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On the day of the opening of the World Juice Summit in Antwerp, FrieslandCampina Riedel B.V. and Solidaridad announce their intention to strengthen their cooperation in making tropical fruit growing more sustainable. In Brazil, they are working together intensively to support the orange growers who supply fruit for Appelsientje. This is part of Solidaridad's Rural Horizons programme, which supports farmers in improving their production processes and making them more sustainable. In India, where the mangoes that are used to make CoolBest grow, the focus is on supporting seasonal labourers. Oranges and mangoes constitute almost 80 percent of the tropical fruit that is purchased by FrieslandCampina. http://www.solidaridadnetwork.org/news/quenching-the-thirst-for-sustainable-juice-production
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The juice buyer didn’t look beyond the juice supplier
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FrieslandCampina Riedel BV
Time to have an open look on the juice supply chain
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Together we want to sustain the juice supply
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We already have a joint history
2006 Better soy in animal feed (SOYPSI & RTRS)
2010 Better cocoa in Chocomel® (Utz Certified)
2013 Member of Bonsucro better sugarcane platform
2011 Better palm oil in feed and food (RSPO)
2014 Better fruit programme Appelsientje® and Coolbest® (mixed standards)
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We investigatedthe sustainability of the fruit supply chain
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We analysed the fruit sector in seven countries
Brazil
South-Africa
India
Ecuador
Mexico
Belize
Peru
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Our findings are disturbing
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The main issuesper country
Mexico Labour rights and pesticides
Belize Labour rights and pesticides
Ecuador Small holder problems (passion fruit)
Brazil Position family farmers/labour rights
Peru Small holder problems
South Africa Water stress
India Small holder problems/erosion
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The main issueswith orange in Brazil
Family farmers switch to sugarcane
Seasonal workforce switch to sugarcane
Claims of illegal outsourcing seasonal workforce
Bad working conditions
Risk of child labour under specific conditions
Orange
Loss of biodiversity
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The main issueswith mango in India
High margin of profit taken by middlemen
Corruption in state run markets
Low productivity, lack of knowledge, overuse pesticides
Formal contracting of seasonal workers
Mango
Erosion, aggravated due to climate change
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On topof that
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Landscape of sustainability initiatives and standards is extensive and complex
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There is little room for investment because the sector is under pressure
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There is also good news
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US Department of Agriculture: “Exports [of Brazilian juice] again forecast to exceed production”
So we face many supply
chain problems and see signs of
improving market conditions
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There are two options
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1. We do nothing
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Consequences for the fruit juice sector
Reputational damage
Low quality and quantity of fruit
Authenticity and honesty
Ongoing social and ecological issues
Buying problems
Dissatisfied consumers
Or even worse, ten years from now…
Farmers cannot earn a living and stop production
Farmers sons and daughters do not take over
No banana sector due to Black Sigatoka & Panama TR4
Loss of productivity due to climate change
Structural violation of labour rights
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2. We invest
in resilienceof farmers
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There is no one size fits all solution
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Our tailor made approach for priority countries
Orange in Brazil
Seasonal work and agricultural practices
Rainforest certified banana
Rural Horizon and technical assistance
Mango in India
Banana in Ecuador
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Orange in Brazil:Rural Horizon
October 2014 – February 2015
Development, testing and evaluation
€36k budget covered
Pilot with AIJN, Firmenich, SAI Platform and Citri
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SAI Farm Sustainability Assessment and Rural Horizon
SAI FSA
Rural Horizon
TOP DOWN
Lack of support base due to
top down approach
BOTTOM UPNo scale/big investments to reach millions of farmers
AFTER SCOPING THEY NEED ACCESS TO FINANCE TO INVEST
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Orange in Brazil:Technical assistance
2015 - 2018
Implementation
€110k budget, €30k covered so far
Reach out to all 16,000 family farmers
Design technical assistance programme
Based on hot spots from Rural Horizon
Using the Rural Horizon monitor
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Mango in India:Seasonal work and agricultural practices
2014 – 2015: Human resources platform
Improve agricultural practices
Improve conditions seasonal workers
2015 – 2016: Training of trainers
processing industry
Including SAI FSA criteria
Join forces with other mango buyers
So, what’s in it
for you?
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The benefits for your company and profile
Improve sourcing quantity and quality
Comply with corporate values of your customers
Create brand value
Improve transparency of your supply chain
Reduce reputational damage
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What we’ve learned:
working together is key
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Yesterday we announceda long term cooperation
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Join usfor change
that matters
Follow usFrieslandCampina and Solidaridad
solidaridadnetwork.org
@solidaridadnetw
/solidaridadnetwork
/company/solidaridad
frieslandcampina.com
@frieslandcampina
/frieslandcampina
/company/frieslandcampina
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