Tommaso De Gregorio: Growing Hazelnuts

Growing Hazelnuts

Tommaso De GregorioExpo Milan, 10 September 2015

Ferrero: The Story Of a Family

53Countries: OFFICES

160Countries:MARKET

9Countries:AGRI Farms

3Countries:SOCIAL

COMPANIES

20Countries:PLANTS

53Countries: OFFICES

160Countries:MARKET

9Countries:AGRI Farms

3Countries:SOCIAL

COMPANIES

20Countries:PLANTS

Ferrero Agricultural projects

Raw Materials – Objectives and Results

On track Achieved

Objectives Timeframe Status

Coffee 100% certified as sustainable 2013Achieved 2 yearsahead of plan

Eggs100% eggs from barn hens in respect of animal welfare 2014

Palm oil100% certified as sustainableand segregated 2015

Achieved 1 years ahead of plan

Cocoa 100% certified as sustainable 2020

HazelnutsImplementation of thetraceability plan for 100% ofhazelnuts

2020

Cane sugar 100% from sustainable sources 2020 new

Our main goals declared in the last CSR Report:

www.ferrerocsr.com

Hazelnut marketmain producing countries at worldwide level (in shell)

AZERBAIJAN30.000 tons (3 %)

GEORGIA25.000 tons (3 %)

US (Oregon)34.000 tons (4 %)

ITALY120.000 tons (13%)

SPAIN25.000 tons (3 %)

TURKEY650.000 tons (70 %)

■Around 70‐75% of actual worlwide production is done in Turkey, followed byItaly with 12‐15%

■ Chile and Georgia are the main emerging countries which has experienced amajor increase in hazelnut cultivation during last 5 years

4 %OTHERS

Existing

HCo ‐medium long target

Opportunities in the Southern hemisphere are limited to few countries

■ FRESHNESS: the harvest during spring provides fresh hazelnuts throughout the yearimproving the quality for consumers

■RISK DIVERSIFICATION: climate / weather conditions (frost, etc.); geo‐politics; best varieties for our needs and full traceability of the supply chain.

Potential

The HCo initiative: present status

Six ongoing projects, at different stages of implementation. All projects are tailored made on the specific potential of each country.

Other initiatives are under development

Promotion of hazelnut development through events, research and training

seminars

Overall goal: 100% traceability in 2020

Fruticola Agrichile

Oldest Ferrero plantation: almost 4.000 ha under property

2 Drying facilities operating 1 Cracking facility established in 2015

Successful promotion: Over 11.000 ha planted by local farmers

Farmer association established and research program are in place with local institutions

High potential: Hazelnut crop is expanding by 1000ha per year

High quality nuts‐ varieties coming from North hemisphere have proven to have equal quality level of the countries of origin

AgriGeorgia

Agrigeorgia

Established in 2007: over 3.500 ha under property 1 Drying facilities operating

Training courses with USAID: 3.000 farmers already trained in past years Georgian Hazelnut Growers association (GHGA) already established and supported

Varieties used‐ a mix between Italian varieties and Georgian varieties, in order to be a show case for local farmers

High quality nuts in the Ferrero plantations

Agrisudafrica

Agrisudafrica

Established in 2010: about 1000ha of which 600 ha plantable First experiment of hazelnut cultivation in the African continent

Process of 2 years to import the plants and pass Quarantine’s restrictions Great effort to overcome different climatic conditions High interest in local farmers about future expansions and promotions of the crop

Agri Australis

Established in 2013: 2000 ha under development First experiment of hazelnut cultivation on a large scale in Australia

Process of 2 years to import the plants and pass Quarantine’s restrictions Great challenge for the future for extreme climatic conditions (Water and heat) and

high labor costs High technology in agriculture’s techniques

Precision farming

Precision Farming:

A necessaryapproach for the future challengesof the Ferrero Agri

farms

Never applied before on Hazelnut’s orchard

3 examples:

• Airbornepollinization

• Mechanicalplanting

• FMP‐Farmingmanagmentplatform

Hazelnut’s production depends from cross pollination during winter months; the overlapping between female and male flowers is limited by time and weather conditions

In Chile several test of forced pollination have been successful using quad bikes; production have increased in areas pollinized mechanically

Winter months in Chile have high rainfall, which does NOT allow machines to move easily in the tree rows DRONES

Precision Farming: Airborne pollinization

Precision Farming: Airborne pollinization

Precision Farming: Mechanical planting

Traditional planting is labor intensive and for large plantations requires high numbers of workers in winter months

To speed up the process a GPS guided planting machine has been developed according to Ferrero’s requirements by an Italian company

PLANTING 10 Hectares:

Traditional planting 68 workers

GPS machine 1 driver, 2 workers

Precision Farming: FMP

Geo‐referencing = Creation of a data base of all the information related to: Territorial units = Fields and parcels (Surface area, number of trees, variety, …) Climatic data (Temperature, Humidity, Wind speed, Sun radiation, Rain fall, …) Agronomical data (Soil analysis, Leaf analysis, Nuisance, Pest and diseases, Plant stages, …) Machines localization

Register of activities done= Possibility of registering manual, mechanical and harvesting operations.

Efficiency register Prescription of Chemicals


Budget : Operations to be done in each Territorial unit

The platform calculates the requirement of resources needed according to the register of efficiency of all the operations.

Scheduling: weekly or monthly planning of use of resources









Progress reporting:

Comparison between planned and actuals



Machines / Tractors monitoring :

Each tractor will be equipped with a GPS and Fuel sensor The tractors can be located in real time on a geographical

map Information about the tractors are sent in real time to the

platform

Fields workers / Labor monitoring :

Each plantation supervisor is equipped with a smartphone Each field worker is equipped with a NFC tag The Start and End of work is triggered when the NFC tag is

in contact with the smartphone

Thank you

Science

Tommaso De Gregorio: Growing Hazelnuts