7/29/2019 Hans Joehr

1/15

Name of chairman

S A I NThe Sustainable Agr ic ul ture Ini t iat ive of Nest l

SWISSCAM

Comit de Meio Ambiente e SustentabilidadeSao Paulo - August 13, 2004

7/29/2019 Hans Joehr

2/15

Name of chairman06.08.20042

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.)

7/29/2019 Hans Joehr

3/15

Name of chairman06.08.20043

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

7/29/2019 Hans Joehr

4/15

Name of chairman06.08.20044

Consumer needs & expectations

???

Access / Affordability

Safety

Convenient

Conscience

Function

environment,

technologies (GMOs),animal health & welfare ... pe

rceived

qualityethics, fair trade

labor issues, rural life,

politics ...

Social Responsibility

& Personal Values

tangibleq

uality

7/29/2019 Hans Joehr

5/15

Name of chairman06.08.20045

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

7/29/2019 Hans Joehr

6/15

Name of chairman06.08.20046

Challenges in supply chain

Transparency, traceability from farm to table needed toavoid negative effects on:

ConsumeTradeRetail

FoodIndustry

TradeProcessor

FarmerInputProviders

???

ethics, fair tradelabor issues, rural life,

politics ...

environment,

technologies (GMOs),

animal health & welfare, ...

SAIN

quality & safety

efficiency & productivity consumer perception

company image

branded products

NEMS .

..

7/29/2019 Hans Joehr

7/15

Name of chairman06.08.20047

Integrated strategy

Food Industry Initiative

support sustainable

agriculture in general

SAINNestl

Key raw materials

Direct sourcing Preferred suppliers

Company internal

Network

Countries

Agr. supply chain

mainstream agriculture

pre-competitive

7/29/2019 Hans Joehr

8/15

Name of chairman06.08.20048

SAI Platform members

Campina

Danisco

Dole

Ecom

Efico

Findus

Fonterra

Friesland CobercoGroupe Danone

Kraft

McCain Europe

McDonalds

Nestl

Neumann Kaffee

Gruppe

Sara Lee

Tchibo

Unilever

VOLCAFE

http://www.volcafe.com/http://www.tchibo.de/http://www.campina.nl/http://www.efico.com/http://www.ecomtrading.com/http://localhost/var/www/apps/conversion/tmp/scratch_8/http://www.kraft.com/index.html

7/29/2019 Hans Joehr

9/15

Name of chairman06.08.20049

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

7/29/2019 Hans Joehr

10/15

Name of chairman06.08.200410

SAIN - Coffee

Assist in production where direct sourcing

Ivory

Coast

Mexico

Brazil

Colombia

China

Philippines

Malaysia

ThailandIndiaIndonesia

Vietnam

Purchasing on the market :Direct procurement (partly) :

7/29/2019 Hans Joehr

11/15Name of chairman06.08.200411

Example coffee Thailand

Key elements:

Quality assurance Knowledge sharing

Traceability Public Private Partnership;

communication of needs i.e. quantities & qualities

TransportBuyingStationFarmer

FarmInput

quality

control

quality

payment

Nestl

managed

train local

producers

PPP

program

plant genetic

government

program

good agr.

practices

financing

(third party)

income

diversified

final quality

control

Third

parties

7/29/2019 Hans Joehr

12/15Name of chairman06.08.200412

SAIN / SAI in coffee

SAI-Coffee working group Ecom, Efico, Kraft, NKG, Sara Lee, Tchibo, Volcaf

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

7/29/2019 Hans Joehr

13/15Name of chairman06.08.200413

Nestl 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 ...)

7/29/2019 Hans Joehr

14/15Name of chairman06.08.200414

Elaborate sustainability indicators

Lead by University Bern - study indicators at farm level

collaboration of: SHL Example: milk supply in N.E. China (smallholders

7/29/2019 Hans Joehr

15/15f

Conclusions

Practices / Processesstandards

Indicators

trends

Performance Measurement System

competitiveness

"There is no reason to prophesy the future, except in

order to be very well prepared to face the future" (Pericles)