Afg maatschappelijk jaarverslag eng

SUSTAINABLE SUPPLY CHAINS IN COOPERATION WITH

2014 Corporate Sustainability Report

link to success

Facts and Figures > Cooperative with about 17,000 members. > Executive Board: 3 members. > Managed by a Supervisory Board: 8 members. > Net revenue € 2,359 million. > Operating result (exclusive of exceptional charges) € 26.9 million. > Net profit € 3.1 million. > Number of employees: 3,328 > Number of FTEs: 2,999

Sales volume (x 1.000 tonnes)

2014

Compound feeds

4,248

Co-products 2,371 Premixes & concentrates

461

Cereals, potatoes, onions and carrots

612

Fertilisers 430 Organic fertilisers Crop protection products (€ millions)

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2014 Corporate Sustainability Report

537 131.7

2014 Corporate Sustainability Report The Corporate Sustainability Report is published annually and concerns all companies within the Agrifirm Group, unless indicated otherwise for specific components. The previous report was published in May 2014.

The guideline used in preparing the report is the Global Reporting Initiative (GRI), the international guideline for sustainability reporting. This report was prepared in accordance with the GRI G4 Guideline. The GRI Table with references to all reported information is available on our website www.agrifirm.com under the header ‘Corporate Social Responsibility’.

For additional information about Agrifirm’s sustainability policy, please contact Ruud Tijssens, Director Corporate Affairs, Strategic R&D and CSR, r.tijssens@agrifirm.com, or at +31 (0)88 488 29 00.

Reading reference In this Corporate Sustainability Report, Agrifirm reports on its sustainability policy and the accomplishments realised in this domain in 2014.

Section 1 sets out Agrifirm’s mission, business principles and ambitions. It provides an overview of the main events within Agrifirm Group in 2014.

Section 2 describes the stricter sustainability policy, including an explanation of the six pillars and consultation of stakeholders relating to the policy.

Sections 3 through 8 focus on the objectives and key performance on the six sustainability policy pillars. For each pillar, a responsible Agrifirm officer or external partner explains about an example with high sustainability impact.

The Appendices list Agrifirm’s KPIs relating to the organisation, the environment, employee benefits and human rights. We also added a separate Appendix relating to sustainability labels with more background information about the calculation of the labels.

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Preface Over one hundred trucks drove through the Netherlands in 2014

years, we introduced a range of new concepts in this context: precision

printed with pictures of, among others, a farm-fresh egg, cheerful

fertilisation in arable farming, Line-up in poultry farming, Roughage

flowers, healthy fruit and juicy pork. All products and dishes in which

Total in cattle farming and Robustior in pig farms. In the past few

our livestock farmers and growers play a major role. You must have

years, we have gained more clarity about exactly where Agrifirm can

encountered a few of these on your way.

make the difference in the chain. We used this in 2014 to increase the level of our sustainability policy with six pillars and specific targets.

Agrifirm used the campaign ‘In Cooperation With’ to show our pride

The six pillars symbolise all chain links where we can be impactful. We

in the livestock farmers and growers who create the most wonderful

aim to realise both sustainability impact in the chain and on the farm

quality products on a daily basis. Products enjoyed by millions of

yard. Naturally, we are equally sharp about opportunities in our own

people both in the Netherlands and abroad on a daily basis. The

organisation.

Dutch agriculture and horticulture is an industry to be proud of.

It is also a dynamic sector that is sometimes the subject of social

In 2014, Agrifirm has also refocused its business strategy on four

debate, for example relating to animal welfare, origin of raw materials,

core activities: compound feed, arable farming and horticulture, co-

environmental footprint or the application of crop protection agents.

products and specialties. The recalibration of the strategy required

Themes that Agrifirm is committed to, also in the next few years.

multiple adjustments to be made to the Agrifirm organisation, enabling us to grow in our core activities from 2015 onwards.

Agrifirm is dedicated to future-proof and profitable agriculture and

However, the adjustments resulted in a one-off â‚Ź 3.1 million decrease

horticulture, able to provide the growing world population with

in the net profit.

sufficient, healthy food in a sustainable manner. We are actively working on that with our members and customers. We want to

On balance, the number of members decreased by 500 in 2014, down

increase profits on the farm yard with lower input. In the past few

to 17,000. Agrifirm is frequently updating its member and customer

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2014 Corporate Sustainability Report

base. Non-active members are approached and requested to

in 2015, the six pillars of our higher-level CSR policy are a good basis

terminate membership. This involved approximately 1,400 members

for establishing a connection between Agrifirm with the dynamic,

in 2014. We recruit new members among existing customers of

quickly changing environment in which we and our customers

Agrifirm Plant and Agrifirm Feed who are not yet a member. In 2014,

are operating. This is why we continue to focus on developing

we gained 900 new members by making such customers aware of the

sustainable products and creating profit for our members. That

benefits of membership.

is how Agrifirm contributes to a future-proof, sustainable and profitable agricultural sector.

We are proud of our members and customers. After all, it was a challenging year for the Dutch agricultural sector, with problems

Ton Loman

such as bird flu and Russia’s boycott of European food and dairy

Chairman of the Executive Board Agrifirm Group

products. The key task of our organisation is unchanged: to create sustainable value for our members. I am convinced that we reinforce our market position by giving sustainability a central place in our business. For example by offering sustainable products and concepts for our customers; having expert and motivated employees; and procure sustainable raw materials. In 2014, we were the most favourite employer of the agricultural sector and we would like to keep it that way.

Our sustainability policy was one factor allowing our members and customers, and Agrifirm, to make an impact on the farm yard. Also

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highlights

Responsible Raw Materials

Responsible raw materials

Efficient use of raw materials

Responsible production starts with the production and

Agrifirm invests in product innovations that help our

procurement of sustainable raw materials. Agrifirm and

members and customers to achieve higher production

Wageningen UR are actively investing in Dutch soy crops.

In 2014 some 35 farmers grew a total of 110 hectares of

Efficient Use of Raw Materials

with less input. This benefits the environment and the entrepreneur’s wallet.

Dutch-grown soy. In order to secure sustainable soy crop cultivation, Agrifirm is cooperating with the Dutch and European animal

“’Smart feeding’ or ‘precision feeding’ means that each animal

feed industry to ensure 100 percent responsible soy.

receives optimal feed rations, saving on raw materials.’

Albert van den Belt, director Agrifirm Innovation Centre

“Agrifirm is really sticking out its neck by being one of the few parties investing in research into European soy crops.”

Healthy plants, soil and animals for healthy people

Chris de Visser, business developer Wageningen UR

Agrifirm develops products and services that reinforce

Efficient production and logistics Agrifirm aims for structural decrease of energy use

Healthy Plants, Soil and Animals for Healthy People

the natural resistance of plants, animals and soil.

based on efficient processing of raw materials and Efficient Production and Logistics

smart logistics. With Business Excellence projects,

“Together with our partner BioMygreen, we marketed Mycorrhiza

Agrifirm encourages improvement of the energy

moulds in 2014 for a number of new crops, such as onions, flower

efficiency of product locations.

bulbs and tree crops, and also for public landscaping.”

Aaldrik Venhuizen, manager Research & Development Agrifirm Plant

“In 2014, our product efficiency improved by eight percent and our energy efficiency by twelve percent.”

Our employees: the foundation for success

Alexander Drees, managing director Agrifirm Magyarország

Agrifirm creates a stimulating environment for its employees and invests in sound employee benefits,

Sustainable consumer range Agrifirm is collaborating with chain partners to develop and market sustainable concepts. In the Sustainable Consumer Range

Our Employees: the Foundation for Success

training opportunities and career development. In 2014, Agrifirm was the most favourite employer in the agricultural sector according to students.

project ‘Brewing Barley from Sustainable Cultivation in the Netherlands’, Agrifirm Plant, Heineken Netherlands

“I think it is important that our staff can say: ‘I can make a

and Holland Malt collaborate in developing a

national or an international career at Agrifirm within its group

sustainable brewing barley.

of companies’.”

Emiel Berg, director HR Agrifirm

“This project is a fine example of successful chain development that also supports the transition towards sustainable agriculture.”

Jan Kempers, manager Sustainable Development, Heineken Nederland BV

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2014 Corporate Sustainability Report

table of contents Preface

4

Highlights

6

Table of contents

7

1. Agrifirm a link to success

8

2. Six pillars for more impact

13

3. Working on sustainable raw materials

19

4. Efficient production and logistics

22

5. Efficient use of raw materials

26

6. Healty plants, soil and animals for healty people

32

7. Contributing to a sustainable consumer supply

36

8. The Basis for Success

38

Colophon

42

Appendix

44

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1. Agrifirm, a Link to Success Koninklijke Coöperatie Agrifirm U.A. is a market leader in the Netherlands and is globally engaged in the production and supply of products and services for feeding animals and cultivating crops. Its cooperative origin has been translated into benefits for its members and customers since 1892. On the basis of the breadth of its international activities, sector knowledge and innovative strength, Agrifirm develops innovative products and services that yield benefits at the farm level to livestock farmers and growers alike.

Working Together Agricultural farmers are of vital importance to society and of crucial

Agrifirm accomplishes this by:

importance to the world food supply. Enterprising livestock farmers

> Supporting customers by providing sustainable and profitable

and growers are aware of this and have been anticipating social

products and concepts that enable livestock farmers and growers

trends for years. Farmers and market gardeners established the

to achieve the best possible results.

first cooperatives well before 1900. Together they acquired greater

> Creating growth in value for the company that is partially passed

strength, for example in the purchase and sale of products. The role

on to the cooperative’s members through means of a cooperative

of the cooperatives has grown along with the trends in the market

profit-sharing scheme (Members Dividend and Members

and in society. The interests of Agrifirm’s members are leading in this

Discount).

respect.

The Agrifirm Group creates value for members, customers, companies

Mission

and employees through means of various subsidiaries and

Agrifirm is an agricultural cooperative that operates globally, with

participating interests in the Netherlands and abroad. This creates an

members in the Netherlands only, and with the following mission:

opportunity for distributing profits to members.

“Generating sustainable value for its members.”

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2014 Corporate Sustainability Report

Operating Principles Agrifirm is first and foremost a committed specialist for livestock

three leading operating principles. These principles guide Agrifirm

farmers and growers, which supports its customers with innovative

in everything it does and ensure that there is an optimal connection

products, concepts and services, thus enabling them to achieve the

with the requirements and needs of livestock farmers and growers.

best possible results. To achieve this, Agrifirm acts in accordance with

Passion for our profession

Passion for our profession

If there is one aspect that connects Agrifirm with customers, it would be the passion we have for our profession. Furthermore, Agrifirm is proud of the companies in the agricultural sectors.

Agrifirm’s employees stand out on the basis of their professional knowledge and their high level of commitment to livestock farming and cultivation tradesmanship, and enjoy going the extra mile in order to achieve the best possible service and results for their customers.

Always staying on top of things

Always staying on top of things Successful enterprise requires continuous alertness for new developments, opportunities, quality, revenues and costs. This applies to livestock farmers and growers, and likewise to Agrifirm. This is why the principle, always staying on top of things, applies.

Working towards tomorrow

Working towards tomorrow

Agricultural entrepreneurs not only consider the present, but, even more important, the future as well, often across many generations. This requires vision, knowledge and expertise Agrifirm also looks ahead and, together with customers and chain partners, works on innovative and sustainable solutions that enable customers to operate successfully ‘tomorrow’ as well.

Ambition Agrifirm wants to further strengthen its leadership position on the

and horticulture, co-products and specialties. A professional

Dutch market in terms of sales and perception by being a front runner

knowledge & innovation cluster serves as the engine for knowledge

in terms of knowledge and innovation, and through customer-

development and product innovation. In addition, Agrifirm is active

oriented consulting services. The enterprise wants to expand its

with a number of service companies and participating interests.

market share within the core area of the Netherlands, as well as beyond, through organic growth and profitable acquisitions. To realise this ambition, Agrifirm works with well-trained employees who are sincerely interested in their customers.

Agrifirm operates in four core areas: compound feed, arable farming

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Organisational chart Members of Royal Cooperative Agrifirm U.A.

Districts

Youth Council

Council of members Cooperative board Royal Cooperative Agrifirm U.A.

=

Shareholders meeting Agrifirm Group BV

=

Supervisory board = Agrifirm Group BV

Royal Agrifirm Group

= Agrifirm Group BV

Knowledge & Innovation Cluster AIC, NutriControl, Agrifirm Exlan, Schothorst*

Compound Feed

Agriculture

Co-products

Specialities

Services

Participations

Agrifirm Feed The Netherlands

Agrifirm Plant The Netherlands

Agrifirm Co-products (Bonda)

Nuscience Group

Agrimec (51%)

Plukon

BV Oldambt Agrifirm Belgium

Agrifirm Plant Deutschland

Agrifirm Winkel BV Agri Retail

Agrifirm Feed Deutschland Agrifirm Magyarorszรกg Agrifirm Polska Sto Posto* *minority interest

Agrifirm comprises six divisions: > Compound Feed Division: production and sale of animal feeds

> Specialties Division: production of premixes, mineral mixes, pro

and artificially dried fodder legumes and straw products;

consultancy and research.

> Service Companies Division: agricultural mechanisation; sale of

tein-rich raw materials and nutritional concepts for animal feed.

> Arable Farming and Horticulture Division: production and sale

of sowing seeds, fertilisers, crop protection products; sale of

> Participating Interests Division: minority interests in Plukon.

cereals, onions and carrots; consultancy and research.

> Co-products Division: processing of high-quality by-products

from the food industry into (raw materials for) animal feeds.

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2014 Corporate Sustainability Report

agricultural consumer products.

Knowledge & Innovation Cluster

Partnerships and Acquisitions

The Agrifirm Exlan consulting firm, together with the Agrifirm

Agrifirm’s business strategy was further specified in concrete detail

Innovation Centre and the NutriControl laboratory, forms part of the

during 2014. This has resulted in a re-stated vision entitled: ‘Focus

newly formed knowledge and innovation cluster. A combination that

and Acceleration’. The core of the strategy is a further focus on core

guarantees research and development of innovative products and

activities and an acceleration of various improvement processes.

concepts offering advantages to livestock farmers and growers.

