Loruma
Agrifirm =
Taking responsibility
2010 Corporate sustainability report Agrifirm
a link to success AgriFirm
1
Loruma
2
AgriFirm
Loruma
Preface Eating is a basic necessity of life. We are faced with major challenges in our food supply. Projections are that by 2050 we will have to supply 9 billion people with
nutritious and varied meals. In addition, food and other agricultural products must be produced in sustainable ways. This includes complying with demands from the local surroundings, such that farmers are given the respect they deserve.
Agrifirm stands ready to make a contribution to this future. Ready to support farmers in producing meat, dairy, eggs, cereals, sugar and countless other agricultural
products. Ready to develop products and services that help the arable farming,
horticulture and livestock sectors in meeting the demands of the future. The merger of Cehave Landbouwbelang and Agrifirm in 2010 created an additional opportunity in this respect. An opportunity to allow knowledge, innovations and expert
employees from both companies to reinforce each other in this domain as well. Sustainability and innovation are important pillars of Agrifirm’s strategy.
In this, the first corporate sustainability report of our new company, we demonstrate, on the basis of five links, how we specifically assume our responsibility and how we
intend to make a contribution to sustainable food production: now and in the future.
Kees Sijssens
CEO Agrifirm
AgriFirm
1
Agrifirm =
A link to success Agrifirm is a cooperative in which approximately 15,000 Dutch enterprising farmers and have bundled their strength. This bundling provides a sustainable advantage with regard to high quality products such as animal feeds, sowing seeds, fertilisers and crop protection products.
“As an enterprising farmer you need an enterprising cooperative interested in being an extension of your farm. And Agrifirm has to deliver on this by providing added value to its members. The fact that Agrifirm is a cooperative I consider a major plus. That makes you a strong trading partner.”
Roelof Otten, Arable Farmer (Geesburg)
Creating a new company through the merger of two partners is a great challenge.
In 2010, the Agrifirm cooperative in Meppel and Cehave Landbouwbelang in Veghel
took on this challenge. Effective 1 June 2010, there is a single Coöperatie Agrifirm U.A. registered in Apeldoorn. A new enterprise, with clear core values and brand equity
that is recognised in the market. An enterprise that operates as a ‘link to success’ for
farmers. Agrifirm is currently active throughout the entire Netherlands in the livestock, arable farming and horticulture sectors. In addition, we have an international network of subsidiaries. Agrifirm supplies products and services for feeding animals and the cultivation of crops. It differentiates itself as the player of choice when it comes to providing customers with solutions that produce better results. Cooperative
Agricultural entrepreneurs are of vital importance to society. Enterprising farmers
are aware of this and have been anticipating social developments for years. Farmers established the first cooperatives around the year 1900. Together they acquired
greater strength in various areas, for instance, knowledge development and the
purchase and sale of products. This principle still applies today, more than a century later. Agrifirm, as a cooperative comprising approximately 15,000 farmers, is living proof of this.
2
Agrifirm
Brand Equity • Committed
Agrifirm's thinking and actions are
always customer-centred. The issues and problems encountered by
entrepreneurs in actual practice
constitute our starting point for
developing solutions, products and services. The commitment of our
employees is inspired by their personal affinity with the agricultural sector.
• Innovative
Agrifirm is a front runner when it comes
to innovation, by offering new products, knowledge and concepts. We are
progressive in terms of our market approach and product innovation.
• Results-oriented
Agrifirm provides solutions that focus on the customer's results. All of our
Mission
The role of the cooperative has of course grown along with developments in the market and in society. The interests of members are decisive in this respect. This is why Agrifirm’s mission is as follows: to create sustainable value for members.
We do this by supporting farmers with sustainable, profitable concepts for achieving optimal results. The increase in the value of our enterprise, by strengthening
our market position and profitable growth, is returned to our members through profit distribution.
Core Values and Ambition
Agrifirm is synonymous with cooperation, fair business practices and quality. Agrifirm is competitive in the market in terms of price and service. We want to further strengthen our position, in terms of sales as well as image. By being a
products contribute to a higher return for the farmer.
• Sustainable
Only sustainable agriculture and
horticulture are future-proof. This is
ultimately the only form of operating that is socially acceptable (license to
produce). Agrifirm's employees believe in the necessity and feasibility of
sustainable agriculture and horticulture.
