Nestle - Zaka (76)
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Transcript of Nestle - Zaka (76)
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SUSTAI NABLE AGRI CULTURAL
INITIATIVE
NESTLE
Olt en, Sw it zerland
16 September 2003
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Sustainable Agriculture Initiative Platform
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Presentation structure
SAI Platforms approach
What is SAI Platform
SAI Platforms environment
SAI Platforms members
Unique characteristics
Background
Why SAI Platform
What is sustainable agriculture
The 3 pillars of sustainable agriculture
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Presentation structure
SAI Platforms activities
Key actions & tools
Expected results
Case Study Nestle Thailand
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Why SAI Platform?
The Food Industry relies on long-termsupply ofagricultural raw materials
However, damages on natural resources & the
environment affect agricultural productivity
Consumers confidence depends on the quality &safety of the food supply chain
Need for the development of sustainable agriculture
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Sustainable agriculture (SA) is aproductive, competitive and efficient way toproduce agricultural raw materials, while at
the same time protecting and improving thenatural environment as well as the socio-
economic conditions of local communities
What is sustainable agriculture?
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food quality & safety rural socio-economicconditions
The 3 pillars of sustainable agriculture
farm income & viability sustainable food supply
water, soil, air, energyuse & conservation
biodiversity
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What is SAI Platform?
Support the development of SA
Aiming to actively :
Involving food chain stakeholders & other
interested parties
An Initiative launched by the Food Industry
Communicate worldwide about SA
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SAI Platforms members
Campina
Danisco
Dole
Ecom
Efico
Findus
Friesland Coberco
Groupe Danone
Kraft
McCain Europe
McDonalds
Nestl
Neumann Kaffee Gruppe
Tchibo
Unilever
VOLCAFE
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Unique characteristics
An action-oriented Initiative
A common work with competitors
Including all valuable initiatives & conceptscontributing to SA
Open to food chain stakeholders & other interestedparties
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Key actions & tools
1) Build & manage knowledge on SA
Information collected from internet, literature, meetings
Knowledge & experience gathered from members andstakeholders (workshops, discussion forum)
Specific studies from experts & organizations
Information stored at SAI headquarters and in database
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Key actions & tools (contd)
3) Involve stakeholders, build cohesion
Individual consultations with stakeholders
Thematic working groups
Meetings, events
2) Raise awareness, communicate about SA SAI website, newsletter, documents
SAI participation in workshops, conferences, meetings
Communication through medias (articles)
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Key actions & tools (contd)
4) Support implementation of SA practices
Development of SA tools
notably crop-specific guidelines for sustainable agricultural
practices, see next slides
Recommendations provided to members & stakeholders
Workshops, conferences & events
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SAI Platforms expected results
Catalyst for dialogue & common work between all foodchain stakeholders
Significantly contribute to sustainable development
of agriculture
Minimise the risks in food supply chain
Reinforce confidence in everyday food products
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Food qualityFood quality
& safety& safety
Food security
Better dialogue
Stable markets
Reputation
Defend interests
Confidence
PP
PP
PP
PP
PP
SAI delivers benefits to everyone
ConsumerConsumerTrade
Retail
TradeRetail
FoodIndustry
FoodIndustry
TradeProcessor
TradeProcessorFarmer
FarmerInputIndustry
InputIndustry
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
PP
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A Case Study
Nest le Thailand
Procurement of Coffee
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Sustainable Agricultural InitiativeSustainable Agricultural InitiativeNestle ThailandNestle Thailand
Case study on procurement of agricultural
raw material :
COFFEE
l 6 Agronomists Coffee Developmentl 4 Animal Husbandries Dairy Development
Nestle Agricultural Services Department
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ThailandThailand Coffee Growing areaCoffee Growing area
Arabica Coffee- 1,000 hectares of plantation- 1,200 coffee farms- Average output 0.8 ton/farm
- Total production 2002/03 : 1,000 tons
Robusta Coffee- 10,000 hectares of plantation
- 28,000 coffee farms- Average output 2.5-3.0 ton/farm- Total production 2002/03 : 58,000 tons
Bangkok
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Nestle ThailandNestle Thailand Coffee AgronomistsCoffee Agronomists
l On-Site, full-time technical assistant to Coffee farmersl Support sustainable farming practices, comprehensive
training on Good Agricultural Practices (GAP)
l Research co-operation with Department of Agriculture
to improve yield and quality of local Robusta Coffee
l Experimental & Development Farm (Arabica) with theRoyal Doi Tung Development Project
l Direct procurement from more than 15,000 farmers
l Premium price offered as incentive for qualityimprovement.
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Technical Assistant / Sustainable Farming PracticesTechnical Assistant / Sustainable Farming Practices
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Research co-operation with Department ofAgriculture
Research coResearch co--operation with Department ofoperation with Department ofAgricultureAgriculture
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Experimental & Development Farm (Arabica)Experimental & Development Farm (Experimental & Development Farm (ArabicaArabica))
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0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
1990/911991/921992/931993/941994/951995/961996/971997/981998/991999/002000/012001/022002/03
Production Direct Procurement
Thai Production and Nestle Direct ProcurementThai Production and Nestle Direct ProcurementThai Production and Nestle Direct Procurement
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27.6 28.6
60.5
46.6
34.5
78.5
59.3
34.8 34.5 34.7
38.6
24.8 25.7
58.2
40.2
30.7
63.5
48.4
24.231.2
24.830.2
0
10
20
30
40
50
60
70
80
90
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/
00
2000/
01
2001/
02
2002/
03
Average price paid by Nest le Local average pr ice
Quality Based Premium PricingQuality Based Premium PricingQuality Based Premium Pricing
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Summary on Direct Procurement EvolutionSummary on Direct Procurement Evolution
1988/ 89 Since 2001/ 02
l Direct procurement / 28% 100%
local Nestle requirement
l Number of farmers 2,000+ 15,000+
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THANK YOUTHANK YOU