In 2014, this resulted, among other things, in the sale of the minority share in Holland Malt, a malting plant, to Bavaria, and the

Members and Young People’s Days

acquisition of all shares in AgriRetail, which is now a full subsidiary

In 2014 Agrifirm once again organised the Agrifirm Members’ Days,

of Agrifirm.

as members are the most important stakeholders of our Cooperative.

Spread over 10 locations, Agrifirm spoke with 1,600 members about the 2013 results and 2014 strategy. Visitors were offered workshops on a broad range of subjects, including social media, cattle feed and precision growing methods.

Agrifirm organised the fifth consecutive Young People’s Day for young agricultural farmers on 8 January 2014. Almost 550 young entrepreneurs visited the Agrifirm Young People’s Day with the theme ‘Business Succession’. Speakers and visitors discussed the importance of a clear strategy and adequate communication when transferring a company.

Campaign ‘In cooperation with’ The Dutch livestock farming, arable farming and horticulture sectors are globally leading in terms of productivity, efficiency and certainly also sustainability. Agrifirm feels that farmers and growers should be proud on the wonderful products they make. To share these with a broad audience, we developed the campaign ‘In cooperation with’ in 2014. Glossy pictures of eight different finished products of Agrifirm’s members and customers were in the spotlight of this campaign, driving through the Netherlands on the full length of 100 bulk trucks.

On the internet, the story behind these products came to life in eight transparent videos. Also, features and advertisements were printed in journals such as Nieuwe Oogst, the Agri-Food special of De Telegraaf and

Sector Councils

some regional dailies. Both customers and stakeholders responded very

The Sector Councils for Dairy Farming, Pig Farming, Poultry Farming,

well to the campaign. This way, Agrifirm contributes to a positive image

Broiler Farming and Arable Farming have an advisory role to the

of the agricultural sector and a better connection between farmers,

executive boards of the Agrifirm Plant and Agrifirm Feed companies. In

growers and the consumer. In 2015, the campaign will be continued

2014, each Sector Council met a minimum of two times. Agrifirm Feed

with, among other things, more trailers depicting the products of our

also has a biology sounding board.

members and customers.

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Sustainability Labels for Feed Concepts and Products In 2014, Agrifirm was the first animal feed company to develop sustainability labels for feed concepts and products. The sustainability labels offer both members and customers specific information on sustainability performance of our feed concepts and products for cattle, poultry and pigs. This gives our members and customers insight into the impact they can realise with the feed concept or product, and assists them in producing feed in a profitable and sustainable way.

Five labels Agrifirm Feed NL introduces five sustainability themes, labelling a number of existing and new products and concepts: mineral efficiency, animal health, climate, recycling and more sustainable raw materials.

From research conducted by HAS University of Applied Sciences in Den Bosch and from sector interaction, it is clear that livestock farmers would like to receive more information about these themes. Furthermore, the selected themes are consistent with Agrifirm’s sustainability strategy.

The five sustainability themes each have their own icon. A feed concept or product can have one or more sustainability labels.

Together with Blonk Consultants, an environmental consultancy firm, Agrifirm developed a method for calculating the underlying sustainability indicators for the sustainability labels in 2014 (see Appendix 3). Also, the sustainability labels for a number of existing feed concepts and products were calculated. In 2015, Agrifirm calculates the sustainability performance for more new and existing products and feed concepts.

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Agrifirm

2014 Corporate Sustainability Report

2. Six Pillars for More Impact Agrifirm’s corporate social responsibility policy derives from its ‘Working towards Tomorrow’ operating principle. The core of our approach is to connect Agrifirm with the environment in which the company and our customers operate. Six pillars form the foundation for sustainability in Agrifirm’s daily business.

The world population is forecast to grow to 9 billion people by 2050.

continue successful operations and to realise even more impact,

The increasing prosperity levels come with more food consumption,

Agrifirm re-stated its sustainability policy in 2014 based on six pillars

raising the pressure on limited raw materials, water and nature.

and specific objectives. The six pillars reflect the places in the chain

Agriculture is faced with the challenge of producing food in an

where Agrifirm can make an impact: from growing raw materials to

efficient and sustainable way.

food on your plate. With this re-stated focus, Agrifirm contributes to innovations, both in the chain and on the farm yard. This way,

Re-stated Sustainability Policy

Agrifirm develops commercial opportunities for new products and

This challenge is the core of Agrifirm’s policy on corporate social

services that contribute to a sustainable food supply. The re-stated

responsibility. As a supplier to the agricultural sector, Agrifirm is at

sustainability policy has become effective in 2015.

the cradle of efficient and sustainable food production. In order to

Goals on Six Pillars For each of the six pillars of the sustainability policy, Agrifirm defined strategic goals. Realising these goals is an integral part of the company’s commercial and development focus.

Working on Sustainable Raw Materials

Sustainable Raw Materials

By 2020, all major commodities, including wheat, corn and soy, are

Agrifirm processes residual flows from

part of Agrifirm’s sustainable procurement policy. The specific risks of

foodstuffs and bio-based industries into

producing all these commodities are charted for a certain region with

high-end animal feeds. Together with

the actions Agrifirm is taking in that context. We also make organic

suppliers, Agrifirm is working on sustainable

fertilisers and compost widely available to growers.

and responsible cultivation and use of raw materials.

Efficient Production and Logistics

Efficient Production and Logistics

Agrifirm aims for a structural decrease in energy consumption By 2025,

Agrifirm aims for a structural reduction of

Agrifirm has improved its energy efficiency by 15 percent compared

energy consumption based on efficient

to 2015. We aim to also improve energy efficiency by 15 percent in

processing of raw materials and smart

all production sites. Furthermore, we make binding agreements with

logistics.

our carriers on reducing energy consumption and emissions due to transport.

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Efficient Use of Raw Materials By 2025, Agrifirm will have developed sustainable agricultural practices.

Agrifirm is investing in product innovations

These assist our members and customers in reducing the environmental

to help our members realise higher

footprint of animal and arable production by 15 percent compared to

production based on lower input.

2015.

Efficient Use of Raw Materials

Healthy Plants, Soil and Animals for Healthy People

Healthy Plants, Soil and Animals for Healthy People

By 2025, Agrifirm has developed sustainable agricultural practices,

Agrifirm develops products and services

ensuring a central role for natural crop protection, including the use of

improving the natural resistance of plants,

20 percent green crop protection agents. Reinforcing natural resistance

soil and animals.

of animals will reduce the use of veterinary drugs by our members and customers by 20 to 30 percent compared to 2015.

Contributing to a Sustainable Consumer Range By 2025, Agrifirm is the main partner for chain parties in developing and

Agrifirm cooperates with chain partners

testing new chain concepts.

to develop and market sustainable concepts for consumers.

Sustainable Consumer Range

Our Employees: the Foundation for Success By 2020, Agrifirm is the most favourite employer of the agricultural sector.

Agrifirm creates a stimulating environment for its employees and invests in excellent employee benefits and training and career opportunities.

Our Employees: the Foundation for Success

In this report we highlight our vision, objectives and accomplishments in 2014 for each pillar in the following sections.

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Agrifirm

2014 Corporate Sustainability Report

Sustainable Innovations

“We are operating in a dynamic and rapidly changing environment. Developing sustainable and innovative solutions will ensure growth and continuity in both farms and Agrifirm. We operate in a highly competitive market. This is why sustainable solutions must be based on long-term financial profitability. In the past few years, we have zoomed in on where Agrifirm can make the difference in the chain. We reflected that in the six pillars of our sustainability policy.”

Realistic objectives

afraid to conclude at times that we should change direction. As long

“In the past five years, we set out Agrifirm’s sustainability performance.

as we keep our goal in sight: increasing profits on the farm yard with

This helped us determine the strategic goals, which are also realistic.

lower input.

For example, we now know that the CO2 emissions of a new feed concept are 2 to 3 percent lower on average, up to 4 to 5 percent

Operationalisation

in some concepts. The numbers also give us an insight in what we

Having determined the strategic goals, we are working on translating

can influence and measure, the annual variations and the significant

these into operational objectives based on clear performance

indicators. The average CO2 emission of raw materials proved

indicators. For example, we are going to further specify the EEI, the

unreliable as a performance indicator. The price is the main factor

Energy Efficiency Index for our plants in the next few years. We are

in the origin of the raw materials. This results in substantial annual

convinced that a fully specified sustainability policy contributes to

variations in CO2 emissions. This is why we are currently developing a

future-proof and profitable agriculture and horticulture sectors. This

rolling average indicator. This allows for calculating the average feed

enables us to continue our competitive operations and to create

composition over the past five years, which also gives the average

sustainable value for our members.”

origin of the feed. Determining this rolling average on an annual basis cushions the variation, thus revealing the structural improvements in

Ruud Tijssens

the CO2 emissions more clearly.

Director Corporate Affairs, R&D and CSR

Integral part This learning process was vital to Agrifirm employees in realising that a good result on the farm yard can coincide with a positive impact on sustainability. I am proud to see that sustainability is now an integral part of assessing innovations. I have seen a true transformation compared to a few years ago, both within Agrifirm and in the agricultural sector. We have already achieved serious results in 2014 in terms of developing sustainability labels and buying responsible soy. Our stakeholders are positive about Agrifirm’s structural focus on sustainability. In the middle of the complex playing field of agricultural commodities, we are working on sustainability. In some instances, we really have had to invent the wheel. As a result, we should not be

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Consultation and Collaboration with Stakeholders

Additionally, Agrifirm deliberately seeks to connect with various

Sustainable food supply is a theme that touches upon many parties and

stakeholders on a regular basis. For example, we participate in joint

is frequently in the limelight of social debate. Agrifirm is in the middle

ventures with various scientific and social organisations, enter into

of this dynamic field, seeking to connect with all parties. In principle,

short-term and long-term agreements, organise meetings and

Agrifirm does not exclude any parties, ensuring optimal operations

workshops and participate in research projects. These types of

and contributing to future-proof and sustainable agriculture and

coordination opportunities to a significant degree also influence the

horticulture. Agrifirm is in touch with and collaborates with suppliers,

priorities Agrifirm assigns to certain sustainability themes. On the one

independent research institutions, scientists, environmental and

hand, the value attached to a theme by our stakeholders carries a

development organisations, chain parties and umbrella organisations

great deal of weight in determining our focus. On the other hand, the

such as Netherlands Feed Industry Association (Nevedi), FEFAC (the

degree of impact and influence that Agrifirm has, determines which

Europe Federation of Compound Feed Manufacturers), Plantum

themes are prioritised.

(sector board for companies in the plant-based starting materials sector) and Nefyto (sector board of the agro-chemical industry in the

New and remarkable partnerships in 2014

Netherlands).

In 2014, Agrifirm started collaborating with the Dutch Biorefinery Cluster. This platform aims to fully use organic raw materials and

Agrifirm’s corporate social responsibility policy is rooted in parties who

develop more high-end bio-based products. To reinforce its sector

are in nearly daily contact with Agrifirm relating to the subjects that

position, Agrifirm is cooperating with various links in the arable

interconnect us. The connection between chain partners, employees,

farming sector through the Arable BO (Sector Board). Agrifirm

members and customers with each other and with the environment is

Plant is one of the organisation’s initiators. This allows us to work

very direct - but never taken for granted. Agrifirm intensively consults

on cross-sector issues together, further reinforcing and expanding

with them on the priorities in sustainability themes, depending on the

our position.

impact that can be achieved together.

Dialogue on re-stated sustainability policy When re-stating its sustainability policy, Agrifirm also involves external perspectives to determine the stakeholders’ opinion of Agrifirm’s role in the chain. On 27 October 2014, Agrifirm organised a meeting with the CSR sounding board group of Agrifirm.

Participants included Imke de Boer (Professor Animal Production Systems Wageningen UR), Chris Kalden (Former Secretary General of LNV, Chairman of Outdoor Grazing Foundation), Jan Cees Vogelaar (former dairy farmer and Director of HarvestaGG), Tjerk Wagenaar (Director of Nature & Environment) and Wouter van der Weijden (Director CLM). The meeting focused on Agrifirm’s re-stated corporate social responsibility policy.

The participants were positive about the structural way in which Agrifirm details its sustainability policy. They stressed the importance of continuing the pioneering, and also in particular getting to work with it and translating the strategic goals into operational plans and concrete milestones. Simultaneously, Agrifirm should also develop various scenarios to better prepare for a range of developments, such as family business versus professionalisation and upscaling; globalisation versus regionalisation/localisation; and shifting market ratios.

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2014 Corporate Sustainability Report

The contrast that is sometimes perceived between economic

Finally, the importance of both internal and external communication

profitability and sustainability was seen as a key challenge, where

was highlighted. Within Agrifirm, it is important to keep CSR alive

Agrifirm should sometimes make a more delineated choice based on

at all levels in the organisation by integrating this in management

a mix of indicators. The CSR sounding board group advised Agrifirm to

contracts. The field representatives can fulfil a key role in the dialogue

give more insight into the financial consequences of its options and

with society.

make this an integral part of its policy. Here too, scenarios could help in respect of strategic choices and developing R&D projects. Relating

The many valuable recommendations and perspectives from

to the six pillars, the attendants advocated centring on sustainable

the sounding board meeting were used to re-state Agrifirm’s

soil use as a valuable production resource in agriculture. The human

sustainability policy and further specify the operational translation. In

aspects of the CSR policy could also do with more fleshing out

2015, the meeting will be repeated in a symposium for stakeholders

according to the attendants.

on Agrifirm’s sustainability policy. The system of Agrifirm’s dialogue with the stakeholders will be further structured in 2015 by actively discussing a number of strategic themes with the stakeholders.

Agrifirm will also more intensively monitor the follow-up of discussions with stakeholders.

CSR Update In order to keep relations and stakeholders of Agrifirm posted of developments relating to sustainability, Agrifirm introduced the CSR Update newsletter in April 2014. In 2014, Agrifirm published seven newsletters showing progress in corporate social responsibility within our own organisations and also within organisations we cooperate with.