Facts and Figures
• Cooperative with approx 15,000 members
front runner in terms of knowledge and innovation and by putting the emphasis
• Managed by a Supervisory Board
within the Netherlands, as well as beyond, through organic growth and profitable
• Approx 3,100 FTEs
who are sincerely interested in their customers. Agrifirm has a strong Research
• 17 subsidiaries operating in the
on the customer in our consulting practice. We want to expand our market share acquisitions. To realise this ambition, we work with well-trained employees
& Development department, the Agrifirm Innovation Centre. Vitamex, as well
as Agrifirm Plant, also have their own R&D departments. We therefore invest in innovation and operate on the basis of leading concepts. As such we provide
sustainable and innovative concepts that enable customers to anticipate the challenges of today and tomorrow.
(12 members)
• Head office in Apeldoorn
Netherlands, Belgium, Germany,
France, Spain, Romania, Hungary, Poland, the Ukraine and China
• Sales: A 2 billion
• Profit (EBIT): A 37.2 million
Agrifirm =
Opting for sustainability “Agrifirm is taking important steps towards sustainability. This starts with obtaining information, building up knowledge and developing a vision. Innovations automatically flow from this that lead to a more sustainable business. I think that Agrifirm has done well in opting for its own thorough and specific approach.”
Hans Blonk, Environmental Consultant
Sustainability and innovation represent key brand value for Agrifirm and are the pillars of Agrifirm’s strategy. It is our ambition to be part of sustainable food chains with our business operations and to contribute this way to a healthy world for future generations. In addition, we view investing in sustainability as an important precondition for continuity. Both for our own enterprises, as well as that of farmers. Our farmers operate in highly competitive markets. Prices for dairy, meat, eggs,
cereals, etc are set on international markets with strong competition. Sustainable solutions must therefore be financially profitable as well. This basic premise does not represent an obstacle to our ambition, instead it sharpens our focus. Most
certainly also because our innovation strategy for the most part coincides with our sustainability strategy: efficient production of food using healthy plants,
healthy soil, healthy animals and the optimal use of co-products from the food industry.
Links in the chain
Characteristic of Agrifirm’s sustainability strategy is that we not only scrutinise our own operations. Agrifirm specifically analyses all links in the chain, ranging from the cultivation of raw materials right through to the point at which the food is
served to the consumer. Within every link there are issues and opportunities for
increasing the level of sustainability. This is why Agrifirm continuously asks itself:
4
Agrifirm
Agrifirm’s five sustainability links Agrifirm’s sustainability policy comprises five themes.
1
Working on sustainable raw materials
2
Sustainable production
3
Efficient food and feed
4
Contributing to a sustainable consumer supply
5
Investing in employees
“Can our company exercise significant influence on the relevant subject area.” Because we believe that our contribution must originate from within our core
competencies. Our employees have a key role to play in this regard. Their safety,
well-being, commitment and motivation form the core of sustainable enterprise. Agrifirm’s sustainability policy comprises five links. In this report we highlight our accomplishments in the area of sustainability for each link. Dilemmas
Of course our sustainability-related ambition also creates dilemmas. Agrifirm wants to clearly identify these dilemmas and to enter into a dialogue with members of
the cooperative and the surrounding community about the various subject areas.
We realise that we operate in various markets and sub-markets. Each market has its own particular themes. This is why we have structured our stakeholder dialogue in
accordance with ISO 26000 and focus on markets in which we have a market share of more than 20%.
“Without profitability on the part of our members, it is impossible to ever create sustainability.” Ruud Tijssens, Director CSR
Anchoring policy
Agrifirm’s sustainability policy is anchored in the core activities of the entire
organisation. The core of the policy is consequently formed by the activities of our operating companies. The responsibility for this at the corporate level rests with
the Director CSR, who fulfils an initiating and coordinating role from head office. The Agrifirm Innovation Centre’s innovations play a key role in this.
Agrifirm
5
1
Agrifirm = Working on sustainable raw materials Sustainable production starts at the front of the chain: with the procurement of sustainable raw materials. As a major player in the market for animal feeds, sowing seeds,
fertilisers and crop protection products, we specifically
consider this our responsibility. Agrifirm processes large
quantities of co-products released by the food industry into
high quality animal feeds. Furthermore, we actively promote the sustainable cultivation of high-protein raw materials.
Working on sustainable raw materials
47,5% of all dry raw materials that
Agrifirm processes into livestock
feeds (4.4 million tonnes) consists of co-products that originate
from the food industry. Dairy cattle feeds contain 67% in co-products.
Feeds for pigs and poultry contain 41% and 38% respectively. 27%
of the co-products processed by
Agrifirm consists of soy meal. 100% of the wet raw materials used
by Agrifirm (2.2 million tonnes) consists of residual products.
