Name of chairman S A I N The Sustainable Agriculture Initiative of Nestlé SWISSCAM Comité de Meio...

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.)


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


Consumer needs & expectations

??????

Access / Affordability

Safety

Convenient

Conscience

Function

environment, technologies (GMOs),

animal health & welfare ...


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


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


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, ...


animal health & welfare, ...

SAIN

• quality & safety

• efficiency & productivity

• consumer perception

• company image

• branded products

NEMS ...


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


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


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


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) :


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


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


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 ...)


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


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)

Name of chairman S A I N The Sustainable Agriculture Initiative of Nestlé SWISSCAM Comité de Meio...

Documents

Transcript of Name of chairman S A I N The Sustainable Agriculture Initiative of Nestlé SWISSCAM Comité de Meio...