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Biodiversity In the past few years, attention to the importance of biodiversity in agriculture has increased. Biodiversity plays a major role at all levels and in all processes within an agricultural company: soil, crops, animals and the environment. Agrifirm focuses on the consequences of our activities on biodiversity both at a local and international level.

Elements that impact biodiversity at a local level include phosphate and nitrogen efficiency of plants and animals by preventing leakage into soil or manure, the physical condition of the soil (organic matter content and soil life), use of crop protection agents and direct protection of bird life. At international level, land use is the key factor.

Minimising the use of land for producing animal feeds ensures that more land is available for purposes with a higher biodiversity value.

Agrifirm Plant creates the conditions for biodiversity with sustainable use of crop protection agents and fertilisers and by encouraging healthy soil life. Agrifirm Plant is investigating the possibility of using resources allowing for reduced use of crop protection agents while stimulating or maintaining healthy soil. The CleanLight treatment unit for flower bulbs is a great example in this context. This machine beams a dose of special light to crops killing micro-organisms such as moulds, bacteria and viruses. Research by Agrifirm Plant has established that lily bulbs can safely be exposed to high concentrations of CleanLight UV. The application of CleanLight UV does not have any adverse effects on bulb quality and on the growth of the lilies after planting.

Protection of bird life A great example of protecting bird life is the partnership between Agrifirm and the Grey Harrier Work Group Foundation, focusing on maintaining and regeneration of nature. Groenvoerdrogerij Oldambt BV, a crop drier, part of Agrifirm, is closely collaborating with this foundation. The foundation works on conservation of the bird of prey in the Netherlands, advising authorities and nature organisations relating to developing policy and the practical implementation of Agricultural Nature Management. In 2014, at the foundation’s initiative, Parliament included the ‘bird field’ in the new GLB (Common Agricultural Policy). From a GLB pilot, it became clear that a perennial protein crop combined with natural fallow strips contributes to healthy soil and maintaining threatened species such as the grey harrier, while also being good for the farmers’ wallets. Protecting nests of nesting birds of prey is one action that helps Oldambt BV contribute to biodiversity on farm land.

18

Agrifirm

2014 Corporate Sustainability Report

3. Working on Sustainable Raw Materials Demand for food will increase in the coming decades. This increases the pressure on limited raw materials, water and nature. Sustainable production of agricultural products while respecting the environment and surroundings is crucial for our future. Sustainable production starts at the front-end of the chain, with buying sustainable raw materials. Agrifirm encourages growing and using sustainable and responsible raw materials.

Working on sustainable food production is an essential sustainability

feeds, food and bio-fuels. In order to secure sustainable soy crop

theme for Agrifirm. With a growing world population and increasing

cultivation, Agrifirm is cooperating with, among others, the Dutch

prosperity, demand for food and dairy products is set to increase in

and European animal feed industry to ensure 100 percent responsible

the coming decades. Agrifirm aims to encourage its members and

soy. Additionally, Agrifirm has been co-developing the Dutch soy crop

customers to respond to this increase in a sustainable way. Naturally,

cultivation and market with Wageningen UR since 2013.

Agrifirm, as a supplier to farm yards, is committed to sustainability. This is why we process co-products of the food industry in animal feeds, and why we are committed to procure sustainable raw materials. This is the result of Agrifirm’s intensive consultation with suppliers and agreements with chain parties.

Our Objectives By 2020, Agrifirm aims to buy all major commodities required for animal feed, including wheat, corn and soy, subject to a sustainable buying policy. Agrifirm bases this policy on regional risk analyses.

With these analyses, we chart the specific environmental and social risks relating to major commodities of the production region, such as deforestation for soy crops in South America. This analysis also describes the actions that Agrifirm is taking to mitigate the risks detected. This comes together in a sustainable buying policy, allowing us to actively work on sustainable cultivation, processing and trade of and in all our major raw materials. Agrifirm primarily focuses on responsible procurement of major commodities used for animal feed, but we are also assessing the policy frameworks on applicability to raw materials for Agrifirm Plant.

Agrifirm’s investment in responsible soy and growing Dutch soy was a major contribution to this pillar in 2014. Soy is a high-protein raw material for animal feeds. Demand for soy is substantially increasing worldwide, among others due to growing demand for animal

19

Dutch-grown soy Market development and a pilot test should lead to economically viable soy cultivation in the Netherlands. Soy cultivation in north western Europe offers benefits, such as closing regional cycles and reducing feed miles. In the pilot test, Agrifirm Plant and

Soy cultivation in The Netherlands

Wageningen UR are researching which soy varieties are most economically viable for cultivating in the Netherlands, and the

2012

optimal fertilising and crop cultivation methods. In the first year,

0 Growers

11 growers cultivated soy on 35 hectares. In 2014, this tripled to 35

0 hectares

growers on 110 hectares.

Through field meetings, an active Facebook group and cultivation

2013

advice, growers learn from each other and from the knowledge of

11 Growers

Agrifirm Plant. On average, the best 25% of the growers realised 3.4

35 hectares

tonnes per hectare in 2014, compared to 2.8 tonnes per hectare in 2013. Two varieties offer the best perspective for the future, combining high yield and early maturing with a high protein content. Agrifirm Plant is responsible for selling the Dutch-grown

2014

soy to the food industry and the livestock sector. Three Dutch dairy

35 Growers

farms have been feeding Dutch-grown soy to their cows since

110 hectares

late 2014. The soy has been processed to make it suitable as highquality animal feed. The object of this trial run is to investigate how this Dutch-grown soy can be incorporated into the formula, and to study its effect on the cows’ performance.

Bulk market for Dutch-grown soy is feasible “The high-end market is now the main sales market for Dutch-grown soy, both for human consumption and non-GM animal feeds. Dutch soy crops are already almost economically viable because of the mark-up for non-GM soy. The revenue is already substantially higher than forecast in 2013. In 5 years’ time, we expect to achieve a yield of around 4.5 tonnes per hectares. This means the bulk market that is interesting to Agrifirm is in sight. Agrifirm is really sticking out its neck by being one of the few parties investing in research into European soy cultivation. It would not be a real pilot test without market development, because after all, Dutch-grown soy must become a business case in progress. If we can cultivate 30 to 40 percent of the soy required in Europe at the end of the day, my mission is accomplished.”

Chris de Visser, business developer Wageningen UR

20

Agrifirm

2014 Corporate Sustainability Report

procurement of responsible soy In 2015, Agrifirm is closely involved in the soy case file and in the Chain Transition Responsible Soy Foundation, which has been working on 100 percent sustainable soy since 2012. Responsible soy is cultivated in accordance with the RTRS (Round Table on Responsible Soy) or equivalent standards. This soy fulfils a number of criteria relating to nature conservation, biodiversity, sound agricultural practices, healthy working conditions and respect for local land rights. In 2014, the animal feed industry signed the Nevedi covenant, agreeing to use 100% RTRS certified soy for the production of meat, dairy and eggs for the Dutch market if market demand is also implemented as such. The soy for foreign market demand fulfils the minimum sustainability requirements as determined by FEFAC, the European federation of compound feed manufacturers.

In 2014, Agrifirm bought RTRS credits for 100,000 tonnes of responsible soy (about one third of soy consumption). The credits are to be applied on several years. In 2014, Agrifirm was a Board Member of RTRS on behalf of FEFAC in order to actively contribute to sustainable cultivation and production of soy.

Development European benchmark responsible soy FEFAC, the European federation of compound feed manufacturers, is developing a European system to compare and classify the various standards for responsible soy based on the RTRS standard. This allows a transparent way for the animal feed industry to interact with soy buyers. The aim is sustainably produced soy that is feasible in practical terms and affordable. Ruud Tijssens, Director Corporate Affairs, R&D and CSR, and Chairman of FEFAC, plays a leading role in this process. In this context, Ruud Tijssens visited Brazil and the United States three times for meetings with major stakeholders in these regions.

Increased sales in green crop protection agents Green crop protection agents are based on natural origins (such as plants, animals, micro-organisms or certain minerals), or synthesized agents that are identical to the natural substance, and low-risk to humans, animals and the environment.

The sale of green crop protection agents amounted to barely 2% of the total sales of crop protection agents in 2014. Agrifirm’s target is for this percentage to increase to 20% of the crop protection agents by 2025. In late 2014, the Ministry of Economic Affairs closed a Green Deal with the sector and other parties, to the effect of accelerating sustainability in crop protection agents in agriculture and horticulture by facilitating the admission of green crop protection agents carrying a low risk to humans, animals and the environment.

21

4. Efficient Production and Logistics Efficient processing of raw materials and smart logistics are high priorities for Agrifirm. Agrifirm’s logistics contribute to the emissions of greenhouse gases and fine dust particles, among others. This is part of the environmental footprint, which is a factor in climate change. Also, plants use energy for the production of products and feedstuffs. This contributes to Agrifirm’s CO2 emissions. Investing in efficient production and logistics enables Agrifirm to decrease its environmental footprint.

Agrifirm expects the global economy and demand for agricultural

energy consumption and emissions due to transport by 2025.

products to grow in the next few decades. This means that both land and raw materials will become scarcer, increasing pressure on

Business Excellence Projects

ecosystems. The emission of fine dust particles and greenhouse gases

Agrifirm’s Business Excellence projects are a great example of actively

will increase, accelerating climate change. Agrifirm closely monitors

working on improving efficient production and logistics. These

the emission of greenhouse gases and the share of renewable energy.

projects aim to improve various business processes in Agrifirm. The goal is higher customer satisfaction and better performance by

Our Objectives

working more efficiently. In a Business Excellence project, various

Agrifirm aims to improve its organisation’s energy efficiency by 15

measures relating to production and logistics are implemented to

percent in 2025, compared to 2015. For all production site, we aim to

improve efficiency. For example, the ‘Order to Cash’ project is designed

also improve energy efficiency by 15 percent in 2025. Furthermore,

to gain insight into the bottlenecks in the order process, ensuring

Agrifirm aims to have binding agreements with its carriers on reducing

that nothing can go wrong in this process. The aim of the project is

The true benefit is that we continue to improve “The animal feed market in Hungary poses two major challenges: maintaining and expanding our market position and responding to our customers’ wish for high-end custom products and services at sharp prices. In 2012, our production, efficiency and flexibility were not yet sufficient. This is why we implemented a Business Excellence project in 2013, taking measures such as innovating the feed formula, restructuring production planning and more accurate order forecasting.

The project reduced operational costs, providing more insight into the business processes. The result was worth it.

In 2014, our product efficiency improved by eight percent and our energy efficiency by twelve percent. However, the biggest gain of all was that our team continues to improve, even without the Business Excellence project.

We are now truly aware of the benefits we can achieve by improving our business processes. This is necessary to continue operating with a competitive edge, realising more with less and decreasing our environmental footprint. I am convinced that continuous improvement is crucial to Agrifirm’s future.”

Alexander Drees, managing director Agrifirm Magyarország

22

Agrifirm

2014 Corporate Sustainability Report

2014 compared with reference year

Agrifirm Feed

Belgium

Poland

Germany

Hungary

NutriNuscience Control

Opeinde

Oldambt

Veghel

Baasrode

Drongen

Bocs

Gyor

Kaba

Neuss

Topola

Szamotuly

Margonin

Grobbendonk

Zwolle

Wanssum

Veghel

Oss

Meppel

Emmen

Drachten

160 140 120 100 80 60 40 20 0

Oldambt

to be a reliable partner and more efficient production. The Business

decreased due to increased feed meal production. This production

Excellence project in Hungary had the highest impact in 2014.

increase was not factored into the EEI calculation as no feed meal production was made in the reference year, 2010. The German

Energy Efficiency

plants achieved good results, among others by better monitoring

Since 2013, Agrifirm calculates the EEI (Energy Efficiency Index) for

energy efficiency. In Hungary, the Bocs plant closed in late 2014. The

most plants. This enables Agrifirm to identify the energy consumption

EEI of both Gyor and Kaba was lower as a result of increased pellet

by product unit at key production sites. The index indicates the energy

production. We replaced two loose pelletizer machines with a single

efficiency in comparison to the 2010 reference year. In Agrifirm Feed,

large-capacity machines with higher energy consumption. The Kaba

the reference year is 2011, as this was the first year Agrifirm measured

plant also used the drier more because the corn was wetter than in

the EEI of production sites. By annually repeating this survey, the

previous years.

energy efficiency trend at each site becomes evident and this provides Agrifirm with an accurate impression of the impact of implemented

The EEI of the Baasrode production site of Nuscience Group decreased,

efficiency measures.

as the plant is closing in 2015 and Agrifirm no longer invests in this site. The results of NutriControl improved in 2014, among others due

The EEI shows some ups and downs; for some sites it decreased,

to renovation and a Black Belt project. This allows personnel to more

whereas others show an increase. In Agrifirm Feed’s Emmen

efficiently align activities with each other and to more efficiently utilise

production site, the EEI decreased due to closing the plant in October

equipment. The results of the Oldambt site of Oldambt BV improved

2014. The EEI of the Drachten production site improved thanks to a

thanks to a dry season. This allowed for properly drying the lucerne on

renovated steam boiler and increased capacity. As the plant in Oss

the field, requiring less energy for processing this crop. The Opeinde

required more energy to improve pellet consistency, its EEI decreased.

site used more energy as the grass was harvested longer and with higher moisture content in comparison with previous years. For this

The Szamotuly site of Agrifirm Polska improved its energy efficiency

reason, the site used more fuel per tonne of dried product.

once more by investing in a new engine. The EEI of the Margonin plant

23

Agrifirm 2014 Energy Consumption

repeating the energy efficiency survey, the energy efficiency trend at

Energy consumption of the companies in the Agrifirm Group

each site becomes evident and this provides Agrifirm with an accurate

last year amounted to:

impression of the impact of implemented efficiency measures. In the

2013 2014

Gas (m ) 3

14,814,015

12,888,053

93,539

329,836

159,019,319

154,468,567

9,881

13,631

Gas (l) Electricity (kWh) Coal (tonnes)

past few years, we made progress. The goal is further improvement in the EEI in the coming years. Increasing the share of renewable energy is part of this goal.

