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♯footprintforum Sustainable Responsible Business
AGRICULTURE ABROAD
23RD NOVEMBER 2011
♯footprintforum Sustainable Responsible Business
Barbara Crowther
Communications & Policy Director
© Fairtrade 2011
Agriculture
Abroad and
International
Development
Barbara Crowther –
Communications and Policy
Director
FAIRTRADE
AROUND
THE WORLD
© Fairtrade 2011
The UK imports
£16bn worth of
goods from
countries in the
© Fairtrade 2011
(2009 excl. China )Global South	
  
	
  
- Agriculture - £5bn
	
  
	
  
	
  
- Meat / Fish / Dairy - £1.4bn
	
  
	
  
	
  
- Manufacturing - £6bn
- Mining - £3.6bn
© Fairtrade 2011
75% of Worlds
poor depend
on agriculture
for the future
(DFID)
© Fairtrade 2011
UK is
importing
	
  £1.3bn of
products from
Africa
- 70% sourced
from 4 nations
© Fairtrade 2011
African countries
have highest
levels of
agricultural
employment in
the world
(Tanzania = 74%)
© Fairtrade 2011
Challenges to
African
agriculture	
  
-Poverty & lack of	
  
	
  
infrastructure	
  
	
  
-Access to credit and	
  
	
  
contracts	
  
	
  
-Productivity, yield, quality	
  
	
  
-HIV/AIDS
© Fairtrade 2011
Case Study of	
  
	
  
Government support	
  
	
  
FRICH – Supporting	
  
	
  
African Agriculture
Iri-aini Tea
© Fairtrade 2011
Packing the
Tea at Iri-aini
Factory
© Fairtrade 2011
© Fairtrade 2011
Conclusions	
  
	
  
	
  
• Increased focus on agriculture and building
public-private partnerships for development
	
  
	
  
	
  
• Opportunities for convergence between
private sector, NGOs and third party
certifications, and government (both North &
South)
	
  
	
  
	
  
• Government agenda must seek coherence
between agriculture, trade policy and private
sector development strategy
© Fairtrade 2011
♯footprintforum Sustainable Responsible Business
♯footprintforum Sustainable Responsible Business
Mark Line
No time to loseThe drive for sustainable sourcing
in the food supply chain
	
  Mark Line
Two Tomorrows
So just how engaged
are consumers?
When it comes to living an environmentally conscious lifestyle,
the picture is mixed
Source: Global Monitor 2011 (Unstandardiseddata), The FuturesCompany
Ethical issues are of limited importance when consumers choose
food/beverage products
Source: Global Monitor 2011, The FuturesCompany
Which factors strongly affect
your decision to choose one
food/beverage product over
another?
 	
   	
  CITIZEN
	
  	
  Willing to give time
or make compromises
	
  to do the right thing
CONSUMER
Choice, price, quality
and convenience driving
purchase choices
Conflict!
Source: The FuturesCompany
There is a discrepancy between intention and action
Source: Defra, 2011
My priorities The environment
The environment is not a core priority for most consumers
Source: The FuturesCompany
 e.g. Growing
vegetables with
	
   	
  the kids
The environment can be a supporting factor in actions that relate
to the core priorities
Source: The FuturesCompany
e.g. Turning down
	
  the thermostat
51 51
41 42
80
	
  
	
  
	
  
	
  
60
companies I feel are damaging
the environment in the past 12
months”.
Consumers will stop spending money with those who are seen to
be acting unethically
	
  
	
  
	
  % all agree
	
  
	
   	
  100
	
  
	
  
	
   	
   	
  “I have stopped buying from
Source: Global Monitor 2010 (Standardiseddata), The FuturesCompany
36
39
30
34 33
38
36
39
20
	
  
	
  
	
  
	
  
	
