Post on 11-Jan-2016
Name of chairman
S A I N The Sustainable Agriculture Initiative of Nestlé
SWISSCAM Comité de Meio Ambiente e Sustentabilidade Sao Paulo - August 13, 2004
Name of chairman06.08.20042
CT-Agriculture Tasks
• Support sourcing of agricultural raw materials at qualities & safety, quantities and timing needed
Elaborate corporate agricultural policies and ensure their implementation
Identify opportunities for competitive sourcing of agricultural raw materials
Secure the required agricultural knowledge and competence within the Group
Provide technical assistance to NOCs and their suppliers (milk, coffee, cocoa, fruit, vegetables etc.)
Name of chairman06.08.20043
Challenges
• Evolving towards Nutrition, Health and Wellness Company
• Changing business environment manufacturing strategies
• Consumer concerns food safety issues
• Consumer expectations manufacturer liability new quality thinking
• Increasing food requirements growing population limited natural resources
Name of chairman06.08.20044
Consumer needs & expectations
??????
Access / Affordability
Safety
Convenient
Conscience
Function
environment, technologies (GMOs),
animal health & welfare ...
environment, technologies (GMOs),
animal health & welfare ... per
ceiv
ed q
ual
ityethics, fair trade
labor issues, rural life, politics ...
ethics, fair trade labor issues, rural life,
politics ...
Social Responsibility & Personal Values
tan
gib
le q
ual
ity
Name of chairman06.08.20045
Challenges
• Help ensuring tangible quality & safety and
• Identify relevant perceived quality criteria linked with agricultural raw materials
optimize related sourcing
support sustainable agricultural production methods (ecological - economical - social criteria)
elaborate with Markets, SBUs, CT-Units specific SAIN strategies with strict business focus, e.g. Mexico, B-C&B, B-CCB, CT-QM
Name of chairman06.08.20046
Challenges in supply chain
• Transparency, traceability from farm to table needed to avoid negative effects on:
Consumer Trade
Retail Food
Industry Trade
Processor Farmer
Input Providers
??????ethics, fair trade labor issues, rural life,
politics ...
ethics, fair trade labor issues, rural life,
politics ... environment, technologies (GMOs),
animal health & welfare, ...
environment, technologies (GMOs),
animal health & welfare, ...
SAIN
• quality & safety
• efficiency & productivity
• consumer perception
• company image
• branded products
NEMS ...
Name of chairman06.08.20047
Integrated strategy
Food Industry Initiative
support sustainable
agriculture in general
SAINNestlé • Key raw materials• Direct sourcing• Preferred suppliers
Company internal Network
CountriesAgr. supply chain
mainstream agriculturepre-competitive
Name of chairman06.08.20048
SAI Platform members
Campina
Danisco
Dole
Ecom
Efico
Findus
Fonterra
Friesland Coberco
Groupe Danone
Kraft
McCain Europe
McDonald’s
Nestlé
Neumann Kaffee
Gruppe
Sara Lee
Tchibo
Unilever
VOLCAFE
Name of chairman06.08.20049
SAIN - Milk
• Achievements promoted GAP programs
• Australia, China, France, Holland, UK, Pakistan ...
CT-IP target setting projects
• US, Chile, Panama, Peru, Spain, France ...
• SAI - working group elaborate position paper,
good agricultural practices
Name of chairman06.08.200410
SAIN - Coffee
• Assist in production where direct sourcing
Ivory Coast
Mexico
Brazil
Colombia
China
Philippines
Malaysia
ThailandIndiaIndonesia
Vietnam
Purchasing on the market : Direct procurement (partly) :
Name of chairman06.08.200411
Example coffee Thailand
• Key elements: Quality assurance • Knowledge sharing Traceability • Public Private Partnership;
communication of needs i.e. quantities & qualities
Transport BuyingStation
FarmerFarm Input
• quality control
• quality payment
• Nestlé managed
• train local producers
• PPP program
• plant genetic
• government program
• good agr. practices
• financing (third party)
• income diversified
• final quality control
• Third parties
Name of chairman06.08.200412
SAIN / SAI in coffee
• SAI-Coffee working group Ecom, Efico, Kraft, NKG, Sara Lee, Tchibo, Volcafé elaborate position paper, guidelines pilot projects
• Common Code for the Coffee Community (4C) started via the DKV and GTZ create code on sustainability and indicators - all
stakeholders 4C and SAI objectives are complementary
• UNCTAD & IISD - Coffee Sustainable Partnership (SCP) open discussion forum - all stakeholders complementary to SAI and 4C - collaborate; supported by
International Coffee Organization
Name of chairman06.08.200413
Nestlé Road Map
• Understand what enables sustainability
• Set up tools to make sustainable performance tangible KPIs for supply chain Joint studies with Universities
and R&D Implement measurement &
management system in supply chain
Collaborate in SAI working groups (Coffee, Milk, Cereals ...)
Name of chairman06.08.200414
Elaborate sustainability indicators
• Lead by University Bern - study indicators at farm level
collaboration of: SHL
• Example: milk supply in N.E. China (smallholders <1ha)Actual Optimised
Name of chairman06.08.200415
Conclusions
• Practices / Processesstandards
• Indicators trends
• Performance Measurement Systemcompetitiveness
"There is no reason to prophesy the future, except in
order to be very well prepared to face the future" (Pericles)