Investing in a better environment

787,501

639,908

Agrifirm’s production and logistics contribute to the emissions

Diesel (l)

5,335,582

507,062

of greenhouse gases, among others. In 2014, therefore, Agrifirm

Petrol (l)

23,930

20,518

invested in various measures designed to decrease the environmental

AdBlue (l)

31,200

0

footprint. Agrifirm Feed invested € 75,000 in the Wanssum production

Share of renewable energy

3.16%

2.56%

site for better extraction of the silos in order to reduce emission of

Heating oil (l)

gases. Agrifirm Deutschland invested € 80,000 in a new control system for efficiency improvement in the Drentwede site.

Compared with 2013, gas consumption (m3) decreased, among others because Agrifirm Plant used less gas. In 2014, growers

More energy-efficient transport

harvested relatively dry grains, resulting in less gas required to dry the

Transporting products is responsible for a significant portion of

grain. The use of coal (per tonne) increased as Oldambt BV used more

Agrifirm’s energy consumption and therefore its CO2 emissions.

fuel to dry the grass after a long, damp season. The use of diesel and

From 2014, Agrifirm outsourced all of its transport of animal feed to

AdBlue significantly decreased because Agrifirm Feed has outsourced

customers. Agrifirm will make binding agreements with its carriers

the carrier activities from 2014.

on reducing energy consumption and emissions due to transport.

Agrifirm Feed also supplied bags and units on varying days in 2014.

Renewable energy by site

This allowed for more efficiency, optimising the carrier planning. Due

Agrifirm has invested in reduction measures in the past few years

to optimised carrier planning this resulted in lower CO2 emissions and

to improve the EEI of production sites, among others. By annually

fewer kilometres. Furthermore, in 2014, 35% of the fleet of Agrifirm

Renewable energy 1,2 1 0,8 0,6 0,4 0,2

2010

24

Agrifirm

2014 Corporate Sustainability Report

2011

2012

2013

2014

Agrifirm Winkel BV

Nutricontrol BV

Agrifirm Exlan

BV Oldambt

Abemec BV

Agrifirm Plant

Feed Belgium

Agrifirm co-products

Agrifirm Hungary

Agrifirm Polska

Agrifirm Deutschland

Nuscience NV

Agrifirm Feed BV

Agrifirm Group

0

Feed’s carriers consisted of Euro6-certified trucks in order to reduce

more professional. This measure has significantly decreased the number

the emission of NOx and fine dust particles.

of transport journeys in the polders, increasing road safety.

In 2013, Agrifirm Plant decided on contemporary logistics, customised

CO2-Emissions

to the customer’s wishes. In 2014, this was implemented in the entire

Based on energy consumption, Agrifirm calculated its CO2 emissions

country for a full year for the first time. Agrifirm Plant replaced the

(Organisational Environmental Footprint) in 2014. The results of

method of having the customer pick up his/her products by full

the CO2 emissions are based on the emission factors published by

service delivery with the motto ‘efficient if allowed, rush if required’.

Stimular (on the basis of CE Delf 2010) and the Climate Neutral Group

Using the ‘ex farm’ concept, the grower collects the grain at the farm

(on the basis of NL Agency, 2012 CO2 performance ladder). In 2014,

yard, where Agrifirm Plant picks it up within one week at no cost. In

our emissions amounted to:

2013, the cereals were centrally stored in the new grain storage in Kampen for the first time. In 2014, the second section of the storage

CO2 emissions from direct energy consumption:

facility was commissioned. In 2014, Agrifirm Plant also operated with

fewer carriers.

CO2 emissions from indirect energy consumption:

61,175,090 kg CO2 equivalent 77,036,084 kg CO2 equivalent

From the efficiency statistics for all product types, it is clear that the 2014 mileage is higher than in 2013. This increase is mainly due to two

The CO2 emissions from direct energy increased compared to 2013

causes. In the first place, the choice of continuing to offer rush orders to

because Oldambt BV used more coal to dry the grass. The grass was

members and customers cause sub-efficient loading of trucks. Another

longer, but also damper when harvesting.

cause is Agrifirm taking over carriage from the growers, such as based on the ‘ex farm’ concept. Due to using large trucks with a higher loading

Green Lease

capacity such as 30 tonnes, Agrifirm Plant is able to pick up the grain

The number of Agrifirm employees with a green lease car rose from

harvest from growers using lower mileage than the growers, who

76 in 2013 to 81 in 2014. The data provided by the lease company

would have to drive the distance several times for the same load. This

show that in 2014, the average CO2 emissions per kilometre of the

has made ‘ex farm’ transport of cereals more efficient, but also safer and

employees with a green lease contract is 152 grammes per kilometre.

25

5. Efficient Use of Raw Materials Efficient production results in a smaller environmental footprint. Efficient use of raw materials ensures that more can be produced with less. This is why Agrifirm invests in research for the purpose of introducing product innovations that help our members and customers to achieve higher production with less feed, fertilisers or crop protection agents.

Efficient use of fertilisers and crop protection agents benefit the

developed in 2014. Based on GPS, Agrometius records data, among

environment and the entrepreneur’s wallet. More with less is a key

others on the variation in organic matter, pH, EC (salt concentration)

starting point in realising sustainable agriculture. Although Dutch

and the altitude of the soil within a plot. These data are calibrated

agriculture is already one of the most efficient in the world, there is

with soil samples. Subsequently, Agrifirm Plant specialists prepare

still plenty of room for improvement.

a job card together with the grower that the grower or worker can use to fertilise, chalk or apply crop protection to specific spots.

Our Objectives

This means growers have fewer corrections to make during the

By 2025, Agrifirm will have developed sustainable agricultural

cultivation and allows for optimising crop growth. The result is

practices. The aim is to assist Agrifirm’s members and customers

improved yield, higher revenue and more specific use of fertilisers

achieve efficiency improvements. This is designed to help Agrifirm’s

and crop protection agents.

members and customers in reducing the environmental footprint of animal and arable production by 15 percent in 2025 compared to 2015. Agrifirm actively encourages manure processing by members and customers, in order to ensure optimal use of valuable components in organic manure. This is how we help our members and customers use raw materials efficiently.

Smart Dairy Farming The Smart Dairy Farming innovation project in which Agrifirm participates is another great example. This project serves to develop new technology, linking data and translating the data into realtime work instructions for dairy farms. This increases the dairy cows’ lifespan and improves their health. In 2014, the project succeeded in developing the first ten real-time work instructions for individual cows.

Dairy farmers in seven pilot companies tested the work instructions.

This is the first step in precision feeding, helping cows grow older in good health with more productive years.

Veris soil scan In order to efficiently use raw materials and fertilisers, Agrifirm Plant and Agrometius offer growers the Veris soil scan. This scan was

26

Agrifirm

2014 Corporate Sustainability Report

This is how we make the step to real-time livestock management “In the Smart Dairy Farming project, we have partnered with chain parties in a new approach of real-time translation of data on individual dairy cows into practical advice for the dairy farmers. A treasure of data is available from each dairy farm, some measured using sensors.

Using these data on a real-time basis, we are shifting towards precision livestock farming, with each individual animal receiving the feed and care that it requires at that time. This results in healthier animals that live longer and it contributes to more sustainable supply chains.

Combining knowledge of genetics, nutrition and animal health serves to extend the life of dairy cattle by at least one lactation period.

For example, the rumen is a complex ecosystem that is quickly out of order, with major consequences to the health and life span of the animals. Sensors provide a real-time impression of the developments of rumen health. This way, the farmer can manage a condition long before the cow gets sick, for example by reducing the amount of pelleted feed. We are currently developing models for individual feeding based on production and health data. I also call this ‘smart feeding’ or ‘precision feeding’. This way, each animal receives optimal feed rations, saving on raw materials.

These developments help us make the step from concluding that something is wrong when a condition is visible to real-time assessment and early health management of individual cows. The result is healthy cows that grow older and are consequently productive for a longer time. Efficiently using raw materials, decreasing the environmental impact and improving animal health in companies improve the profitability of agricultural companies.”

Albert van den Belt, director Agrifirm Innovation Centre

Biological soil remediation In 2014, Agrifirm Plant and other parties started up a pilot project

utilisation of nitrogen and phosphate than regular corn. Furthermore,

for a new method of biological soil remediation targeting harmful

Top Coat corn shoots up quickly with high starch yields. A win-win

nematodes. The results of existing biological soil remediation vary

situation.

and a full growing season is often lost. The new ‘Soil Reset’ method is more practical and can be completed in a short time. In 2015, the

In 2014, Agrifirm Plant, together with other parties, introduced a

first results of the Soil Reset method are expected for bulb crops and

Toolbox to help growers keep the surface water cleaner. The Toolbox

open field vegetable crops. If the method works well, it provides an

contains 17 information cards with practical measures to reduce

environment friendly and safe alternative to regular remediation

the emission of crop protection agents to the surface water. The

agents, also for other crop cultivations. This enables Agrifirm Plant to

Toolbox perfectly matches the government’s objectives and makes

contribute to a sustainable crop cultivation that has less of an impact

growers aware of the emission routes in their company. Agrifirm Plant

on the environment.

encourages members and customers to use the Toolbox. In this context it is important to thoroughly inform the growers about the practical

Agrifirm Plant innovations

application. This is why the Toolbox is extensively highlighted in

Innovations such as the corn seed coating Top Coat by Agrifirm Plant

customer meetings, lectures to growers and newsletters. Additionally,

are good examples of high-impact innovations. This coating does

Agrifirm Plant also researches the possibilities of purification of

not contain any inorganic phosphates. Instead, it ensures better soil

residual liquids.

27

Phosphate reduction Phosphate is a key component of animal and plant food. Agriculture

Efficient feedstuffs and concepts of Agrifirm Feed

uses phosphate from raw phosphate in animal feed and fertilisers.

Excess phosphates are bad for the environment and nature.

In late 2014, Agrifirm Feed was the first animal feed

Additionally, raw phosphate is getting scarce. This is why we are

company to introduce sustainability labels providing

focusing on reducing phosphates in animal feed and fertilisers,

specific information on the sustainability performance

and efficient use and re-use of phosphate. Agrifirm Plant’s research

of feed concepts and products. This way, Agrifirm Feed

is focused on optimal yields and soil fertility with less phosphate.

helps customers have an impact on their own company.

Agrifirm Feed emphasises reducing phosphates in animal feed. A total

Additionally, we introduced new feed concepts, such as

reduction of 910,432 million kilogrammes of phosphate was achieved

Compound Feeding 2.0 for dairy cows. This approach

in 2014 in comparison to the 2009 reference year. This contributes to a

prevents feed selection, thus resulting in higher feeding

healthy environment and biodiversity.

efficiency and improved animal health. In 2014, Agrifirm Feed expanded the moist feed concept SOLIQ for laying hen poultry to broiler hen rearing stock. SOLIQ prevents

Reducing phosphate in animal feed

selective pecking of chickens, reducing the loss rate and increasing yield. Additionally, Agrifirm Feed introduced the

Phosphate reduction (kg

2014

new Robustior fattening pig feed for the finishing phase

Cattle

534,650 615,322

2013

of the pigs in 2014. This feed enables the customers to

Pigs

538,886 295,110

feed their fattening pigs even more efficiently. With the introduction of innovative feed concepts, Agrifirm Feed contributes to efficient use of raw materials, with gains both

In 2014, Agrifirm reduced phosphate further in cattle feedstuffs

for the environment and the entrepreneur.

because the feed had lower protein content. The cattle feed contained 2.42 percent phosphorus as the share of raw protein in

Please find below the fact sheet of SOLIQ. In 2014, Agrifirm

the feed. This is well under the 2.5 percent standard as agreed in

started calculations of the sustainability performance of this

the Nevedi covenant. In 2014, Agrifirm realised lower phosphate

moist feed concept for poultry.

reductions in pig feedstuffs. The share of co-products from the food industry, such as semolina and sunflower kernels increased in pig feed. These co-products often have high phosphorus content that is not always bio-available to the animals and reduces phosphate reductions.

(Factsheet)

DuurzaamheiDsprestaties van sOLiQ Vijf labels

Duurzaamheidslabels voor verantwoorde keuze

The Cycle Management Guide brings the feed, manure and soil cycle of a dairy farm into focus. These data enable the dairy farmer to better

diergezondheid, Er zijn vijf labels: mineralenefficiëntie, grondstoffen. klimaat, recycling en verduurzaming en geeft concrete Elk label heeft een eigen symbool sprestaties van uw informatie over de duurzaamheid we u een volgende voerconcept of product. Zo helpen voedselvoorziening. stap te zetten naar een duurzame sprestaties van SOLIQ. Hieronder vindt u de duurzaamheid

gezond en Negen miljard mensen voorzien van uitdaging waar de duurzaam voedsel. Dat is de grote leden en klanten wereld voor staat. Agrifirm helpt manier voedsel te om op een rendabele en duurzame rijf kiest Agrifirm produceren. Als eerste diervoederbed en concepten. voor duurzaamheidslabels voor voeders te geven in de De labels zijn bedoeld om inzicht concept of product. duurzaamheidsprestaties van het

sOLiQ

respond to the needs of the crops and the directives for applying manure on his own grounds. The Agrifirm dairy farm advisors are trained to support dairy farmers in using the Cycle Management Guide.

Mineralenefficiëntie Op het gebeid van mineralenefficiëntie zijn er geen aanzienlijke veranderingen te verwachten.

Recycling

Klimaat

Diergezondheid

Co-producten

Carbon Footprint

Gezondheidseffect

N en P efficiëntie

Door een vlotte en uniforme voeropname is de gezondheidstoestand van het koppel veel stabieler en is er minder uitval.

SOLIQ bevat 11% meer co-producten dan gangbaar pluimveevoer.

Doordat soja wordt vervangen voor een vergelijkbaar deel co-producten, bereikt u met SOLIQ een hoge reductie van klimaatemissies per kg ei.

Reductie

0,5%

N efficiëntie

P efficiëntie

Het landgebruik per kg ei daalt met 7,3%, mede door de aanzienlijke stijging van het aandeel van co-producten.

