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S A I N The Sustainable Agriculture Initiative of Nestlé SWISSCAM Comité de Meio Ambiente e Sustentabilidade Sao Pau PowerPoint Presentation
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S A I N The Sustainable Agriculture Initiative of Nestlé SWISSCAM Comité de Meio Ambiente e Sustentabilidade Sao Paulo - August 13, 2004. CT-Agriculture Tasks. Support sourcing of agricultural raw materials at qualities & safety, quantities and timing needed

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slide1

S A I N

The Sustainable Agriculture Initiative of Nestlé

SWISSCAM

Comité de Meio Ambiente e Sustentabilidade

Sao Paulo - August 13, 2004

ct agriculture tasks
CT-Agriculture Tasks
  • Support sourcing of agricultural raw materials at qualities & safety, quantities and timing needed
    • Elaborate corporate agricultural policies and ensure their implementation
    • Identify opportunities for competitive sourcing of agricultural raw materials
    • Secure the required agricultural knowledge and competence within the Group
    • Provide technical assistance to NOCs and their suppliers (milk, coffee, cocoa, fruit, vegetables etc.)
challenges
Challenges
  • Evolving towards Nutrition, Health and Wellness Company
  • Changing business environment
    • manufacturing strategies
  • Consumer concerns
    • food safety issues
  • Consumer expectations
    • manufacturer liability
    • new quality thinking
  • Increasing food requirements
    • growing population
    • limited natural resources
consumer needs expectations

ethics, fair trade

labor issues, rural life,

politics ...

Social Responsibility & Personal Values

tangible quality

Consumer needs & expectations

???

perceived quality

environment,

technologies (GMOs),

animal health & welfare ...

Function

Conscience

Convenient

Safety

Access / Affordability

challenges5
Challenges
  • Help ensuring tangible quality & safety and
  • Identify relevant perceived quality criteria linked with agricultural raw materials
    • optimize related sourcing
    • support sustainable agricultural production methods (ecological - economical - social criteria)
    • elaborate with Markets, SBUs, CT-Units specific SAIN strategies with strict business focus, e.g. Mexico, B-C&B, B-CCB, CT-QM
challenges in supply chain

SAIN

NEMS ...

Challenges in supply chain
  • Transparency, traceability from farm to table needed to avoid negative effects on:

Input

Providers

Farmer

Trade

Processor

Food

Industry

Trade

Retail

Consumer

quality & safety

efficiency & productivity

consumer perception

company image

branded products

???

ethics, fair trade

labor issues, rural life,

politics ...

environment,

technologies (GMOs),

animal health & welfare, ...

integrated strategy

SAIN

Nestlé

  • Key raw materials
  • Direct sourcing
  • Preferred suppliers

Company internal Network

Countries

Agr. supply chain

Integrated strategy

Food Industry Initiative

support sustainable

agriculture in general

mainstream agriculture

pre-competitive

sai platform members
SAI Platform members

Campina

Danisco

Dole

Ecom

Efico

Findus

Fonterra

Friesland Coberco

Groupe Danone

Kraft

McCain Europe

McDonald’s

Nestlé

Neumann Kaffee Gruppe

Sara Lee

Tchibo

Unilever

VOLCAFE

sain milk
SAIN - Milk
  • Achievements
    • promoted GAP programs
      • Australia, China, France, Holland, UK, Pakistan ...
    • CT-IP target setting projects
      • US, Chile, Panama, Peru, Spain, France ...
  • SAI - working group
    • elaborate position paper,good agricultural practices
sain coffee
SAIN - Coffee
  • Assist in production where direct sourcing

China

Vietnam

Mexico

Philippines

Colombia

Malaysia

Ivory

Coast

Indonesia

Brazil

India

Thailand

Purchasing on the market :

Direct procurement (partly) :

example coffee thailand

• train local producers

• PPP program

• good agr. practices

• financing (third party)

• quality control

• quality payment

• final quality control

• plant genetic

• government program

• income diversified

• Nestlé managed

• Third parties

Example coffee Thailand
  • Key elements:
    • Quality assurance • Knowledge sharing
    • Traceability •Public Private Partnership;

communication of needs i.e. quantities & qualities

Farm

Input

Farmer

Buying

Station

Transport

sain sai in coffee
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
nestl road map
Nestlé Road Map
  • Understand what enables sustainability
  • Set up tools to make sustainable performance tangible
    • KPIs for supply chain
    • Joint studies with Universities and R&D
    • Implement measurement & management system in supply chain
  • Collaborate in SAI working groups (Coffee, Milk, Cereals ...)
elaborate sustainability indicators

Optimised

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

conclusions
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