development of agricultural innovation change

Frank van Ooijen Corporate Director Sustainability PPP’s and its relevance for rural development and farmers support What’s it all • about? The focus of this meeting is PPPs for agricultural innovation • Drawing on the OECD’s general definition (OECD, they can be defined as a formal relationship or arrangement between public and private actors, where both sides interact in the decision-making process, and co-invest scarce resources such as money, personnel, facility, and information in order to achieve specific objectives in the area of science, technology, and innovation in the food and agricultural system • These collaborative research or innovation efforts are carried out jointly and co-financed by public and private partners 2005), Lessons learned from successful PPPs: • Define and clarify the joint objectives • Truly invest in understanding your partner’s starting ambitions, values and goals!!! • Define joint success • Do not get frustrated along the way: put energy in finding solutions, not in complaining • Believe in the concept of Creating Shared Value (Michael Porter) • Experience the power of diversity and a multidisciplinary approach • Team up with “social purpose-driven” companies point, Who -In top 40 of FMCG global giants -2nd dairy cooperative in the world -5th processor of milk -Annual sales between DSM en Heinz (EUR 11.4 bn) -Factories in 30 countries, sales in 100 countries are we? A dairy cooperative designed to last: history is approx 150 Founding of CCF in Leeuwarden 1913 2008 years Growth in global dairy demand 2014–2024 78 11 10 Rest of Europe Russia & GOS- countries 15 EU Canada, USA & Mexico Middle Central-America & Asia East Cariben 17 10 South America Africa Australia and New Zealand “Until 2024 global dairy demand will be between 2.6% to 2.9% per annum Growth will be driven mainly by L America, Africa, India Source: Rabobank and Oceania The EU – behind India – will be one of the key production regions in milk volume.” (Financieele Dagblad: July 2014) in billion kg milk BUT… Growth perspectves are hampered by serious global challenges 850 mln people undernourished, 1.5 bn obese Growing scarcity in natural resources By 2030 the world needs 50% more foods (FAO) Food waste in supply chains is about 30% - 150 mln households depend on dairy farming - Farmers are aging (57 years on average) That’s why UN Foods & Agricultural Organisation (FAO) advises to opt for ‘sustainable • Meaning those diets with low environmental impacts, which contribute to food & nutrition security • and to healthy life for present and future generations • • Sustainable diets are protective and respectful of biodiversity and ecosystems, • culturally acceptable, accessible, economically fair and affordable, nutritionally adequate, safe and healthy; • while optimizing natural and human resources… • diets’: How we bring responsible entrepreneurship and sustainability into practice on the basis of a vision on society? Helping to solve three global challenges Food and nutrient security for a fast growing world population Helping small farmers in dairy worldwide (aging farmers is a major issue) Building more efficient & sustainable food supply chains Our navigation tool to build a more sustainable business “grass to glass” The CSR Strategy House CSR Mission and Vision FrieslandCampina CSR Business Case CSR Strategy, priorities, KPIs Health & Sustainable Dairy Responsible Nutrition Value Chains Developm Dairy Farming Improving resource Helping farmers ent Combating obesity & nutrient deficiency company utilisation company CSR Governance Board – implementation teams CSR Performance Measurement – Annual Reporting – Stakeholder dialogue - Partnerships Employee & Dairy Farmer Engagement – CSR Training programs – Annual CSR Team Award Business Practices for Suppliers – Code of Conduct – Foqus – Policies & Position Papers Setting the standard Africa, Asia company cooperative We are partnering with the Red Cross and offer our know-how, people and means FrieslandCampina and the Netherlands Red Cross announced on March 2012 their year partnership to: • combat hunger and nutrient deficiency for those in need • contribute to resolve food insecurity • strengthen the resilience of vulnerable communities Helping the victims of the in super typhoon the Philippines 14 November 2013 EUR 600,000 raised by global staff in 24 months Employees of FrieslandCampina worldwide have already donated - in one day more than € 5.000 to the Red Cross to help the victims of the typhoon in the Philippines Wilfred Steven Uytengsu, President & CEO of Alaska Milk Corporation, says: ‘We are relieved that all our employees are accounted for AMC has provided support to the victims in the form of milk and potable water to the tune of US$ 1M working through the Red Cross