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