2012 3 14_hqo asta_draft 4 w asta logo

558 views

Published on

Published in: Technology, Business
  • Be the first to comment

2012 3 14_hqo asta_draft 4 w asta logo

  1. 1. The Business Case forSustainable Agriculture
  2. 2. Overview• Brief Overview of HQO• Sustainability Defined• Organic Agriculture• Case Studies• Steps You Can Take
  3. 3. Who is HQO?• Largest 100% organic bulk, herb, spice and tea ingredient company in the U.S.• Provide custom formulations, packaging, private label and conversion from conventional to organic• The result of a merger in 2009• Located in Reno, NV• Growing at 20% a year
  4. 4. Who is HQO?• Our passion is reflected in our values Sustainability Quality Reliability HQO Values Wellness Food Safety Innovation
  5. 5. Sustainability DefinedThe Business Case for Sustainable Agriculture
  6. 6. What is sustainability? Ability to maintain Maintain ecological balanceSource: Bing online dictionary
  7. 7. Sustainability DefinedFood Business Sustainability
  8. 8. Sustainability Defined Corporate Sustainability +
  9. 9. Sustainability Defined
  10. 10. Sustainability Defined Corporate Social ResponsibilityDefined by Lord Holme and Richard Watts in The World Business Council for Sustainable Development’spublication ‘Making Good Business Sense’
  11. 11. Sustainability Defined Food Companies Focus on Sustainability“ Our products’ biggest environmental impacts occur during the growing and processing of our food ingredients…Specifically, we seek to: Identify agricultural practices and strategies that will help meet the world’s growing need for safe, nutritious food; Decrease agriculture’s impacts on the environment; Improve the social and economic well-being of agricultural communities.”Source: Kellogg 2010 Corporate Responsibility Report
  12. 12. Sustainability Defined Food Companies Focus on Sustainability• Food Marketing Institute and Grocery Manufacturers Association holds first Sustainability Summit in 2010
  13. 13. Sustainability Defined Food Companies Focus on Sustainability General Mills has a long-standing commitment to minimize its impact on the environment by working closely with the agricultural community. Green Giant brand has practiced sustainable agriculture for more than a century Research continues to develop and improve crop breeding and agronomic practices that benefit farmers and the environment.Source: GM Sustainable Agriculture document found at http://www.generalmills.com/~/media/Files/sustainability/GM_agriculture.ashx
  14. 14. Sustainability Defined SummarySustainable agriculture is part of being a corporately and socially responsible sustainable food business
  15. 15. Organic AgricultureThe Business Case for Sustainable Agriculture
  16. 16. Organic AgricultureSource: Organic Trade Association
  17. 17. Organic Agriculture• Demand for organic food continues to grow
  18. 18. Organic Agriculture • Demand for organic food continues to growSource: Kiwi Magazine
  19. 19. Organic Agriculture • Organic shopping moves mainstreamSource: Organic Trade Association’s 2011 Organic Industry Survey
  20. 20. Organic Agriculture • Organic growth outpaces conventionalSource: Organic Trade Association’s 2011 Organic Industry Survey ($mil consumer sales)
  21. 21. Organic Agriculture • Organic growth outpaces conventionalSource: Organic Trade Association’s 2011 Organic Industry Survey
  22. 22. Organic Agriculture • Organic consumption grows globallySource: Organic Monitor ($ bil consumer sales)
  23. 23. Organic Agriculture2012 Food Trends Support Sustainable Agriculture• “Sustainability” noted as overall culinary theme in National Restaurant Association’s 2012 Chef Trends – National Restaurant Assn on launches ConServe Program – Many restaurants feature or only use seasonal/local food
  24. 24. Organic Agriculture2012 Food Trends Support Sustainable Agriculture• SustainableBrands.com notes the “Why?” consumer as a 2012 Trend – Mostly millennials – Frugal – Resourceful – Technologically savvy – Focused on being socially responsible
  25. 25. Organic Agriculture2012 Food Trends Support Sustainable Agriculture• MyNewsDesk Blog 2012 Marketing & PR Trends includes “Consumer Engagement” – Companies that provide the resources for consumers to save money, time and the environment and help others will be favored. – Example: Häagan-Dazs® Save the Bees Campaign • Save the bees that help pollinate the ingredients Häagan-Dazs uses to make its ice cream • Buy a pint, save the bees • Campaign has been so successful it’s continuing into a second year not originally planned
  26. 26. Häagan-Dazs® Save the Bees Campaign
  27. 27. Case StudiesThe Business Case for Sustainable Agriculture
  28. 28. Case StudiesImproving Farming Capabilities in India
  29. 29. Case Studies Improving Farming Capabilities in IndiaPre-Organic Conditions• 82% of farmers borrowed against future crop year to pay for pesticides, fertilizers and seed • Average income US $440/acre • Average amount spent on cultivation US $115.74/acre • Average net income was USD $154/acre – not sufficient to meet household expenses • Result was farmers losing land