Percentage of co-products in compound feed in different countries
1
Dairy Cattle
Netherlands 64.2% • Germany 75.7% Poland 63.4%
Sustainable Soy 2
Pigs
Netherlands 37.4% • Belgium 34.8% Germany 46.1% • Poland 39.1% Hungary 35.1%
Soy meal, the portion of the soybean left over after pressing to extract the vegetable
oil, is a key raw material for producing high-protein animal feeds. The demand for soy for use in food, animal feed and as a biofuel is sharply increasing all over the world
and consequently also its cultivation. The major share of this soy comes from North and South America. It is important for the acreage of soy to be expanded in
responsible ways and not at the expense of tropical rain forest, for example. To
promote this, the Round Table on Responsible Soy (RTRS) was established in 2006. This international platform unites soy growers, processors, trade, users and social 3
Laying Hens
Netherlands 33.5% • Belgium 31.2% Germany 33.5% • Poland 29.5% Hungary 39%
organisations such as the World Wildlife Fund and Solidaridad. Agrifirm is a member of these organisations.
The RTRS in 2010 established the criteria for sustainable soy cultivation. In advance
of this event, the Netherlands Feed Industry Association (Nevedi) in 2010 purchased 140,000 tonnes of soy meal in accordance with comparable criteria on behalf of the livestock feed sector. Agrifirm, together with other Dutch firms, has also created a 4
Broilers
Netherlands 49.2% • Belgium 31.7% Poland 31.7% • Hungary 34.3%
national partnership: the Taskforce Duurzame Soja (Sustainable Soy Taskforce). This taskforce promotes the work of the RTRS and regularly consults with government
and social organisations concerning the potential contribution from the Netherlands.
Agrifirm
7
Protein from the Farmer’s own Farm
In 2010, Agrifirm initiated the trial ‘Protein from own Farm’ project. The objective of the project is to research how cultivated protein-rich crops in the Netherlands can
In the ‘Protein from own Farm’ project, Agrifirm is investigating the possibility of cultivating various protein-rich crops in the Netherlands for use as raw material in animal feed.
contribute to supplying proteins for the livestock feed sector as a replacement for soy, for example. In the context of this project, eight arable farmers in the western region of the Province of Brabant planted forty hectares of field beans as a trial. Due to
improvements made to the field bean over the years, the trial achieved a production volume of 6.3 tonnes per hectare. This is significantly more than the approximately
3 to 4 tonnes per hectare normally achieved with conventional cultivation methods. The analysis also demonstrates that the field beans contain excellent proteins for pigs and poultry feed. This represents a solid step in making the cultivation of protein-rich crops profitable in the Netherlands in the future.
In addition, Agrifirm is investigating the possibility of cultivating various other
protein-rich crops in the Netherlands for use as raw materials in animal feed. The
subsidiary Cehave Pasze (Poland) is collaborating with local arable farmers to facilitate soy cultivation in Poland and to make it an attractive option. Other countries with a continental climate have already scored successes in this area. Agrifirm also wants to explore opportunities for soy cultivation in the Netherlands.
8
Agrifirm
Wheat: food, feed, fuel? Györ
Böcs Kaba
Budapest Danube
1
Hungary
Locally grown wheat is an
important raw material for animal feeds in Hungary.
However, due to the country’s
favourable climate, Hungarian wheat is of high quality and is therefore an excellent source
of raw materials for foodstuffs such as bread and pasta.
Because of the rising demand for wheat for human consumption, Agrifirm’s Hungarian subsidiary Kabai Táp is actively searching
for alternative raw materials for animal feeds. Reuse of co-products from the food industry
Co-products that are not suitable for human consumption are released during the production of all foodstuffs ranging from bread, margarine, beer, sugar and chips
Amsterdam
to, for example, orange juice. In addition, producers are faced with a large number
of residual batches. All these products, provided they are mixed to create an optimal
Rhine
composition, are extremely well suited as raw material for animal feeds.
Meuse
2 Agrifirm is actively working on the reuse of co-products in animal feeds, so that these products do not end up as waste. We are conducting extensive research
related to this and are continuously expanding activities in this area in Europe.
For example, the subsidiary Profarm specialises in processing bread, confectionery, cookies and chips into high-quality raw materials for animal feed. The company
looks after the entire recycling process from collection and logistics to processing and quality assurance support for animal feed customers, as well as suppliers.
The Netherlands
Dutch wheat is less suited for human consumption.
On the other hand, much
Dutch wheat is used for the
production of bioethanol. As a
consequence the availability of wheat as a source for animal
feed is declining here as well.
2
Agrifirm = Sustainable production The second link in Agrifirm’s sustainability policy
comprises our own business activities: ranging from the processing of raw materials up to and including the delivery of our products to the customer. As an organisation, we have maximum control over this
link. Determining factors in creating a sustainable production process include energy consumption, transport and logistics. These are directly related to the availability of finite raw materials and the emission of greenhouse gases.