  0
40
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
16 market average North America Latin America Western Europe Eastern Europe Asia
Country 2004 2009 2014
US 319 911 1,451
UK 162 688 1,177
France 114 360 594
Germany 71 294 520
Spain 1 8 15
China 0.7 1 3
India 0.7 1 1.2
Brazil 0.8 1 1.2
Spending on fair trade food and beverage products, while growing fast,
it still relatively small and is negligible in developing countries
Estimated spending on fair trade food and non-alcoholic beverages
	
  in selected global markets ($m)
Source: Datamonitor, 2010
Limits to growth
The population crisis
Source: United Nations, World PopulationProspects, 1998 Revision; and estimates by the Population Reference Bureau
Half the world lives on
lessthan	
  
$2.50aday
Source: UNDP
Source: FAO
Nearly a billion people are
malnourished
 By 2030, 1.2 billion more
	
  will have joined the
global middle class
Source: World Bank
Climate change
The results are devastating
Deforestation Water scarcity
Species loss
“By 2030 the world will need to produce
50 per cent more food and energy,
together with 30 per cent more available
fresh water, whilst mitigating and adapting
to climate change. This threatens to
create a ‘perfect storm’ of global events.”
	
  
Professor John Beddington
Chief Scientific Adviser to the UK Government
Actions of leaders
SustainableLiving Plan
• Help more than one billion people improve their health and wellbeing
	
  
• Halve the environmental impact of Unilever products
• Source 100 per cent of agricultural raw materials sustainably
Rebuilding the Cadbury reputation
Certification schemes
Progress on palm oil certification
confused
Consumers are
Government
Five drivers for sustainable sourcing
	
  in the food supply chain
Consumer
	
  demand
Limits to
	
  growth
Actions of
	
  leaders
Certification
	
  schemes
Government
How to respond?
 www.twotomorrows.com	
  
	
  
mark.line@twotomorrows.com
♯footprintforum Sustainable Responsible Business
♯footprintforum Sustainable Responsible Business
Richard Reed
We have a Miss World-esq aim to leave things a little bit better than we find them.
Miss World
the future of food
Our principle narrative is that there is an opportunity for the world to think more intelligently
about how it feeds itself.
Nutritional benefit
Socio-environmental cost
nutritional benefit
The FSA Wellness score now provides an objective way of determining whether a food
is net positive or negative in terms of health impact.
	
  Fruit
& Veg
Fibre
Sat Fat
Energy
Sugars
Sodium
Protein
Innocent
	
  Indian
Daal Veg
	
   	
  Pot
	
  wellness score
Everything innocent makes is, and will only ever be, net positive on the FSA Wellness
score.
6
Innocent
	
  	
  Kiwis,
Apples &
	
  Limes
smoothie
Innocent
	
  orange
	
   	
  juice
health impact
negative
Strawberry
Yoghurt Brand
	
   	
  Chocolate
	
   	
  	
  Brand Y
	
  
	
  Crisp
Brand X
-21 -16 -11 -5
neutral
	
  0 2 3 4
positive
	
  145 6 8
kgCO2/kgproduct
	
  sustainable nutrition
And we map carbon footprint against Wellness Score, to ensure that we give positive
nutrition in an environmentally efficient way.
0
1 Cashew nuts Banana
Cherries
SB smoothie
Apple
2
3
4
-25 -20 -15 -10 -5 0 5 10
Wellness Score
Cake biscuit
Crisp Brand Y
Chocolate Brand X
Yoghurt
	
  PineappleMango
Blueberries
 Our approach
	
  
	
  
	
  
	
