1. East Agri March 01, 2005 ROMA Jean-Pierre RENNAUD

2. 2 Why SAI Platform? Society develops growing requirements for sustainability The state of natural resources and rural societies affects agricultural production (both in positive & negative terms) Consumers’ confidence depends on the quality & safety of the food supply chain The Food Industry has great interest in sustainable agriculture: The Food Industry relies on the long-term supply of agricultural raw materials in quality and quantity

3. 3 SAI Platform’s approach Support the development of SA practices through crop- specific working groups Working together with growers, other food chain stakeholders and other interested parties (next slide) A Food Industry initiative aiming to actively: Communicate worldwide about SA SA as continuous improvement Focusing on mainstream, including all valuable concepts/initiatives contributing to SA

4. 4 SAI Platform’s environment S U P P L Y C H A I N TRADING companies RETAILERS CONSUMERS FOOD companies PRODUCERS OTHER STAKEHOLDERS NGOs Research Academic IGOsMedia Input providers Advisory Services Trade & Policy- makers Financial Institutions

5. 5 SAI Platform’s Members Campina Danisco Dole Ecom Efico Findus Fonterra Friesland Coberco Groupe Danone Kraft McCain Europe McDonald’s Nestlé Neumann Kaffee Gruppe Sara Lee Tchibo Unilever VOLCAFE

6. 6 Current SAI Platform working groups Current Working Groups 1.Cereals 2.Coffee 3.Dairy 4.Vegetables & Potatoes 5.Fruits Common framework 1.Definition of sustainable practices & indicators 2.Stakeholder consultation & pilot project 3.Roll-out under the responsibility of company

7. 7 Key issues in Working Groups’ Practices - Example of dairy Economic Pillar Adequate animal lodging and feeding Hygienic conditions of milking and milk storage Transparency and traceability in the supply chain Environmental Pillar Soil, water, biodiversity, air and energy conservation Integrated crop protection Adequate effluent, organic matter and waste management Social Pillar Minimum labour conditions based on ILO conventions Adequate worker health and safety measures Contribution to the local economy and rural development

8. 8 Ex of LCA in dairy sector : yogurt Case study provided by Groupe Danone Product Natural Yogurt 125 g : PS pot 4 pots wrapped by a pick up Logistics:12 PU per platform 108 platforms per pallet 30 pallets per lorry Transportation 400 km Functional unit & system borders Functionnal unit : « Production and use by consumers of 1000 of yogurt Danone, in France, in 125 g pot. » System : Milk production : intensive and conventional systems Primary packaging Yoghurt production Secondary and tertiary packaging : plaform, pallet or plastic cratespalette, with integration of end of life (cardboard recycling, re-use of plastic crates) Distribution : transport End of life : different scenarios (reference case : 53% lanfill, 47% incinération).

9. 9 Results of LCA Case study provided by Groupe Danone Consumption of non-renewable ressources 51% Milk production : 80% in the consumption of superphosphate on the feed production 31% Primary packaging, 8% Yogurt production, 5% Selling and buying Water consumption 60% Milk production : 60% for the direct consumption at farm, 40% for irrigation of soya 21% Primary packaging, 13% Yogurt production, 6% Selling and buying Energy consumption 15% Milk production, 25% Primary packaging, 23% Yogurt production, 33% Selling Atmospheric impact (Green House Gas) 53% Milk production, 9% Primary packaging, 6% Yogurt production, 26% Selling Eutrophication ( Nitrate 90 %, Phosphates 9 %) 98% Milk production Wastes 68% Milk production, 9% Primary packaging, 6% Yogurt production, 26% Selling

10. 10 LCA and the implementation of sustainable agricultural practices SA as a continuous improvement => Transition period from conventional to sustainable agriculture => Monitoring progress through indicators enabling verification Life Cycle Analysis + useful to assess environmental impact at a given time - no assessment of the other pillars (economic, environment) - too complex and not adapted for farm level

11. 11 Some criteria to set indicators Which objective ? process or performance measurement Stakeholder dialogue built in Bringing positive framework Meaningful to farmers Indicators should be close to the measurement Incentive for early warning Practicability as a decision tool for food companies Audience : smallholders vs large farm

12. 12 How to monitor & Interpret indicators Pilot project are needed - Design of Pilot project is key - Indicators to monitor practices progress & impact - Monitoring tools for project & interpretation information ROLL-OUT for mainstream - Indicators that can be used for verification

13. 13 SAI Platform’s expected results Common approach to SA practices between all food chain stakeholders Significantly contribute to sustainable development of agriculture Support continuous availability of raw materials safe, of good quality that protect and improve natural resources and social livelihood

14. 14 THANK YOU Contact: www.saiplatform.orgwww.saiplatform.org 29 Rte de Pré Bois 1215 Geneva Switzerland Tel: + 41 22 779 17 16