Sustainable production
5% of the energy used by Agrifirm in 2010 originated from renewable sources, such as solar panels or
wind turbines. Voeders Van den Berghe (Belgium) set the right
example: in 2010, this subsidiary purchased 100% green gas as well as power.
Use of renewable energy by operating companies
Covenant
In 2008, the Dutch agricultural sector and the government signed the ‘Schone en Zuinige Agrosectoren’ (Clean and Efficient Agricultural Sectors) covenant. The covenant contains agreements governing clean energy and reductions in the
emission of greenhouse gases. The animal feed sector has set a target calling for a
30% reduction in the emission of greenhouse gases by 2020 in comparison to 2005. In addition, the sector is planning to reduce energy consumption by 2% annually. Agrifirm is of course subscribing to these objectives in the Netherlands.
1
Voeders Van den Berghe (Belgium) 100%
2
Strahmann and Kofu (Germany) 30%
3
Cehave Pasze (Poland) 10%
4
Vitamex 11%
5
Bongard 30%
One of the next steps designed to
provide even greater insight into our energy consumption is to determine energy consumption per tonne of end-product produced.
Energy Consumption
Sustainable energy and reducing energy consumption is a high priority within the
entire Agrifirm Group - in the Netherlands as well as internationally. Voeders Van den Berghe in Belgium is setting the right example: in 2010, this subsidiary purchased
100% green gas as well as electricity. Furthermore, the company invested in a new compressor and a new steam boiler that together produce energy savings
amounting to 13% annually. An energy scan furthermore indicated that further energy savings can primarily be achieved through product innovations and organisational adjustments. Tank Storage
Agrifirm Feed in Veghel last year built a new, very well insulated tank storage facility
for feed oils. This new tank storage facility does not require any additional energy for
the purpose of keeping oils liquid. The residual heat from the compressors is used for this purpose. In addition, the installation of new machines for mixing liquids with feeds has also reduced energy consumption.
AgriFirm
11
“By supplying customers by boat rather than by truck, we are significantly reducing the number of kilometres of transport annually. In addition, there are time savings, because the administrative processing is much faster.� Janneke van Dijk (Head Internal Sales Department Pre-Mervo)
12
Agrifirm
Agrifirm 2010 Energy Consumption
Gas: 12.75 million m3, electricity: 152 million kWh, oil: 600,000 litres, coal:
13,000 tonnes. The total electricity consumption is partially based on estimates. Energy Index
The energy scan conducted for Voeders Van den Berghe in Belgium has yielded
insights into how we are going to monitor Agrifirm’s energy performance by site, starting in 2011. We are developing a uniform indexing system for energy
consumption and CO2 emissions that we can use to measure and compare the
performance of the various production sites in this area. We are collaborating with the sector associations Nevedi and NL Agency for our Dutch sites for this purpose.
Transport and Logistics
Transport and Logistics are responsible for a significant portion of the total energy consumption and the total CO2 emissions. It is important to reduce the number of required kilometres and to organise our transport in the
Green roof for CCL Nutricontrol
most efficient and energy efficient way possible. Various initiatives have
The subsidiary CCL Nutricontrol in
Some examples:
2010 designed to better insulate
been started up in this area within the Agrifirm Group.
Transport BV, a subsidiary of Agrifirm Feed in the Netherlands, each year replaces a number of trucks with energy-efficient versions. At the end
of 2010, 28 of the 95 truck engines met the Euro 5 standard, the strictest European guideline governing the emission of hazardous substances. In addition, trucks are driven in two shifts, thus reducing the number
of trucks required. The number of ‘empty’ kilometres driven is limited through smarter scheduling and collaboration with Voeders Van den Berghe (Belgium).
Bongardt, Profarm and Bonda, trading companies dealing in dry and wet co-products throughout Europe, jointly opened new branches in 2010 in
Berlin (Germany) and Ancenis (France). Because these locations are close to customers and suppliers, the number of transport kilometres driven is significantly reduced.
Veghel installed a green roof in
the laboratory. The roof is covered with a layer of sedum plants. A green roof blocks heat in
summer and cold in winter. This
reduces the energy consumed for cooling and heating the building. Furthermore, the green layer
protects the roof covering so that it deteriorates less quickly. And
of course a green roof gives the
building a beautiful appearance, although the plants at CCL
Nutricontrol still need to grow for a while.
Abemec, a dealer in tractors, multi-purpose machines and agricultural
implements, each year trains about 200 drivers in the use of these vehicles and self-propelled machines. Part of this training addresses how to reduce fuel consumption through ‘efficient driving’.
