SUSTAINABLE SUPPLY CHAINS IN COOPERATION WITH 2014 Corporate Sustainability Report link to success Facts and Figures 2014 Corporate Sustainability Report > Cooperative with about 17,000 members. The Corporate Sustainability Report is published annually and concerns all companies within the Agrifirm Group, unless indicated otherwise for specific components. The previous report > Executive Board: 3 members. was published in May 2014. > Managed by a Supervisory Board: 8 members. The guideline used in preparing the report is the Global Reporting Initiative (GRI), the > Net revenue € 2,359 million. international guideline for sustainability reporting. This report was prepared in accordance > Operating result (exclusive of exceptional charges) € 26.9 million. > Net profit € 3.1 million. with the GRI G4 Guideline. The GRI Table with references to all reported information is available on our website www.agrifirm.com under the header ‘Corporate Social Responsibility’. For additional information about Agrifirm’s sustainability policy, please contact Ruud Tijssens, > Number of employees: 3,328 Director Corporate Affairs, Strategic R&D and CSR, r.tijssens@agrifirm.com, or at +31 (0)88 488 29 00. > Number of FTEs: 2,999 Sales volume (x 1.000 tonnes) 2014 Compound feeds 4,248 Reading reference Co-products2,371 In this Corporate Sustainability Report, Agrifirm reports on its sustainability policy and the Premixes & concentrates 461 accomplishments realised in this domain in 2014. Cereals, potatoes, onions and carrots 612 Fertilisers430 Organic fertilisers Crop protection products (€ millions) 537 131.7 Section 1 sets out Agrifirm’s mission, business principles and ambitions. It provides an overview of the main events within Agrifirm Group in 2014. Section 2 describes the stricter sustainability policy, including an explanation of the six pillars and consultation of stakeholders relating to the policy. Sections 3 through 8 focus on the objectives and key performance on the six sustainability policy pillars. For each pillar, a responsible Agrifirm officer or external partner explains about an example with high sustainability impact. The Appendices list Agrifirm’s KPIs relating to the organisation, the environment, employee benefits and human rights. We also added a separate Appendix relating to sustainability labels with more background information about the calculation of the labels. 2 Agrifirm 2014 Corporate Sustainability Report 3 Preface Over one hundred trucks drove through the Netherlands in 2014 years, we introduced a range of new concepts in this context: precision base. Non-active members are approached and requested to in 2015, the six pillars of our higher-level CSR policy are a good basis printed with pictures of, among others, a farm-fresh egg, cheerful fertilisation in arable farming, Line-up in poultry farming, Roughage terminate membership. This involved approximately 1,400 members for establishing a connection between Agrifirm with the dynamic, flowers, healthy fruit and juicy pork. All products and dishes in which Total in cattle farming and Robustior in pig farms. In the past few in 2014. We recruit new members among existing customers of quickly changing environment in which we and our customers our livestock farmers and growers play a major role. You must have years, we have gained more clarity about exactly where Agrifirm can Agrifirm Plant and Agrifirm Feed who are not yet a member. In 2014, are operating. This is why we continue to focus on developing encountered a few of these on your way. make the difference in the chain. We used this in 2014 to increase the we gained 900 new members by making such customers aware of the sustainable products and creating profit for our members. That level of our sustainability policy with six pillars and specific targets. benefits of membership. is how Agrifirm contributes to a future-proof, sustainable and Agrifirm used the campaign ‘In Cooperation With’ to show our pride The six pillars symbolise all chain links where we can be impactful. We in the livestock farmers and growers who create the most wonderful aim to realise both sustainability impact in the chain and on the farm We are proud of our members and customers. After all, it was a quality products on a daily basis. Products enjoyed by millions of yard. Naturally, we are equally sharp about opportunities in our own challenging year for the Dutch agricultural sector, with problems Ton Loman people both in the Netherlands and abroad on a daily basis. The organisation. such as bird flu and Russia’s boycott of European food and dairy Chairman of the Executive Board Agrifirm Group Dutch agriculture and horticulture is an industry to be proud of. profitable agricultural sector. products. The key task of our organisation is unchanged: to It is also a dynamic sector that is sometimes the subject of social In 2014, Agrifirm has also refocused its business strategy on four create sustainable value for our members. I am convinced that debate, for example relating to animal welfare, origin of raw materials, core activities: compound feed, arable farming and horticulture, co- we reinforce our market position by giving sustainability a central environmental footprint or the application of crop protection agents. products and specialties. The recalibration of the strategy required place in our business. For example by offering sustainable products Themes that Agrifirm is committed to, also in the next few years. multiple adjustments to be made to the Agrifirm organisation, and concepts for our customers; having expert and motivated enabling us to grow in our core activities from 2015 onwards. employees; and buying sustainable raw materials. In 2014, we were Agrifirm is dedicated to future-proof and profitable agriculture and However, the adjustments resulted in a one-off € 3.1 million decrease the most favourite employer of the agricultural sector and we would horticulture, able to provide the growing world population with in the net profit. like to keep it that way. working on that with our members and customers. We want to On balance, the number of members decreased by 500 in 2014, down Our sustainability policy was one factor allowing our members and increase profits on the farm yard with lower input. In the past few to 17,000. Agrifirm is frequently updating its member and customer customers, and Agrifirm, to make an impact on the farm yard. Also sufficient, healthy food in a sustainable manner. We are actively 4 Agrifirm 2014 Corporate Sustainability Report 5 highlights Sustainable Raw Materials table of contents Sustainable raw materials Efficient use of raw materials Sustainable production starts with the production and procurement of sustainable raw materials. Agrifirm and Wageningen UR are actively investing in Dutch soy crops. In 2014 some 35 farmers grew a total of 110 hectares of Efficient Use of Raw Materials 4 Agrifirm invests in product innovations that help our Highlights 6 members and customers to achieve higher production Table of contents 7 with less input. This benefits the environment and the 1. Agrifirm a link to success 8 entrepreneur’s wallet. 2. Six pillars for more impact 13 Dutch-grown soy. In order to secure sustainable soy crop Preface 3. Working on sustainable raw materials 19 cultivation, Agrifirm is cooperating with the Dutch and European animal “’Smart feeding’ or ‘precision feeding’ means that each animal 4. Efficient production and logistics 22 feed industry to ensure 100 percent responsible soy. receives optimal feed rations, saving on raw materials.’ 5. Efficient use of raw materials 26 Albert van den Belt, director Agrifirm Innovation Centre 6. Healty plants, soil and animals for healty people 32 “Agrifirm is really sticking out its neck by being one of the few 7. Contributing to a sustainable consumer supply 36 parties investing in research into European soy crops.” 8. The Basis for Success 38 Colophon 42 Appendix 44 Healthy plants, soil and animals for healthy people Chris de Visser, business developer Wageningen UR Agrifirm develops products and services that reinforce Efficient production and logistics Agrifirm aims for structural decrease of energy use Healthy Plants, Soil and Animals for Healthy People the natural resistance of plants, animals and soil. based on efficient processing of raw materials and Efficient Production and Logistics smart logistics. With Business Excellence projects, “Together with our partner BioMygreen, we marketed Mycorrhiza Agrifirm encourages improvement of the energy moulds in 2014 for a number of new crops, such as onions, flower efficiency of product locations. bulbs and tree crops, and also for public landscaping.” Aaldrik Venhuizen, manager Research & Development Agrifirm Plant “In 2014, our product efficiency improved by eight percent and our energy efficiency by twelve percent.” Our employees: the foundation for success Alexander Drees, managing director Agrifirm Magyarország Agrifirm creates a stimulating environment for its employees and invests in sound employee benefits, Sustainable consumer range Agrifirm is collaborating with chain partners to develop and market sustainable concepts. In the Sustainable Consumer Range Our Employees: the Foundation for Success training opportunities and career development. In 2014, Agrifirm was the most favourite employer in the agricultural sector according to students. project ‘Brewing Barley from Sustainable Cultivation in the Netherlands’, Agrifirm Plant, Heineken Netherlands “I think it is important that our staff can say: ‘I can make a and Holland Malt collaborate in developing a national or an international career at Agrifirm within its group sustainable brewing barley. of companies’.” Emiel Berg, director HR Agrifirm “This project is a fine example of successful chain development that also supports the transition towards sustainable agriculture.” Jan Kempers, manager Sustainable Development, Heineken Nederland BV 6 Agrifirm 2014 Corporate Sustainability Report 7 1. Agrifirm, a Link to Success Koninklijke Coöperatie Agrifirm U.A. is a market leader in the Netherlands and is globally engaged in the Operating Principles Agrifirm is first and foremost a committed specialist for livestock three leading operating principles. These principles guide Agrifirm farmers and growers, which supports its customers with innovative in everything it does and ensure that there is an optimal connection products, concepts and services, thus enabling them to achieve the with the requirements and needs of livestock farmers and growers. best possible results. To achieve this, Agrifirm acts in accordance with production and supply of products and services for feeding animals and cultivating crops. Its cooperative origin has been translated into benefits for its members and customers since 1892. On the basis of the Passion for our profession breadth of its international activities, sector knowledge and innovative strength, Agrifirm develops innovative Passion for our profession products and services that yield benefits at the farm level to livestock farmers and growers alike. If there is one aspect that connects Agrifirm with customers, it would be the passion we have for our profession. Furthermore, Agrifirm is proud of the companies in the agricultural sectors. Agrifirm’s employees stand out on the basis of their professional knowledge and their high level of commitment to livestock farming and cultivation tradesmanship, and enjoy going the Working Together extra mile in order to achieve the best possible service and results for their customers. Agricultural farmers are of vital importance to society and of crucial Agrifirm accomplishes this by: importance to the world food supply. Enterprising livestock farmers > Supporting customers by providing sustainable and profitable and growers are aware of this and have been anticipating social products and concepts that enable livestock farmers and growers trends for years. Farmers and market gardeners established the to achieve the best possible results. first cooperatives well before 1900. Together they acquired greater > Creating growth in value for the company that is partially passed strength, for example in the purchase and sale of products. The role on to the cooperative’s members through means of a cooperative of the cooperatives has grown along with the trends in the market profit-sharing scheme (Members Dividend and Members and in society. The interests of Agrifirm’s members are leading in this Discount). Always staying on top of things Always staying on top of things Successful enterprise requires continuous alertness for new developments, opportunities, quality, revenues and costs. This applies to livestock farmers and growers, and likewise to Agrifirm. This is why the principle, always staying on top of things, applies. respect. The Agrifirm Group creates value for members, customers, companies Mission and employees through means of various subsidiaries and Agrifirm is an agricultural cooperative that operates globally, with participating interests in the Netherlands and abroad. This creates an members in the Netherlands only, and with the following mission: opportunity for distributing profits to members. Working towards tomorrow Working towards tomorrow “Generating sustainable value for its members.” Agricultural entrepreneurs not only consider the present, but, even more important, the future as well, often across many generations. This requires vision, knowledge and expertise Agrifirm also looks ahead and, together with customers and chain partners, works on innovative and sustainable solutions that enable customers to operate successfully ‘tomorrow’ as well. Ambition Agrifirm wants to further strengthen its leadership position on the and horticulture, co-products and specialties. A professional Dutch market in terms of sales and perception by being a front runner knowledge & innovation cluster serves as the engine for knowledge in terms of knowledge and innovation, and through customer- development and product innovation. In addition, Agrifirm is active oriented consulting services. The enterprise wants to expand its with a number of service companies and participating interests. market share within the core area of the Netherlands, as well as beyond, through organic growth and profitable acquisitions. To realise this ambition, Agrifirm works with well-trained employees who are sincerely interested in their customers. Agrifirm operates in four core areas: compound feed, arable farming 8 Agrifirm 2014 Corporate Sustainability Report 9 Organisational chart Members of Royal Cooperative Agrifirm U.A. Districts Youth Council Council of members Cooperative board Royal Cooperative Agrifirm U.A. Knowledge & Innovation Cluster Partnerships and Acquisitions The Agrifirm Exlan consulting firm, together with the Agrifirm Agrifirm’s business strategy was further specified in concrete detail Innovation Centre and the NutriControl laboratory, forms part of the during 2014. This has resulted in a re-stated vision entitled: ‘Focus newly formed knowledge and innovation cluster. A combination that and Acceleration’. The core of the strategy is a further focus on core guarantees research and development of innovative products and activities and an acceleration of various improvement processes. concepts offering advantages to livestock farmers and growers. In 2014, this resulted, among other things, in the sale of the minority share in Holland Malt, a malting plant, to Bavaria, and the = Shareholders meeting Agrifirm Group BV acquisition of all shares in AgriRetail, which is now a full subsidiary In 2014 Agrifirm once again organised the Agrifirm Members’ Days, of Agrifirm. as members are the most important stakeholders of our Cooperative. Royal Agrifirm Group = Members and Young People’s Days Spread over 10 locations, Agrifirm spoke with 1,600 members about Supervisory board = Agrifirm Group BV the 2013 results and 2014 strategy. Visitors were offered workshops on a broad range of subjects, including social media, cattle feed and = Agrifirm Group BV precision growing methods. Knowledge & Innovation Cluster AIC, NutriControl, Agrifirm Exlan, Schothorst* Agrifirm organised the fifth consecutive Young People’s Day for young agricultural farmers on 8 January 2014. Almost 550 young entrepreneurs visited the Agrifirm Young People’s Day with the theme ‘Business Compound Feed Agriculture Co-products Specialities Services Participations Agrifirm Feed The Netherlands Agrifirm Plant The Netherlands Agrifirm Co-products (Bonda) Nuscience Group Agrimec (51%) Plukon Succession’. Speakers and visitors discussed the importance of a clear strategy and adequate communication when transferring a company. BV Oldambt Agrifirm Belgium Agrifirm Plant Deutschland Agrifirm Winkel BV Agri Retail Agrifirm Feed Deutschland Campaign ‘In cooperation with’ Agrifirm Magyarország The Dutch livestock farming, arable farming and horticulture sectors are globally leading in terms of productivity, efficiency and certainly Agrifirm Polska also sustainability. Agrifirm feels that farmers and growers should be Sto Posto* proud on the wonderful products they make. To share these with a *minority interest broad audience, we developed the campaign ‘In cooperation with’ in 2014. Glossy pictures of eight different finished products of Agrifirm’s members and customers were in the spotlight of this campaign, driving through the Netherlands on the full length of 100 bulk trucks. Agrifirm comprises six divisions: On the internet, the story behind these products came to life in eight > Compound Feed Division: production and sale of animal feeds > Specialties Division: production of premixes, mineral mixes, pro and artificially dried fodder legumes and straw products; consultancy and research. > Service Companies Division: agricultural mechanisation; sale of Sector Councils some regional dailies. Both customers and stakeholders responded very > Arable Farming and Horticulture Division: production and sale The Sector Councils for Dairy Farming, Pig Farming, Poultry Farming, well to the campaign. This way, Agrifirm contributes to a positive image of sowing seeds, fertilisers, crop protection products; sale of > Participating Interests Division: minority interests in Plukon. Broiler Farming and Arable Farming have an advisory role to the of the agricultural sector and a better connection between farmers, cereals, onions and carrots; consultancy and research. transparent videos. Also, features and advertisements were printed in tein-rich raw materials and nutritional concepts for animal feed. agricultural consumer products. journals such as Nieuwe Oogst, the Agri-Food special of De Telegraaf and executive boards of the Agrifirm Plant and Agrifirm Feed companies. In growers and the consumer. In 2015, the campaign will be continued > Co-products Division: processing of high-quality by-products 2014, each Sector Council met a minimum of two times. Agrifirm Feed with, among other things, more trailers depicting the products of our also has a biology sounding board. members and customers. from the food industry into (raw materials for) animal feeds. 10 Agrifirm 2014 Corporate Sustainability Report 11 Sustainability Labels for Feed Concepts and Products In 2014, Agrifirm was the first animal feed company to develop sustainability labels for feed concepts and products. The sustainability 2. Six Pillars for More Impact labels offer both members and customers specific information on sustainability performance of our feed concepts and products for cattle, poultry and pigs. This gives our members and customers insight into Agrifirm’s corporate social responsibility policy derives from its ‘Working towards Tomorrow’ operating the impact they can realise with the feed concept or product, and principle. The core of our approach is to connect Agrifirm with the environment in which the company assists them in producing feed in a profitable and sustainable way. and our customers operate. Six pillars form the foundation for sustainability in Agrifirm’s daily business. Five labels Agrifirm Feed NL introduces five sustainability themes, labelling a The world population is forecast to grow to 9 billion people by 2050. continue successful operations and to realise even more impact, number of existing and new products and concepts: mineral efficiency, The increasing prosperity levels come with more food consumption, Agrifirm re-stated its sustainability policy in 2014 based on six pillars animal health, climate, recycling and more sustainable raw materials. raising the pressure on limited raw materials, water and nature. and specific objectives. The six pillars reflect the places in the chain From research conducted by HAS University of Applied Sciences in Den Agriculture is faced with the challenge of producing food in an where Agrifirm can make an impact: from growing raw materials to Bosch and from sector interaction, it is clear that livestock farmers would efficient and sustainable way. food on your plate. With this re-stated focus, Agrifirm contributes to innovations, both in the chain and on the farm yard. This way, like to receive more information about these themes. Furthermore, the selected themes are consistent with Agrifirm’s sustainability strategy. Re-stated Sustainability Policy Agrifirm develops commercial opportunities for new products and The five sustainability themes each have their own icon. A feed concept This challenge is the core of Agrifirm’s policy on corporate social services that contribute to a sustainable food supply. The re-stated or product can have one or more sustainability labels. responsibility. As a supplier to the agricultural sector, Agrifirm is at sustainability policy has become effective in 2015. the cradle of efficient and sustainable food production. In order to Together with Blonk Consultants, an environmental consultancy firm, Agrifirm developed a method for calculating the underlying sustainability indicators for the sustainability labels in 2014 (see Goals on Six Pillars Appendix 3). Also, the sustainability labels for a number of existing feed For each of the six pillars of the sustainability policy, Agrifirm defined strategic goals. Realising these goals is an integral part of the concepts and products were calculated. In 2015, Agrifirm calculates the company’s commercial and development focus. sustainability performance for more new and existing products and feed concepts. Working on Sustainable Raw Materials Sustainable Raw Materials By 2020, all major commodities, including wheat, corn and soy, are part Agrifirm processes residual flows from of Agrifirm’s sustainable buying policy. The specific risks of producing foodstuffs and bio-based industries into all these commodities are charted for a certain region with the actions high-end animal feeds. Together with Agrifirm is taking in that context. We also make organic fertilisers and suppliers, Agrifirm is working on sustainable compost widely available to growers. and responsible cultivation and use of raw materials. Efficient Production and Logistics Efficient Production and Logistics 12 Agrifirm 2014 Corporate Sustainability Report Agrifirm aims for a structural decrease in energy consumption By 2025, Agrifirm aims for a structural reduction of Agrifirm has improved its energy efficiency by 15 percent compared energy consumption based on efficient to 2015. We aim to also improve energy efficiency by 15 percent in processing of raw materials and smart all production sites. Furthermore, we make binding agreements with logistics. our carriers on reducing energy consumption and emissions due to transport. 13 Efficient Use of Raw Materials By 2025, Agrifirm will have developed sustainable agricultural practices. Agrifirm is investing in product innovations These assist our members and customers in reducing the environmental to help our members realise higher footprint of animal and arable production by 15 percent compared to production based on lower input. 2015. Efficient Use of Raw Materials Sustainable Innovations “We are operating in a dynamic and rapidly changing environment. Developing sustainable and innovative solutions will ensure growth and continuity in both farms and Agrifirm. We operate in a highly competitive market. This is why sustainable solutions must be based on long-term financial profitability. In the past few years, we have zoomed in on where Agrifirm can make the difference in Healthy Plants, Soil and Animals for Healthy People Healthy Plants, Soil and Animals for Healthy People By 2025, Agrifirm has developed sustainable agricultural practices, Agrifirm develops products and services ensuring a central role for natural crop protection, including the use of improving the natural resistance of plants, 20 percent green crop protection agents. Reinforcing natural resistance soil and animals. the chain. We reflected that in the six pillars of our sustainability policy.” Realistic objectives afraid to conclude at times that we should change direction. As long of animals will reduce the use of veterinary drugs by our members and “In the past five years, we set out Agrifirm’s sustainability performance. as we keep our goal in sight: increasing profits on the farm yard with customers by 20 to 30 percent compared to 2015. This helped us determine the strategic goals, which are also realistic. lower input. For example, we now know that the CO2 emissions of a new feed Contributing to a Sustainable Consumer Supply concept are 2 to 3 percent lower on average, up to 4 to 5 percent Operationalisation in some concepts. The numbers also give us an insight in what we Having determined the strategic goals, we are working on translating can influence and measure, the annual variations and the significant these into operational objectives based on clear performance By 2025, Agrifirm is the main partner for chain parties in developing and Agrifirm cooperates with chain partners indicators. The average CO2 emission of raw materials proved indicators. For example, we are going to further specify the EEI, the testing new chain concepts. to develop and market sustainable unreliable as a performance indicator. The price is the main factor Energy Efficiency Index for our plants in the next few years. We are concepts for consumers. in the origin of the raw materials. This results in substantial annual convinced that a fully specified sustainability policy contributes to Sustainable Consumer Range variations in CO2 emissions. This is why we are currently developing a future-proof and profitable agriculture and horticulture sectors. This rolling average indicator. This allows for calculating the average feed enables us to continue our competitive operations and to create composition over the past five years, which also gives the average sustainable value for our members.” origin of the feed. Determining this rolling average on an annual basis Our Employees: the Foundation for Success By 2020, Agrifirm is the most favourite employer of the agricultural sector. cushions the variation, thus revealing the structural improvements in Ruud Tijssens the CO2 emissions more clearly. Director Corporate Affairs, R&D and CSR Agrifirm creates a stimulating environment for its employees and invests in excellent employee Integral part benefits and training and career opportunities. This learning process was vital to Agrifirm employees in realising that a good result on the farm yard can coincide with a positive impact on Our Employees: the Foundation for Success sustainability. I am proud to see that sustainability is now an integral part of assessing innovations. I have seen a true transformation compared to a few years ago, both within Agrifirm and in the agricultural sector. We have already achieved serious results in 2014 in terms of developing sustainability labels and buying responsible In this report we highlight our vision, objectives and accomplishments in 2014 soy. Our stakeholders are positive about Agrifirm’s structural focus on for each pillar in the following sections. sustainability. In the middle of the complex playing field of agricultural commodities, we are working on sustainability. In some instances, we really have had to invent the wheel. As a result, we should not be 14 Agrifirm 2014 Corporate Sustainability Report 15 Consultation and Collaboration with Stakeholders Additionally, Agrifirm deliberately seeks to connect with various Sustainable food supply is a theme that touches upon many parties and stakeholders on a regular basis. For example, we participate in joint is frequently in the limelight of social debate. Agrifirm is in the middle ventures with various scientific and social organisations, enter into of this dynamic field, seeking to connect with all parties. In principle, short-term and long-term agreements, organise meetings and Agrifirm does not exclude any parties, ensuring optimal operations workshops and participate in research projects. These types of and contributing to future-proof and sustainable agriculture and coordination opportunities to a significant degree also influence the horticulture. Agrifirm is in touch with and collaborates with suppliers, priorities Agrifirm assigns to certain sustainability themes. On the one independent research institutions, scientists, environmental and hand, the value attached to a theme by our stakeholders carries a development organisations, chain parties and umbrella organisations great deal of weight in determining our focus. On the other hand, the such as Netherlands Feed Industry Association (Nevedi), FEFAC (the degree of impact and influence that Agrifirm has, determines which Europe Federation of Compound Feed Manufacturers), Plantum themes are prioritised. (sector board for companies in the plant-based starting materials sector) and Nefyto (sector board of the agro-chemical industry in the New and remarkable partnerships in 2014 Netherlands). In 2014, Agrifirm started collaborating with the Dutch Biorefinery Cluster. This platform aims to fully use organic raw materials and Agrifirm’s corporate social responsibility policy is rooted in parties who develop more high-end bio-based products. To reinforce its sector The contrast that is sometimes perceived between economic Finally, the importance of both internal and external communication are in nearly daily contact with Agrifirm relating to the subjects that position, Agrifirm is cooperating with various links in the arable profitability and sustainability was seen as a key challenge, where was highlighted. Within Agrifirm, it is important to keep CSR alive interconnect us. The connection between chain partners, employees, farming sector through the Arable BO (Sector Board). Agrifirm Agrifirm should sometimes make a more delineated choice based on at all levels in the organisation by integrating this in management members and customers with each other and with the environment is Plant is one of the organisation’s initiators. This allows us to work a mix of indicators. The CSR sounding board group advised Agrifirm to contracts. The field representatives can fulfil a key role in the dialogue very direct - but never taken for granted. Agrifirm intensively consults on cross-sector issues together, further reinforcing and expanding give more insight into the financial consequences of its options and with society. with them on the priorities in sustainability themes, depending on the our position. make this an integral part of its policy. Here too, scenarios could help impact that can be achieved together. in respect of strategic choices and developing R&D projects. Relating The many valuable recommendations and perspectives from Dialogue on re-stated sustainability policy to the six pillars, the attendants advocated centring on sustainable the sounding board meeting were used to re-state Agrifirm’s When re-stating its sustainability policy, Agrifirm also involves soil use as a valuable production resource in agriculture. The human sustainability policy and further specify the operational translation. In external perspectives to determine the stakeholders’ opinion of aspects of the CSR policy could also do with more fleshing out 2015, the meeting will be repeated in a symposium for stakeholders Agrifirm’s role in the chain. On 27 October 2014, Agrifirm organised according to the attendants. on Agrifirm’s sustainability policy. The system of Agrifirm’s dialogue a meeting with the CSR sounding board group of Agrifirm. with the stakeholders will be further structured in 2015 by actively Participants included Imke de Boer (Professor Animal Production discussing a number of strategic themes with the stakeholders. Systems Wageningen UR), Chris Kalden (Former Secretary General Agrifirm will also more intensively monitor the follow-up of discussions of LNV, Chairman of Outdoor Grazing Foundation), Jan Cees with stakeholders. Vogelaar (former dairy farmer and Director of HarvestaGG), Tjerk Wagenaar (Director of Nature & Environment) and Wouter van der CSR Update Weijden (Director CLM). The meeting focused on Agrifirm’s re-stated In order to keep relations and stakeholders of Agrifirm posted of corporate social responsibility policy. developments relating to sustainability, Agrifirm introduced the CSR Update newsletter in April 2014. In 2014, Agrifirm published seven The participants were positive about the structural way in which newsletters showing progress in corporate social responsibility Agrifirm details its sustainability policy. They stressed the importance of within our own organisations and also within organisations we continuing the pioneering, and also in particular getting to work with it cooperate with. and translating the strategic goals into operational plans and concrete milestones. Simultaneously, Agrifirm should also develop various scenarios to better prepare for a range of developments, such as family business versus professionalisation and upscaling; globalisation versus regionalisation/localisation; and shifting market ratios. 