Transcript Document
SAIN
The Sustainable Agriculture Initiative of Nestlé
SWISSCAM
Comité de Meio Ambiente e Sustentabilidade
Sao Paulo - August 13, 2004
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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.)
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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
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ethics, fair trade
labor issues, rural life,
politics ...
???
environment,
Social Responsibility technologies (GMOs),
& Personal Values animal health & welfare ...
perceived quality
Consumer needs & expectations
Conscience
Convenient
Safety
tangible quality
Function
Access / Affordability
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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
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Challenges in supply chain
•
Transparency, traceability from farm to table needed to
avoid negative effects on:
SAIN
Input
Providers
Farmer
Trade
Processor
Food
Industry
Trade
Retail
Consumer
NEMS ...
• quality & safety
ethics, fair trade
labor issues, rural life,
politics ...
???
environment,
technologies (GMOs),
animal health & welfare, ...
• efficiency & productivity
• consumer perception
• company image
• branded products
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Integrated strategy
SAIN
Nestlé
Food Industry Initiative
• Key raw materials
• Direct sourcing
• Preferred suppliers
support sustainable
agriculture in general
mainstream agriculture
pre-competitive
Company internal
Network
Countries
Agr. supply chain
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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
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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
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SAIN - Coffee
• Assist in production where direct sourcing
China
Vietnam
Mexico
Philippines
Malaysia
Colombia
Brazil
Ivory
Coast
Indonesia
India Thailand
Purchasing on the market :
Direct procurement (partly) :
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Example coffee Thailand
•
Key elements:
• Knowledge sharing
• Public Private Partnership;
Quality assurance
Traceability
communication of needs i.e. quantities & qualities
• train local
producers
• PPP
program
Farm
Input
• plant genetic
• government
program
• good agr.
practices
• financing
(third party)
Farmer
• income
diversified
• quality
control
• quality
payment
Buying
Station
• Nestlé
managed
• final quality
control
Transport
• Third
parties
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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
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Nestlé Road Map
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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 ...)
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Elaborate sustainability indicators
•
Lead by University Bern - study indicators at farm level
collaboration of: SHL
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Example: milk supply in N.E. China (smallholders <1ha)
Actual
Optimised
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Conclusions
"There is no reason to prophesy the future, except in
order to be very well prepared to face the future" (Pericles)
• Practices / Processes
standards
• Indicators
trends
• Performance Measurement System
competitiveness
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