In 2010, Pre-Mervo, a producer of mixed animal feeds containing vitamins and minerals, in cooperation with Agrifirm started to supply major
clients - compound feed factories - by boat instead of truck. The supply
of raw materials was already being effected by boat. Pursuant to a permit amendment, it has also been possible to make shipments by boat from Utrecht harbour since the end of 2009. The new supply method works extremely well for customers purchasing large quantities and who are
located along the water themselves. Each week two ships each loaded
with 500 tonnes MervoBest depart from Utrecht to supply customers.
This is equivalent to approximately 30 one-way truck trips of 100 km each. CCL, Agrifirm’s analytical expertise centre, designs the routes for delivering
analysis samples as efficiently as possible. In addition, the company tries to tailor to the logistics networks of (large) customers, colleague laboratories and couriers where possible. This limits the number of kilometres driven. Agrifirm Winkel BV, the organisation operating the Boerenbond and
Welkoop shops, has made arrangements with the franchiser to deliver supplies as condensed and concentrated as possible. This significantly reduces the number of transport trips.
1
Vegetation layer
2
Substrate layer
3
Filter layer
4
Drainage layer
5
Protective layer
6
Roof covering
3
Agrifirm = Efficient food and feed Due to the projected growth of the world population to 9 billion people and changing consumption patterns,
food production must double by 2050 in comparison to 2010. The efficient use of finite raw materials is one of
the keys in achieving this goal, as well as limiting the food production’s ecological footprint: the total quantity of
productive soil and water surface areas required. ‘Efficient food and feed’ constitutes the core of Agrifirm’s business
strategy. We have a great deal of knowledge and expertise to help ensure that plants and animals perform optimally.
Efficient food and feed
Feedmiles and land use
Agrifirm tracks the origin of the raw materials used in its livestock feeds.
This information is used each year to calculate the quantity of agricultural land required for the cultivation of crops and how many transport kilometres are required for the
supply of raw materials. To gain
insight into the efficiency of the
entire chain, Agrifirm calculates how
much agricultural land and transport
is required in total for the production of 1 kilogramme of milk, pig meat,
poultry meat or eggs. The quantity of agricultural land (land use) is
expressed in square metres; the
transport distance (feedmiles) in km. Additional information about the
calculation of land use and feedmiles is available at www.agrifirm.com.
5 4 3 2
Eggs 4.4 m2/kg
Poultry meat* 4.0 m2/kg
Pig meat* 4.0 m2/kg
Milk 0.99 m2/kg
1
Yield
‘Efficient food and feed’ is also the leading theme of our innovation strategy.
All of our products and services are focused on efficiently cultivating and feeding our customers’ crops and animals. A key aim in this regard is to achieve optimal returns for our members and customers and a good return for the enterprise.
Agrifirm translates ‘efficient food and feed’ in the arable and horticulture sectors
into minimising the use of fertilisers and pesticides, and optimising yield per hectare. The focus in the livestock sector is on further increasing the production of meat,
7,407 km
6,347 km
4,147 km
2,174 km
milk and eggs per kilogramme of feed and on sound animal health. Precision Agriculture
GPS, ICT and smart sensors make it possible to accurately give crops per square
metre the nutrients and treatment they require. This enables plants to produce optimally and at the same time this sharply reduces the spillage of nutrients, pesticides or direct spray irrigation.
* live weight AgriFirm
15
Yara N-sensor
Precision agriculture is a key area of attention for Agrifirm Plant. For example, we provide our customers with advice concerning the use of the Yara N-sensor in applying fertilisers. This sensor, on the basis of the quantity of reflected light,
“The N-sensor yields significant savings because the dosing process is highly focused. This does not only save costs, it is also better for the environment.” Harold Zondag,
Arable Farmer (Biddinghuizen)
calculates the optimal quantity of nitrogen required for every area on the field, so that dosing can continuously be adjusted. Variable fertilisation results in better
yields and reduces the emission of greenhouse gases. Arable farmer Harold Zondag
from Biddinghuizen is testing the Yara N-sensor. He has been working with Agrifirm since 2008 on optimising variable fertilisation and haulm destruction, particularly for potatoes. Zondag considers the N-sensor a true godsend. “The installation of
the hardware and software takes some effort, but once complete, the sensor barely requires any work, while it yields significant savings because the dosing process is
highly focused. This does not only save costs, it is also better for the environment.” Efficient feed concepts
Agrifirm Feed continuously works on developing new animal feed concepts with the objective of improving animal performance and health. Core feed concept for broilers
The core feed concept for broilers was introduced to the market in 2010. The chicks are fed a special concentrated feed that is mixed with whole wheat grains. The benefit of this concept is that poultry farmers can purchase this wheat from
nearby arable farmers. This prevents unnecessary processing and transport and thus yields energy savings. The development of this feed concept furthermore led to a sharp improvement in the growth of and feed conversion by chicks
administered this feed. The animals grow more efficiently and require less feed to reach the desired weight.