16 Agrifirm 2014 Corporate Sustainability Report 17 Biodiversity In the past few years, attention to the importance of biodiversity in agriculture has increased. Biodiversity plays a major role at all levels 3. Working on Sustainable Raw Materials and in all processes within an agricultural company: soil, crops, animals and the environment. Agrifirm focuses on the consequences of our activities on biodiversity both at a local and international level. Demand for food will increase in the coming decades. This increases the pressure on limited raw Elements that impact biodiversity at a local level include phosphate materials, water and nature. Sustainable production of agricultural products while respecting the and nitrogen efficiency of plants and animals by preventing leakage into soil or manure, the physical condition of the soil (organic matter environment and surroundings is crucial for our future. Sustainable production starts at the front-end of content and soil life), use of crop protection agents and direct the chain, with buying sustainable raw materials. Agrifirm encourages growing and using sustainable protection of bird life. At international level, land use is the key factor. and responsible raw materials. Minimising the use of land for producing animal feeds ensures that more land is available for purposes with a higher biodiversity value. Working on sustainable food production is an essential sustainability feeds, food and bio-fuels. In order to secure sustainable soy crop Agrifirm Plant creates the conditions for biodiversity with sustainable theme for Agrifirm. With a growing world population and increasing cultivation, Agrifirm is cooperating with, among others, the Dutch use of crop protection agents and fertilisers and by encouraging prosperity, demand for food and dairy products is set to increase in and European animal feed industry to ensure 100 percent responsible healthy soil life. Agrifirm Plant is investigating the possibility of using the coming decades. Agrifirm aims to encourage its members and soy. Additionally, Agrifirm has been co-developing the Dutch soy crop resources allowing for reduced use of crop protection agents while customers to respond to this increase in a sustainable way. Naturally, cultivation and market with Wageningen UR since 2013. stimulating or maintaining healthy soil. The CleanLight treatment Agrifirm, as a supplier to farm yards, is committed to sustainability. This unit for flower bulbs is a great example in this context. This machine is why we process co-products of the food industry in animal feeds, beams a dose of special light to crops killing micro-organisms and why we are committed to buying sustainable raw materials. This such as moulds, bacteria and viruses. Research by Agrifirm Plant is the result of Agrifirm’s intensive consultation with suppliers and has established that lily bulbs can safely be exposed to high agreements with chain parties. concentrations of CleanLight UV. The application of CleanLight UV does not have any adverse effects on bulb quality and on the growth Our Objectives of the lilies after planting. By 2020, Agrifirm aims to buy all major commodities required for animal feed, including wheat, corn and soy, subject to a sustainable Protection of bird life buying policy. Agrifirm bases this policy on regional risk analyses. A great example of protecting bird life is the partnership between With these analyses, we chart the specific environmental and social Agrifirm and the Grey Harrier Work Group Foundation, focusing on risks relating to major commodities of the production region, such maintaining and regeneration of nature. Groenvoerdrogerij Oldambt as deforestation for soy crops in South America. This analysis also BV, a crop drier, part of Agrifirm, is closely collaborating with this describes the actions that Agrifirm is taking to mitigate the risks foundation. The foundation works on conservation of the bird of prey detected. This comes together in a sustainable buying policy, allowing in the Netherlands, advising authorities and nature organisations us to actively work on sustainable cultivation, processing and trade relating to developing policy and the practical implementation of and in all our major raw materials. Agrifirm primarily focuses on of Agricultural Nature Management. In 2014, at the foundation’s responsible procurement of major commodities used for animal feed, initiative, Parliament included the ‘bird field’ in the new GLB (Common but we are also assessing the policy frameworks on applicability to Agricultural Policy). From a GLB pilot, it became clear that a perennial raw materials for Agrifirm Plant. protein crop combined with natural fallow strips contributes to healthy soil and maintaining threatened species such as the grey Agrifirm’s investment in responsible soy and growing Dutch soy was harrier, while also being good for the farmers’ wallets. Protecting nests a major contribution to this pillar in 2014. Soy is a high-protein raw of nesting birds of prey is one action that helps Oldambt BV contribute material for animal feeds. Demand for soy is substantially increasing to biodiversity on farm land. worldwide, among others due to growing demand for animal 18 Agrifirm 2014 Corporate Sustainability Report 19 Dutch-grown soy Buying responsible soy Market development and a pilot test should lead to economically viable soy cultivation in the Netherlands. Soy cultivation in north western Europe offers benefits, such as closing regional cycles and reducing feed miles. In the pilot test, Agrifirm Plant and Soy cultivation in The Netherlands In 2015, Agrifirm is closely involved in the soy case file and in the Chain Transition Responsible Soy Foundation, which has been working on 100 percent sustainable soy since 2012. Responsible soy is cultivated in accordance with the RTRS (Round Table on Responsible Soy) or equivalent standards. This soy fulfils a number of Wageningen UR are researching which soy varieties are most criteria relating to nature conservation, biodiversity, sound agricultural practices, economically viable for cultivating in the Netherlands, and the 2012 healthy working conditions and respect for local land rights. In 2014, the animal feed optimal fertilising and crop cultivation methods. In the first year, 0 Growers industry signed the Nevedi covenant, agreeing to use 100% RTRS certified soy for 11 growers cultivated soy on 35 hectares. In 2014, this tripled to 35 0 hectares the production of meat, dairy and eggs for the Dutch market if market demand is growers on 110 hectares. also implemented as such. The soy for foreign market demand fulfils the minimum sustainability requirements as determined by FEFAC, the European federation of Through field meetings, an active Facebook group and cultivation 2013 advice, growers learn from each other and from the knowledge of 11 Growers Agrifirm Plant. On average, the best 25% of the growers realised 3.4 35 hectares compound feed manufacturers. In 2014, Agrifirm bought RTRS credits for 100,000 tonnes of responsible soy (about tonnes per hectare in 2014, compared to 2.8 tonnes per hectare one third of soy consumption). The credits are to be applied on several years. In in 2013. Two varieties offer the best perspective for the future, 2014, Agrifirm was a Board Member of RTRS on behalf of FEFAC in order to actively combining high yield and early maturing with a high protein contribute to sustainable cultivation and production of soy. content. Agrifirm Plant is responsible for selling the Dutch-grown 2014 soy to the food industry and the livestock sector. Three Dutch dairy 35 Growers farms have been feeding Dutch-grown soy to their cows since 110 hectares Development European benchmark responsible soy late 2014. The soy has been processed to make it suitable as high- FEFAC, the European federation of compound feed manufacturers, is developing quality animal feed. The object of this trial run is to investigate how a European system to compare and classify the various standards for responsible this Dutch-grown soy can be incorporated into the formula, and to soy based on the RTRS standard. This allows a transparent way for the animal feed study its effect on the cows’ performance. industry to interact with soy buyers. The aim is sustainably produced soy that is feasible in practical terms and affordable. Ruud Tijssens, Director Corporate Affairs, R&D and CSR, and Chairman of FEFAC, plays a leading role in this process. In this context, Ruud Tijssens visited Brazil and the United States three times for meetings with major stakeholders in these regions. Increased sales in green crop protection agents Green crop protection agents are based on natural origins (such as plants, animals, Bulk market for Dutch-grown soy is feasible micro-organisms or certain minerals), or synthesized agents that are identical to the “The high-end market is now the main sales market for Dutch-grown soy, both for human consumption and non-GM animal feeds. Dutch natural substance, and low-risk to humans, animals and the environment. soy crops are already almost economically viable because of the mark-up for non-GM soy. The revenue is already substantially higher The sale of green crop protection agents amounted to barely 2% of the total sales than forecast in 2013. In 5 years’ time, we expect to achieve a yield of around 4.5 tonnes per hectares. This means the bulk market that is of crop protection agents in 2014. Agrifirm’s target is for this percentage to increase interesting to Agrifirm is in sight. Agrifirm is really sticking out its neck by being one of the few parties investing to 20% of the crop protection agents by 2025. In late 2014, the Ministry of Economic in research into European soy cultivation. It would not be a real pilot test without market development, because Affairs closed a Green Deal with the sector and other parties, to the effect of after all, Dutch-grown soy must become a business case in progress. If we can cultivate 30 to 40 percent of the accelerating sustainability in crop protection agents in agriculture and horticulture soy required in Europe at the end of the day, my mission is accomplished.” by facilitating the admission of green crop protection agents carrying a low risk to humans, animals and the environment. Chris de Visser, business developer Wageningen UR 20 Agrifirm 2014 Corporate Sustainability Report 21 energy consumption and emissions due to transport by 2025. products to grow in the next few decades. This means that both land and raw materials will become scarcer, increasing pressure on Business Excellence Projects ecosystems. The emission of fine dust particles and greenhouse gases Agrifirm’s Business Excellence projects are a great example of actively will increase, accelerating climate change. Agrifirm closely monitors working on improving efficient production and logistics. These the emission of greenhouse gases and the share of renewable energy. projects aim to improve various business processes in Agrifirm. The Agrifirm Feed Belgium Poland Germany Hungary NutriNuscience Control Opeinde Oldambt Veghel Baasrode Drongen Bocs Gyor Kaba Neuss Topola Szamotuly Margonin Zwolle Grobbendonk Agrifirm expects the global economy and demand for agricultural Wanssum logistics enables Agrifirm to decrease its environmental footprint. Veghel products and feedstuffs. This contributes to Agrifirm’s CO2 emissions. Investing in efficient production and Oss environmental footprint, which is a factor in climate change. Also, plants use energy for the production of Meppel contribute to the emissions of greenhouse gases and fine dust particles, among others. This is part of the 160 140 120 100 80 60 40 20 0 Emmen Efficient processing of raw materials and smart logistics are high priorities for Agrifirm. Agrifirm’s logistics 2014 compared with reference year Drachten 4. Efficient Production and Logistics Oldambt goal is higher customer satisfaction and better performance by Our Objectives working more efficiently. In a Business Excellence project, various to be a reliable partner and more efficient production. The Business decreased due to increased feed meal production. This production Agrifirm aims to improve its organisation’s energy efficiency by 15 measures relating to production and logistics are implemented to Excellence project in Hungary had the highest impact in 2014. increase was not factored into the EEI calculation as no feed meal percent in 2025, compared to 2015. For all production site, we aim to improve efficiency. For example, the ‘Order to Cash’ project is designed also improve energy efficiency by 15 percent in 2025. Furthermore, to gain insight into the bottlenecks in the order process, ensuring Energy Efficiency plants achieved good results, among others by better monitoring Agrifirm aims to have binding agreements with its carriers on reducing that nothing can go wrong in this process. The aim of the project is Since 2013, Agrifirm calculates the EEI (Energy Efficiency Index) for energy efficiency. In Hungary, the Bocs plant closed in late 2014. The most plants. This enables Agrifirm to identify the energy consumption EEI of both Gyor and Kaba was lower as a result of increased pellet by product unit at key production sites. The index indicates the energy production. We replaced two loose pelletizer machines with a single efficiency in comparison to the 2010 reference year. In Agrifirm Feed, large-capacity machines with higher energy consumption. The Kaba The true benefit is that we continue to improve the reference year is 2011, as this was the first year Agrifirm measured plant also used the drier more because the corn was wetter than in “The animal feed market in Hungary poses two major challenges: maintaining and expanding our market position and responding to our the EEI of production sites. By annually repeating this survey, the previous years. customers’ wish for high-end custom products and services at sharp prices. In 2012, our production, efficiency and flexibility were not energy efficiency trend at each site becomes evident and this provides yet sufficient. This is why we implemented a Business Excellence project in 2013, taking measures such as innovating the feed formula, Agrifirm with an accurate impression of the impact of implemented The