and another local disaster relief organization Super typhoon Haiyan completely devastated parts of eastern Visayas in the Philippines on Friday November 10,000 people are feared to have been killed and more than 600,000 people are displaced FrieslandCampina staff can help the Red Cross A great many people have been missed and drinking water and electricity are cut off FrieslandCampina and the Red Cross work together in a partnership We ask all FrieslandCampina staff to help the Red Cross and the victims in the Philippines 'We work closely with the Red Cross 21 Nutrition study reveals hidden hunger amongst kids in SE Asia November 7, 2012 New study reveals ‘hidden hunger’ among Malaysian children Professor Poh Bee Koon:“While overweight and obesity are easily observable among local children, results from SEANUTS highlight something deeper.” Results from the largest and most extensive nutrition and health study ever done in Southeast Asia have revealed critical nutritional deficiencies among children under age 12 across the region The South East Asia Nutrition Survey (SEANUTS) of 16,744 children in four of the largest countries in the region − Malaysia, Thailand, Vietnam and Indonesia − was presented at a regional conference co-hosted by the Nutritional Society of Malaysia (NSM) and Universiti Kebangsaan Malaysia (UKM) in Malaysia The recently concluded study, which started more than two years ago in close cooperation with FrieslandCampina’s R&D organization, spotlights an important nutrition and health issue in Malaysia known as ‘hidden hunger’ Overall, the local children may appear healthy or even overfed However, they still suffer from a significant lack of nutrients such as vitamin D and calcium; essential components for the growth and development of these youngsters Two million milk boxes reaching out to kids in rural Vietnam October 8, 2013 FrieslandCampina Vietnam's healthy journey Vietnam - Started in mid-2013, the journey of “Two million milk boxes” initiated by FrieslandCampina Vietnam has covered a long way, reaching out to millions of mothers and children especially in rural areas The journey is part of FrieslandCampina’s commitments to improving nutrition conditions, health and stature of Vietnamese children According to the Southeast Asia Nutrition Survey 2013 (SEANUTS) that FrieslandCampina has carried out together with local research institutes, over 50% of Vietnamese children have suffered a nutritious imbalance, of which malnutrition among rural kids is much more critical than those in cities Therefore, FrieslandCampina Vietnam launched the two-million-milk-box journey and 90 nutrition festivals to contribute to comprehensive development of Vietnamese children and improve knowledge of nutrition for parents in rural areas As of the end of August, the program had come to over 800 villages and communes while nutrition festivals had been organized, drawing participation of over 130,000 mothers across the country Our navigation tool to build a more sustainable business “grass to glass” The CSR Strategy House CSR Mission and Vision FrieslandCampina CSR Business Case CSR Strategy, priorities, KPIs Health & Sustainable Dairy Responsible Nutrition Value Chains Developm Dairy Farming Improving resource Helping farmers ent Combating obesity & nutrient deficiency company utilisation company CSR Governance Board – implementation teams CSR Performance Measurement – Annual Reporting – Stakeholder dialogue - Partnerships Employee & Dairy Farmer Engagement – CSR Training programs – Annual CSR Team Award Business Practices for Suppliers – Code of Conduct – Foqus – Policies & Position Papers Setting the standard Africa, Asia company cooperative “FrieslandCampina is frontrunning on sustainable soy” (says WWF) RSPO Palm Palm oil • oil and palm oil derivates Policy FrieslandCampina (90,000 tons of PO sourced  All suppliers need to be RSPO member  Segregated RSPO (SG) where possible (in Europe  Mass balance RSPO (MB) if SG is not possible; Book and claim RSPO (B&C) if MB is  not possible • Maximum volumes are claimed in the market • Difficult to increase volumes from MB to SG • WWF palm oil buyers scorecard 2013: FC gets 11 points annually): 100% SG) (max: 12) Livelihood support small farmers September 25, 2013 Impact study: Major soy production increase for smallholders in India The success in the production of responsible soy in India through cooperation between FrieslandCampina and Solidaridad has resulted in 30,000 smallholders increasing the production of soy by 54 percent through good agricultural practices The Solidaridad project in India shows that higher yields can be achieved without harming the environment, to improve the livelihoods of farmers The project was set up together with companies, FrieslandCampina en CONO Kaasmakers An impact study by the independent