16
Agrifirm
Air Line [2.0] 60%
phosphate
30%
nitrogen
10-20%
emission of greenhouse gases
In 2008 we introduced the Air Line [2.0] meat pig feed to the
marketplace. This innovation in the meat pig feeds market reduces
phosphates in manure by 60% and nitrogen by 30%, and at the same
time produces increased growth and lower feed conversion. Experience in actual practice demonstrates that it is possible to reduce the emission of greenhouse gases by 10 to 12% with Less antibiotics in animal feeds
It is Agrifirm’s goal to halt the production of medicated feed in 2011, feed that
contains antibiotics. This is laid down in the agreements concluded in the livestock
feed sector by the Nevedi sector organisation. Medicated feeds are used to treat pigs and poultry in groups against disease. By halting the production of such feeds it is
expected that the use of antibiotics in the livestock sector will be limited. In addition, Agrifirm has made arrangements with ZLTO, Topigs and Vion to train its own
Air Line [2.0]. As such the product
has a positive environmental impact on the entire pig chain. Air Line [2.0] has proven itself in actual practice
over the past two years. Sales figures have risen sharply.
Reducing the phosphate surplus
consultants so that they can advise livestock farmers on completely eliminating the
To tackle the phosphate surplus in the
of antibiotics aside from its administration through feeds as well. Major steps have
agreed that improved pig feeds must
use of antibiotics in the livestock sector, in other words eliminating the application since been taken in reducing the use of medicated feeds. Agrifirm has already reduced the use of antibiotics in animal feeds by 54% since 2007. Indexed use of antibiotics in pig feeds*
2007 2008
2009 2010
100% 85% 67% 46%
* Information provided by the former Cehave Landbouwbelang
Organic fertilisers
Agrifirm Plant is investigating the possibility of using liquid and stackable organic
fertilisers for arable farming crops. This enables us to optimally use local minerals, close the cycle and limit the use of fertilisers. Agrifirm each year trades approximately 450,000 tonnes of organic fertilisers.
Netherlands, LTO and Nevedi have
contribute to reducing the phosphate in pig manure in the Netherlands by 10
million kg. The Air Line [2.0] sales figures
can be used to calculate the reduction in
the quantity of phosphate in pig manure
in comparison to the use of conventional pig feeds.
2008: 30,788 kg reduction in phosphates (0.31 % of the phosphate surplus in the pig feed track)
2009: 145,528 kg reduction in
phosphates (1.46 % of the phosphate surplus in the pig feed track)
2010: 247,680 kg reduction in
phosphates (2.48 % of the phosphate surplus in the pig feed track)
4
Agrifirm = Contributing to a sustainable consumer supply The demand and opportunities for new market concepts for foodstuffs are continuously increasing. Health and
sustainability play a key role in this respect. This provides consumers with greater choice while the sustainability of food chains increases. For example, Dutch residents are increasingly buying organic products. In the first three quarters of 2010, supermarkets in fact sold 20
percent more organic products that they did in 2009 (Source: Dutch Food Retail Association (CBL)).
Contributing to a sustainable consumer supply
70%
of the organic cereals is destined for the consumer market.
30%
Ample Choice
Agrifirm supplies products and services to livestock farmers, arable farmers and gardeners. We do not produce for the consumer market. Agrifirm does however
consider it important that our customers can provide consumers with a wide range
of choice of products that are consistent with current trends. We adjust our product
70%
range accordingly. For example, we supply feeds that make it possible for cows to
produce milk that contains higher levels of unsaturated fats. In addition, we have a
wide range of organic feeds, fertilisers, sowing seeds and sowing grains, specifically
Organic Cereals
for organic farmers. We also provide them with advice on organic animal husbandry. The sale of organic feeds has grown from 10,000 tonnes in 2008 to 20,000 tonnes in 2009 and 30,000 tonnes in 2010.
AH ‘puur&eerlijk’ free-range chicken meat
Agrifirm plays a key role in the
Agrifirm Feed Nederland produces the animal feed for the free-range chickens sold
cereals. Approximately 80 to
AH own brand represents products that are produced with special care for humans,
Dutch market for organic
85% of the organically cultivated baking wheat, oats, rye, barley, spelt and poppy seed is traded via Agrifirm’s grain pool. We operate as an intermediary
between growers and sellers,
and offer our suppliers various
by Albert Heijn supermarkets under the ‘puur&eerlijk’ (pure&honest) label. This
animals, nature or the environment. Agrifirm is the supplier of chick feed to poultry farmers who supply AH with free-range chicken meat throughout the entire
Northern Netherlands. In addition, we provide them with advice concerning the
layout of their stalls on the basis of the European guidelines for free-range meat.