EEI of the Baasrode production site of Nuscience Group decreased, restructuring production planning and more accurate order forecasting. efficiency measures. as the plant is closing in 2015 and Agrifirm no longer invests in this production was made in the reference year, 2010. The German site. The results of NutriControl improved in 2014, among others due The project reduced operational costs, providing more insight into the business processes. The result was worth it. The EEI shows some ups and downs; for some sites it decreased, to renovation and a Black Belt project. This allows personnel to more In 2014, our product efficiency improved by eight percent and our energy efficiency by twelve percent. However, whereas others show an increase. In Agrifirm Feed’s Emmen efficiently align activities with each other and to more efficiently utilise the biggest gain of all was that our team continues to improve, even without the Business Excellence project. production site, the EEI decreased due to closing the plant in October equipment. The results of the Oldambt site of Oldambt BV improved We are now truly aware of the benefits we can achieve by improving our business processes. This is necessary 2014. The EEI of the Drachten production site improved thanks to a thanks to a dry season. This allowed for properly drying the lucerne on to continue operating with a competitive edge, realising more with less and decreasing our environmental renovated steam boiler and increased capacity. As the plant in Oss the field, requiring less energy for processing this crop. The Opeinde footprint. I am convinced that continuous improvement is crucial to Agrifirm’s future.” required more energy to improve pellet consistency, its EEI decreased. site used more energy as the grass was harvested longer and with Alexander Drees, managing director Agrifirm Magyarország The Szamotuly site of Agrifirm Polska improved its energy efficiency higher moisture content in comparison with previous years. For this reason, the site used more fuel per tonne of dried product. once more by investing in a new engine. The EEI of the Margonin plant 22 Agrifirm 2014 Corporate Sustainability Report 23 Agrifirm 2014 Energy Consumption repeating the energy efficiency survey, the energy efficiency trend at Energy consumption of the companies in the Agrifirm Group each site becomes evident and this provides Agrifirm with an accurate last year amounted to: impression of the impact of implemented efficiency measures. In the 20132014 Gas (m ) 3 14,814,015 12,888,053 93,539 329,836 159,019,319 154,468,567 9,881 13,631 Gas (l) Electricity (kWh) Coal (tonnes) past few years, we made progress. The goal is further improvement in the EEI in the coming years. Increasing the share of renewable energy is part of this goal. Investing in a better environment 787,501 639,908 Agrifirm’s production and logistics contribute to the emissions Diesel (l) 5,335,582 507,062 of greenhouse gases, among others. In 2014, therefore, Agrifirm Petrol (l) 23,930 20,518 invested in various measures designed to decrease the environmental AdBlue (l) 31,200 0 footprint. Agrifirm Feed invested € 75,000 in the Wanssum production Share of renewable energy 3.16% 2.56% site for better extraction of the silos in order to reduce emission of Heating oil (l) gases. Agrifirm Deutschland invested € 80,000 in a new control system for efficiency improvement in the Drentwede site. Compared with 2013, gas consumption (m3) decreased, among others because Agrifirm Plant used less gas. In 2014, growers More energy-efficient transport harvested relatively dry grains, resulting in less gas required to dry the Transporting products is responsible for a significant portion of grain. The use of coal (per tonne) increased as Oldambt BV used more Agrifirm’s energy consumption and therefore its CO2 emissions. Feed’s carriers consisted of Euro6-certified trucks in order to reduce more professional. This measure has significantly decreased the number fuel to dry the grass after a long, damp season. The use of diesel and From 2014, Agrifirm outsourced all of its transport of animal feed to the emission of NOx and fine dust particles. of transport journeys in the polders, increasing road safety. AdBlue significantly decreased because Agrifirm Feed has outsourced customers. Agrifirm will make binding agreements with its carriers the carrier activities from 2014. on reducing energy consumption and emissions due to transport. In 2013, Agrifirm Plant decided on contemporary logistics, customised CO2-Emissions Agrifirm Feed also supplied bags and units on varying days in 2014. to the customer’s wishes. In 2014, this was implemented in the entire Based on energy consumption, Agrifirm calculated its CO2 emissions Renewable energy by site This allowed for more efficiency, optimising the carrier planning. Due country for a full year for the first time. Agrifirm Plant replaced the (Organisational Environmental Footprint) in 2014. The results of Agrifirm has invested in reduction measures in the past few years to optimised carrier planning this resulted in lower CO2 emissions and method of having the customer pick up his/her products by full the CO2 emissions are based on the emission factors published by to improve the EEI of production sites, among others. By annually fewer kilometres. Furthermore, in 2014, 35% of the fleet of Agrifirm service delivery with the motto ‘efficient if allowed, rush if required’. Stimular (on the basis of CE Delf 2010) and the Climate Neutral Group Renewable energy Using the ‘ex farm’ concept, the grower collects the grain at the farm (on the basis of NL Agency, 2012 CO2 performance ladder). In 2014, yard, where Agrifirm Plant picks it up within one week at no cost. In our emissions amounted to: 2013, the cereals were centrally stored in the new grain storage in Kampen for the first time. In 2014, the second section of the storage 1,2 1 0,8 CO2 emissions from direct energy consumption: facility was commissioned. In 2014, Agrifirm Plant also operated with fewer carriers. CO2 emissions from indirect energy consumption: 0,6 61,175,090 kg CO2 equivalent 77,036,084 kg CO2 equivalent From the efficiency statistics for all product types, it is clear that the 0,4 2010 24 Agrifirm 2014 Corporate Sustainability Report 2011 2012 2013 2014 Agrifirm Winkel BV Nutricontrol BV Agrifirm Exlan BV Oldambt Abemec BV Feed Belgium Agrifirm Plant longer, but also damper when harvesting. Agrifirm co-products members and customers cause sub-efficient loading of trucks. Another Agrifirm Hungary because Oldambt BV used more coal to dry the grass. The grass was Agrifirm Polska causes. In the first place, the choice of continuing to offer rush orders to Agrifirm Deutschland 0 Nuscience NV The CO2 emissions from direct energy increased compared to 2013 Agrifirm Feed BV 2014 mileage is higher than in 2013. This increase is mainly due to two Agrifirm Group 0,2 cause is Agrifirm taking over carriage from the growers, such as based on the ‘ex farm’ concept. Due to using large trucks with a higher loading Green Lease capacity such as 30 tonnes, Agrifirm Plant is able to pick up the grain The number of Agrifirm employees with a green lease car rose from harvest from growers using lower mileage than the growers, who 76 in 2013 to 81 in 2014. The data provided by the lease company would have to drive the distance several times for the same load. This show that in 2014, the average CO2 emissions per kilometre of the has made ‘ex farm’ transport of cereals more efficient, but also safer and employees with a green lease contract is 152 grammes per kilometre. 25 5. Efficient Use of Raw Materials This is how we make the step to real-time livestock management “In the Smart Dairy Farming project, we have partnered with chain parties in a new approach of real-time translation of data on individual dairy cows into practical advice for the dairy farmers. A treasure of data is available from each dairy farm, some measured using sensors. Using these data on a real-time basis, we are shifting towards precision livestock farming, with each individual animal receiving the feed Efficient production results in a smaller environmental footprint. Efficient use of raw materials ensures that more can be produced with less. This is why Agrifirm invests in research for the purpose of introducing product innovations that help our members and customers to achieve higher production with less feed, fertilisers or crop protection agents. and care that it requires at that time. This results in healthier animals that live longer and it contributes to more sustainable supply chains. Combining knowledge of genetics, nutrition and animal health serves to extend the life of dairy cattle by at least one lactation period. For example, the rumen is a complex ecosystem that is quickly out of order, with major consequences to the health and life span of the animals. Sensors provide a real-time impression of the developments of rumen health. This way, the farmer can manage a condition long before the cow gets sick, for example by reducing the amount of pelleted feed. We are currently developing models for individual feeding based on production and health data. I also call this ‘smart feeding’ or ‘precision feeding’. This way, each animal receives optimal feed rations, saving on raw materials. Efficient use of fertilisers and crop protection agents benefit the developed in 2014. Based on GPS, Agrometius records data, among environment and the entrepreneur’s wallet. More with less is a key others on the variation in organic matter, pH, EC (salt concentration) These developments help us make the step from concluding that something is wrong when a condition is starting point in realising sustainable agriculture. Although Dutch and the altitude of the soil within a plot. These data are calibrated visible to real-time assessment and early health management of individual cows. The result is healthy cows agriculture is already one of the most efficient in the world, there is with soil samples. Subsequently, Agrifirm Plant specialists prepare that grow older and are consequently productive for a longer time. Efficiently using raw materials, decreasing still plenty of room for improvement. a job card together with the grower that the grower or worker can the environmental impact and improving animal health in companies improve the profitability of agricultural use to fertilise, chalk or apply crop protection to specific spots. companies.” Our Objectives This means growers have fewer corrections to make during the By 2025, Agrifirm will have developed sustainable agricultural cultivation and allows for optimising crop growth. The result is practices. The aim is to assist Agrifirm’s members and customers improved yield, higher revenue and more specific use of fertilisers achieve efficiency improvements. This is designed to help Agrifirm’s and crop protection agents. Albert van den Belt, director Agrifirm Innovation Centre members and customers in reducing the environmental footprint of animal and arable production by 15 percent in 2025 compared to 2015. Agrifirm actively encourages manure processing by members and customers, in order to ensure optimal use of valuable components in organic manure. This is how we help our members and customers Biological soil remediation use raw materials efficiently. In 2014, Agrifirm Plant and other parties started up a pilot project utilisation of nitrogen and phosphate than regular corn. Furthermore, for a new method of biological soil remediation targeting harmful Top Coat corn shoots up quickly with high starch yields. A win-win Smart Dairy Farming nematodes. The results of existing biological soil remediation vary situation. The Smart Dairy Farming innovation project in which Agrifirm and a full growing season is often lost. The new ‘Soil Reset’ method participates is another great example. This project serves to develop is more practical and can be completed in a short time. In 2015, the In 2014, Agrifirm Plant, together with other parties, introduced a new technology, linking data and translating the data into real- first results of the Soil Reset method are expected for bulb crops and Toolbox to help growers keep the surface water cleaner. The Toolbox time work instructions for dairy farms. This increases the dairy cows’ open field vegetable crops. If the method works well, it provides an contains 17 information cards with practical measures to reduce lifespan and improves their health. In 2014, the project succeeded in environment friendly and safe alternative to regular remediation the emission of crop protection agents to the surface water. The developing the first ten real-time work instructions for individual cows. agents, also for other crop cultivations. This enables Agrifirm Plant to Toolbox perfectly matches the government’s objectives and makes Dairy farmers in seven pilot companies tested the work instructions. contribute to a sustainable crop cultivation that has less of an impact growers aware of the emission routes in their company. Agrifirm Plant This is the first step in precision feeding, helping cows grow older in on the environment. encourages members and customers to use the Toolbox. In this context good health with more productive years. it is important to thoroughly inform the growers about the practical Agrifirm Plant innovations application. This is why the Toolbox is extensively highlighted in Veris soil scan Innovations such as the corn seed coating Top Coat by Agrifirm Plant customer meetings, lectures to growers and newsletters. Additionally, In order to efficiently use raw materials and fertilisers, Agrifirm Plant are good examples of high-impact innovations. This coating does Agrifirm Plant also researches the possibilities of purification of and Agrometius offer growers the Veris soil scan. This scan was not contain any inorganic phosphates. Instead, it ensures better soil residual liquids. 