  30. 30. Case Studies Improving Farming Capabilities in IndiaPre-Organic Conditions• Soil condition too poor for successful production • Existing soil carbon content ~ 0.5% • Sustainable crop production requires 3-4% soil carbon content
  31. 31. Case Studies Improving Farming Capabilities in IndiaConversion to Organic• Reduction of pesticide and fertilizer applications• Increased organic farming practices• Water Conservation • Pooling fund from local farming Bunding projects by NGOs allowed for bunding/trenching to gather and conserve water• Soil Fertility • Manuring • Crop rotation • Green leaf manuring
  32. 32. Case Studies Improving Farming Capabilities in IndiaOther Activities Implemented for Organic Success• Partnered with local processer that focuses on growing indigenous crops in a sustainable manor• Partner with local NGOs across India to assist in mobilizing farmers for best in class organic agriculture training and education• Work with leading research organizations in India and abroad to evolve organic practices for improved productivity, sustainability and quality• Certified organic processing facilities close to farms
  33. 33. Case Studies Improving Farming Capabilities in IndiaResults• Reduced Financial Risk – need to borrow money essentially non-existent due to reduced need for pesticides and fertilizers.• More Income – farmers currently achieving 10-20% more income with projections of up to 40-50% more income based on type of crop producing.• Water Conservation – 30% water conservation making droughts less stressful• Soil Fertility – Improved biological activity resulting in expected 3-5% soil carbon level within five years
  34. 34. Case StudiesCreating a Sustainable Agriculture System in Egypt
  35. 35. Case StudiesCreating a Sustainable Agriculture System in Egypt Farming in the Dessert • Food scarcity and security real concerns for Egypt • Egypt consists of over 95% desert • Leaves only 84 square meters of arable land per person for 84 million people • Egypt’s population is growing at 2% per year • According to the World Bank, 20% of Egypt’s population lives below the poverty line • Food scarcity and security real concerns for Egypt
  36. 36. Case StudiesCreating a Sustainable Agriculture System in Egypt Biodynamic Agriculture • Specific form of organic agriculture • Looks at the farm as a self-sustaining ecosystem including: • Soil • Plants • Animals • People
  37. 37. Case StudiesCreating a Sustainable Agriculture System in EgyptBiodynamic Agriculture Practices Turn Dessert Land into Fertile Soil• Closed nutrient cycle approach – what is on the land must sustain the land • Composting from human waste (garbage, food waste, etc.) • Using animal waste for fertilizer • Intercrop forestry (planting trees within fields) and crop rotation help maintain soil structure
  38. 38. Case StudiesCreating a Sustainable Agriculture System in EgyptBiodynamic Agriculture Practices Turn Dessert Land into Fertile Soil• Native predators reduce need for pesticides • Chrysoperla carne and ladybird (to control aphids) • Orius and amplyseius cucumeris (to control thrips) • Trichogramma (to control butterfly eggs) • Phytoseiulus persimilis (to control spider mites)
  39. 39. Case StudiesCreating a Sustainable Agriculture System in EgyptBiodynamic Agriculture Practices Turn Dessert Land into Fertile Soil• Results • Increase water retention in soil (up to 70%) • Decrease water consumption (20-40%) • Soil’s ability to hold water decreases soil erosion • Reduced costs on inputs allow for farmers to cover increased costs in labor and help improve the livelihood of the local community
  40. 40. Case StudiesTypicaldesert 30 yearssoil later – arable land evolved
  41. 41. Steps You Can TakeThe Business Case for Sustainable Agriculture
  42. 42. Steps You Can Take 7 Steps Towards Sustainable Agriculture1) Where is sustainable agriculture in your corporate/social responsibility strategy?2) What are your benchmarks to identify success?3) Who is the passionate player on your team to help lead the effort.4) Partner with current suppliers to explore conventional to sustainable/organic opportunities.
  43. 43. Steps You Can Take 7 Steps Towards Sustainable Agriculture1) Reach out to your local organic certifier to learn the requirements and what is needed to convert.3) Don’t be afraid to ask other organic manufacturers for help, tips and guidance.7) If organic supply isn’t feasible for your company, explore alternative activities to support sustainable agriculture. (Ex: provide funds for African female farmers.)
  44. 44. Steps You Can TakeExamples of Sustainable Benchmark Tools
  45. 45. Steps You Can TakeExamples of Sustainable Benchmark Tools
  46. 46. Steps You Can TakeSustainable Agriculture Projects HQO partners with Rwanda girls school
  47. 47. Steps You Can TakeHQO Partners with Rwanda Girls School
  48. 48. The Business Case for Sustainable Agriculture Presented By: Boligala RajuPredisident & CEO, High Quality Organics www.HQOrganics.com

×