The meat carries a single Better Living Quality Mark star issued by the Dutch Society for the Protection of Animals.
options in terms of storage,
Shop formulas for country living
Currently, 70% of the organic
shops. Our intent is to help customers better experience country life through these
processing and marketing. cereals is destined for the
consumer market. The other
30% is processed into livestock
feeds and is ultimately available to the consumer in the form of organic eggs, milk or meat.
Agrifirm Winkel B.V. is the organisation operating our Boerenbond and Welkoop
shops. Boerenbond/Welkoop wants to be the brand name for garden and animal
products and services in the Netherlands. A successful brand to which customers
feel connected. This success is evident from the fact that we opened two new shops in 2010 in Dronten and Werkendam. Three branches were furthermore moved this
year. The necessary energy-saving measures were of course implemented as part of the renovation and new construction of these new shops.
AgriFirm
19
5
Agrifirm = Investing in employees Agrifirm’s employees make the difference. This is why we invest in our employees. We not only translate this into
excellent primary and secondary conditions of employment, but also into sound education and training opportunities. Indeed, in an organisation for which knowledge and
innovation are key determining factors, the development of employees takes on key importance. This is why, for
example, we implement Performance Management as a performance remuneration system for the purpose of
helping our employees grow and realise their ambitions.
Investing in employees
2010
Investing in training and education (J per FTE)
Amsterdam
Rhine Meuse
1
THE NETHERLANDS Feed Nederland F 601 Bonda F 252 Plant F 638 Exlan F 2,183 Oldambt F 520 Pre-Mervo F 627 CCL F 750 Abemec F 272 Winkel BV F 232
Investing in employees
Brussels Meuse
2
Investing in people starts with the new generation. Agrifirm consciously elects to offer young, well-trained people opportunities to apply their knowledge in actual
BELGIUM
Voeders Van den Berghe F 1,070 Vitamex F 615
practice. We offer work placement and final study positions to students in all business units of our organisation. After all, cooperation with (agricultural) educational
institutions is of key importance to the future of our sector. We very much want to
retain expert, motivated colleagues within the organisation. This is why one of our Berlin
objectives is to encourage the promotion of our own talented staff members to
(international) management positions. This way we represent a link to the success of our people.
Danube
3
GERMANY
Kofu and Strahmann F 90 Bongardt F 0
Cehave Landbouwbelang - Agrifirm merger
The merger of Cehave and Agrifirm effective 1 June 2010, was a drastic intervention that affected all of the company’s business units. Naturally the merger also implied
considerable change for our employees. Generally for the better: the new organisation offers new opportunities for development. However, unfortunately we have also had
Warsaw Wista
4
in respect of this negative side of the merger through means of a solid social plan
based on the ‘transferring from work to work’ principle. Supernumerary employees are actively counselled by a professional placement agency, often resulting in new
POLAND
Cehave Pasze F 305
work within or outside the enterprise.
During the preparation and the first phase of the merger our staff carried out a
Budapest Danube
5
to part from colleagues due to the merger. We want to be scrupulous and committed
tremendous amount of work for the purpose of ensuring that the new organisation
would be off to a good start. A Merger Event was organised on 13 November 2010 to
thank everyone for their efforts. Over 2,500 Dutch Agrifirm staff members and their HUNGARY
Kabai Táp F 107
partners came together in Nijkerk to meet their new colleagues and to raise a toast to
the new organisation. The event had an international character, showing everyone the countries in which Agrifirm operates. From a German ‘Bierstube’ to a fortune teller
from the Balkans: everything had been thought of to make it an enjoyable occasion.
AgriFirm
21
Education and Training
Investing in employees means investing in good education and training. Indeed,
this is the key to innovation and to having motivated, competent employees. We are encouraging our people in various ways to (continue to) develop themselves. Some examples:
Employees who are missing certain diplomas, but who do have the prerequisite
work experience, have the option of completing a programme designed to obtain
Well-educated, skilled employees are a prerequisite to our ability to provide our customers with the quality, knowledge and service they expect from us. Now and in the future.
an experience certificate. The certificate documents the competencies they have so that they can demonstrate this if necessary.