26 Agrifirm 2014 Corporate Sustainability Report 27 Phosphate reduction Phosphate is a key component of animal and plant food. Agriculture Efficient feedstuffs and concepts of Agrifirm Feed uses phosphate from raw phosphate in animal feed and fertilisers. Excess phosphates are bad for the environment and nature. In late 2014, Agrifirm Feed was the first animal feed Additionally, raw phosphate is getting scarce. This is why we are company to introduce sustainability labels providing focusing on reducing phosphates in animal feed and fertilisers, specific information on the sustainability performance and efficient use and re-use of phosphate. Agrifirm Plant’s research of feed concepts and products. This way, Agrifirm Feed is focused on optimal yields and soil fertility with less phosphate. helps customers have an impact on their own company. Agrifirm Feed emphasises reducing phosphates in animal feed. A total Additionally, we introduced new feed concepts, such as reduction of 910,432 million kilogrammes of phosphate was achieved Compound Feeding 2.0 for dairy cows. This approach in 2014 in comparison to the 2009 reference year. This contributes to a prevents feed selection, thus resulting in higher feeding healthy environment and biodiversity. efficiency and improved animal health. In 2014, Agrifirm Feed expanded the moist feed concept SOLIQ for laying hen poultry to broiler hen rearing stock. SOLIQ prevents Reducing phosphate in animal feed selective pecking of chickens, reducing the loss rate and increasing yield. Additionally, Agrifirm Feed introduced the Phosphate reduction (kg 2014 new Robustior fattening pig feed for the finishing phase Cattle 534,650615,322 2013 of the pigs in 2014. This feed enables the customers to Pigs 538,886295,110 feed their fattening pigs even more efficiently. With the introduction of innovative feed concepts, Agrifirm Feed contributes to efficient use of raw materials, with gains both In 2014, Agrifirm reduced phosphate further in cattle feedstuffs for the environment and the entrepreneur. because the feed had lower protein content. The cattle feed contained 2.42 percent phosphorus as the share of raw protein in Please find below the fact sheet of SOLIQ. In 2014, Agrifirm the feed. This is well under the 2.5 percent standard as agreed in started calculations of the sustainability performance of this the Nevedi covenant. In 2014, Agrifirm realised lower phosphate moist feed concept for poultry. reductions in pig feedstuffs. The share of co-products from the food industry, such as semolina and sunflower kernels increased in pig feed. These co-products often have high phosphorus content that is not always bio-available to the animals and reduces phosphate reductions. (Factsheet) DuurzaamheiDsprestaties van sOLiQ Vijf labels Duurzaamheidslabels voor verantwoorde keuze The Cycle Management Guide brings the feed, manure and soil cycle of a dairy farm into focus. These data enable the dairy farmer to better diergezondheid, Er zijn vijf labels: mineralenefficiëntie, grondstoffen. klimaat, recycling en verduurzaming en geeft concrete Elk label heeft een eigen symbool sprestaties van uw informatie over de duurzaamheid we u een volgende voerconcept of product. Zo helpen voedselvoorziening. stap te zetten naar een duurzame sprestaties van SOLIQ. Hieronder vindt u de duurzaamheid gezond en Negen miljard mensen voorzien van uitdaging waar de duurzaam voedsel. Dat is de grote leden en klanten wereld voor staat. Agrifirm helpt manier voedsel te om op een rendabele en duurzame rijf kiest Agrifirm produceren. Als eerste diervoederbed en concepten. voor duurzaamheidslabels voor voeders te geven in de De labels zijn bedoeld om inzicht concept of product. duurzaamheidsprestaties van het sOLiQ respond to the needs of the crops and the directives for applying manure on his own grounds. The Agrifirm dairy farm advisors are trained to support dairy farmers in using the Cycle Management Guide. Mineralenefficiëntie Op het gebeid van mineralenefficiëntie zijn er geen aanzienlijke veranderingen te verwachten. Recycling Klimaat Diergezondheid Co-producten Carbon Footprint Gezondheidseffect N en P efficiëntie Door een vlotte en uniforme voeropname is de gezondheidstoestand van het koppel veel stabieler en is er minder uitval. SOLIQ bevat 11% meer co-producten dan gangbaar pluimveevoer. Doordat soja wordt vervangen voor een vergelijkbaar deel co-producten, bereikt u met SOLIQ een hoge reductie van klimaatemissies per kg ei. Reductie 0,5% N efficiëntie P efficiëntie Het landgebruik per ei melk daalt met 7,3%, mede door de aanzienlijke stijging van het aandeel van co-producten. Reductie Reductie Reductie Verhoging 0,4% Verduurzaming grondstoffen Landgebruik 7,3% 11% 5,0% N efficiëntie Landgebruik Co-producten Carbon Footprint P efficiëntie Voor elk duurzaamheidslabel geldt Legenda: negatieve impact een andere schaalverdeling. U vindt Neutraal deze op de laatste pagina van deze factsheet. positieve impact schakel in succes 28 Agrifirm 2014 Corporate Sustainability Report 29 Investing in valorising manure Use of organic fertilisers Sensetion soil water sensor Under new manure legislation, it is mandatory for farmers with excess More efficient use of organic fertilisers is a key objective to Agrifirm Plant. In the past year, Agrifirm Plant and Dacom launched manure to process a portion of their manure. Manure processing This strategy of Agrifirm Plant is effective; the sales volume of organic a sensor system for agriculture and horticulture on converts manure into valuable nutrients and organic materials for fertilisers and liquid manure once more increased in 2014. The sales the market: Sensetion. This sensor system for growers the soil. This allows for efficient utilisation of manure flows and the volume of stackable fertilisers is comparable to that of previous years. indicates exactly when a plot should be sprinkled. This proper use of these new organic manure flows improves soil fertility. concerns a soil water sensor interacting with a mobile Agrifirm is one of the initiators of the Manure Investment Fund. This The sales volume of compost slightly decreased in 2014 due to lower app for irrigation advice, and is user-friendly. Sensetion fund stimulates specific investment plans for manure processing. In supply and increased prices. In 2014, entrepreneurs also used more is equipped with intelligent sensor technology. 2014, the fund financed the second and third manure processing slurry and due to limited storage space, this decreased the sales project. This allowed the fund to realise 430,000 kg of phosphate for volume of compost. In 2015, Agrifirm Plant aims to become a party Effective water management quickly pays back exporting abroad. adding value in the residual flows column. the investment. In dry areas, the added value is mainly in saving water. In wetter areas, such as the Netherlands, irrigation at just the right times allows for higher quality of the harvest and higher yields. So specific irrigation is not only better for the crops and the soil, but it also results in direct savings on water Organic fertilisers consumption. Fuel use is also lower due to fewer 600.000 transports to the plots and lower diesel use during irrigation. Furthermore, the system itself fully operates 500.000 on solar energy. 400.000 300.000 200.000 100.000 0 2008 Liquid (t) 2009 2010 Stackable (t) 2011 Compost (t) 2012 2013 2014 Organic fertilisers Water consumption With the growing world population, demand for food and water increases accordingly. Simultaneously, availability of water decreases due to water wastage and pollution, climatic change and deforestation. Agriculture is a major water consumer. Worldwide, about 70% of the available water is used for agriculture. A sound water level and effective water management are basic requirements for healthy agriculture. To ensure future supply of sufficient clean water, Agrifirm is committed to awareness in using water. This is why Agrifirm uses water conscientiously in its various product sites. However, the highest impact in terms of water is achieved on the farm yard. This is why Agrifirm Plant developed innovative irrigation methods that reduce water consumption in order to achieve optimal results with minimum water quantities. 30 Agrifirm 2014 Corporate Sustainability Report 31 6. Healthy Plants, Soil and Animals for Healthy People on the need and nutrition of the cow. This concept enables the Vitanox and Vitafix for healthy young animals entrepreneur to achieve excellent yields on healthy cows. In 2014, Health4U’s R&D department, part of Nuscience, introduced the natural anti-oxidants Vitanox and Vitafix. Adding Vitanox to In 2014, the sustainability labels were calculated for the existing feed reduces the number of harmful free radicals while requiring concepts OPFOK24 and the 100 days concept. Agrifirm Feed’s less vitamin E. This gives the animal better protection, which has OPFOK24 concept for dairy cattle is a structured schedule with a positive impact on health. Health4U also developed the feed specific feedstuffs and advice for efficient rearing of young cattle. The additive Vitafix, countering mycotoxins. Mycotoxins can suppress Plants and animals with high natural resistance need fewer supporting substances such as 100-day approach for dairy cows contains the right products and the the immune system, making animals more vulnerable to diseases. crop protection agents and veterinary drugs. This benefits plants, animals, the environment best recommendations concerning nutrition, accommodation and Vitafix enables the entrepreneur to actively work on having healthy the care of cows around calving time. This results in fewer digestive animals that require fewer veterinary drugs. and the entrepreneur’s wallet. Eventually, healthy plants and animals of course also diseases around calving time and increased life-time production. contribute to improved human health. Due to increasing urbanisation, consumers are not as close Concepts for healthy animals to agriculture as before. Sustainability is linked to traditional A feed concept or product that is optimally aligned to the needs of Attention to healthy soil is a stayer craftsmanship. New technology based on chemistry and modern the animal is a great basis for healthy animals. In early 2014, Agrifirm “Healthy soil is a vital part of worldwide food supply. If the soil is balanced in chemical, physical and biological terms, you can say breeding methods are mistrusted. Using substances such as crop Feed introduced the innovative concept Line-Up, housing hens and that the soil is healthy. This would involve the right balance of nutrients and trace elements suitable for the soil type; a sound ratio of protection agents and antibiotics are under the scrutinising eye of cocks separately in the same stable but giving specific feed to each. air, water and soil; and healthy soil life with sufficient organic matter content. The soil can properly feed the plants only if all of these society, often with a ‘zero tolerance’ filter. Healthy plants, soil and This is an optimal response to the specific nutrient needs of hens elements are balanced. animals reduce the need for corrective measures such as the use of and cocks. This results in healthier chicks, fewer foot sole problems crop protection agents and veterinary drugs. This is why Agrifirm is and better yield for the entrepreneur. In our cultivation advice for healthy soil, we focus on two aspects. We advise growers how to balance the organic matter content in order to maintain soil fertility and soil health. We also advise on proper nutrient supply. In particular in clay grounds, this affects the committed to plants, soil and animals with high natural resistance. This decreases the necessity for corrective measures such as the use Additionally, Agrifirm introduced the concept Roughage Total of veterinary drugs or crop protection agents. in 2014. This concept ensures optimal alignment of regulations, soil, fertilisation, crop, harvest and nutrition. This always centres right structure in the soil. In the past year, we once again launched a number of innovative products that help growers in that respect. NemaDecide is a nematode advisory system, among others for potato growers, to manage the correct crop rotation for proper control Our Objectives of pathogen soil life. We converted the system to Geonema in 2014, which is a system accessible via internet. This enables growers to By 2025, Agrifirm has developed sustainable agricultural practices, calculate the development of pathogenic nematodes during a period of over ten years based on certain crop rotations and crop se- including natural crop protection and a 20 percent increase in the lections. This helps growers to prepare a healthy crop rotation schedule in terms of nematode control. We are set to roll out Geonema use of green crop protection agents. Reinforcing natural resistance of in 2015. animals will reduce the use of veterinary drugs by our members and customers by 20 to 30 percent compared to 2015. Another great example is Mycorrhiza, a mould that lives symbiotically with plant roots, assisting in better access to nutrients and water. Mycorrhiza is suitable for healthy soils, but requires the grower to adjust fertilisation and the use of crop protection agents. Together Healthy soil and balanced plant and animal feed is the basis for with our partner BioMygreen, we marketed Mycorrhiza moulds in 2014 for a number of new crops, such as onions, flower bulbs and profitable and sustainable agriculture. Balanced plant and animal tree crops, and also for public landscaping. We offer a comprehensive solution, so we also give the growers advice on how to best feed is the basis for profitable and sustainable agriculture. Feed make their crop ‘Mycorrhiza-proof’. concepts such as OPFOK24 for dairy cattle and Line-Up for broilers are fine examples showing how Agrifirm is contributing to healthy Attention to healthy soil is certainly a stayer. Concepts such as Mycorrhiza are just the start of what is possible. animals. Agrifirm also actively works on healthy soil. In our crop advice and research, the added value to the customer always has the highest priority. After all, we are not researchers solely on a quest for knowledge in itself.” Aaldrik Venhuizen, manager Research & Development Agrifirm Plant 32 Agrifirm 2014 Corporate Sustainability Report 33 Agrifirm Plant testing In 2014, Agrifirm Plant conducted tests all year, testing innovations relating to fertilisation, crop protection agents, soil health and soil fertility. These tests are designed to collect knowledge and translate it to the customer’s situation. For example, in 2014, we tested Top Soil humus acids that can be used for better availability of soil phosphate to plants. This helps them grow better. We also researched improving soil health using Mycorrhiza. Agrifirm Plant developed an innovative cultivation system in onion crops using Mycorrhiza. In 2014, we extended this system to potato and bulb crops. We also deploy this beneficial mould in sports fields. Implementation Cycle Management Guide As from 2015, the Cycle Management Guide is mandatory to dairy farmers with a phosphate surplus. The Cycle Management Guide brings the feed, manure and soil cycle of a dairy farm into focus. This data makes it easier for the farmer to take the impact on the soil into account and to opt for a Contribution of Innovation Projects to Sustainability Agrifirm is investing in fundamental and practical tests to realise projects in 2014 contributed to people’s and animal’s health (People), higher yield and sustainability impact on the farm yard, to maintain biodiversity and the emission of greenhouse gases (Planet) and its position as market leader and to contribute to sustainable food returns for the farmer (Profit). The percentage of the research projects supply. As in previous years, AIC, Agrifirm Plant and Agrifirm Business with specific focus on people, planet and profit are presented in the Excellence (BE) conducted a sustainability scan to determine which table below. different feed ratio and a more efficient fertilising method. It enables better performance of both plants and animals, and benefits the environment. Agrifirm Exlan, a member of the Agrifirm Group, advised 15 study groups of dairy farmers concerning the Cycle Management Guide in 2014. People Contribution to improvement public health consumer level: AIC 25% Plant 14% Contribution to preventing human resistance to antibiotics: AIC 42% Improvement of animal health and animal welfare: AIC 50% Contribution to training internal or external involved parties: AIC 58% Plant 31% Biodiversity: improve phosphate efficiency soil: AIC 50% Plant 39% Biodiversity: improve nitrogen efficiency soil: AIC 8% Plant 39% Biodiversity: improve soil physics: AIC 50% Plant 42% BE 92% Planet Biodiversity: improve the use of Crop Protection Products: Plant 28% Climate: curb the emission of heavy greenhouse gases (methane and nitrous oxide): AIC 8% Climate: improve feed conversion: AIC 71% Climate: reduce own energy consumption: AIC 17% Alternative sources of protein: AIC 21% BE 15% Plant 3% Reuse of raw materials (recycling) Plant 6% Air and water quality: Plant 6% Profit Direct cost reduction of own and/or member activities: AIC 92% Plant 36% BE 77% Internal collaboration: AIC 85% Plant 22% BE 100% Collaboration within the chain: AIC 46% Plant 19% The research projects of Agrifirm focus on a wide range of subjects protection agents is required when using the Cleanlight treatment within the themes of people, planet and profit. Research can score unit. Simultaneously, it improves yields as it tackles a virus in the crop. on the various themes, which explains the variation in percentages. This research therefore also contributes to the Profit theme. A great example is the research into the feed conversion for the 100-day plan. This research was about looking for ways to improve feed efficiency and simultaneously to realise a better bottom line for the livestock farmer. The research into the Cleanlight treatment unit for flower bulbs is a great example of this ‘cross-pollination’. The research contributes to the theme Planet as a lower amount of crop 34 Agrifirm 2014 Corporate Sustainability Report 35 7. Contributing to a Sustainable Consumer Supply Assessment and Performance (LEAP) partnership. In 2013 this kilogrammes of emissions released during the production of a partnership worked on a global methodology for CO2 footprinting for kilogramme of milk, meat or eggs produced using Agrifirm Feed’s animal feeds. In 2014, an agreement was reached and final guidelines feeds. The carbon footprint of chicken meat and milk remained were published. In addition, the FAO and the American animal feed fairly stable compared to previous years. The footprint of eggs industry are consulted concerning the creation of a global database for showed a slight decline. The carbon footprint of pork is slightly data on the environmental impact of certain raw materials. higher due to adjustment of the piglet feed calculation method. The adjusted method is based on a new definition, for example of Agrifirm is committed to offering consumers the choice of responsible products. Agrifirm sees growing The CO2 Footprint of Milk, Meat and Eggs the energy required for growing and drying the crops for piglet attention for the influence of food on health. Simultaneously, interest in recognisable products is growing. The infographic below illustrates the CO2 equivalent number of feed. In order to encourage the production of sustainable products, collaboration in the chain is essential. This is why Agrifirm supports livestock farmers in optimising outdoor grazing with the Meadow Compass. In Carbon footprint this way we contribute to the dairy produced from cows that graze in meadows. 