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 involved in the Sustainable Agriculture Initiative Platform (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 2019|20 financial year, 16.7% (prior year: 17%) of the raw materials (fruits and other ingredients) procured by the purchasing organisation, AGRANA Fruit Services GmbH, for the fruit preparations segment had a sustainability certification. Of the fruits processed worldwide, 5.6% had a sustainability certification (prior year based on new definition: 4.3%); these were largely organic certifications. The target under the strategy of the fruit preparations business for the period to 2025 is to increase the proportion of processed fruit with a sustainability certification to 20%. To evaluate our suppliers for their adherence to social criteria, AFS invites new suppliers to participate in the Supplier Ethical Data Exchange, or SEDEX. In 2019|20, 94 % of suppliers accepted the invitation and shared their self-assessment and (if any) audit documents with AFS.

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 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:

  • Energy mixIn the 2019|20 financial year, we met approximately 59 % of our total global energy needs with natural gas, 25 % with electricity and 12 % with renewable energy sources.

  • Renewable energy sources In 2019|20, we met about 6 % of our total global energy needs with biomass and biogas produced on site and 6 % with electricity from renewable sources.

  • Continuously improving our specific energy consumptionBy 2025|26, the fruit preparation plants (exlcuding primary processing facilities) want to reduced their total energy consumption by 5 % to 1.95 GJ/ tonne of product output.

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 (excluding primary processing facilities), we want to reduce the amount of water withdrawn by 5 % to 4.24 m³/t of product output.

Fruit division 2019 | 20
Water withdrawal in m3 per tonne of core and by-products 4.81
Water discharges in m3 per tonne of core and by-products 4.15
Water consumption in m3 per tonne of core and by-products 0.66

Fruit segment 2019 | 20 in tonnes
Waste disposed 24,104
of which hazardous waste 237
Kilogrammes waste per tonne of product 39.6 kg
Grammes hazardous waste per tonne of product 390 g
Non-hazardous waste disposed by disposal method
Composting 3,345
Energy recovery 1,300
Reuse 2,064
Recycling 9,330
Landfill 7,297
Other 531

At the balance sheet date of 29 February 2020 5,515 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 29 February 2020)

Non-permanent staff

2,097

72.0 %

Permanent staff

3,448

33.9 %

Blue-collar2,158

25.4 %

White collar1,290

48.1 %

Managers

228

30.7 %

Of which Executive Leadership

7

14.3 %

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 19 | 20(number of accidents/ 100 employees p.a.)

0.9

0.5

1.3

Rate of high-consequence injuries 19 | 20(high-consequence injuries / 100 employees p.a.)

0.0

0.0

0.0

Rate of fatalities 19 | 20(fatalities / 100 employees p.a.)

0.0

0.0

0.0

Total

Female

Male

Working conditions and their verification

In the 2018|19 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 22.2 % 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 32.9 training hours in the 2019|20 financial year. In total, 88.1 % of employees completed a training course. Training and development costs amounted to 0.8 % 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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