Australian Food and Grocery Council

Australian Food and Grocery Council

COMPLIANCE AND SUSTAINABILITY

Presentation to the Produce Marketing Association

Tony MaharApril 2010

Australian Food and Grocery Council

• Context• Compliance V Sustainability• Who’s pushing• What’s the response• What do we need to do?

AGENDA

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Australian Food and Grocery Council

Who are we?

Australian Food and Grocery Council

Health Nutrition

Food RegulationsNutrition and Health

Food Safety

Health Nutrition

Food RegulationsNutrition and Health

Food Safety

Sustainability Energy

WaterWaste

Social issues

Supply Chain

Product trackingLogistics

Retailer relations

Corporate Affairs

Consumer AffairsCommunicationPublic Relations

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

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SUSTAINABILITY...

Environmental Economic

Social

Viable

Bearable Equitable

Australian Food and Grocery Council

• Meets rules• Reactive• Short term• Minimalist• Lowest cost• Avoid penalties

• Beyond rules• Proactive• Longer term• Strategic• Cost effective• Opportunities

COMPLIANCE SUSTAINABILITY

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Australian Food and Grocery Council

• Food safety• NGERS• National Pollutant

Inventory – NPI• Water treatment• Waste audits• Chemical residue limits

• Functional foods• Public sustainability

report• Company targets• Supplier requirements• Investment in new

technology

THEN COMPLIANCE NOW SUSTAINABILITY

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Australian Food and Grocery Council

THE SUSTAINABILITY JOURNEY...

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Compliance Compliance plus Efficiency Strategic

Pro-activitySustainable

growth

Avoid Cost Save moneyMake money

We are here...

Australian Food and Grocery Council

• More than compliance• Not just a new business card• Bigger than just environment• Incorporated across the business• Trade offs

SUSTAINABILITY

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Australian Food and Grocery Council

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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

Australian Food and Grocery Council

• 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...

INDUSTRY RESPONSE

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Australian Food and Grocery Council

• 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

WALMART - SUSTAINABILITY INDEX

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Australian Food and Grocery Council

UK LEADERS

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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

Australian Food and Grocery Council

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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.

Australian Food and Grocery Council

• Insight from UK/EU and US• Struggling to keep up – reporting!• We are improving • Building relationships• Developing collective / collaborative responses• Competitive advantage?

WHAT ARE WE DOING ABOUT IT

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Australian Food and Grocery Council

• 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

EXAMPLES...

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Australian Food and Grocery Council

LABELS/LOGOS – DO CONSUMERS CARE?

Australian Food and Grocery Council

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Australian Food and Grocery Council

1. Ensure food safety

2. Improve measuring and reporting

3. Improve resource efficiency

4. Engage and participate

5. Co-operate across the supply chain

THE FOOD INDUSTRY NEEDS TO...

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Australian Food and Grocery Council

Australian Food and Grocery Council

QUESTIONS & COMMENTS...