5000 Kg Co2 eq/ton product LuLuc 4000 Feed 3000 Pig meat Chicken meat Milk 2014 2013 2012 2011 2010 2014 sustainable range for consumers. 2013 partner to chain partners by conducting research and contribute to a and healthy. This is why Agrifirm invests in new chain concepts, reducing 2012 processes. Consumers increasingly label ‘regional’ products as sustainable 2011 that the feed profit was lower by 30%. We aim to be an discussion 2010 of amino acids fell short. Research to find the best alternative showed a growing interest in recognisable products and transparent production 2014 consumption pattern. Simultaneously, Agrifirm notes that society shows 2013 0 2012 using the available raw materials. In particular the levels of a number 2011 Sufficient supply of sustainable and healthy products can change the 2010 1000 2014 that it was not possible to compose optimal feed for the broilers 2013 overweight and have health issues, with unhealthy food as a major factor. Farm 2012 2000 2011 broiler chicks using only European raw materials. The study showed 2010 Worldwide, a growing percentage of people age 20 and older are Eggs chain length or processing locally sourced raw materials. Our Objectives Agrifirm Plant in ‘Did you know that?’ By 2020, Agrifirm wants to be the main partner for chain parties In 2014, one edition the popular RTL4 TV show ‘Did you know that?’ Sustainable brewing barley is a great example of successful chain development in developing and testing new chain concepts. This is why focused on leeks. In this broadcast, a cultivation specialist, an Agrifirm Agrifirm participates in partnerships such as the ‘Brewing Barley Plant customer, told viewers all about sustainable cultivation of leeks. from Sustainable Crops in the Netherlands’ project. In this project, Relating to growing sustainable leeks, we are actively working on Agrifirm Plant, Heineken Netherlands and Holland Malt collaborate a sustainable consumer range. The ‘Did you know that’ broadcast in developing the market for sustainable brewing barley up to offered consumers an insight into sustainable cultivation of a “In the past three years, about 70 growers of Veldleeuwerik Foundation were growing brewing barley on Dutch soil with sustainable methods. Agrifirm Plant provides, among other things, accredited advisers, who issue advice to the growers relating to sustainable cultivation of brewing barley. Holland Malt is responsible for malting the barley and subsequently Heineken brews beer from the malt. In 2014, the brewing barley growers of Veldleeuwerik Foundation supplied 8,000 tonnes of sustainable barley, allowing Heineken to brew as much as 440,000 hectolitres of beer. 15,000 tonnes in 2015. The 2020 target is to grow 50,000 tonnes of frequently used vegetable in the every-day Dutch kitchen. sustainable brewing barley. Agrifirm Plant is testing barley varieties with excellent growing properties, thus supporting sustainable cultivation of brewing barley. Carbon footprinting Carbon footprinting is the calculation of the total greenhouse gas We think it is important that the brewing barley is cultivated also in the Netherlands. This projects gives us a direct link with the Dutch brewing barley growers. In this case, the growers are very special because they develop sustainable agriculture. The project is a fine example of successful chain development that also supports the transition towards sustainable agriculture. That is also the reason for us to continue our partnership with Agrifirm Plant and Holland Malt, having extended the project by three years. European animal feed study emissions of a product throughout its entire lifespan. This subject Protein-based raw materials are a vital component in animal feeds. is gaining in prominence on the agricultural sector’s agenda in the In Europe, we import a relatively large amount of protein-based raw Netherlands, Europe and throughout the world. Through a partnership materials such as soy. This increases the environmental footprint, between the FEFAC (the European Federation of Compound Feed among others due to transport. Various chain parties are interested Manufacturers) and the UN Food and Agriculture Organisation (FAO), The first three cultivation years were successful, and so we increased the target to 15,000 tonnes of sustainably grown brewing barley in 2015. Our ambition is 50,000 tonnes of sustainably grown brewing barley by 2020. We also introduced a field shoulder scheme to the growers, making sowing seeds for flower strips available free of charge to the growers. This way, we promote both biodiversity and the grower’s image. Heineken aims to become the greenest brewer in the world, and that means good collaboration with committed partners such in European raw materials for animal feeds. In 2014 at the Laverdonk Agrifirm is working on the international standardisation of the FeedPrint as Agrifirm Plant are essential.” experimental farm, Agrifirm studied the consequences of feeding methodology. The partnership launched the Livestock Environmental Jan Kempers, manager Sustainable Development, Heineken Nederland BV 36 Agrifirm 2014 Corporate Sustainability Report 37 8. The Basis for Success We aim to be a leading employer “After Agrifirm’s merger with Cehave Landbouwbelang in 2010, we already expressed the ambition to be part of the top 3 favourite employers in the agricultural sector. This Expert, motivated employees are indispensable to a successful enterprise. It is important for Agrifirm to recruit and retain talented employees. This is why Agrifirm creates a stimulating and inspiring work environment and invests in sound terms and conditions of employment and in training opportunities and career development. ambition expresses our scale and market position. When restating our sustainability policy, we also determined we aim to become a leading employer. As a top company, recruiting and retaining talents is essential. Products and services are important - but without the right people, the company is not ‘rolling’. International collaboration In line with its commitment to corporate social responsibility, Agrifirm is committed to being an attractive employer. This is how Leadership So in the next few years we will continue to look for potential Agrifirm contributes to developing the agricultural sector in we can recruit the best employees and achieve the best results. Agrifirm aims to be the best company in its market by 2016. The way in employees from outside the agricultural sector. This enables various developing countries. Agrifirm Plant supports ‘Building on Corporate social responsibility and relevant business operations are which managers exercise their responsibilities is very important in this us to invite new knowledge and competencies and stay a fertile grounds’ between 2014 through 2016, a ZOA agricultural vital therefore. Offering excellent opportunities for further growth respect. This is why Agrifirm is implementing the Leadership@Agrifirm large, international company. Additionally, the HR (Human development project in Burundi. Various Agrifirm Plant specialists and a pleasant company culture are also factors in Agrifirm’s success. project. This project is a continuous process and a development Resource) departments of the individual companies will visited the project to issue practical crop and cultivation advice. In Agrifirm aims to take good care of its employees, and consequently initiative for the entire organisation. Furthermore, Agrifirm frequently be collaborating to encourage internal promotion of 2014, a group of 13 representatives of Kenyan dairy cooperatives invests in excellent employee benefits and training options. organises training for ‘Young Employees Agrifirm’ (YEA) for employees employees. I think it is important that our staff can say: ‘I visited the Agrifirm head offices. We exchanged knowledge during up to age 35 with a higher education level. can make a national or an international career at Agrifirm this visit and explained our sustainability policy. This visit and some within its group of companies’. This is why we introduced missions to Kenya and Indonesia are part of the partnership with Our Goal In order to remain successful, Agrifirm aims to be the most favourite Training cost per employee an international performance management platform in Agriterra. This organisation supports farmer organisations in their employer of the agricultural sector by 2020. By 2020, Agrifirm has In addition to leadership training, Agrifirm invests in (further) training, 2014, allowing employees to work on improving their battle against poverty based on using experts from the Dutch developed leadership as one of the key success factors of the for example relating to working conditions and safety. performance in a sophisticated way. agricultural sector and sponsored by the Dutch government. company. This is clear, among others, from a large share of internal 1 We also took a step forward in further leadership Customer satisfaction 20132014 development of managers in 2014. Training managers It is very important to any company to understand their customers’ Agrifirm Group 1079 1221 Expenses for training employees (x 1000 euro) promotions. enables them to support ambitious employees. In 2015, opinion of them - also to Agrifirm. Therefore Agrifirm performs 217 98 we will continue working on this goal with the Agrifirm a survey of customer satisfaction and its image once every two Nuscience Group 123 244 Academy, supporting people in their personal development years. In 2013 the survey showed that 84 percent of customers Agrifirm Germany 1433 155 plans. This will help us remain a leading employer in our was satisfied. Improving customer complaint handling was one Agrifirm Poland 83 120 sector.” of the recommendations. Agrifirm Plant edited the procedure in Agrifirm Hungary 85 86 118 42 Agrifirm Feed Agrifirm best employer 2014! Agrifirm Co-products Best employer agricultural sector Agrifirm Belgium The journal ‘V-focus’ performed an online survey in 2014 among Agrifirm Plant students of agricultural curriculums of four agricultural academies, Abemec 1389 1125 a number of aspects. For example, complaints are recorded in a Emiel Berg, director HR Agrifirm complaints module, and we make a follow-up call on one in every five complaints to receive feedback on the handling of complaints. 945 The general target is to resolve 90 percent of all complaints within 1753 1944 two weeks. Agrifirm Feed organised the ‘More Happy Customers’ 749 Wageningen University and Utrecht University. Students were Oldambt BV 103 90 promotion in 2014, and highlighted customer satisfaction during asked for companies where they would like to work. Agrifirm was Agrifirm Exlan 971 549 the 2014 field sales day. Agrifirm Feed also invested in improving mentioned at the students’ initiative most frequently and was chosen NutriControl 7070 complaint handling. This is how we reduced our customer losses by as best employer in the survey. We were proud to receive the V-focus Agrifirm Winkel 233 91 30 percent. In the survey, almost all customers showed a positive award. This highlights that Agrifirm is appreciated for its activities in AgriRetail297 attitude towards Agrifirm. Also non-customers are mostly positive the employee context. 38 Agrifirm 2014 Corporate Sustainability Report about Agrifirm. 39 Health and safety policy Accidents and Sickness Absence Gender Composition of personnel population Working in a safe environment is important for everyone. This is why Agrifirm’s sickness absence rate was 3.7 percent in 2014. In comparison Total number of FTEs in 2014: 3004 Agrifirm initiated the Safety First Project in 2012. The objective of this with 2013, the absence rate remained stable and the duration of Male 74 % project is to reduce the number of accidents and to introduce safety absence decreased. The frequency of accidents slightly rose. Female 26 % principles. In 2014, all Agrifirm companies prepared an Annual Arbo > Accident frequency (incidents per 1,000,000 working hours): Plan (Working Conditions Plan). 3.9 percent in 2014, versus 2.5 percent in 2013. Agrifirm Group BV 66 Total number of Employees in 2014: 3328 Distribution of Total Number of Employees > Average duration of absence due to accidents: Agrifirm Plant 238 The Agrifirm Group has good insight into the safety policies of the 10 working days in 2014, versus 22 in 2013. Agrifirm Magyarország Zrt. 128 different companies. In 2013 a quick scan was performed for the > Rate of absence due to accidents: Agrifirm Feed 583 Agrifirm companies in the context of the Safety First Project. The 0.2 percent in 2014, versus 0.2 percent in 2013. Abemec 233 Age distribution scan was completed by all directors of the subsidiaries. The Agrifirm companies were questioned on eight components: Agrifirm Winkel BV 552 Fatal accidents happened to two Abemec employees in 2014. The < 29 25 % Nuscience Group 758 causes of the accidents were investigated by the Labour Inspectorate, 30-50 48 % Oldambt BV 29 > Having a safety policy in place among others. This investigation did not turn up any lack of actions or > 51 27 % Agrifirm Co-products 142 > Performing a risk identification measures on Abemec’s part. Agrifirm Deutschland 194 Agrifirm Exlan 45 Agrifirm Belgium 32 Agrifirm Polska 125 > Registration of accidents > Employee safety training Average sickness absence as a % > The presence of health and safety officers Agrifirm Group BV (excluding participating interests)2.3 2013 2014 4.4 > The presence of designated implementation officers with Agrifirm Feed 4.7 4.5 Job Families NutriControl 85 specific authorities Nuscience Group 1.7 2.1 AgriRetail 118 > Safety consultation Agrifirm Deutschland 7.5 3.4 Management > Performance of regular medical examinations (‘PMOs’) Agrifirm Polska 2.5 7.1 Commercie 23,7 % Agrifirm Magyarország Zrt. 1.8 1.1 Agrifirm Co-products 3.2 3.7 Staff, Support and Services 15.2 % Based on the results, each company prepared an action plan in 3,4 % 2014. Some implemented measures. Agrifirm Feed provided Agrifirm Belgium 3.2 1.2 additional training relating to working conditions legislation and Agrifirm Plant 2.7 2.7 Research and 5,3 % Innovation safety. The safety officer passed his exam in 2014 and was certified Abemec 3.6 1.9 Operations as ‘Higher-Level Safety Expert’. The Emergency Response manager Oldambt BV 5.9 7.3 Other also passed his exam and was certified as an occupational hygienist. Agrifirm Exlan 3.7 2.9 Agrifirm Plant communicated the company regulations once NutriControl 2.7 4.6 Employment Contract 48,4 % 4% more, and trained employees in handling hazardous substances Agrifirm Winkel BV 3.1 4.0 and loading trucks. Safety remains a recurring agenda item for Agrifirm Retail 4.4 4.6 Permanent 86 % Temporary 14 % various Agrifirm units. 