Reductie

Reductie

Reductie Verhoging

0,4%

Verduurzaming grondstoffen Landgebruik

7,3%

11%

5,0%

N efficiëntie Landgebruik

Co-producten

Carbon Footprint P efficiëntie

Voor elk duurzaamheidslabel geldt Legenda: negatieve impact

een andere schaalverdeling. U vindt Neutraal

deze op de laatste pagina van deze

factsheet.

positieve impact

schakel in succes

28

Agrifirm

2014 Corporate Sustainability Report

29

Investing in valorising manure

Use of organic fertilisers

Under new manure legislation, it is mandatory for farmers with excess

More efficient use of organic fertilisers is a key objective to Agrifirm Plant.

manure to process a portion of their manure. Manure processing

This strategy of Agrifirm Plant is effective; the sales volume of organic

converts manure into valuable nutrients and organic materials for

fertilisers and liquid manure once more increased in 2014. The sales

the soil. This allows for efficient utilisation of manure flows and the

volume of stackable fertilisers is comparable to that of previous years.

proper use of these new organic manure flows improves soil fertility.

Agrifirm is one of the initiators of the Manure Investment Fund. This

The sales volume of compost slightly decreased in 2014 due to lower

fund stimulates specific investment plans for manure processing. In

supply and increased prices. In 2014, entrepreneurs also used more

2014, the fund financed the second and third manure processing

slurry and due to limited storage space, this decreased the sales

project. This allowed the fund to realise 430,000 kg of phosphate for

volume of compost. In 2015, Agrifirm Plant aims to become a party

exporting abroad.

adding value in the residual flows column.

Organic fertilisers 600.000 500.000 400.000 300.000 200.000 100.000 0 2008 Liquid (t)

2009

2010 Stackable (t)

2011 Compost (t)

2012

2013

2014

Organic fertilisers

Water consumption With the growing world population, demand for food and water increases accordingly. Simultaneously, availability of water decreases due to water wastage and pollution, climatic change and deforestation. Agriculture is a major water consumer. Worldwide, about 70% of the available water is used for agriculture. A sound water level and effective water management are basic requirements for healthy agriculture.

To ensure future supply of sufficient clean water, Agrifirm is committed to awareness in using water. This is why Agrifirm uses water conscientiously in its various product sites. However, the highest impact in terms of water is achieved on the farm yard. This is why Agrifirm Plant developed innovative irrigation methods that reduce water consumption in order to achieve optimal results with minimum water quantities.

30

Agrifirm

2014 Corporate Sustainability Report

Sensetion soil water sensor In the past year, Agrifirm Plant and Dacom launched a sensor system for agriculture and horticulture on the market: Sensetion. This sensor system for growers indicates exactly when a plot should be sprinkled. This concerns a soil water sensor interacting with a mobile app for irrigation advice, and is user-friendly. Sensetion is equipped with intelligent sensor technology.

Effective water management quickly pays back the investment. In dry areas, the added value is mainly in saving water. In wetter areas, such as the Netherlands, irrigation at just the right times allows for higher quality of the harvest and higher yields. So specific irrigation is not only better for the crops and the soil, but it also results in direct savings on water consumption. Fuel use is also lower due to fewer transports to the plots and lower diesel use during irrigation. Furthermore, the system itself fully operates on solar energy.

31

6. Healthy Plants, Soil and Animals for Healthy People Plants and animals with high natural resistance need fewer supporting substances such as crop protection agents and veterinary drugs. This benefits plants, animals, the environment and the entrepreneur’s wallet. Eventually, healthy plants and animals of course also contribute to improved human health.

Due to increasing urbanisation, consumers are not as close

Concepts for healthy animals

to agriculture as before. Sustainability is linked to traditional

A feed concept or product that is optimally aligned to the needs of

craftsmanship. New technology based on chemistry and modern

the animal is a great basis for healthy animals. In early 2014, Agrifirm

breeding methods are mistrusted. Using substances such as crop

Feed introduced the innovative concept Line-Up, housing hens and

protection agents and antibiotics are under the scrutinising eye of

cocks separately in the same stable but giving specific feed to each.

society, often with a ‘zero tolerance’ filter. Healthy plants, soil and

This is an optimal response to the specific nutrient needs of hens

animals reduce the need for corrective measures such as the use of

and cocks. This results in healthier chicks, fewer foot sole problems

crop protection agents and veterinary drugs. This is why Agrifirm is

and better yield for the entrepreneur.

committed to plants, soil and animals with high natural resistance.

This decreases the necessity for corrective measures such as the use

Additionally, Agrifirm introduced the concept Roughage Total

of veterinary drugs or crop protection agents.

in 2014. This concept ensures optimal alignment of regulations, soil, fertilisation, crop, harvest and nutrition. This always centres

Our Objectives By 2025, Agrifirm has developed sustainable agricultural practices, including natural crop protection and a 20 percent increase in the use of green crop protection agents. Reinforcing natural resistance of animals will reduce the use of veterinary drugs by our members and customers by 20 to 30 percent compared to 2015.

Healthy soil and balanced plant and animal feed is the basis for profitable and sustainable agriculture. Balanced plant and animal feed is the basis for profitable and sustainable agriculture. Feed concepts such as OPFOK24 for dairy cattle and Line-Up for broilers are fine examples showing how Agrifirm is contributing to healthy animals. Agrifirm also actively works on healthy soil.

32

Agrifirm

2014 Corporate Sustainability Report

on the need and nutrition of the cow. This concept enables the

Vitanox and Vitafix for healthy young animals

entrepreneur to achieve excellent yields on healthy cows.

In 2014, Health4U’s R&D department, part of Nuscience, introduced the natural anti-oxidants Vitanox and Vitafix. Adding Vitanox to

In 2014, the sustainability labels were calculated for the existing

feed reduces the number of harmful free radicals while requiring

concepts OPFOK24 and the 100 days concept. Agrifirm Feed’s

less vitamin E. This gives the animal better protection, which has

OPFOK24 concept for dairy cattle is a structured schedule with

a positive impact on health. Health4U also developed the feed

specific feedstuffs and advice for efficient rearing of young cattle. The

additive Vitafix, countering mycotoxins. Mycotoxins can suppress

100-day approach for dairy cows contains the right products and the

the immune system, making animals more vulnerable to diseases.

best recommendations concerning nutrition, accommodation and

Vitafix enables the entrepreneur to actively work on having healthy

the care of cows around calving time. This results in fewer digestive

animals that require fewer veterinary drugs.

diseases around calving time and increased life-time production.

Attention to healthy soil is a stayer “Healthy soil is a vital part of worldwide food supply. If the soil is balanced in chemical, physical and biological terms, you can say that the soil is healthy. This would involve the right balance of nutrients and trace elements suitable for the soil type; a sound ratio of air, water and soil; and healthy soil life with sufficient organic matter content. The soil can properly feed the plants only if all of these elements are balanced.

In our cultivation advice for healthy soil, we focus on two aspects. We advise growers how to balance the organic matter content in order to maintain soil fertility and soil health. We also advise on proper nutrient supply. In particular in clay grounds, this affects the right structure in the soil. In the past year, we once again launched a number of innovative products that help growers in that respect.

NemaDecide is a nematode advisory system, among others for potato growers, to manage the correct crop rotation for proper control of pathogen soil life. We converted the system to Geonema in 2014, which is a system accessible via internet. This enables growers to calculate the development of pathogenic nematodes during a period of over ten years based on certain crop rotations and crop selections. This helps growers to prepare a healthy crop rotation schedule in terms of nematode control. We are set to roll out Geonema in 2015.

Another great example is Mycorrhiza, a mould that lives symbiotically with plant roots, assisting in better access to nutrients and water.

Mycorrhiza is suitable for healthy soils, but requires the grower to adjust fertilisation and the use of crop protection agents. Together with our partner BioMygreen, we marketed Mycorrhiza moulds in 2014 for a number of new crops, such as onions, flower bulbs and tree crops, and also for public landscaping. We offer a comprehensive solution, so we also give the growers advice on how to best make their crop ‘Mycorrhiza-proof’.

Attention to healthy soil is certainly a stayer. Concepts such as Mycorrhiza are just the start of what is possible.

In our crop advice and research, the added value to the customer always has the highest priority. After all, we are not researchers solely on a quest for knowledge in itself.”

Aaldrik Venhuizen, manager Research & Development Agrifirm Plant

33

Agrifirm Plant testing In 2014, Agrifirm Plant conducted tests all year, testing innovations relating to fertilisation, crop protection agents, soil health and soil fertility. These tests are designed to collect knowledge and translate it to the customer’s situation. For example, in 2014, we tested Top Soil humus acids that can be used for better availability of soil phosphate to plants. This helps them grow better. We also researched improving soil health using Mycorrhiza. Agrifirm Plant developed an innovative cultivation system in onion crops using Mycorrhiza. In 2014, we extended this system to potato and bulb crops. We also deploy this beneficial mould in sports fields.

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Agrifirm

2014 Corporate Sustainability Report

Implementation Cycle Management Guide As from 2015, the Cycle Management Guide is mandatory to dairy farmers with a phosphate surplus. The Cycle Management Guide brings the feed, manure and soil cycle of a dairy farm into focus. This data makes it easier for the farmer to take the impact on the soil into account and to opt for a different feed ratio and a more efficient fertilising method.

It enables better performance of both plants and animals, and benefits the environment. Agrifirm Exlan, a member of the Agrifirm Group, advised 15 study groups of dairy farmers concerning the Cycle Management Guide in 2014.

Contribution of Innovation Projects to Sustainability Agrifirm is investing in fundamental and practical tests to realise

projects in 2014 contributed to people’s and animal’s health (People),

higher yield and sustainability impact on the farm yard, to maintain

biodiversity and the emission of greenhouse gases (Planet) and

its position as market leader and to contribute to sustainable food

returns for the farmer (Profit). The percentage of the research projects

supply. As in previous years, AIC, Agrifirm Plant and Agrifirm Business

with specific focus on people, planet and profit are presented in the

Excellence (BE) conducted a sustainability scan to determine which

table below.

People Contribution to improvement public health consumer level:

AIC 25%

Plant 14%

Contribution to preventing human resistance to antibiotics:

AIC 42%

Improvement of animal health and animal welfare:

AIC 50%

Contribution to training internal or external involved parties:

AIC 58%

Plant 31%

Biodiversity: improve phosphate efficiency soil:

AIC 50%

Plant 39%

Biodiversity: improve nitrogen efficiency soil:

AIC 8%

Plant 39%

Biodiversity: improve soil physics:

AIC 50%

Plant 42%

BE 92%

Planet

Biodiversity: improve the use of Crop Protection Products:

Plant 28%

Climate: curb the emission of heavy greenhouse gases (methane and nitrous oxide):

AIC 8%

Climate: improve feed conversion:

AIC 71%

Climate: reduce own energy consumption:

AIC 17%

Alternative sources of protein:

AIC 21%

BE 15%

Plant 3%

Reuse of raw materials (recycling)

Plant 6%

Air and water quality:

Plant 6%

Profit Direct cost reduction of own and/or member activities:

AIC 92%

Plant 36%

BE 77%

Internal collaboration:

AIC 85%

Plant 22%

BE 100%

Collaboration within the chain:

AIC 46%

Plant 19%

The research projects of Agrifirm focus on a wide range of subjects

protection agents is required when using the Cleanlight treatment

within the themes of people, planet and profit. Research can score

unit. Simultaneously, it improves yields as it tackles a virus in the crop.

on the various themes, which explains the variation in percentages.

This research therefore also contributes to the Profit theme.

A great example is the research into the feed conversion for the 100-day plan. This research was about looking for ways to improve feed efficiency and simultaneously to realise a better bottom line for the livestock farmer. The research into the Cleanlight treatment unit for flower bulbs is a great example of this ‘cross-pollination’. The research contributes to the theme Planet as a lower amount of crop

35

7. Contributing to a Sustainable Consumer range Agrifirm is committed to offering consumers the choice of responsible products. Agrifirm sees growing attention for the influence of food on health. Simultaneously, interest in recognisable products is growing.

In order to encourage the production of sustainable products, collaboration in the chain is essential. This is why Agrifirm supports livestock farmers in optimising outdoor grazing with the Meadow Compass. In this way we contribute to the dairy produced from cows that graze in meadows.

Worldwide, a growing percentage of people age 20 and older are

broiler chicks using only European raw materials. The study showed

overweight and have health issues, with unhealthy food as a major factor.

that it was not possible to compose optimal feed for the broilers

Sufficient supply of sustainable and healthy products can change the

using the available raw materials. In particular the levels of a number

consumption pattern. Simultaneously, Agrifirm notes that society shows

of amino acids fell short. Research to find the best alternative showed

a growing interest in recognisable products and transparent production

that the feed profit was lower by 30%. We aim to be an discussion

processes. Consumers increasingly label ‘regional’ products as sustainable

partner to chain partners by conducting research and contribute to a

and healthy. This is why Agrifirm invests in new chain concepts, reducing

sustainable range for consumers.

chain length or processing locally sourced raw materials.

Our Objectives

Agrifirm Plant in ‘Did you know that?’

By 2020, Agrifirm wants to be the main partner for chain parties

In 2014, one edition the popular RTL4 TV show ‘Did you know that?’

in developing and testing new chain concepts. This is why

focused on leeks. In this broadcast, a cultivation specialist, an Agrifirm

Agrifirm participates in partnerships such as the ‘Brewing Barley

Plant customer, told viewers all about sustainable cultivation of leeks.

from Sustainable Crops in the Netherlands’ project. In this project,

Relating to growing sustainable leeks, we are actively working on

Agrifirm Plant, Heineken Netherlands and Holland Malt collaborate

a sustainable consumer range. The ‘Did you know that’ broadcast

in developing the market for sustainable brewing barley up to

offered consumers an insight into sustainable cultivation of a

15,000 tonnes in 2015. The 2020 target is to grow 50,000 tonnes of

frequently used vegetable in the every-day Dutch kitchen.

sustainable brewing barley. Agrifirm Plant is testing barley varieties with excellent growing properties, thus supporting sustainable cultivation of brewing barley.

