Australian Food and Grocery Council COMPLIANCE AND SUSTAINABILITY
Australian Food and Grocery Council COMPLIANCE AND SUSTAINABILITY Presentation to the Produce Marketing Association Tony Mahar April 2010
Australian Food and Grocery Council AGENDA • • • Context Compliance V Sustainability Who’s pushing What’s the response What do we need to do? 2
Australian Food and Grocery Council Who are we?
Australian Food and Grocery Council Corporate Affairs Consumer Affairs Communication Public Relations Supply Chain Product tracking Logistics Retailer relations Sustainability Energy Water Waste Social issues Health Nutrition Food Regulations Nutrition and Health Food Safety
Australian Food and Grocery Council AFGC & SUSTAINABILITY • Industry based forum • Policies and programs • Co-operative and coordinated response • Communicate achievements
Australian Food and Grocery Council SUSTAINABILITY. . . Social Bearable Environmental Equitable Viable Economic 6
Australian Food and Grocery Council COMPLIANCE • • • Meets rules Reactive Short term Minimalist Lowest cost Avoid penalties SUSTAINABILITY • • • Beyond rules Proactive Longer term Strategic Cost effective Opportunities 7
Australian Food and Grocery Council THEN COMPLIANCE SUSTAINABILITY • Food safety • NGERS • National Pollutant Inventory – NPI • Water treatment • Waste audits • Chemical residue limits NOW • Functional foods • Public sustainability report • Company targets • Supplier requirements • Investment in new technology 8
Australian Food and Grocery Council THE SUSTAINABILITY JOURNEY. . . We are here. . . Compliance Avoid Cost Compliance plus Efficiency Save money Strategic Pro-activity Sustainable growth Make money 9
Australian Food and Grocery Council SUSTAINABILITY • • • More than compliance Not just a new business card Bigger than just environment Incorporated across the business Trade offs 10
Australian Food and Grocery Council WHO’S PUSHING? • Business – competitive • Retailers – – less suppliers – sustainability targets – supplier requirements • Government – – regulations for water, waste energy – EEO • Consumers – more awareness – more information ? – more expectations ? Sustainable production 11
Australian Food and Grocery Council INDUSTRY RESPONSE • • • Price of entry – food safety! Compliance by another name = business Business = Competitiveness More with less Complex mix of competitiveness drivers and market dynamics • Inconsistent and clumsy? • Market driven. . . 12
Australian Food and Grocery Council WALMART - SUSTAINABILITY INDEX • Supplier self assessment • Rationale – – Population is increasing – Resource use is outstripping supply – Consumers want to know ? • 15 questions: – Energy and Climate – Material efficiency – Natural resource use – People and community See - www. walmartstores. com/sustainability 13
Australian Food and Grocery Council UK LEADERS Tesco – carbon footprint of 000’s products! M & S – Plan A Sainsbury’s - cease sale of caged birds ASDA • cut food miles • extend British growing season ? • increase British farmers ? Waitrose • reduce emissions by 10% by 2010 • reduce waste 14
Australian Food and Grocery Council Sustainability Strategy • 40% reduction in carbon emissions by 2015 • 200 million litres of water saved • Use of 3. 4 million crates to replace waxed boxes. • Zero food waste to the general waste stream by 2015. • 25% reduction emissions per carton delivered by WW owned trucks. 15
Australian Food and Grocery Council WHAT ARE WE DOING ABOUT IT • • • Insight from UK/EU and US Struggling to keep up – reporting! We are improving Building relationships Developing collective / collaborative responses Competitive advantage? 16
Australian Food and Grocery Council EXAMPLES. . . • Water – – information on re-use policy • Energy – – Carbon labelling – standardised procedures for NGERS • Waste – – Guidelines for reviewing packaging • Social – – support for broad industry response – RSPO • Supply chain – – collaborative work on SFP • Health & Nutrition – – Collective response to marketing to children 17
Australian Food and Grocery Council LABELS/LOGOS – DO CONSUMERS CARE?
Australian Food and Grocery Council 19
Australian Food and Grocery Council THE FOOD INDUSTRY NEEDS TO. . . 1. 2. 3. 4. 5. Ensure food safety Improve measuring and reporting Improve resource efficiency Engage and participate Co-operate across the supply chain 20
Australian Food and Grocery Council QUESTIONS & COMMENTS. . .
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