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The juice buyer didn’t look beyond the juice supplier 1

Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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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Page 1: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

The juice buyer didn’t look beyond the juice supplier

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Page 2: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

FrieslandCampina Riedel BV

Page 3: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

Time to have an open look on the juice supply chain

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Page 4: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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Page 5: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

Together we want to sustain the juice supply

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Page 6: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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Page 7: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

We investigatedthe sustainability of the fruit supply chain

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Page 8: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

We analysed the fruit sector in seven countries

Brazil

South-Africa

India

Ecuador

Mexico

Belize

Peru

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Page 9: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

Our findings are disturbing

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Page 10: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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Page 11: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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Page 12: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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Page 13: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

On topof that

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Page 14: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

Landscape of sustainability initiatives and standards is extensive and complex

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Page 15: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

There is little room for investment because the sector is under pressure

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Page 16: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

There is also good news

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Page 17: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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US Department of Agriculture: “Exports [of Brazilian juice] again forecast to exceed production”

Page 18: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

So we face many supply

chain problems and see signs of

improving market conditions

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Page 19: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

There are two options

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Page 20: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

1. We do nothing

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Page 21: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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

Page 22: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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Page 23: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

2. We invest

in resilienceof farmers

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Page 24: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

There is no one size fits all solution

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Page 25: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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

Page 26: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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

Page 27: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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

Page 28: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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

Page 29: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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

Page 30: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

So, what’s in it

for you?

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Page 31: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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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Page 32: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

What we’ve learned:

working together is key

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Page 33: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

Yesterday we announceda long term cooperation

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Page 34: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

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Join usfor change

that matters

Page 35: Fruit growing for Appelsientje and CoolBest is becoming more sustainable

Follow usFrieslandCampina and Solidaridad

solidaridadnetwork.org

@solidaridadnetw

/solidaridadnetwork

/company/solidaridad

frieslandcampina.com

@frieslandcampina

/frieslandcampina

/company/frieslandcampina

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