Carbon footprinting Carbon footprinting is the calculation of the total greenhouse gas

European animal feed study

emissions of a product throughout its entire lifespan. This subject

Protein-based raw materials are a vital component in animal feeds.

is gaining in prominence on the agricultural sector’s agenda in the

In Europe, we import a relatively large amount of protein-based raw

Netherlands, Europe and throughout the world. Through a partnership

materials such as soy. This increases the environmental footprint,

between the FEFAC (the European Federation of Compound Feed

among others due to transport. Various chain parties are interested

Manufacturers) and the UN Food and Agriculture Organisation (FAO),

in European raw materials for animal feeds. In 2014 at the Laverdonk

Agrifirm is working on the international standardisation of the FeedPrint

experimental farm, Agrifirm studied the consequences of feeding

methodology. The partnership launched the Livestock Environmental

36

Agrifirm

2014 Corporate Sustainability Report

Assessment and Performance (LEAP) partnership. In 2013 this

kilogrammes of emissions released during the production of a

partnership worked on a global methodology for CO2 footprinting for

kilogramme of milk, meat or eggs produced using Agrifirm Feed’s

animal feeds. In 2014, an agreement was reached and final guidelines

feeds. The carbon footprint of chicken meat and milk remained

were published. In addition, the FAO and the American animal feed

fairly stable compared to previous years. The footprint of eggs

industry are consulted concerning the creation of a global database for

showed a slight decline. The carbon footprint of pork is slightly

data on the environmental impact of certain raw materials.

higher due to adjustment of the piglet feed calculation method.

The adjusted method is based on a new definition, for example of

The CO2 Footprint of Milk, Meat and Eggs

the energy required for growing and drying the crops for piglet

The infographic below illustrates the CO2 equivalent number of

feed.

Carbon footprint

Kg Co2 eq/ton product

5000

LuLuc

4000

Feed

3000

Farm

2000

Pig meat

Chicken meat

Milk

2014

2013

2012

2011

2010

2014

2013

2012

2011

2010

2014

2013

2012

2011

2010

2014

2013

2012

2011

0

2010

1000

Eggs

Sustainable brewing barley is a great example of successful chain development “In the past three years, about 70 growers of Veldleeuwerik Foundation were growing brewing barley on Dutch soil with sustainable methods. Agrifirm Plant provides, among other things, accredited advisers, who issue advice to the growers relating to sustainable cultivation of brewing barley. Holland Malt is responsible for malting the barley and subsequently Heineken brews beer from the malt. In 2014, the brewing barley growers of Veldleeuwerik Foundation supplied 8,000 tonnes of sustainable barley, allowing Heineken to brew as much as 440,000 hectolitres of beer.

We think it is important that the brewing barley is cultivated also in the Netherlands. This projects gives us a direct link with the Dutch brewing barley growers. In this case, the growers are very special because they develop sustainable agriculture. The project is a fine example of successful chain development that also supports the transition towards sustainable agriculture. That is also the reason for us to continue our partnership with Agrifirm Plant and Holland Malt, having extended the project by three years.

The first three cultivation years were successful, and so we increased the target to 15,000 tonnes of sustainably grown brewing barley in 2015. Our ambition is 50,000 tonnes of sustainably grown brewing barley by 2020. We also introduced a field shoulder scheme to the growers, making sowing seeds for flower strips available free of charge to the growers. This way, we promote both biodiversity and the grower’s image. Heineken aims to become the greenest brewer in the world, and that means good collaboration with committed partners such as Agrifirm Plant are essential.”

Jan Kempers, manager Sustainable Development, Heineken Nederland BV

37

8. The Basis for Success Expert, motivated employees are indispensable to a successful enterprise. It is important for Agrifirm to recruit and retain talented employees. This is why Agrifirm creates a stimulating and inspiring work environment and invests in sound terms and conditions of employment and in training opportunities and career development.

Agrifirm is committed to being an attractive employer. This is how

Leadership

we can recruit the best employees and achieve the best results.

Agrifirm aims to be the best company in its market by 2016. The way in

Corporate social responsibility and relevant business operations are

which managers exercise their responsibilities is very important in this

vital therefore. Offering excellent opportunities for further growth

respect. This is why Agrifirm is implementing the Leadership@Agrifirm

and a pleasant company culture are also factors in Agrifirm’s success.

project. This project is a continuous process and a development

Agrifirm aims to take good care of its employees, and consequently

initiative for the entire organisation. Furthermore, Agrifirm frequently

invests in excellent employee benefits and training options.

organises training for ‘Young Employees Agrifirm’ (YEA) for employees up to age 35 with a higher education level.

Our Goal In order to remain successful, Agrifirm aims to be the most favourite

Training cost per employee

employer of the agricultural sector by 2020. By 2020, Agrifirm has

In addition to leadership training, Agrifirm invests in (further) training,

developed leadership as one of the key success factors of the

for example relating to working conditions and safety.

company. This is clear, among others, from a large share of internal Expenses for training employees (x 1000 euro)

promotions.

1

2013 2014

Agrifirm Group

1079 1221

Agrifirm Feed

Agrifirm best employer 2014!

217

98

Nuscience Group

123

244

Agrifirm Germany

1433

155

Agrifirm Poland

83

120

Agrifirm Hungary

85

86

118

42

Agrifirm Co-products

Best employer agricultural sector

Agrifirm Belgium

The journal ‘V-focus’ performed an online survey in 2014 among

Agrifirm Plant

students of agricultural curriculums of four agricultural academies,

Abemec

1389 1125 749

945

1753 1944

Wageningen University and Utrecht University. Students were

Oldambt BV

103

90

asked for companies where they would like to work. Agrifirm was

Agrifirm Exlan

971

549

mentioned at the students’ initiative most frequently and was chosen

NutriControl

707 0

as best employer in the survey. We were proud to receive the V-focus

Agrifirm Winkel

233

award. This highlights that Agrifirm is appreciated for its activities in

AgriRetail 297

the employee context.

38

Agrifirm

2014 Corporate Sustainability Report

91

We aim to be a leading employer “After Agrifirm’s merger with Cehave Landbouwbelang in 2010, we already expressed the ambition to be part of the top 3 favourite employers in the agricultural sector. This ambition expresses our scale and market position. When restating our sustainability policy, we also determined we aim to become a leading employer. As a top company, recruiting and retaining talents is essential. Products and services are important - but without the right people, the company is not ‘rolling’.

International collaboration In line with its commitment to corporate social responsibility,

So in the next few years we will continue to look for potential

Agrifirm contributes to developing the agricultural sector in

employees from outside the agricultural sector. This enables

various developing countries. Agrifirm Plant supports ‘Building on

us to invite new knowledge and competencies and stay a

fertile grounds’ between 2014 through 2016, a ZOA agricultural

large, international company. Additionally, the HR (Human

development project in Burundi. Various Agrifirm Plant specialists

Resource) departments of the individual companies will

visited the project to issue practical crop and cultivation advice. In

be collaborating to encourage internal promotion of

2014, a group of 13 representatives of Kenyan dairy cooperatives

employees. I think it is important that our staff can say: ‘I

visited the Agrifirm head offices. We exchanged knowledge during

can make a national or an international career at Agrifirm

this visit and explained our sustainability policy. This visit and some

within its group of companies’. This is why we introduced

missions to Kenya and Indonesia are part of the partnership with

an international performance management platform in

Agriterra. This organisation supports farmer organisations in their

2014, allowing employees to work on improving their

battle against poverty based on using experts from the Dutch

performance in a sophisticated way.

agricultural sector and sponsored by the Dutch government.

We also took a step forward in further leadership

Customer satisfaction

development of managers in 2014. Training managers

It is very important to any company to understand their customers’

enables them to support ambitious employees. In 2015,

opinion of them - also to Agrifirm. Therefore Agrifirm performs

we will continue working on this goal with the Agrifirm

a survey of customer satisfaction and its image once every two

Academy, supporting people in their personal development

years. In 2013 the survey showed that 84 percent of customers

plans. This will help us remain a leading employer in our

was satisfied. Improving customer complaint handling was one

sector.”

of the recommendations. Agrifirm Plant edited the procedure in a number of aspects. For example, complaints are recorded in a

Emiel Berg, director HR Agrifirm

complaints module, and we make a follow-up call on one in every five complaints to receive feedback on the handling of complaints.

The general target is to resolve 90 percent of all complaints within two weeks. Agrifirm Feed organised the ‘More Happy Customers’ promotion in 2014, and highlighted customer satisfaction during the 2014 field sales day. Agrifirm Feed also invested in improving complaint handling. This is how we reduced our customer losses by 30 percent. In the survey, almost all customers showed a positive attitude towards Agrifirm. Also non-customers are mostly positive about Agrifirm.

39

Health and safety policy

Accidents and Sickness Absence

Working in a safe environment is important for everyone. This is why

Agrifirm’s sickness absence rate was 3.7 percent in 2014. In comparison

Agrifirm initiated the Safety First Project in 2012. The objective of this

with 2013, the absence rate remained stable and the duration of

project is to reduce the number of accidents and to introduce safety

absence decreased. The frequency of accidents slightly rose.

principles. In 2014, all Agrifirm companies prepared an Annual Arbo

> Accident frequency (incidents per 1,000,000 working hours):

Plan (Working Conditions Plan).

3.9 percent in 2014, versus 2.5 percent in 2013. > Average duration of absence due to accidents:

The Agrifirm Group has good insight into the safety policies of the

10 working days in 2014, versus 22 in 2013.

different companies. In 2013 a quick scan was performed for the

> Rate of absence due to accidents:

Agrifirm companies in the context of the Safety First Project. The

0.2 percent in 2014, versus 0.2 percent in 2013.

scan was completed by all directors of the subsidiaries. The Agrifirm companies were questioned on eight components:

Fatal accidents happened to two Abemec employees in 2014. The causes of the accidents were investigated by the Labour Inspectorate,

> Having a safety policy in place

among others. This investigation did not turn up any lack of actions or

> Performing a risk identification

measures on Abemec’s part.

> Registration of accidents > Employee safety training

Average sickness absence as a %

> The presence of health and safety officers

Agrifirm Group BV (excluding participating interests) 2.3

2013

2014 4.4

> The presence of designated implementation officers with

Agrifirm Feed

4.7

4.5

specific authorities

Nuscience Group

1.7

2.1

> Safety consultation

Agrifirm Deutschland

7.5

3.4

> Performance of regular medical examinations (‘PMOs’)

Agrifirm Polska

2.5

7.1

Agrifirm Magyarország Zrt.

1.8

1.1

Based on the results, each company prepared an action plan in

Agrifirm Co-products

3.2

3.7

2014. Some implemented measures. Agrifirm Feed provided

Agrifirm Belgium

3.2

1.2

additional training relating to working conditions legislation and

Agrifirm Plant

2.7

2.7

safety. The safety officer passed his exam in 2014 and was certified

Abemec

3.6

1.9

as ‘Higher-Level Safety Expert’. The Emergency Response manager

Oldambt BV

5.9

7.3

also passed his exam and was certified as an occupational hygienist.

Agrifirm Exlan

3.7

2.9

Agrifirm Plant communicated the company regulations once

NutriControl

2.7

4.6

more, and trained employees in handling hazardous substances

Agrifirm Winkel BV

3.1

4.0

and loading trucks. Safety remains a recurring agenda item for

Agrifirm Retail

4.4

4.6

various Agrifirm units.

40

Agrifirm

2014 Corporate Sustainability Report

Gender

Composition of personnel population

Total number of FTEs in 2014: 3004

Male

74 %

Female

26 %

Total number of Employees in 2014: 3328 Distribution of Total Number of Employees

Age distribution

Agrifirm Group BV

66

Agrifirm Plant

238

Agrifirm Magyarorszรกg Zrt.

128

Agrifirm Feed

583

Abemec

233

Agrifirm Winkel BV

552

< 29

25 %

Nuscience Group

758

30-50

48 %

Oldambt BV

29

> 51

27 %

Agrifirm Co-products

142

Agrifirm Deutschland

194

Agrifirm Exlan

45

Agrifirm Belgium

32

Agrifirm Polska

125

Job Families

NutriControl

85

AgriRetail

118

Management

Commercie

23,7 %

3,4 %

Staff, Support and Services

15.2 %

Research and 5,3 % Innovation

Operations

Other

48,4 % 4%

Employment Contract

Permanent

86 %

Temporary

14 %

Total of 3.328 employees

41

Colophon Agrifirmâ&#x20AC;&#x2122;s 2014 Corporate Sustainability Report is a publication of Agrifirm Group and is available in digital format from Agrifirmâ&#x20AC;&#x2122;s website.

