Certified “Sustainably Grown” Sources of Extractable Biomass for Pet Food Ingredients Achieving a Sustainable Standard What is Sustainability? Sustainability* is the ability to continue a defined behavior indefinitely: Environmental: renewable resource harvest Economic: maintain economic production indefinitely Social: maintain social well being indefinitely *www.thwink.org Shutterstock Image © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Consumers • Increasingly expecting sustainably produced goods • Concerned about: – – – – – – GMOs Fair treatment of workers Pesticide contamination Environmental destruction Climate and water quality Loss of natural biodiversity Source: *According to 2014 Consumer Reports National Research Center, Food Labels Survey Slide courtesy of SCS Global Retailers • Major retailers are embracing sustainably sourced products – Whole Foods, Wal-Mart and Safeway have all announced more sustainability objectives • Reduced risk in the supply chain • Differentiates products to appeal to shoppers interested in social and environmental responsibility Source: State of the Specialty Food Industry 2012 (Mintel International and SPINS, The National Association For The Specialty Food Trade) Slide courtesy of SCS Global Plant derived molecules • • • • • • Natural* (replacement of synthetic molecules) Antioxidants, Antimicrobials Flavors, Anti-inflammatories Highly efficacious Allow cleaner labels (Consumer Preference) Renewable chemistry *Per 5 AAFCO definition of “Natural” © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Natural = Sustainable? • Responsible switch to Natural • Is it responsibly sourced? – Environmentally responsible? – Socially responsible? – Continuously improvable? 6 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Responsible Sourcing • Purpose grown crop versus wild harvested • Compliance with pesticide/dioxin regulations • Socially responsible – Value sharing – No exploitation 7 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Example: Rosemary • Natural Flavor • Antioxidant/preservative like properties • Typically Wild Harvested: – Clear cut under government license – No return to harvest site for 1-2 years – Not sustainable 8 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Purpose Grown Crop • • • • • • Developed through breeding Genetically uniform Good Agricultural Practice Low environmental impact Perennial harvest (10 Years) Grown in the USA 9 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 10 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Third-Party Verification • • • • • • Can’t just call yourself sustainable Too many examples of “Greenwashing” Need third-party verification A “Sustainably Grown” Standard Objective & scientifically sound On-Farm Audits/Compliance 11 Logo used with permission from SCS Global © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. SCS Global Services • Third-party certification body and standards developer since 1984 • Global network of representatives and auditors • Mission: Promote informed decision-making to safeguard our environment and support sustainable solutions Logo used with permission from SCS Global Slide courtesy of SCS Global SCS Global Services • Accredited certification body for dozens of standards such as: Marine Stewardship Council Forest Stewardship Council USDA Organic Non-GMO Project UTZ SQF, GLOBAL G.A.P. • Oversees 3rd-party verification for corporate ethical sourcing programs (e.g., Starbucks, Ferrero, etc.) Slide courtesy of SCS Global The SCS Audit Process Logo used with permission from SCS Global Slide courtesy of SCS Global “Sustainably Grown” • • • • • • • Best Practices (Annual Surveillance Audits) Continuous Improvement Increased Energy/Water Efficiency Enhanced Agro-Ecosystem/Operations Fair labor practices Optimized Land-Use Raised Public Awareness 15 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Grower Education • Data Monitoring – Water, Fuel, Emissions • • • • Lower Pesticide Use Farm Clean-Ups Water Quality Fair Pay/On Farm Facilities 16 Logo used with permission from SCS Global © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Continuous Improvement • Multiple Growing Locations • Compliance – Annual Audits – Corrective Actions – Random selection – Improvements checked © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Optimizing Production • • • • • Breeding to improve crop Improved agronomic practices Fertilizer, irrigation, weed control Optimum harvest time/recovery On-farm drying © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Rosemary Breeding • • • • • • Large Accession Collection Full Chemotypic Profiles Population Construction Screening & Selection Field Testing Advancement/Scale-up © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 0 0 10 Heperidin 200 150 50 20 30 40 50 60 57.127 Chromatogram of KI28 extract Chromatogram Typical Rosemary Extract 70 80 88.706 90.575.37655 .708 92.0939191.5 94.189 65.766 67.702 69.472 77070.9 70913 1.6.4 726.0 86 74.606 7756.9.45949 798.1 .8959 807.693.797299.938 81.850 4.0534 848.4 851.3 10 60.447 51.107 49.235 Carnosol Genkwanin 40.352Hesperetin 41.466 Apigenin 42.498 Rosmarinic acid Homoplantaginin 28.044 Scutellarein 20.123 2.012.5446 2222.8 44 100 Nepitrin 77.078 33.310 3.123 mAU 6.745 8.259 10.491 13.107 16.067 2.694 Key Molecules Carnosic acid 90 min 24 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. KI28 25 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 26 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 29 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 30 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 31 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 32 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 33 Logo used with permission from SCS Global © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Example: Hi-RA Mint • • • • • Antioxidant like properties (Rosmarinic Acid) Water Soluble Usually grown for flavor Proprietary growing program Hi-RA Mint is unique 34 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 35 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 36 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 38 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 39 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 40 Logo used with permission from SCS Global © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 41 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 42 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. 43 © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Logo used with permission from SCS Global © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Moving Forward…….. • Challenges – – – – – – – Good standards essential Evolution = moving target? No going back Cost Which standard fits? Recognition of standards It’s a journey • Opportunities – – – – – – – Establishing goals Improving efficiency Meeting customer needs Consumer awareness Continuous improvement Right thing to do Responsible actions © Kemin Industries, Inc. and it’s group of companies 2016 all rights reserved. Questions? Logo used with permission from SCS Global