Indian consultancy MART shows, that three years (2009-2012) of producer support to soy smallholders in the country has been highly effective The project followed production principles of the Round Table of Responsible Soy, RTRS The main results are: -Yield increase of 54 percent -A decrease in the use of chemical fertilizer by 23 percent -Average income increase from 540 to 1,280 euros per year -Reduction of child labor from 53 percent to 17 percent, and -More farmers planting trees; from 33 percent to 81 percent (to tackle deforestation) Our navigation tool to build a more sustainable business “grass to glass” The CSR Strategy House CSR Mission and Vision FrieslandCampina CSR Business Case CSR Strategy, priorities, KPIs Health & Sustainable Dairy Responsible Nutrition Value Chains Developm Dairy Farming Improving resource Helping farmers ent Combating obesity & nutrient deficiency company utilisation company CSR Governance Board – implementation teams CSR Performance Measurement – Annual Reporting – Stakeholder dialogue - Partnerships Employee & Dairy Farmer Engagement – CSR Training programs – Annual CSR Team Award Business Practices for Suppliers – Code of Conduct – Foqus – Policies & Position Papers Setting the standard Africa, Asia company cooperative FrieslandCampina’s Dairy Development Program supports the development Enabling 40,000 dairy farmers to optimize their business to raise income and bring dairy production to a higher volume and quality • Sharing knowledge and experiences with local dairy farmers to further develop dairy farming in Asia and Africa • Creating added value for local dairy farmers, local, central and regional authorities, member dairy farmers and local communities Various forms of cooperation possible of local farmers Bringing our thorough ‘Grass to Glass’ knowledge all over the world through various initiatives Farmer2Farmer program • Annual exchange of 15 member farmers to Training Thailand, Malaysia, Indonesia, Vietnam and Nigeria, a partnership between programs Agriterra and FrieslandCampina Improve the local milk production of local farmers by fellow member • dairy farmers Consultancy pool • Support dairy farmers and cooperatives in Asia and Africa by FrieslandCampina employees with substantial knowledge of milk Expertise production FrieslandCampina experts aims to improve the quality of milk and the programs • yield per cow Sino Dutch Dairy Development Center • Knowledge Partnership with the Chinese Agricultural University and Wageningen University and Research Center partnerships • Sino Dutch Dairy Development center in order to increase the safety and productivity in the Chinese dairy chain 30 FrieslandCampina supports Dairy Village program in Indonesia November 22, 2013 FrieslandCampina Indonesia supports Dairy Village Program Ciracas, Indonesia - Royal FrieslandCampina, together with PT Perkebunan Nusantara VIII and Koperasi Peternak Sapi Bandung Utara (KPSBU) Lembang, today signed a memorandum of understanding to support the Dairy Village Program The program should help the Indonesian government to increase the national fresh milk supply by fifty percent in 2025, thus reaching the country’s goal of self-sufficiency in fresh milk The signing ceremony took place at the FrieslandCampina plant in Ciracas in the presence of Sharon Dijksma, the Dutch Minister of Agriculture, Nature and Food Quality, and her Indonesian colleague Dahlan Iskan, the Indonesian Minister of State- Owned Enterprises Two main issues The Dairy Village Program addresses two main issues: limited access to arable land and limited investment opportunities Limited access to arable land prevents small land holders from expanding their farms and aspiring dairy farmers from setting up farms because, as a result, feed supply is poor and production revenues are low In addition, the small farm size, limited labour and few investment opportunities make it difficult for small land holders to secure loans Livelihood support small farmers August 27, 2012 FrieslandCampina signs cooperation agreement with Agriterra Amersfoort - On Monday 27 August 2012, Agriterra Director Kees Blokland and FrieslandCampina’s Corporate Director Sustainability Affairs Frank van Ooijen signed a cooperation agreement Agriterra and FrieslandCampina have already been working together within the Dairy Development Program for some time now The present agreement formalises their partnership and extends it to Southeast Asia and Nigeria Agriterra works for the benefit of rural development in developing countries It sees the agricultural sector as the engine of the economy and is therefore keen to support enterprising farmers and horticulturalists The aim is to help boost growth and development and hence reduce poverty These goals tie in perfectly with FrieslandCampina’s Dairy Development Program