Editorial Committee CSR department (Agrifirm Group), Communication Department Agrifirm Group, HR Department and Finance Agrifirm Group, Agrifirm Innovation Center, R&D Plant Text Schuttelaar & Partners Concept and realisation DTP Agrifirm, JEEN, Made in May Contact Agrifirm Group Landgoedlaan 20 7325 AW Apeldoorn, The Netherlands PO Box 20000 7302 HA Apeldoorn, The Netherlands T +31 (0) 88 488 10 00 info@agrifirm.com website: www.agrifirm.com/duurzaam June 2015

42

Agrifirm

2014 Corporate Sustainability Report

43

Appendix Appendix 1: KPIs relating to our organisation List of memberships Agrifirm Group BV FEFAC, task force sustainability FEFAC Praesidium Project leadership, Foundation Responsible Soy Chain Transition Dairy Campus Innovation Committee SAI (Sustainable Agriculture Initiative) Agrifirm Feed / AIC Top sectors project Feed4Foodure Animal Feed Research Netherlands Association GMP committees for logistics and product assessment Schothorst: Foundation Board, basic package committee, animal committee cattle, pigs, poultry PR and communications Agrivaknet Trustfeed, work group supplier assessment Platform organic food and livestock CVB WPSA Nevedi Atex Nevedi Board Trustfeed Board CVB International Expert Committee GMP+ FEFAC Quality Feed FEFAC Committee Animal Nutrition International GMP+ Sustainable Fishmeal & Fish oil Occupational Health & Safety Catalogue GMP+ guidance NEVEDI substance and endotoxins Nevedi Arbo (working conditions) and the Environment Expert committee Rikilt Risk System raw materials and lab methods Nevedi Animal feed legislation SecureFeed Work group Product Assessment SecureFeed Technical Committee Nuscience Group

44

Agrifirm

2014 Corporate Sustainability Report

AMCRA Bemefa Identification Group pig veterinaries WPSA European pig producers platform Consultation platform Premixes of Nevedi Fefana Frana Advice committee animal feed research and Product Board Animal Feed Nevedi Consultation platform premixes IPVS Ava Schothorst Ava AniMedica Agrivaknet Agrifirm Co-products FEFAC work group former feedstuffs on behalf of VIDO International expert committee of GMP+ (on behalf of OPNV), transport International Expert committee of GMP+ (on behalf of OPNV), Feed Safety database OPNV Agrifirm Plant Steering group Programme Precision Agriculture Steering group SGGV Crop protection agents Nemadecide Geonema Agrodis Mineral fertilisers federation (MMF) Plantum, cereals section Plantum, trade licence crops section NAK Veldleeuwerik Foundation Dutch Carrot Group LLTB ZLTO Netrecycle Mineral Fertilisers Federation Mineral Fertilisers Distribution Arable Product Board Top Sectors Chain Platform Steering group Thorough Farming with Corn in Drenthe NIBEM (brewing barley Advisory Committee) Nemadecide

45

Geonema Sector board for logistics Netherlands EVO Abemec Oldambt BV Dutch Fodder Legumes Driers Association CIDE (European association of fodder legumes driers) Copa-Cogeca, work group fodder legumes EU advisory group Agrifirm Exlan Cumela Section manure distribution Manure Sales Office Steering group project office Local Manure Processing Nevedi work groups Cycle Management Guide User work group Cycle Management Guide User group Database Cycle Management Guide RAV committee NutriControl NEN committee food NEN committee animal feed NEN committee Halal Food Fenelab committee agrofood Fenelab committee accreditation VRS Steering group reliability of laboratory testing of GMP+ Agrifirm Winkel Agri Retail/Agrifirm Winkel Flowering Platform RND BPN Dibevo NMF/NMD Fagrovet

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Agrifirm

2014 Corporate Sustainability Report

Overview of key themes that emerged in consultation with stakeholders Plant activities Sustainable raw materials

Biodiversity

Transport

Health and safety of

(recycling, crops, certifications)

(plant health, soil healt,

customers and consumers

flowers & bees)

(safety at work, advice)

Empty barrel collection

Collaboration Veldleeuwerik

GBM ex farm Netrecycling

Foundation

Van Gansewinkel Groep Continuation sustainable brewing barley chain (Heineken & Holland Malt) Resetting soil, public-private partnership (biological soil remediation) Partnership Agrometium (Veris scan): soil analysis in combination with job cards for grower Partnership sector organisation Nefyto for using toolbox cards for emission limitation crop protection agents Public-private Partnerships / top sectors programmes: PPP sustainable soil, IJkakker, GeoNema, Soil Reset Project

47

Feed activities

Company

Animal health and animal

Minerals

welfare

(efficiency, manure processing,

cycles)

Agrifirm Group

Manure Processing

(excluding participating

For Farmers, De Heus, ZLTO

Co-products

interests)

Agrifirm Feed / AIC

Smart Dairy Farming

Smart Diary Farming Partnership

partnership

partner for better availability partnership Belgium (lancom

WUR + private partners:

and University of Louvain) for

research into intestinal health

precision feeding

of piglets Continuation of Manure investment fund Partnership Cycle Management Guide Partners with scientific and private partners on better availability of amino acids

48

Agrifirm

2014 Corporate Sustainability Report

partnership with private of residual flows

Climate

Sustainable raw materials

Safety and liveability for

(greenhouse gas emissions)

(local raw materials, sustainable

local residents near plants

soy, sustainable procurement)

Food safety

LEAP partnership FAO,

Promoting awareness of

Establishing Secure Feed

FEFAC, AFIA

European soy, WUR, ILVO

organisation

F4F FeedPrint WUR,

Partnership Provinces and

F4F partners

private partners for marketing Dutch soy F4F alternative proteins, WUR, F4F partners Chain transition responsible soy: Sustainable Dairy Chain, Environmental

Agreements with carriers

Procurement Sustainable raw

about more EURO6 trucks

materials: Sustainable soy grit, sustainable soy oil RTRS, ProTerra, Amaggi, etc.

49

Feed activities

Company

Animal health and animal

Minerals

welfare

(efficiency, manure processing,

cycles)

Nuscience NV

Partnership with Free Uni-

Partnership with private

versity Berlin: The effect of

partners: Conversion of

functional feed ingredients on

co-products to energy and

animal health.

functional feed ingredients.

Agrifirm Deutschland

Agrifirm Polska Agrifirm Hungary

Agrifirm co-products Feed Belgium

50

Agrifirm

2014 Corporate Sustainability Report

Co-products

Climate

Sustainable raw materials

Safety and liveability for

(greenhouse gas emissions)

(local raw materials, sustainable

local residents near plants

soy, sustainable procurement)

Food safety

Partnership with private part-

University of Antwerp:

ners: Fermentative upgrade of

In-vitro platform

raw materials.

Procurement of sustainable raw materials: mostly broiler meat non-GM

Regional based sourced soy bean meal for specific customers limestone flour and limestone granulated for feed purpose, originally from local mines in a continuous supply Sourcing form local farmers for corn, wheat, barley â&#x20AC;&#x201C; all GMO-free.

Oils and feed meal (as oil extraction secondary products) produced locally

Purchasing of responsible soy via Bemefa

51

Feed activities

Company

Animal health and animal

Minerals

welfare

(efficiency, manure processing,

cycles)

Abemec BV Oldambt BV

Agrifirm Exlan BV Nutricontrol BV Agrifirm Winkel BV

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Agrifirm

2014 Corporate Sustainability Report

Co-products

Climate

Sustainable raw materials

Safety and liveability for

(greenhouse gas emissions)

(local raw materials, sustainable

local residents near plants

soy, sustainable procurement)

Food safety

Partnership Grey Harrier Foundation

53

Services and sales markets The various Agrifirm companies offer the following services: > Agrifirm Plant: cultivation advice to members in arable farming, organic arable farming, flower bulbs, fruit growers, contract workers,

public landscaping and open-field vegetable crops.

> Agrifirm Feed: advice and assistance to members in cattle farming, dairy farming, meat cattle, goat, horse, poultry and pig

livestock farming.

> NutriControl: laboratory testing relating to nutritional issues in the feed and food industry (analytical chemistry, instrumental analysis,

microbiology, BSE monitoring and customer-specific services relating to quality assurance).

> Abemec: part of Agrimec, and supplier of agricultural mechanisation systems, also provides services relating to maintenance and

24-hour break-down service.

> Agrifirm Exlan: services relating to company development and manure legislation. > Bonda: advice relating to storage and feeding systems in compliance with all conditions for optimal, efficient and safe use of moist

and dry animal feeds.

These services are provided by the following companies. > Agrifirm Group > Agrifirm Feed > Agrifirm Plant > Nuscience Group > Agrifirm Co-products > Feed Europe:

-

Agrifirm Belgium

-

Agrifirm Deutschland

-

Agrifirm Polska

-

Agrifirm Magyarorzág Zrt

> Oldambt BV > Agrifirm Exlan > NutriControl > Abemec > Agrifirm Winkel Agrifirm companies are operating in: The Netherlands, Belgium, Germany, France, the United Kingdom, Spain, Hungary, Poland, Ukraine, Serbia, Romania, Bulgaria, Russia, Brazil and China.

Partnerships and acquisitions In 2014 Agrifirm further developed and specified its strategic policy lines laid down in the 2014-2016 Strategic Plan: ‘Agrifirm the Best Company in its Market by 2016’. This has resulted in a restated vision entitled: ‘Focus and Acceleration’. The core of the strategy is a further focus on core activities and an acceleration of various improvement processes. This will enable Agrifirm to position and develop itself in the market with even greater focus and more decisively.

54

Agrifirm

2014 Corporate Sustainability Report

The disposal of minority interests forms part of the strategy. In 2014, this resulted in divestment of the 43 percent share in Holland Malt, a malting company, to Bavaria. Together with Bavaria, we invested in a modern malting plant in 2003 to support brewing barley crops in the Netherlands. The inception of Holland Malt achieved an important objective for cereal growers: the creation of long-term sales volume for brewer’s yeast and the realisation of additional cereal storage.

In 2014, Agrifirm acquired a 100% interest in Agri Retail. This acquisition was based on using Welkoop as the only retail formula. This allows a clear strategy to be developed for a strong Welkoop brand with the associated shops.

The Agrifirm Exlan consulting firm, together with the Agrifirm Innovation Centre and the NutriControl laboratory, forms part of the newly formed knowledge cluster. A combination that guarantees innovation and knowledge development.

In 2014, Nuscience split its organisation into two product lines: Nutrition4U and Health4U. Both product lines have their own markets and marketing. Nuscience’s R&D Department focuses on development of feeds for both product lines.

Eurotier: collaboration is synergy Agrifirm is always looking for partnerships with mutual benefits. This synergy is the power of our international operations. We increasingly let the whole world know, too. In November 2014, Agrifirm was presented at Eurotier, the largest livestock farming show in Europe, for the first time. Agrifirm’s stand was themed with the campaign ‘In cooperation with’ and offered visitors information on our European feed activities.

Together with Bonda, we presented compound feed and by-products on the show. In both western and eastern European countries, Agrifirm is currently developing commercial activities with jointly offering compound feed and by-products.

Collaborating on sustainable raw materials In 2014, Agrifirm started collaborating with the Dutch Biorefinery Cluster. This platform aims to fully use organic raw materials and develop more high-end bio-based products. Agrifirm is also active in themes such as closing mineral cycles and isolating building blocks in plants. This way, Agrifirm aims to encourage the use of sustainable raw materials together with its partners.

Agrifirm is also active in the ‘Sustainable Agriculture Initiative Platform’ (SAI Platform), which aims to stimulate sustainable agriculture.

Agrifirm participates in the biodiversity committee, for example, developing methods for regional risk analyses with partners. Agrifirm uses its knowledge of farming practices to develop practically applicable methods. This enables Agrifirm to implement sustainable procurement policies while working on sustainable crops, processing and trading raw materials.

55

Appendix 2: KPIs relating to the environment Carbon footprint The carbon footprint is the sum of the greenhouse gas emissions during the life cycle of the animal products based on the unit kg CO2 equivalent/tonne functional unit (FU) (milk, meat or eggs). In this Corporate Sustainability Report, Agrifirm has based its carbon footprint reporting on the FeedPrint tool developed by WUR and Blonk Environmental Advice.

Carbon footprint

Kg Co2 eq/ton product

5000

LuLuc

4000

Feed

3000

Farm

2000

Pig meat

Chciken meat

Milk

2014

2013

2012

2011

2010

2014

2013

2012

2011

2010

2014

2013

2012

2011

2010

2014

2013

2012

2011

0

2010

1000

Eggs

Feed miles and land use Efficient production results in a smaller environmental footprint. Efficient use of raw materials ensures that more can be produced with less. This is why Agrifirm annually calculates the transport mileage (‘feed miles’) and the area of agricultural land (‘land use’) required for the production of a kilogramme of milk, pig meat, poultry meat and eggs. This calculation includes all links in the chain, from the cultivation of raw materials for animal feeds up to and including the products produced by livestock farmers. From 2015 onwards, Agrifirm performs sector reports.

Land use

2013

2014

Pig meat

4.7 m2/ kg

3.5 m2/ kg

Feedmiles Pig meat

2013 2014 5.67 km/ kg

5.38 km/ kg

Eggs

4.8 m / kg

2.8 m / kg

Eggs

5.672 km/ kg

3.57 km/ kg

Poultry meat

4.9 m2/ kg

2.8 m2/ kg

Poultry meat

6.185 km/ kg

3.73 km/ kg

Milk

1.2 m / kg

0.8 m / kg

Milk

1.002 km/ kg

1.459 km/kg

2

2

2

2

Land use

2010 2011 2012 2013

Pigs (live weight)

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Agrifirm

2014 Corporate Sustainability Report

Laying hens (eggs)

Broilers (live weight)

Pol

Ger

NL

Hun

Pol

B

NL

Hun

Pol

Ger

B

NL

Hun

Pol

Ger

B

2014 NL

0,7000 0,6000 0,5000 0,4000 0,3000 0,2000 0,1000 0

ha/tonne fu

Dairy cows (milk)

In general, land use remained stable or decreased in the various countries where Agrifirm is active. The significant decrease in land use for broilers in the Netherlands can be explained by lower use of soy grit and higher use of corn and rapeseed. The latter two crops require a smaller land surface. In Belgium, the land use for pigs and laying hens has decreased. This is probably due to the fact that corn, a main source of pig feed, was mainly sourced from Ukraine in 2013. In 2014, it was sourced mainly from Belgium, France and the Netherlands, where the crop has much higher yields.

Recycling materials Recycling materials allows for more efficient use of raw materials. This is why Agrifirm Plant invested in recycling bulb nets in 2014. The collected bulb nets were recycled into a base product for the plastic industry. Agrifirm Plant collected a total of 3,564 tonnes of bulb nets in 2014. Agrifirm Plant also offers growers the option of having empty jerry cans of crop protection agents, barrels and big-bags recycled. In 2014, Agrifirm Plant received a total of 91 big-bags with a total weight of 170.75 tonnes. NutriControl also separated its different materials in 2014.

NutriControl

Chemical

3,722 kg

NutriControl

Plastic

920 kg

NutriControl

Paper

5,174 kg

NutriControl

Glass

2,225 kg

NutriControl

Hospital waste

18,575 kg

NutriControl

Dry feed

15,040 kg

NutriControl

Residual waste

19,087 kg

Nuscience invested € 2,000 in the Vitamex and Baasrode sites to separate biodegradable waste. Agrifirm Hungary sold paper and metal waste, saving € 1,000 in the process.

Reuse of residual products from the food industry 44.6 percent of all dry raw materials that Agrifirm processes into livestock feed consists of residual products that originate from the food industry. These co-products are left over from the production of, for example, bread, cookies, margarine, beer and sugar. Aside from this, food producers are faced with a large number of residual batches. These residual products, provided they are mixed to create a well-balanced composition, are extremely well suited as raw material for animal feeds. In general, the 2014 results were comparable to those of 2013. The percentage co-products in Agrifirm products remained stable or increased slightly compared to 2013.

