Value Chain

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From raw material to product:
The AGRANA value chain in the
Fruit Preparationsdivision

Procurement of raw materials
in the Fruit Preparations division

Sustainability is an integral element of AGRANA’s corporate philosophy. For us, this commitment begins long before the industrial processing of agricultural raw materials, namely during their procurement. In our Fruit division, we produce custom fruit solutions for the dairy, ice-cream and baking industries around the world. Our Fruit division is also involved in the Sustainable Agriculture Initiative ( SAI ).

Membership:

The fruit used in our fruit preparations is sourced largely from primary processors or traders in the form of intermediate products (i.e. fruit in a frozen or aseptic form, purees). As part of our principles for procuring agricultural raw materials, we have defined international standards that, if complied with, we accept as proof of sustainability. In the 2017|18 financial year, 13.7 % of the raw materials procured by AGRANA Fruit Services (AFS) had a sustainability certification; most of these were certified organic, and the remainder were certified under another customer standard of industry-wide relevance or under the Rainforest Alliance (RA) standard. The RA standard and the customer-specific standard are accorded silver status in the benchmarking to the requirements of the Farm Sustainability Assessment (FSA) of the Sustainable Agriculture Initiative ( SAI ). To also evaluate its suppliers for their adherence to social aspects, AFS invites new suppliers to participate in the Supplier Ethical Exchange Database, or SEDEX . In the 2017|18 financial year, suppliers representing 81.7% of the procurement volume of AFS were already SEDEX members. As all procurement in the fruit preparations division is done to customer specifications, the future trend in the amount of certified raw material volumes will depend on these customer requirements.

We acquire around 22% of fruit used in the preparations in the form of fresh fruit from contract growers. These are then washed, cleaned, chopped and frozen at our own primary processing plants in Argentina, Fiji, Mexico, Morocco, Poland, Serbia and Ukraine for them then to be processed into fruit preparations.

In the course of sourcing from contract growers, we work closely together with our fruit suppliers, for example in Mexico and Fiji, in qualification and certification projects.

Transportation
in the Fruit division

Even though the transportation of raw materials and products has a comparatively low impact on the carbon footprint depending on the calculation method and country, we still try to keep transportation as sustainable as possible both in terms of the infrastructure and commercial viability.

Production in AGRANA
fruit preparations plants

As a result of our close dependence on agricultural crops, we feel a particular obligation to protect all natural resources. We have taken this self-imposed obligation and created the AGRANA environmental policy, which covers major aspects such as energy use and emissions, water and waste management.

As a processor of agricultural raw materials, we strive to optimise our energy consumption and our energy efficiency on an ongoing basis.

ISO 50001 certified:

In our energy policy, we place particular emphasis on:

  • Natural gasIn the 2017|18 financial year, we met approximately 81 % of our direct energy needs around the world with this low-emission fuel.

  • Renewable energy sources In 2017|18, we met about 8 % of our direct energy needs with biomass and biogas produced on site.

  • Continuously improving our specific energy consumptionIn the area of fruit preparations and primary processing, we aim to reduce direct and indirect energy use (scope 1+2) per tonne of products by 6.8% compared to 2013|14 levels (1.85 GJ per tonne) by 2020|21.

Water, perhaps the most important resource globally speaking, is used and drained in a sustainable manner at all our sites. Water is cleaned and reused time and again. On-site or communal waste water treatment plants ensure that the waste water produced is treated in an environmentally sensitive way in accordance with local regulatory thresholds.

. In the area of fruit preparations, we intend to implement established best practices for using water in the course of trainings to raise awareness at all production sites.

Fruit division2017 | 18
Water use in m3 per tonne of core and by-products4.38
Waste water in m3 per tonne of core and by-products3.57

Fruit segment2017 | 18 in tonnes
Waste disposed28,499
of which hazardous waste225
Waste per tonne of product4.9 %
Hazardous waste per tonne of product0.04 %
Non-hazardous waste disposed by disposal method
Composting2,730
Energy recovery551
Reuse1,913
Recycling9,274
Landfill13,386
Other421

At the balance sheet date of 28 February 2018 4,924 employees worked in our Fruit segment. They are a key factor for success due to their commitment, range of skills, experience and views.

AGRANA endeavours to offer interesting work, opportunities for professional and personal development and training, and a workplace environment in which employees feel integrated, respected and connected.

Employees in the Fruit segment (as of 28 February 2018)

Non-permanent staff

1,640

72.8 %

Permanent staff

3,284

33.3 %

Blue-collar2,116

25.1 %

White collar1,168

48.1 %

Managers

238

30.7 %

Of which Executive Leadership

9

11.1 %

Total

Female



Workplace safety in the Fruit segment

At the end of the day, it is important that all of our employees return home safely. We strive to achieve this objective by means of regular trainings on safe working processes, implementing best practice cases and providing workplace safety materials as part of our zero-accident policy.

In the 2013|14 financial year, we have started to collect workplace safety data across all business segments by means of uniform worldwide criteria.

Injury rate 17 | 18(number of accidents/ 100 employees p.a.)

1.6

1.5

1.6

Lost day rate 17 | 18(number of lost days/ 100 employees p.a.)

23.7

25.8

22.3

Absentee rate 17 | 18(hours missed due to accident and sickness/ 100 employees p.a.)

3,728.1

4,144.3

3,469.9

Total

Female

Male

Working conditions and their verification

In the 2014|15 financial year, we revised the AGRANA Code of Conduct, which establishes minimum (social) standards and rules of conduct for all employees around the world.

SEDEX :

As part of our membership of SEDEX , which we have had since 2009, our production sites perform a SEDEX self-assessment every year. In order to underpin our commitment, 4-pillar SMETA audits or comparable social audits took place at about 50% of our preparation or primary processing sites.

Employee training hours

The education and training, as well as the personal development, of our employees is important to us. Employees in the Fruit division completed an average of 25.3 training hours in the 2017|18 financial year. In total, 90.3 % of employees completed a training course. Training and development costs amounted to 1.2% of total wages and salaries.

Products

AGRANA is the world's leading manufacturer of custom fruit solutions for the dairy, bakery and ice-cream industries. Our fruit preparations can be found in one out of every three fruit yoghurts.

Some of our certifications:

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