  
We have a five-legged strategy to improve the socio-economic footprint of
our business
Natural, healthy
products
Ethical ingredients Sustainable packaging Resource-efficient
production
Share the profits
Our products
We make food and drink only using the ingredients we all need to eat more of,
as identified by the Scientific Advisory Committee
Fruit Vegetables
DairyWholegrains
5 a day
We are the only company in the world that offers a simple solution to the
biggest dietary need in Western economies
10
Get closer
We have our own comprehensive minimum standards to help tackle social and
environmental challenges
innocent X Y Z
Innocent minimum standards
No existing certification scheme meets all our requirements
Purchasing
Safety / Quality
Social
Environment
All types & sizes of
farms
No additives
Non GMO
Food safety
Worker rights/wages
Worker safety
Product pricing
Local community
Biodiversity protection
Soil conservation
Efficient water use
Agrochemical bans /
restrictions
Agricultural projects
And we invest in projects to improve the socio-economic issues we come across.
Working with WWF, Cordoba
University, our supplier and
Uniliver to map and reduce
water usage in Spanish
strawberry farm
Pilot with Indian mango
suppliers to trial farming
practices to help local
farmers adapt to changing
climatic conditions
	
  
	
  	
  	
   	
   	
  .
	
  Launched project to trade
with Kenya and West Africa
smallholders to supply us
with mango
	
  
	
  	
   	
   	
  .
our packaging
We continuously improve the sustainability of our packaging via our four-fold
approach
That is from recycled or
renewable sources
	
  Use as little
material as possible
And is widely
recyclable
And has a
low carbon footprint
80%
And we aim to lead the industry
	
  
	
  
	
  
100%
	
  Sustainable packaging
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
100%
Introduce 50%
	
   	
  PCR
	
  April 2006
60%
	
  
	
  
	
  
	
  
	
  
40%
	
  
	
  
	
  
	
  
	
  
20%
	
  
	
  
	
  
	
  
	
  
	
  0%
2001 2003 2005 2007
	
  	
   	
   	
  Introduce 25%
	
  	
   	
   	
   	
   	
  PCR
	
  	
   	
   	
   	
  June 2003
	
  
	
  
	
  
	
  
	
  Lightweight
bottle 21g to
	
  	
   	
  18g
	
  	
  April 2003
bottles Cartons kids TW vegpots
Reduced energy use
Reduced water use
Reduced landfill
	
  Resource efficient
	
  
We have integrated sustainability targets with all principle manufacturers
2006
Resource efficient
It has helped us move the shift the dial in the right direction
	
  
	
  
	
  
	
  	
   	
   	
  	
   	
  Disposal
	
  
	
  	
   	
   	
  	
  Distribution
	
  
	
  
	
  
	
  
	
  	
   	
   	
  Manufacture
	
  	
   	
  200
	
  
	
  
	
  
	
  	
  CO2
per bottle
(grams)
	
  
	
  
	
  
	
  100
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
   	
  0
	
   	
  Packaging
	
  
	
  
	
  
	
  
	
  
	
  
	
  Material shipping
	
  
	
  
	
  
	
  
	
  
Growing & Packing
	
  
	
  
	
  
	
  
	
   	
   	
  2006 2010
innocent foundation
A minimum of ten percent of profits are distributed to charity
18
Do gooding
Plus we engage in ‘social marketing’ that delivers altruistic and commercial
benefits
 what we’ve achieved
	
  
	
  
We’ve delivered a distinctive set of results in our first ten years
1.7 billion fruit portions 358,513 people helped 1.25 million hats
♯footprintforum Sustainable Responsible Business

