“Sustainable agriculture” is a competitive and productive type of agriculture striving to include, in addition to food quality and safety standards, a balance between respect for the environment, economic and social repercussions on the local environment, and profitability.
Groupe Danone is one of the first food-manufacturing groups to have committed to sustainable agriculture, an essential requirement for meeting consumer expectations, considered as a complementary approach to organic agriculture. This commitment, however, does not mean that the Group is neglecting organic agriculture, as shown by the purchase of Stonyfield Farm in the United States.
Innovation
Since 2001, studies on the analysis of the environmental impact of yogurt have confirmed that moving towards sustainable agriculture is an important lever in the reduction of negative impacts. In 2002, Groupe Danone established a partnership with Nestlé and Unilever for promoting sustainable agriculture through the “Sustainable Agriculture Initiative” platform (SAI Platform). The partnership is intended to acquire and share knowledge between the companies, use the same definitions of sustainable agriculture, validate and develop sustainable agriculture practice, promote communication among decision makers and consumers, and involve other industries and stakeholders in the food industry sector.
“Rational farming” in France serves as an example of the practical output of the sustainable agriculture model In 2004, Danone formed a group of about ten French milk farmers ready to initiate the Sustainable Agriculture approach. The group was jointly coordinated with the Institute for animal husbandry. Each farm in the group underwent an environmental diagnosis in order to raise the awareness of the environmental impacts of its activity and help identify ideas for possible improvement. A mineral audit testing for nitrogen, phosphorus and potassium helped identify ways to reduce their levels and limit pollution from rain out or volatilization. The two main ideas were to improve distribution of farm effluents throughout the available land, and create fertilizer savings for manure-treated corn and subsequent wheat.
The result of the audit showed that 44% of farms operated with excess levels of Nitrogen - 52 kg per ha (hectare) could be saved in this area; 22% of farms operated with excess levels of Phosphorus (14 kg per ha of possible savings) and 55% of farms operated with excess levels of Potassium (potential savings of 105 kg per ha). The financial results in terms of possible savings on an average farm were quantified.
A general energy audit helped identify the main areas of savings (fertilizers, feedstuff, fuel oil, phytosanitary products and seed). Exchanges between the group’s members helped determine the most interesting perspectives for progress by way of comparison. The evaluation of greenhouse gas (GHG) emissions helped each farmer become familiar with the Global Warming Power (GWP) of his activity. On average, methane contributes to 40% of PRG in this type of farming. The more intensive the milk-producing activity, the higher the percentage. Ways to reduce methanogenesis were researched with success, especially by way of modifying feed intake.
Finally, a phytosanitary audit helped farmers identify the most environmentally hazardous phyto-protection practices (air pollution, ground water table), which in turn made it possible to look for alternative solutions. In addition to these audits, a Rational Farming pre-diagnosis was also carried out (on the basis of the French system of reference), accompanied by a coordination of ensuing action plans intended to obtain proper qualification. The group’s coordination was spaced out over a 12-month period, showing the frequently positive relationship between reducing environmental impacts and improving economic performance. The success of the effort helped convince Danone France to launch 3 new groups in 2005, in three further milk-collection areas of France.
Impact
Danone is committed to sustainable dairy production, and the key to achieving this is improved farming practices—which also enhance efficiency and farmers’ incomes. Above all, sustainable production techniques allow farmers to reduce consumption of fertilizer, water and non-renewable energy. The Groupe also provides financial advice to interested farmers, helping them identify areas where productivity could be increased. None of this would be possible without Danone's close partnership with local farmers. In each country, the milk purchasing division buys milk and organizes milk collection, advising farmers and monitoring production conditions. Every farmer is regularly audited under the Danone Quality, Safety and Environment (DQSE) standard, a continuous improvement program based on analysis of food risks. In 2004, the environmental component of the standard was expanded to include waste management, water and energy consumption, biodiversity, and the use and management of animal waste, fertilizers and pesticides.
Groupe Danone is a founding member of “Sustainable Agriculture Initiative” (SAI) with aims that include assuring the promotion of integrated farming, acquiring and sharing know-how among participating companies, developing good practices for integrated farming, and keeping decision-makers and consumers informed of key developments. The SAI Platform's ultimate goal is the development of sustainable agricutural practices which are harmonized along the food chain. To this end, SAI Platform conducts a number of activities around four main themes: 1) Knowledge building & management; 2) Awareness raising; 3) Stakeholder involvement; and 4) Support to the implementation of SA practices (within the supply chain as well as in compliance with trade policies and regulations).
Building and managing knowledge are the main pillars of SAI Platform work. SAI Platform has developed and is managing a database of programs run worldwide on sustainable agriculture, with a special focus on research programs, case studies, guidelines and standards for sustainable agriculture. The database provides relevant information to all visitors, with specific data restricted to SAI Platform members. In order to support the implementation of sustainable agricultural practices worldwide, SAI Platform is developing a number of activities, including case studies, general as well as crop-specific frames to assess agricultural practices, and guidelines for sustainable agricultural practices. Along these lines, SAI Platform is currently conducting specific work on cereals, coffee, dairy, fruit, palm oil, potatoes & vegetables. SAI Platform has developed several means to communicate information on sustainable agriculture, not only to its members but also to a large audience. These means include, notably: SAI Platform website; SAI Platform quarterly newsletter; and articles published in specific newspapers.
SAI Platform believes that stakeholder involvement does not only add value to its work but also ensure its greater success. Hence, SAI Platform devotes a large share of its time to communicating and exchanging knowledge with the different stakeholders of the food chain.
Inspiration
For Danone, sustainable development is an integral part of its strategy. Sustainability is rooted in the Groupe’s history through its dual commitment to business performance and social progress. Since 2001, the Groupe has launched Danone Way, a distinctive program that enables Groupe business units to define concrete objectives to link business strategy and sustainability more effectively, with the participation of stakeholders in local context. Today the program is extended to 90% of business units.
In 1972, Antoine Riboud, chairman of Boussois-Souchon-Neuvesel the predecessor of Groupe Danone and father of current CEO, Franck Riboud, said: "Corporate responsibility does not end at the factory gate or at office doors. The jobs a business creates are central to the lives of its employees, and the energy and raw materials we consume change the shape of our planet. Public opinion is there to remind us of our responsibility in the industrial world of today". The Danone model relies on a principle: economic performance and attention to people goes hand in hand.
Groupe Danone website, "Our Vision"
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
