Growing Hazelnuts
Tommaso De GregorioExpo Milan, 10 September 2015
Ferrero: The Story Of a Family
53Countries: OFFICES
160Countries:MARKET
9Countries:AGRI Farms
3Countries:SOCIAL
COMPANIES
20Countries:PLANTS
53Countries: OFFICES
160Countries:MARKET
9Countries:AGRI Farms
3Countries:SOCIAL
COMPANIES
20Countries:PLANTS
Ferrero Agricultural projects
Raw Materials – Objectives and Results
On track Achieved
Objectives Timeframe Status
Coffee 100% certified as sustainable 2013Achieved 2 yearsahead of plan
Eggs100% eggs from barn hens in respect of animal welfare 2014
Palm oil100% certified as sustainableand segregated 2015
Achieved 1 years ahead of plan
Cocoa 100% certified as sustainable 2020
HazelnutsImplementation of thetraceability plan for 100% ofhazelnuts
2020
Cane sugar 100% from sustainable sources 2020 new
Our main goals declared in the last CSR Report:
www.ferrerocsr.com
Hazelnut marketmain producing countries at worldwide level (in shell)
AZERBAIJAN30.000 tons (3 %)
GEORGIA25.000 tons (3 %)
US (Oregon)34.000 tons (4 %)
ITALY120.000 tons (13%)
SPAIN25.000 tons (3 %)
TURKEY650.000 tons (70 %)
■Around 70‐75% of actual worlwide production is done in Turkey, followed byItaly with 12‐15%
■ Chile and Georgia are the main emerging countries which has experienced amajor increase in hazelnut cultivation during last 5 years
4 %OTHERS
Existing
HCo ‐medium long target
Opportunities in the Southern hemisphere are limited to few countries
■ FRESHNESS: the harvest during spring provides fresh hazelnuts throughout the yearimproving the quality for consumers
■RISK DIVERSIFICATION: climate / weather conditions (frost, etc.); geo‐politics; best varieties for our needs and full traceability of the supply chain.
Potential
The HCo initiative: present status
Six ongoing projects, at different stages of implementation. All projects are tailored made on the specific potential of each country.
Other initiatives are under development
Promotion of hazelnut development through events, research and training
seminars
Overall goal: 100% traceability in 2020
Fruticola Agrichile
Oldest Ferrero plantation: almost 4.000 ha under property
2 Drying facilities operating 1 Cracking facility established in 2015
Successful promotion: Over 11.000 ha planted by local farmers
Farmer association established and research program are in place with local institutions
High potential: Hazelnut crop is expanding by 1000ha per year
High quality nuts‐ varieties coming from North hemisphere have proven to have equal quality level of the countries of origin
AgriGeorgia
Agrigeorgia
Established in 2007: over 3.500 ha under property 1 Drying facilities operating
Training courses with USAID: 3.000 farmers already trained in past years Georgian Hazelnut Growers association (GHGA) already established and supported
Varieties used‐ a mix between Italian varieties and Georgian varieties, in order to be a show case for local farmers
High quality nuts in the Ferrero plantations
Agrisudafrica
Agrisudafrica
Established in 2010: about 1000ha of which 600 ha plantable First experiment of hazelnut cultivation in the African continent
Process of 2 years to import the plants and pass Quarantine’s restrictions Great effort to overcome different climatic conditions High interest in local farmers about future expansions and promotions of the crop
Agri Australis
Established in 2013: 2000 ha under development First experiment of hazelnut cultivation on a large scale in Australia
Process of 2 years to import the plants and pass Quarantine’s restrictions Great challenge for the future for extreme climatic conditions (Water and heat) and
high labor costs High technology in agriculture’s techniques
Precision farming
Precision Farming:
A necessaryapproach for the future challengesof the Ferrero Agri
farms
Never applied before on Hazelnut’s orchard
3 examples:
• Airbornepollinization
• Mechanicalplanting
• FMP‐Farmingmanagmentplatform
Hazelnut’s production depends from cross pollination during winter months; the overlapping between female and male flowers is limited by time and weather conditions
In Chile several test of forced pollination have been successful using quad bikes; production have increased in areas pollinized mechanically
Winter months in Chile have high rainfall, which does NOT allow machines to move easily in the tree rows DRONES
Precision Farming: Airborne pollinization
Precision Farming: Airborne pollinization
Precision Farming: Mechanical planting
Traditional planting is labor intensive and for large plantations requires high numbers of workers in winter months
To speed up the process a GPS guided planting machine has been developed according to Ferrero’s requirements by an Italian company
PLANTING 10 Hectares:
Traditional planting 68 workers
GPS machine 1 driver, 2 workers
Precision Farming: FMP
Geo‐referencing = Creation of a data base of all the information related to: Territorial units = Fields and parcels (Surface area, number of trees, variety, …) Climatic data (Temperature, Humidity, Wind speed, Sun radiation, Rain fall, …) Agronomical data (Soil analysis, Leaf analysis, Nuisance, Pest and diseases, Plant stages, …) Machines localization
Register of activities done= Possibility of registering manual, mechanical and harvesting operations.
Efficiency register Prescription of Chemicals
Precision Farming: FMP
Budget : Operations to be done in each Territorial unit
The platform calculates the requirement of resources needed according to the register of efficiency of all the operations.
Scheduling: weekly or monthly planning of use of resources
Precision Farming: FMP
Budget : Operations to be done in each Territorial unit
The platform calculates the requirement of resources needed according to the register of efficiency of all the operations.
Scheduling: weekly or monthly planning of use of resources
Precision Farming: FMP
Budget : Operations to be done in each Territorial unit
The platform calculates the requirement of resources needed according to the register of efficiency of all the operations.
Scheduling: weekly or monthly planning of use of resources
Progress reporting:
Comparison between planned and actuals
Precision Farming: FMP
Precision Farming: FMP
Machines / Tractors monitoring :
Each tractor will be equipped with a GPS and Fuel sensor The tractors can be located in real time on a geographical
map Information about the tractors are sent in real time to the
platform
Fields workers / Labor monitoring :
Each plantation supervisor is equipped with a smartphone Each field worker is equipped with a NFC tag The Start and End of work is triggered when the NFC tag is
in contact with the smartphone
Thank you