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Agriculture Abroad

  • 1. ♯footprintforum Sustainable Responsible Business AGRICULTURE ABROAD 23RD NOVEMBER 2011
  • 2. ♯footprintforum Sustainable Responsible Business Barbara Crowther Communications & Policy Director
  • 3. © Fairtrade 2011 Agriculture Abroad and International Development Barbara Crowther – Communications and Policy Director
  • 5. The UK imports £16bn worth of goods from countries in the © Fairtrade 2011 (2009 excl. China )Global South     - Agriculture - £5bn       - Meat / Fish / Dairy - £1.4bn       - Manufacturing - £6bn - Mining - £3.6bn
  • 6. © Fairtrade 2011 75% of Worlds poor depend on agriculture for the future (DFID)
  • 7. © Fairtrade 2011 UK is importing  £1.3bn of products from Africa - 70% sourced from 4 nations
  • 8. © Fairtrade 2011 African countries have highest levels of agricultural employment in the world (Tanzania = 74%)
  • 9. © Fairtrade 2011 Challenges to African agriculture   -Poverty & lack of     infrastructure     -Access to credit and     contracts     -Productivity, yield, quality     -HIV/AIDS
  • 10. © Fairtrade 2011 Case Study of     Government support     FRICH – Supporting     African Agriculture
  • 12. Packing the Tea at Iri-aini Factory © Fairtrade 2011
  • 13. © Fairtrade 2011 Conclusions       • Increased focus on agriculture and building public-private partnerships for development       • Opportunities for convergence between private sector, NGOs and third party certifications, and government (both North & South)       • Government agenda must seek coherence between agriculture, trade policy and private sector development strategy
  • 15.
  • 18. No time to loseThe drive for sustainable sourcing in the food supply chain  Mark Line Two Tomorrows
  • 19. So just how engaged are consumers?
  • 20. When it comes to living an environmentally conscious lifestyle, the picture is mixed Source: Global Monitor 2011 (Unstandardiseddata), The FuturesCompany
  • 21. Ethical issues are of limited importance when consumers choose food/beverage products Source: Global Monitor 2011, The FuturesCompany Which factors strongly affect your decision to choose one food/beverage product over another?
  • 22.      CITIZEN    Willing to give time or make compromises  to do the right thing CONSUMER Choice, price, quality and convenience driving purchase choices Conflict! Source: The FuturesCompany
  • 23. There is a discrepancy between intention and action Source: Defra, 2011
  • 24. My priorities The environment The environment is not a core priority for most consumers Source: The FuturesCompany
  • 25.  e.g. Growing vegetables with    the kids The environment can be a supporting factor in actions that relate to the core priorities Source: The FuturesCompany e.g. Turning down  the thermostat
  • 26. 51 51 41 42 80         60 companies I feel are damaging the environment in the past 12 months”. Consumers will stop spending money with those who are seen to be acting unethically      % all agree      100          “I have stopped buying from Source: Global Monitor 2010 (Standardiseddata), The FuturesCompany 36 39 30 34 33 38 36 39 20          0 40 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 16 market average North America Latin America Western Europe Eastern Europe Asia
  • 27. Country 2004 2009 2014 US 319 911 1,451 UK 162 688 1,177 France 114 360 594 Germany 71 294 520 Spain 1 8 15 China 0.7 1 3 India 0.7 1 1.2 Brazil 0.8 1 1.2 Spending on fair trade food and beverage products, while growing fast, it still relatively small and is negligible in developing countries Estimated spending on fair trade food and non-alcoholic beverages  in selected global markets ($m) Source: Datamonitor, 2010
  • 29. The population crisis Source: United Nations, World PopulationProspects, 1998 Revision; and estimates by the Population Reference Bureau
  • 30. Half the world lives on lessthan   $2.50aday Source: UNDP
  • 31. Source: FAO Nearly a billion people are malnourished
  • 32.  By 2030, 1.2 billion more  will have joined the global middle class Source: World Bank
  • 33. Climate change The results are devastating Deforestation Water scarcity Species loss
  • 34.
  • 35. “By 2030 the world will need to produce 50 per cent more food and energy, together with 30 per cent more available fresh water, whilst mitigating and adapting to climate change. This threatens to create a ‘perfect storm’ of global events.”   Professor John Beddington Chief Scientific Adviser to the UK Government