Our employees in Hungary have the opportunity of taking free English lessons. Basic knowledge of the English language focused on their profession improves
performance and furthermore enhances their opportunities within our company. A group of higher educated ‘young employees’ under the age of 35 meets several
times each year to exchange knowledge and experience. These young employees held two conferences about finance and change management in 2010. In
addition to work-related matters, there is of course also room for social activities. Employee Participation
Almost every Agrifirm subsidiary has its own Works Council that represents its
employees. The Central Works Council in turn consists of a representative from every Works Council in the Netherlands. In addition, the first European Works Council (EWC) meeting was held. The EWC, via international representatives
22
Agrifirm
2010
Number of accidents involving absence from work Amsterdam
Rhine Meuse
1
THE NETHERLANDS
Feed Nederland: 11 (838 FTEs) Bonda: 0 (88 FTEs) Plant: 2 (359 FTEs) Exlan: 0 (16 FTEs) Oldambt: 0 (28 FTEs) Pre-Mervo: 0 (67 FTEs) CCL: 0 (76 FTEs) Abemec: 1 (175 FTEs) Winkel BV: 0 (380 FTEs) Brussels Meuse
2 from each European country, ensures there is involvement and employee
BELGIUM
Voeders Van den Berghe: 1 (41 FTEs) Vitamex: 3 (510 FTEs)
participation in certain subject areas that affect multiple countries.
Berlin
Events
Agrifirm considers it important that employees enjoy working with us.
On the shop floor, as well as from a social perspective. Various activities
were organised in 2010 to promote a good atmosphere and mutual contacts. Our subsidiary in Hungary organised the annual sports day. Because the
Danube
3
distance between locations is too great for everyone to come together, employees engaged in sportive competitions in Kaba as well as Györ.
GERMANY
Kofu and Strahmann: 1 (84 FTEs) Bongardt: 0 (14 FTEs)
Warsaw
Cehave Pasze in Poland each year organises the traditional family day.
This day is organised at a different branch each year so that everyone has an opportunity to familiarise themselves with all of the Polish factories.
In 2010 this day was organised in the village of Sypniewo. The day included
Wista
4
all kinds of activities for young and old, and of course was not lacking for
POLAND
Cehave Pasze: 5 (132 FTEs)
food, beverages and music.
Budapest
Agrifirm on 3 and 4 July 2010 held an open day at its production site in
Danube
Veghel. Over 7,000 visitors came to see the two factories which in total
produce 650,000 tonnes of pig feed each year. Employees acted as tour
guides and explained the innovations and process steps in the factories. A special element was the official opening of the new Profarm factory on the site.
5
HUNGARY
Kabai Táp: 2 (180 FTEs)
Accidents defined as ‘accident involving absence of own employees’.
Organisation Chart
Members
Cooperative Districts
Young People’s Council
Council of Members
Board of the Cooperative
Supervisory Board
Cooperative Executive Board
Company Executive Board
Company
Sector Councils
Agrifirm Group B.V.
Agrifirm Innovation Centre
Staff Services
24
Agrifirm
Compound Feed
Plants
Agrifirm Feed NL
Agrifirm Plant NL
Agrifirm Feed International
Agrifirm Plant International
Co-products
Bonda Bongardt Profarm
Specialities
Services
Pre-Mervo Vitamex
Abemec Exlan CCL Nutricontrol Oldambt Winkel BV
Participating Interests
Colophon Editors
CSR Department, Agrifirm Innovation Centre Agrifirm Group Communications Department
Concept and realisation Schuttelaar & Partners
Photography
Albert Brunsting, Marcel Bekken, Agrifirm Group
Printing
Ten Brink, Meppel Circulation: 400 April 2011
Address
Agrifirm Group Boogschutterstraat 1a 7324 AE Apeldoorn, The Netherlands PO Box 20004 7302 HA Apeldoorn, The Netherlands T +31 (0)88 488 10 00 F +31 (0)88 488 18 00 info@agrifirm.com
GRI
This is the first corporate sustainability report for Agrifirm, the corporation created in 2010 through the merger of Cehave Landbouwbelang in Veghel and Agrifirm in Meppel. The report renders account about our sustainability policy. The report pertains to 2010 and concerns all companies within the Agrifirm Group. The guideline used in preparing the report is the Global Reporting Initiative (GRI), the international guideline for sustainability reporting. We are reporting at the C Level this year (self declared). From now on the corporate sustainability report will be published every year, and our goal is to publish a report at the B Level next year. The GRI Table with references to all reported information is available on our website www.agrifirm.com under the header ‘Corporate Social Responsibility’. For additional information about Agrifirm’s sustainability policy, please contact Ruud Tijssens, Director CSR, r.tijssens@agrifirm.com, tel. +31 (0)88 488 29 00.
26
Agrifirm