SAFETY: optional Aquaculture Farming Processing Platforms Logistics Stores MAS ASC Chain of Custody Certification 11

13 Measurement of results. Number of Notifications Overall increase by 12% in 2009 Source: The Rapid Alert System for Food and Feed 2009 Annual Report of RASSF (EU). 12

14 Measurement of results. Border Rejections by Product Category Nuts (products) Fish, Crustaceans, Mollucks Fruit & Vegetables Source: The Rapid Alert System for Food and Feed 2009 Annual Report of RASSF (EU). 13

15 Measurement of results. Implementation of vertical integrated QA systems Full traceability Conversion by 99% of suppliers Result: decrease of post harvest losses by 40 % decreased number of recalls : from 20 to 2 year on year Integrity of certification is key 14

16 We build bridges from farmers to market. We take care of nature. 15

17 Contact. Juergen Matern Vice President Corporate Quality Management METRO AG Schlueterstrasse Duesseldorf, Germany Tel.: +49 (0) Mob.: +49 (0) juergen.matern@metro.de Internet: 16