  • 37. SustainableLiving Plan • Help more than one billion people improve their health and wellbeing   • Halve the environmental impact of Unilever products • Source 100 per cent of agricultural raw materials sustainably
  • 39.
  • 41. Progress on palm oil certification
  • 42.
  • 45. Five drivers for sustainable sourcing  in the food supply chain Consumer  demand Limits to  growth Actions of  leaders Certification  schemes Government
  • 50. We have a Miss World-esq aim to leave things a little bit better than we find them. Miss World
  • 51. the future of food Our principle narrative is that there is an opportunity for the world to think more intelligently about how it feeds itself. Nutritional benefit Socio-environmental cost
  • 52. nutritional benefit The FSA Wellness score now provides an objective way of determining whether a food is net positive or negative in terms of health impact.  Fruit & Veg Fibre Sat Fat Energy Sugars Sodium Protein
  • 53. Innocent  Indian Daal Veg    Pot  wellness score Everything innocent makes is, and will only ever be, net positive on the FSA Wellness score. 6 Innocent    Kiwis, Apples &  Limes smoothie Innocent  orange    juice health impact negative Strawberry Yoghurt Brand    Chocolate      Brand Y    Crisp Brand X -21 -16 -11 -5 neutral  0 2 3 4 positive  145 6 8
  • 54. kgCO2/kgproduct  sustainable nutrition And we map carbon footprint against Wellness Score, to ensure that we give positive nutrition in an environmentally efficient way. 0 1 Cashew nuts Banana Cherries SB smoothie Apple 2 3 4 -25 -20 -15 -10 -5 0 5 10 Wellness Score Cake biscuit Crisp Brand Y Chocolate Brand X Yoghurt  PineappleMango Blueberries
  • 55.  Our approach         We have a five-legged strategy to improve the socio-economic footprint of our business Natural, healthy products Ethical ingredients Sustainable packaging Resource-efficient production Share the profits
  • 56. Our products We make food and drink only using the ingredients we all need to eat more of, as identified by the Scientific Advisory Committee Fruit Vegetables DairyWholegrains
  • 57. 5 a day We are the only company in the world that offers a simple solution to the biggest dietary need in Western economies 10
  • 58. Get closer We have our own comprehensive minimum standards to help tackle social and environmental challenges
  • 59. innocent X Y Z Innocent minimum standards No existing certification scheme meets all our requirements Purchasing Safety / Quality Social Environment All types & sizes of farms No additives Non GMO Food safety Worker rights/wages Worker safety Product pricing Local community Biodiversity protection Soil conservation Efficient water use Agrochemical bans / restrictions
  • 60. Agricultural projects And we invest in projects to improve the socio-economic issues we come across. Working with WWF, Cordoba University, our supplier and Uniliver to map and reduce water usage in Spanish strawberry farm Pilot with Indian mango suppliers to trial farming practices to help local farmers adapt to changing climatic conditions            .  Launched project to trade with Kenya and West Africa smallholders to supply us with mango          .
  • 61. our packaging We continuously improve the sustainability of our packaging via our four-fold approach That is from recycled or renewable sources  Use as little material as possible And is widely recyclable And has a low carbon footprint
  • 62. 80% And we aim to lead the industry       100%  Sustainable packaging                 100% Introduce 50%    PCR  April 2006 60%           40%           20%            0% 2001 2003 2005 2007        Introduce 25%            PCR          June 2003          Lightweight bottle 21g to      18g    April 2003
  • 63. bottles Cartons kids TW vegpots Reduced energy use Reduced water use Reduced landfill  Resource efficient   We have integrated sustainability targets with all principle manufacturers 2006
  • 64. Resource efficient It has helped us move the shift the dial in the right direction                  Disposal            Distribution                Manufacture      200          CO2 per bottle (grams)        100                          0    Packaging              Material shipping           Growing & Packing              2006 2010
  • 65. innocent foundation A minimum of ten percent of profits are distributed to charity 18
  • 66. Do gooding Plus we engage in ‘social marketing’ that delivers altruistic and commercial benefits
  • 67.  what we’ve achieved     We’ve delivered a distinctive set of results in our first ten years 1.7 billion fruit portions 358,513 people helped 1.25 million hats