40 Agrifirm 2014 Corporate Sustainability Report Total of 3.328 employees 41 Colophon Agrifirm’s 2014 Corporate Sustainability Report is a publication of Agrifirm Group and is available in digital format from Agrifirm’s website. Editorial Committee CSR department (Agrifirm Group), Communication Department Agrifirm Group, HR Department and Finance Agrifirm Group, Agrifirm Innovation Center, R&D Plant Text Schuttelaar & Partners Concept and realisation DTP Agrifirm, JEEN, Made in May Contact Agrifirm Group Landgoedlaan 20 7325 AW Apeldoorn, The Netherlands PO Box 20000 7302 HA Apeldoorn, The Netherlands T +31 (0) 88 488 10 00 info@agrifirm.com website: www.agrifirm.com/duurzaam June 2015 42 Agrifirm 2014 Corporate Sustainability Report 43 Appendix AMCRA Bemefa Identification Group pig veterinaries WPSA European pig producers platform Appendix 1: KPIs relating to our organisation Consultation platform Premixes of Nevedi Fefana List of memberships Frana Agrifirm Group BV Advice committee animal feed research and Product Board Animal Feed FEFAC, task force sustainability Nevedi Consultation platform premixes FEFAC Praesidium IPVS Project leadership, Foundation Responsible Soy Chain Transition Ava Schothorst Dairy Campus Innovation Committee Ava AniMedica SAI (Sustainable Agriculture Initiative) Agrivaknet Agrifirm Feed / AIC Agrifirm Co-products Top sectors project Feed4Foodure FEFAC work group former feedstuffs on behalf of VIDO Animal Feed Research Netherlands Association International expert committee of GMP+ (on behalf of OPNV), transport GMP committees for logistics and product assessment International Expert committee of GMP+ (on behalf of OPNV), Feed Safety database Schothorst: Foundation Board, basic package committee, animal committee cattle, pigs, poultry OPNV PR and communications Agrivaknet Trustfeed, work group supplier assessment Agrifirm Plant Platform organic food and livestock Steering group Programme Precision Agriculture CVB Steering group SGGV Crop protection agents WPSA Nemadecide Nevedi Atex Geonema Nevedi Board Agrodis Trustfeed Board Mineral fertilisers federation (MMF) CVB Plantum, cereals section International Expert Committee GMP+ Plantum, trade licence crops section FEFAC Quality Feed NAK FEFAC Committee Animal Nutrition Veldleeuwerik Foundation International GMP+ Sustainable Fishmeal & Fish oil Dutch Carrot Group Occupational Health & Safety Catalogue LLTB GMP+ guidance ZLTO NEVEDI substance and endotoxins Netrecycle Nevedi Arbo (working conditions) and the Environment Mineral Fertilisers Federation Expert committee Rikilt Risk System Mineral Fertilisers Distribution raw materials and lab methods Arable Product Board Nevedi Animal feed legislation Top Sectors Chain Platform SecureFeed Work group Product Assessment Steering group Thorough Farming with Corn in Drenthe SecureFeed Technical Committee NIBEM (brewing barley Advisory Committee) Nuscience Group Nemadecide 44 Agrifirm 2014 Corporate Sustainability Report 45 Overview of key themes that emerged in consultation with stakeholders Geonema Sector board for logistics Netherlands EVO Plant activities Abemec Oldambt BV Sustainable raw materials Biodiversity Dutch Fodder Legumes Driers Association (recycling, crops, certifications) (plant health, soil healt, customers and consumers CIDE (European association of fodder legumes driers) flowers & bees) (safety at work, advice) Copa-Cogeca, work group fodder legumes EU advisory group Agrifirm Exlan Empty barrel collection Collaboration Veldleeuwerik GBM ex farm Netrecycling Foundation Transport Health and safety of Van Gansewinkel Groep Cumela Section manure distribution Continuation sustainable Manure Sales Office brewing barley chain Steering group project office Local Manure Processing (Heineken & Holland Malt) Nevedi work groups Cycle Management Guide User work group Cycle Management Guide Resetting soil, public-private User group Database Cycle Management Guide partnership (biological soil RAV committee remediation) NutriControl Partnership Agrometium NEN committee food (Veris scan): soil analysis in NEN committee animal feed combination with job cards NEN committee Halal Food for grower Fenelab committee agrofood Fenelab committee accreditation Partnership sector VRS organisation Nefyto for using Steering group reliability of laboratory testing of GMP+ toolbox cards for emission limitation crop protection Agrifirm Winkel agents Agri Retail/Agrifirm Winkel Flowering Platform Public-private Partnerships RND / top sectors programmes: BPN PPP sustainable soil, IJkakker, Dibevo GeoNema, Soil Reset Project NMF/NMD Fagrovet 46 Agrifirm 2014 Corporate Sustainability Report 47 Feed activities Company Animal health and animal Minerals Co-products Climate Sustainable raw materials Safety and liveability for welfare (efficiency, manure processing, (greenhouse gas emissions) (local raw materials, sustainable local residents near plants cycles) soy, sustainable procurement) Food safety Agrifirm Group Manure Processing LEAP partnership FAO, Promoting awareness of Establishing Secure Feed (excluding participating For Farmers, De Heus, ZLTO FEFAC, AFIA European soy, WUR, ILVO organisation F4F FeedPrint WUR, Partnership Provinces and F4F partners private partners for marketing interests) Dutch soy F4F alternative proteins, WUR, F4F partners Chain transition responsible soy: Sustainable Dairy Chain, Environmental Agrifirm Feed / AIC Smart Dairy Farming Smart Diary Farming Partnership partnership partnership Belgium (lancom WUR + private partners: and University of Louvain) for research into intestinal health precision feeding partnership with private Agreements with carriers Procurement Sustainable raw partner for better availability about more EURO6 trucks materials: Sustainable soy grit, of residual flows sustainable soy oil RTRS, ProTerra, Amaggi, etc. of piglets Continuation of Manure investment fund Partnership Cycle Management Guide Partners with scientific and private partners on better availability of amino acids 48 Agrifirm 2014 Corporate Sustainability Report 49 Feed activities Company Animal health and animal Minerals Climate Sustainable raw materials Safety and liveability for welfare (efficiency, manure processing, (greenhouse gas emissions) (local raw materials, sustainable local residents near plants cycles) soy, sustainable procurement) Nuscience NV Partnership with Free Uni- Partnership with private Partnership with private part- University of Antwerp: versity Berlin: The effect of partners: Conversion of ners: Fermentative upgrade of In-vitro platform functional feed ingredients on co-products to energy and raw materials. animal health. functional feed ingredients. Agrifirm Deutschland Co-products Food safety Procurement of sustainable raw materials: mostly broiler meat non-GM Agrifirm Polska Agrifirm Hungary Regional based sourced soy bean meal for specific customers limestone flour and limestone granulated for feed purpose, originally from local mines in a continuous supply Sourcing form local farmers for corn, wheat, barley – all GMO-free. Oils and feed meal (as oil extraction secondary products) produced locally Agrifirm co-products Feed Belgium Purchasing of responsible soy via Bemefa 50 Agrifirm 2014 Corporate Sustainability Report 51 Feed activities Company Animal health and animal Minerals Co-products Climate Sustainable raw materials Safety and liveability for welfare (efficiency, manure processing, (greenhouse gas emissions) (local raw materials, sustainable local residents near plants cycles) soy, sustainable procurement) Food safety Abemec BV Oldambt BV Partnership Grey Harrier Foundation Agrifirm Exlan BV Nutricontrol BV Agrifirm Winkel BV 52 Agrifirm 2014 Corporate Sustainability Report 53 Services and sales markets The various Agrifirm companies offer the following services: > Agrifirm Plant: cultivation advice to members in arable farming, organic arable farming, flower bulbs, fruit growers, contract workers, public landscaping and open-field vegetable crops. > Agrifirm Feed: advice and assistance to members in cattle farming, dairy farming, meat cattle, goat, horse, poultry and pig livestock farming. > NutriControl: laboratory testing relating to nutritional issues in the feed and food industry (analytical chemistry, instrumental analysis, microbiology, BSE monitoring and customer-specific services relating to quality assurance). > Abemec: part of Agrimec, and supplier of agricultural mechanisation systems, also provides services relating to maintenance and 24-hour break-down service. > Agrifirm Exlan: services relating to company development and manure legislation. > Bonda: advice relating to storage and feeding systems in compliance with all conditions for optimal, efficient and safe use of moist and dry animal feeds. These services are provided by the following companies. > Agrifirm Group The disposal of minority interests forms part of the strategy. In 2014, this resulted in divestment of the 43 percent share in Holland Malt, a malting company, to Bavaria. Together with Bavaria, we invested in a modern malting plant in 2003 to support brewing barley crops in the Netherlands. The inception of Holland Malt achieved an important objective for cereal growers: the creation of long-term sales volume for brewer’s yeast and the realisation of additional cereal storage. In 2014, Agrifirm acquired a 100% interest in Agri Retail. This acquisition was based on using Welkoop as the only retail formula. This allows a clear strategy to be developed for a strong Welkoop brand with the associated shops. The Agrifirm Exlan consulting firm, together with the Agrifirm Innovation Centre and the NutriControl laboratory, forms part of the newly formed knowledge cluster. A combination that guarantees innovation and knowledge development. In 2014, Nuscience split its organisation into two product lines: Nutrition4U and Health4U. Both product lines have their own markets and marketing. Nuscience’s R&D Department focuses on development of feeds for both product lines. Eurotier: collaboration is synergy Agrifirm is always looking for partnerships with mutual benefits. This synergy is the power of our international operations. We increasingly let the whole world know, too. In November 2014, Agrifirm was presented at Eurotier, the largest livestock farming show in Europe, for the first time. Agrifirm’s stand was themed with the campaign ‘In cooperation with’ and offered visitors information on our European feed activities. > Agrifirm Feed Together with Bonda, we presented compound feed and by-products on the show. In both western and eastern European countries, Agrifirm > Agrifirm Plant is currently developing commercial activities with jointly offering compound feed and by-products. > Nuscience Group > Agrifirm Co-products > Feed Europe: - Agrifirm Belgium - Agrifirm Deutschland - Agrifirm Polska - Agrifirm Magyarorzág Zrt > Oldambt BV Collaborating on sustainable raw materials In 2014, Agrifirm started collaborating with the Dutch Biorefinery Cluster. This platform aims to fully use organic raw materials and develop more high-end bio-based products. Agrifirm is also active in themes such as closing mineral cycles and isolating building blocks in plants. This way, Agrifirm aims to encourage the use of sustainable raw materials together with its partners. Agrifirm is also active in the ‘Sustainable Agriculture Initiative Platform’ (SAI Platform), which aims to stimulate sustainable agriculture. Agrifirm participates in the biodiversity committee, for example, developing methods for regional risk analyses with partners. Agrifirm uses > Agrifirm Exlan its knowledge of farming practices to develop practically applicable methods. This enables Agrifirm to implement sustainable procurement >NutriControl policies while working on sustainable crops, processing and trading raw materials. >Abemec > Agrifirm Winkel Agrifirm companies are operating in: The Netherlands, Belgium, Germany, France, the United Kingdom, Spain, Hungary, Poland, Ukraine, Serbia, Romania, Bulgaria, Russia, Brazil and China. Partnerships and acquisitions In 2014 Agrifirm further developed and specified its strategic policy lines laid down in the 2014-2016 Strategic Plan: ‘Agrifirm the Best Company in its Market by 2016’. This has resulted in a restated vision entitled: ‘Focus and Acceleration’. The core of the strategy is a further focus on core activities and an acceleration of various improvement processes. This will enable Agrifirm to position and develop itself in the market with even greater focus and more decisively. 54 Agrifirm 2014 Corporate Sustainability Report 55 Appendix 2: KPIs relating to the environment In general, land use remained stable or decreased in the various countries where Agrifirm is active. The significant decrease in land use for broilers in the Netherlands can be explained by lower use of soy grit and higher use of corn and rapeseed. The latter two crops require a Carbon footprint smaller land surface. In Belgium, the land use for pigs and laying hens has decreased. This is probably due to the fact that corn, a main source The carbon footprint is the sum of the greenhouse gas emissions during the life cycle of the animal products based on the unit kg CO2 of pig feed, was mainly sourced from Ukraine in 2013. In 2014, it was sourced mainly from Belgium, France and the Netherlands, where the equivalent/tonne functional unit (FU) (milk, meat or eggs). In this Corporate Sustainability Report, Agrifirm has based its carbon footprint crop has much higher yields. reporting on the FeedPrint tool developed by WUR and Blonk Environmental Advice. Recycling materials Carbon footprint Recycling materials allows for more efficient use of raw materials. This is why Agrifirm Plant invested in recycling bulb nets in 2014. The Kg Co2 eq/ton product collected bulb nets were recycled into a base product for the plastic industry. Agrifirm Plant collected a total of 3,564 tonnes of bulb nets in 5000 4000 3000 LuLuc 2014. Agrifirm Plant also offers growers the option of having empty jerry cans of crop protection agents, barrels and big-bags recycled. In 2014, Feed Agrifirm Plant received a total of 91 big-bags with a total weight of 170.75 tonnes. NutriControl also separated its different materials in 2014. Farm 2000 Pig meat Chciken meat Milk 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010 2014 2013 2012 2011 0 2010 1000 Eggs NutriControl Chemical 3,722 kg NutriControl Plastic 920 kg NutriControl Paper 5,174 kg NutriControl Glass 2,225 kg NutriControl Hospital waste 18,575 kg NutriControl Dry feed 15,040 kg NutriControl Residual waste 19,087 kg Feed miles and land use Efficient production results in a smaller environmental footprint. Efficient use of raw materials ensures that more can be produced with less. This is Nuscience invested € 2,000 in the Vitamex and Baasrode sites to separate biodegradable waste. Agrifirm Hungary sold paper and metal waste, why Agrifirm annually calculates the transport mileage (‘feed miles’) and the area of agricultural land (‘land use’) required for the production of saving € 1,000 in the process. a kilogramme of milk, pig meat, poultry meat and eggs. This calculation includes all links in the chain, from the cultivation of raw materials for Reuse of residual products from the food industry animal feeds up to and including the products produced by livestock farmers. From 2015 onwards, Agrifirm performs sector reports. 