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Agribusiness Performance: Beyond the bottom line. Can we maximize returns for profit, people, and the planet?. “Green Investing Is Paying Off: Eco-friendly investments, from individual stocks to mutual funds and ETFs, have outperformed the Dow and S&P 500 this year” (11/09).

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agribusiness performance beyond the bottom line

Agribusiness Performance: Beyond the bottom line

Can we maximize returns for profit, people, and the planet?


“Green Investing Is Paying Off: Eco-friendly investments, from individual stocks to mutual funds and ETFs, have outperformed the Dow and S&P 500 this year” (11/09)

why are firms using green marketing
  • Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives
  • Organizations believe they have a moral obligation to be more socially responsible
  • Governmental bodies are forcing firms through legislation to become more responsible
  • Competitors' environmental activities pressure firms to change their environmental marketing activities
  • Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior
  • Corporate sustainability and responsibility
    • Corporate sustainability
  • Dow Jones Sustainability Index
    • Energy
    • Pollution management
    • Environmental stewardship
    • Workforce development
  • An investable concept?
green agribusiness

Winslow Green Growth Fund 1994-2008

  • Green marketing
  • Winslow Green Growth Fund seeks capital appreciation through environmentally responsible investing. The fund normally invests at least 80% of net assets in equity securities of domestic companies that create products or provide services that offer solutions to environmental problems and promote a healthier environmental future or integrate the principles of waste management, pollution prevention, or efficient use of natural resources into its business practices.
  • Winslow Management
  • Top Ten Holdings
  • 09/30/2010  
  • First Solar, Inc. Bioexx Specialty Proteins inc American Superconductor Corporation Waterfurnace Renewable Energy Inc Horsehead Holding Corporation Schnitzer Steel Industries, Inc. A Rubicon Technology, Inc. Nalco Holding Company ProLogis Trust Wabtec
winslow fund recession proof
Winslow Fund – recession proof?

Reorganized as Brown Advisory Sustainable Growth in 2012

Struggles, like other green funds, to keep up with S&P 500

Source: financial charts, Nov 2011

some agribusiness examples
Some Agribusiness Examples
  • P-R Farms (CA tree fruits & nuts)
    • Solar Energy Implementation
  • Fair Oaks Dairy, Koetsier Farm
    • Anaerobic digesters
  • Weyerhaeuser
    • Recycled packaging
    • Sustainable products from forests
      • Weyerhaeuser | Growing Ideas
more interesting examples
More interesting examples
  • Green mountain energy – branding “eco-friendly” electricity
  • Green Mountain Energy Company
    • California Energy Company now servicing 7 states
    • More expensive (5-6%)
    • Purchase power on-line
what about investments in alternative energy
What about investments in alternative energy?
  • Is ethanol going to work?
  • Subsidies?
  • Use mandates?
  • See Terry Kasten’s report
scarce energy chronology
Scarce Energy Chronology

1859: Drake discovers oil in Pennsylvania

1879: USGS formed to deal with running out of oil

1882: 95M bbl remain (Institute of Mining Engineers)

1918: 3 million cars on the road

1919: auto industry shouldn’t ignore that only 20 years left (Scientific American)

1926: 4.5B bbl left in the U.S. (Federal Oil Conservation Board)

1930: 18 million cars

1932: 10B bbl left in U.S. (Federal Oil Conservation Board)

1944: 20B bbl left in U.S. (Petroleum Administrator for War)

1950: 100B bbl left in world (American Pet. Inst)

1980: proven oil reserves 648B bbl

1993: proven oil reserves 999B bbl

2000: proven oil reserves 1016B bbl

2007: proven oil reserves 1317B bbl

Source: Adapted from Terry Kasten, Kansas State Univ

another example
Another example…
  • Forest Stewardship Council
  • Integrated Supply Chain Controls
  • Branding targeted to the green consumer
values driven supply chain
Values driven supply chain
  • poulet de Bresse
  • Label Rouge
  • Scottish salmon industry
    • Economic benefits
  • Tea & Coffee and child labor
social impacts of international marketing
Social impacts of international marketing
  • Do food and agribusiness firms have an obligation to developing communities to “get the product right”?
  • Nestle Infant Formula
    • Misuse of formula
    • Promotion impacts on feeding programs in poverty areas – samples, media
    • World Health Organization (response to protestors)
    • Nestlé & WHO
the cocoa plan ecuador in action
The Cocoa Plan Ecuador In Action

Winning consumer

References on 60/40+

Managing the supply

Chain and monitoring

Critical control points

Purchasing beans with Arriba taste

Supporting farmers


“Farmer Connect”

Linking back to producer through claims towards health, origin, and purity

Nestlé Corporate Agriculture


Nestlé “Farmer Connect” sourcing of agricultural raw materials around the world

Interacting with nearly 700,000 farmers in more than 50 countries

Nestlé Corporate Agriculture


Our “Sustainable Agriculture Initiative Nestlé” (SAIN)

  • To ensure supply we have to smarter use natural resources by
  • Not wasting
  • Not polluting
  • Not destroying
  • and a good start is eradicating the worst and promoting better
  • Sustainable Agricultural Practices.
  • Producing more food from the same area of land while reducing the environmental impacts requires what we call “Sustainable intensification of Agriculture”.







Nestlé Corporate Agriculture

agribusiness and sustainability profits people and planet
Agribusiness and sustainability:Profits, people, and planet
  • Relating to an environmentally conscious generation – mixed results in the market
  • Working with interest groups, technology and supply chains to deliver differentiated products – new value nets
  • Adapting products and marketing approaches to account for economic and cultural differences
planning for the mcdonald s case
Planning for the McDonald’s Case

How does sustainability impact McDs?

Is there sound business justification for McDs to pay attention to sustainability for supply?

Is McDs too big? Scale dis-economies and sustainability

What is your perception of them as a consumer? Are they reaching the LOHAS folks?

How does McD’s need to look at profits, people, and planet long term? What conflicts might they expect to emerge?

Accounting jargon uses the term ‘viable going concern’ fairly narrowly. Does the definition need to be broadened?

McDonalds Brazil