44.6 percent of all dry raw materials that Agrifirm processes into livestock feed consists of residual products that originate from the food Land use 2013 2014 Pig meat 4.7 m2/ kg 3.5 m2/ kg Feedmiles Pig meat 20132014 industry. These co-products are left over from the production of, for example, bread, cookies, margarine, beer and sugar. Aside from this, food 5.67 km/ kg 5.38 km/ kg producers are faced with a large number of residual batches. These residual products, provided they are mixed to create a well-balanced Eggs 4.8 m / kg 2.8 m / kg Eggs 5.672 km/ kg 3.57 km/ kg composition, are extremely well suited as raw material for animal feeds. In general, the 2014 results were comparable to those of 2013. The Poultry meat 4.9 m2/ kg 2.8 m2/ kg Poultry meat 6.185 km/ kg 3.73 km/ kg percentage co-products in Agrifirm products remained stable or increased slightly compared to 2013. Milk 1.2 m / kg 0.8 m / kg Milk 1.002 km/ kg 1.459 km/kg 2 2 2 2 Percentage per animal type Land use 2010 2011 2012 Dairy cattle 57.2 59.9 Pigs 37.2 37.5 Laying hens 34.6 34.6 Broilers 42.3 43.3 Agrifirm 2014 Corporate Sustainability Report Laying hens (eggs) Broilers (live weight) Pol Ger NL Hun Pol B NL Hun Pol Ger B NL Hun Pol Ger B 2014 Pigs (live weight) 56 2014 2013 NL 0,7000 0,6000 0,5000 0,4000 0,3000 0,2000 0,1000 0 ha/tonne fu 2013 Dairy cows (milk) 57 Agrifirm Feed In Germany, the use of co-products in feeds increased. In cattle feeds, the use of co-products increased compared to 2013. In 2013, Agrifirm Belgium Poland Germany Hungary NutriNuscience Control Opeinde Oldambt Veghel Baasrode Drongen Bocs Gyor Kaba Neuss Topola Pol Ger Dairy cows (milk) Szamotuly Broilers (live weight) NL Hun Pol B NL Hun Pol Laying hens (eggs) Drachten Pigs (live weight) Ger B NL Hun Pol Ger B NL 2014 Margonin 2013 Grobbendonk 2012 Zwolle 2011 Wanssum 2010 Veghel 160 140 120 100 80 60 40 20 0 Oss 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0 Meppel 2014 compared with reference year Emmen Co-products(%) Oldambt incurred a decrease in the use of citrus pulp. > Szamotuly showed another improvement in plant efficiency. This year, this is due to an investment in a new engine (grinder). Energy efficiency index > The deterioration of EEI in Margonin is probably due to the increased feed meal production. This production increase was not factored into the EEI calculation for this site as no feed meal production was made in the reference year. > The increased attention for monitoring in Germany also showed improvement in the 2014 results. Agrifirm Belgium Agrifirm Feed 2010 2011 2012 2013 Agrifirm Polska Agrifirm Deutschland Agrifirm Magyarország Zrt. NutriNuscience Group Control Opeinde Oldambt Veghel Baasrode Drongen Bocs Gyor Kaba Neuss Topola Szamotuly Margonin Grobbendonk Zwolle Wansum Veghel Oss Meppel Emmen > Hungary: in both Gyor and Kaba, the EEI scores were better last year. The pellet production increased significantly. Normally, the effect of Drachten 200 180 160 140 120 100 80 60 40 20 0 BV Oldambt 2014 changes to the ratio feed meal/pellets is not factored into the EEI. However, in this case, the increased pellet production is factored in because the production process changed. The two separate pelletizer machines were replaced with a single large-capacity pelletizer machine with higher energy consumption. In Kaba, a large amount of wet corn was processed, so that the drier was used more in 2014. The Bocs plant stopped production as per February 2014 and serves as a distribution centre only. This plant was removed from the table for this reason. > The EEI of Nuscience Baasrode deteriorated dramatically. The plant is closing in 2015, which is why Nuscience no longer invests in this plant. The personnel was informed of the plant being closed and employment contracts were terminated. Such elements are obviously not conducive to productivity and efficient energy consumption. Furthermore, the production shifted towards specialties. > For NutriControl, the EEI results showed significant improvement. This is mainly due to the 2014 renovation of NutriControl’s building, as a result of which the activity flow has been aligned much more efficiently and transparently. Furthermore, a Black Belt project was carried out, aligning the activities for even more efficiency (adjustment of process and training). This also possibly resulted in more efficient utilisation of the equipment. > Within Oldambt BV, the production is mostly focused on processing lucerne (65 percent). The lucerne season is May through September. > When comparing 2013 and 2014, we can see decreased EEI (improvement) in some sites, and increased EEI (worse) in others. The fine weather conditions allowed for pre-drying the lucerne on the land. This means the lucerne had a lower moisture content upon > Since 2013, Agrifirm Feed has factored in the results before EEI calculations in the EEI calculations. The reference year is 2011. In Emmen, intake, which allowed Oldambt BV to improve its EEI. Naturally, this is classed as a one-off seasonal effect. the EEI had decreased due to closing the plant in October 2014. Drachten shows another improvement in efficiency, the effect of the > In Opeinde, another seasonal effect is visible, this time relating to grass drying. In the period of the fresh grass having a low dry dust renovated steam boiler. Also, this plant’s capacity was increased. The plant is producing at full speed after taking over some of Emmen’s content (late April/May, October and even November), a lot of grass was dried for livestock farmers. The wet period had a favourable effect production. This is a factor in the EEI calculation. Oss also took over part of Emmen’s production, but shows a deterioration of the EEI. This on the harvest of grass until late in fall, but the moisture content of the grass was above average upon intake. In April and November, grass is explained by the extra energy required in the production process to improve the quality of the pellet (pellet consistency). We have no drying is rare. The grass was longer and more moist during harvesting, which resulted in additional fuel being required for each tonne of direct explanation for the improved EEI in Wanssum. dried product. > Grobbendonk’s EEI shows a slight deterioration compared to last year. 58 Agrifirm 2014 Corporate Sustainability Report 59 Appendix 3: KPIs relating to the employee benefits and human rights Appendix 4: Sustainability labels Codes and regulations Sustainability labels for feed concepts and products Agrifirm voluntarily abides by the Netherlands Corporate Governance Code. This code is mandatory for companies listed on the stock In 2014, Agrifirm was the first animal feed company to develop sustainability labels for feed concepts and products. The sustainability labels exchange and contains principles and provisions that regulate the relationship between the Executive Board, the Supervisory Board, offer both members and customers specific information on sustainability performance of our feed concepts and products for cattle, poultry shareholders and the General Meeting of Shareholders. In the case of Agrifirm, the code has been adapted so as to provide a proper fit with its and pigs. This gives our members and customers insight into the impact they can realise with the feed concept or product, and assists them in cooperative character. Furthermore, the company has a Fair Business Practices code of conduct. This code of conduct is a guideline designed producing feed in a profitable and sustainable way. to promote conscious and ethical actions under all circumstances. For example in situations involving a conflict of interest or competitive methods. Employees who report abuse are protected by the Whistle-blowing Regulation. In 2014 there were no reports concerning Together with Blonk Consultants, an environmental consultancy firm, Agrifirm developed a method for calculating the underlying corruption or discrimination submitted pursuant to these regulations. sustainability indicators for the sustainability labels in 2014. This was set out in a protocol. Six indicators were determined for the five labels. Collective labour agreements on notice of termination Label: Mineral efficiency In collective labour agreements, Agrifirm sets out that employees on temporary and permanent contracts are subject to a notice period from > Indicator: Nitrogen efficiency the employer up to 13 weeks, and from the employee up to 6 weeks. This depends on the employment contract term and the employment > Indicator: Phosphate efficiency conditions. Label: Animal health Sector campaign ‘Flanders’ Pride’ This label offers qualitative information only In April 2014, Agrifirm started its ‘In cooperation with’ campaign. This campaign demonstrates what Agrifirm is proud of: the entrepreneurs as animal health is difficult to capture in statistics. who work with passion and dedication to produce the most magnificent products. This campaign was also used in Belgium. Bulk lorries were showing truck-wide quality products and the proud Flemish livestock farmers and growers to a broad audience. (Factsheet) DuurzaamheiDsprestaties DuurzaamheiDsprestaties van Line-up van sOLiQ (Factsheet) Line-up sOLiQ Mineralenefficiëntie Mineralenefficiëntie Op het gebeid van mineralenefficiëntie zijn er geen aanzienlijke veranderingen te verwachten. Co-producten Carbon Footprint Gezondheidseffect N en P efficiëntie Recycling Klimaat Diergezondheid Door een vlotte en uniforme voeropname is de gezondheidstoestand van het koppel veel stabieler en is er minder uitval. SOLIQ bevat 11% meer co-producten dan gangbaar pluimveevoer. Doordat soja wordt vervangen voor een vergelijkbaar deel co-producten, bereikt u met SOLIQ een hoge reductie van klimaatemissies per kg ei. Young Employees, Young Potentials N en g Verduurzamin P efficiëntie grondstoffen Op basis van de Diergezondheid Klimaat Gezondheidseffect voerproef zijn de stikstofefficiëntie en fosfaatefficiëntie met respectievelijk 1,6% en 2,5% Het landgebruik per ei melk iets verslechterd. Deze verde daalt met 7,3%, mede door slechtering was echter niet het aanzienlijke stijging vansignificant in de dierproef. aandeel van co-producten. Landgebruik Recycling Carbon Footprint In de Line-Up proeven op Laverdonk werden de voetzoolleasies aanzienlijk teruggebracht. Verduurzaming grondstoffen Co-producten De carbon footprint is zo goed als onveranderd. Landgebruik Binnen Line-Up is het aandeel co-producten zeer licht gestegen met 1,1%. Het landgebruik (m2) per kg vleeskuiken daalt met 4,8% wanneer Line-Up wordt toegepast. Reductie Reductie Reductie The ‘Young Employees Agrifirm’ (YEA) consists of higher-educated employees up to the age of 35 who regularly meet to take courses Label: Recycling and expand their network. This year, a conference of several days took place in Poland. The conference theme was leadership roles and > Indicator: % Co-products Verhoging Reductie 0,4% 0,5% N efficiëntie P efficiëntie 11% 5,0% P efficiëntie Verhoging Verhoging 0,1% Reductie 1,1% Carbon Footprint 4,8% Co-producten Co-producten Landgebruik Landgebruik P efficiëntie Voor elk duurzaamheidslabel geldt Legenda: negatieve impact Label: Sustainable Raw Materials 2,5% N efficiëntie P efficiëntie Voor elk duurzaamheidslabel geldt organisation culture. In late 2014, the second conference was held in Amsterdam to discuss trend developments and opportunities for 1,6% Reductie N efficiëntie 7,3% N efficiëntie Carbon Footprint Agrifirm. Agrifirm Winkel BV has its own version: the Young Potentials Programme. Vijf labels Er zijn vijf labels: mineralenefficiëntie, diergezondheid, klimaat, recycling en verduurzaming grondstoffen. Elk label heeft een eigen symbool en geeft concrete informatie over de duurzaamheid sprestaties van uw voerconcept of product. Zo helpen we u een volgende stap te zetten naar een duurzame voedselvoorziening. Hieronder vindt u de duurzaamheid sprestaties van Line-Up. Negen miljard mensen voorzien van gezond en diergezondheid,duurzaam Er zijn vijf labels: mineralenefficiëntie, voedsel. Dat is de grote uitdaging waar de grondstoffen. wereld voor staat. Agrifirm helpt klimaat, recycling en verduurzaming leden en klanten en geeft concrete om op Elk label heeft een eigen symbool een rendabele en duurzame manier voedsel te uw sprestaties van produceren. Als eerste diervoederbed informatie over de duurzaamheid rijf kiest Agrifirm volgende een u we voor duurzaamheidslabels voor voeders voerconcept of product. Zo helpen en concepten. ning. voedselvoorzie duurzame De labels zijn bedoeld om inzicht stap te zetten naar een te geven in de sprestaties van SOLIQ. duurzaamheidsprestaties van het Hieronder vindt u de duurzaamheid concept of product. gezond en Negen miljard mensen voorzien van uitdaging waar de duurzaam voedsel. Dat is de grote leden en klanten wereld voor staat. Agrifirm helpt manier voedsel te om op een rendabele en duurzame rijf kiest Agrifirm produceren. Als eerste diervoederbed en concepten. voor duurzaamheidslabels voor voeders te geven in de De labels zijn bedoeld om inzicht concept of product. duurzaamheidsprestaties van het Label: Climate > Indicator: Carbon Footprint Duurzaamheidslabels voor verantwoorde keuze Vijf labels Duurzaamheidslabels voor verantwoorde keuze een andere schaalverdeling. U vindt Neutraal deze Legenda: op de laatste pagina van deze factsheet. negatieve impact een andere schaalverdeling. U vindt Neutraal deze op de laatste pagina van deze factsheet. positieve impact positieve impact schakel in succes schakel in succes > Indicator: Land Use Working Together on Success III In 2014, Agrifirm organised another edition of Working Together on Success for three target groups. The field representatives attended Improvement percentage and impact score workshops relating to the theme ‘Commercially Stronger’, centring on interview techniques and presenting the customer relationship. For The sustainability label lists the indicator on which the theme is measured and a short description of the sustainability effect of the feed the managers, the programme focused on preparing a personal action plan for achieving strategic and company objectives. All employees of concept or product. This effect is presented in the bottom of the label with an improvement percentage. The impact of the percentage Agrifirm Feed participated in the programme ‘I & My Team’, highlighting personal development. X employees participated in Working Together increase or decrease is expressed with one of three scores: substantial, high or very high (in a positive or negative sense) If the impact is on Success in 2014. negligible, the score is ‘neutral’. For each indicator, the lower limit for the score ‘substantial’ was determined using a literature study. This requires significant improvement compared with a reference situation. These scores are always summarised in a fact sheet for Participating in sports at Agrifirm the sustainability performance of a feed concept or product. All published fact sheets are available from the sustainability page of the Playing sports is good for one’s health and a fun way to get to know colleagues better. This is why Agrifirm organises several sporting events Agrifirm website. each year. The impact scores substantial, high or very high thus indicate the importance of the percentage increase or reduction on the sustainability Sponsoring label. After all, the score on one label is easier to influence than the score on another. This is due to the range of measures and the challenge Contributing to an agricultural powerhouse and a sound society is important to Agrifirm. This is why we sponsored various initiatives at home of implementing measures to realise an improvement on the label. In order to use a sustainability label, the sum of the indicators of a feed and abroad. For example, Agrifirm Feed sponsored study meetings and LTO Netherlands in 2014 to an amount of € 77,000. Agrifirm Plant concept or product must always be positive. Only indicators with a positive score may be issued with a sustainability label. This analysis is and Agrifirm Co-products sponsored a ZOA project in Burundi to an amount of € 20,000. Agrifirm Poland and Hungary also sponsored social set out in the protocol of the sustainability labels. This protocol is available from the sustainability page of the Agrifirm website. initiatives to amounts of € 1,500 and € 3,500 respectively. Oldambt BV sponsored landscaping and biodiversity to an amount of € 2,500. 60 Agrifirm 2014 Corporate Sustainability Report 61