Percentage per animal type

2013

2014

Dairy cattle

57.2

59.9

Pigs

37.2

37.5

Laying hens

34.6

34.6

Broilers

42.3

43.3

57

Co-products (%)

2010 2011 2012 2013

Pigs (live weight)

Laying hens (eggs)

Broilers (live weight)

Pol

Ger

NL

Hun

Pol

B

NL

Hun

Pol

Ger

B

NL

Hun

Pol

B

Ger

2014 NL

90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0

Dairy cows (milk)

In Germany, the use of co-products in feeds increased. In cattle feeds, the use of co-products increased compared to 2013. In 2013, Agrifirm incurred a decrease in the use of citrus pulp.

Agrifirm Belgium

Agrifirm Feed

2010

2011

2012

2013

Agrifirm Polska

Agrifirm Deutschland

Agrifirm Magyarország Zrt.

NutriNuscience Group Control

Opeinde

Oldambt

Veghel

Baasrode

Drongen

Bocs

Gyor

Kaba

Neuss

Topola

Szamotuly

Margonin

Grobbendonk

Zwolle

Wansum

Veghel

Oss

Meppel

Emmen

200 180 160 140 120 100 80 60 40 20 0

Drachten

Energy efficiency index

BV Oldambt

2014

> When comparing 2013 and 2014, we can see decreased EEI (improvement) in some sites, and increased EEI (worse) in others. > Since 2013, Agrifirm Feed has factored in the results before EEI calculations in the EEI calculations. The reference year is 2011. In Emmen,

the EEI had decreased due to closing the plant in October 2014. Drachten shows another improvement in efficiency, the effect of the

renovated steam boiler. Also, this plant’s capacity was increased. The plant is producing at full speed after taking over some of Emmen’s

production. This is a factor in the EEI calculation. Oss also took over part of Emmen’s production, but shows a deterioration of the EEI. This

is explained by the extra energy required in the production process to improve the quality of the pellet (pellet consistency). We have no

direct explanation for the improved EEI in Wanssum.

> Grobbendonk’s EEI shows a slight deterioration compared to last year.

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Agrifirm

2014 Corporate Sustainability Report

2014 compared with reference year

Agrifirm Feed

Belgium

Poland

Germany

Hungary

NutriNuscience Control

Opeinde

Oldambt

Veghel

Baasrode

Drongen

Bocs

Gyor

Kaba

Neuss

Topola

Szamotuly

Margonin

Grobbendonk

Zwolle

Wanssum

Veghel

Oss

Meppel

Emmen

Drachten

160 140 120 100 80 60 40 20 0

Oldambt

> Szamotuly showed another improvement in plant efficiency. This year, this is due to an investment in a new engine (grinder). > The deterioration of EEI in Margonin is probably due to the increased feed meal production. This production increase was not factored into

the EEI calculation for this site as no feed meal production was made in the reference year.

> The increased attention for monitoring in Germany also showed improvement in the 2014 results. > Hungary: in both Gyor and Kaba, the EEI scores were better last year. The pellet production increased significantly. Normally, the effect of

changes to the ratio feed meal/pellets is not factored into the EEI. However, in this case, the increased pellet production is factored in

because the production process changed. The two separate pelletizer machines were replaced with a single large-capacity pelletizer

machine with higher energy consumption. In Kaba, a large amount of wet corn was processed, so that the drier was used more in 2014.

The Bocs plant stopped production as per February 2014 and serves as a distribution centre only. This plant was removed from the table

for this reason.

> The EEI of Nuscience Baasrode deteriorated dramatically. The plant is closing in 2015, which is why Nuscience no longer invests in this

plant. The personnel was informed of the plant being closed and employment contracts were terminated. Such elements are obviously

not conducive to productivity and efficient energy consumption. Furthermore, the production shifted towards specialties.

> For NutriControl, the EEI results showed significant improvement. This is mainly due to the 2014 renovation of NutriControlâ&#x20AC;&#x2122;s building, as a

result of which the activity flow has been aligned much more efficiently and transparently. Furthermore, a Black Belt project was carried

out, aligning the activities for even more efficiency (adjustment of process and training). This also possibly resulted in more efficient

utilisation of the equipment.

> Within Oldambt BV, the production is mostly focused on processing lucerne (65 percent). The lucerne season is May through September.

The fine weather conditions allowed for pre-drying the lucerne on the land. This means the lucerne had a lower moisture content upon

intake, which allowed Oldambt BV to improve its EEI. Naturally, this is classed as a one-off seasonal effect.

> In Opeinde, another seasonal effect is visible, this time relating to grass drying. In the period of the fresh grass having a low dry dust

content (late April/May, October and even November), a lot of grass was dried for livestock farmers. The wet period had a favourable effect

on the harvest of grass until late in fall, but the moisture content of the grass was above average upon intake. In April and November, grass

drying is rare. The grass was longer and more moist during harvesting, which resulted in additional fuel being required for each tonne of

dried product.

59

Appendix 3: KPIs relating to the employee benefits and human rights Codes and regulations Agrifirm voluntarily abides by the Netherlands Corporate Governance Code. This code is mandatory for companies listed on the stock exchange and contains principles and provisions that regulate the relationship between the Executive Board, the Supervisory Board, shareholders and the General Meeting of Shareholders. In the case of Agrifirm, the code has been adapted so as to provide a proper fit with its cooperative character. Furthermore, the company has a Fair Business Practices code of conduct. This code of conduct is a guideline designed to promote conscious and ethical actions under all circumstances. For example in situations involving a conflict of interest or competitive methods. Employees who report abuse are protected by the Whistle-blowing Regulation. In 2014 there were no reports concerning corruption or discrimination submitted pursuant to these regulations.

Collective labour agreements on notice of termination In collective labour agreements, Agrifirm sets out that employees on temporary and permanent contracts are subject to a notice period from the employer up to 13 weeks, and from the employee up to 6 weeks. This depends on the employment contract term and the employment conditions.

Sector campaign ‘Flanders’ Pride’ In April 2014, Agrifirm started its ‘In cooperation with’ campaign. This campaign demonstrates what Agrifirm is proud of: the entrepreneurs who work with passion and dedication to produce the most magnificent products. This campaign was also used in Belgium. Bulk lorries were showing truck-wide quality products and the proud Flemish livestock farmers and growers to a broad audience.

Young Employees, Young Potentials The ‘Young Employees Agrifirm’ (YEA) consists of higher-educated employees up to the age of 35 who regularly meet to take courses and expand their network. This year, a conference of several days took place in Poland. The conference theme was leadership roles and organisation culture. In late 2014, the second conference was held in Amsterdam to discuss trend developments and opportunities for Agrifirm. Agrifirm Winkel BV has its own version: the Young Potentials Programme.

Working Together on Success III In 2014, Agrifirm organised another edition of Working Together on Success for three target groups. The field representatives attended workshops relating to the theme ‘Commercially Stronger’, centring on interview techniques and presenting the customer relationship. For the managers, the programme focused on preparing a personal action plan for achieving strategic and company objectives. All employees of Agrifirm Feed participated in the programme ‘I & My Team’, highlighting personal development. X employees participated in Working Together on Success in 2014.

Participating in sports at Agrifirm Playing sports is good for one’s health and a fun way to get to know colleagues better. This is why Agrifirm organises several sporting events each year.

Sponsoring Contributing to an agricultural powerhouse and a sound society is important to Agrifirm. This is why we sponsored various initiatives at home and abroad. For example, Agrifirm Feed sponsored study meetings and LTO Netherlands in 2014 to an amount of € 77,000. Agrifirm Plant and Agrifirm Co-products sponsored a ZOA project in Burundi to an amount of € 20,000. Agrifirm Poland and Hungary also sponsored social initiatives to amounts of € 1,500 and € 3,500 respectively. Oldambt BV sponsored landscaping and biodiversity to an amount of € 2,500.

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2014 Corporate Sustainability Report

Appendix 4: Sustainability labels Sustainability labels for feed concepts and products In 2014, Agrifirm was the first animal feed company to develop sustainability labels for feed concepts and products. The sustainability labels offer both members and customers specific information on sustainability performance of our feed concepts and products for cattle, poultry and pigs. This gives our members and customers insight into the impact they can realise with the feed concept or product, and assists them in producing feed in a profitable and sustainable way.

Together with Blonk Consultants, an environmental consultancy firm, Agrifirm developed a method for calculating the underlying sustainability indicators for the sustainability labels in 2014. This was set out in a protocol. Six indicators were determined for the five labels.

Label: Mineral efficiency > Indicator: Nitrogen efficiency > Indicator: Phosphate efficiency Label: Animal health This label offers qualitative information only as animal health is difficult to capture in statistics.

(Factsheet)

DuurzaamheiDsprestaties DuurzaamheiDsprestaties van Line-up van sOLiQ (Factsheet)

Vijf labels

Er zijn vijf labels: mineralenefficiëntie, diergezondheid, klimaat, recycling en verduurzaming grondstoffen.

Elk label heeft een eigen symbool en geeft concrete informatie over de duurzaamheid sprestaties van uw voerconcept of product. Zo helpen we u een volgende stap te zetten naar een duurzame voedselvoorziening.

Hieronder vindt u de duurzaamheid sprestaties van Line-Up.

Negen miljard mensen voorzien van gezond en diergezondheid,duurzaam Er zijn vijf labels: mineralenefficiëntie, voedsel. Dat is de grote uitdaging waar de grondstoffen. wereld voor staat. Agrifirm helpt klimaat, recycling en verduurzaming leden en klanten en geeft concrete om op Elk label heeft een eigen symbool een rendabele en duurzame manier voedsel te uw sprestaties van produceren. Als eerste diervoederbed informatie over de duurzaamheid rijf kiest Agrifirm volgende een u we voor duurzaamheidslabels voor voeders voerconcept of product. Zo helpen en concepten. ning. voedselvoorzie duurzame De labels zijn bedoeld om inzicht stap te zetten naar een te geven in de sprestaties van SOLIQ. duurzaamheidsprestaties van het Hieronder vindt u de duurzaamheid concept of product.

gezond en Negen miljard mensen voorzien van uitdaging waar de duurzaam voedsel. Dat is de grote leden en klanten wereld voor staat. Agrifirm helpt manier voedsel te om op een rendabele en duurzame rijf kiest Agrifirm produceren. Als eerste diervoederbed en concepten. voor duurzaamheidslabels voor voeders te geven in de De labels zijn bedoeld om inzicht concept of product. duurzaamheidsprestaties van het

Line-up

sOLiQ

Label: Climate > Indicator: Carbon Footprint

Duurzaamheidslabels voor verantwoorde keuze

Vijf labels

Duurzaamheidslabels voor verantwoorde keuze

Mineralenefficiëntie Mineralenefficiëntie Op het gebeid van mineralenefficiëntie zijn er geen aanzienlijke veranderingen te verwachten.

Co-producten

Carbon Footprint

Gezondheidseffect

N en P efficiëntie

Recycling

Klimaat

Diergezondheid Door een vlotte en uniforme voeropname is de gezondheidstoestand van het koppel veel stabieler en is er minder uitval.

SOLIQ bevat 11% meer co-producten dan gangbaar pluimveevoer.

Doordat soja wordt vervangen voor een vergelijkbaar deel co-producten, bereikt u met SOLIQ een hoge reductie van klimaatemissies per kg ei.

N en g Verduurzamin P efficiëntie grondstoffen Op basis van de

Diergezondheid

Klimaat

Gezondheidseffect

voerproef zijn de stikstofefficiëntie en fosfaatefficiëntie met respectievelijk 1,6% en 2,5% Het landgebruik per kg ei iets verslechterd. Deze verde daalt met 7,3%, mede door slechtering was echter niet het aanzienlijke stijging vansignificant in de dierproef. aandeel van co-producten.

Landgebruik

Recycling

Carbon Footprint

In de Line-Up proeven op Laverdonk werden de voetzoolleasies aanzienlijk teruggebracht.

Verduurzaming grondstoffen

Co-producten

De carbon footprint is zo goed als onveranderd.

Landgebruik

Binnen Line-Up is het aandeel co-producten zeer licht gestegen met 1,1%.

Het landgebruik (m2) per kg vleeskuiken daalt met 4,8% wanneer Line-Up wordt toegepast.

Reductie

Reductie

Reductie

Label: Recycling

Verhoging

Reductie

0,4%

0,5%

N efficiëntie

P efficiëntie

11%

5,0%

P efficiëntie

Verhoging

Verhoging

0,1%

Reductie

1,1%

4,8%

P efficiëntie Carbon Footprint

Co-producten

Co-producten

Landgebruik

Landgebruik

P efficiëntie

Voor elk duurzaamheidslabel geldt Voor elk duurzaamheidslabel geldt Legenda: negatieve impact

Label: Sustainable Raw Materials

2,5%

N efficiëntie

N efficiëntie Carbon Footprint

> Indicator: % Co-products

1,6% Reductie N efficiëntie

7,3%

een andere schaalverdeling. U vindt Neutraal

deze

Legenda: op de laatste pagina van deze factsheet.

negatieve impact

een andere schaalverdeling. U vindt Neutraal

deze op de laatste pagina van deze

factsheet.

positieve impact

positieve impact

schakel in succes

schakel in succes

> Indicator: Land Use Improvement percentage and impact score The sustainability label lists the indicator on which the theme is measured and a short description of the sustainability effect of the feed concept or product. This effect is presented in the bottom of the label with an improvement percentage. The impact of the percentage increase or decrease is expressed with one of three scores: substantial, high or very high (in a positive or negative sense) If the impact is negligible, the score is ‘neutral’. For each indicator, the lower limit for the score ‘substantial’ was determined using a literature study.

This requires significant improvement compared with a reference situation. These scores are always summarised in a fact sheet for the sustainability performance of a feed concept or product. All published fact sheets are available from the sustainability page of the Agrifirm website.

The impact scores substantial, high or very high thus indicate the importance of the percentage increase or reduction on the sustainability label. After all, the score on one label is easier to influence than the score on another. This is due to the range of measures and the challenge of implementing measures to realise an improvement on the label. In order to use a sustainability label, the sum of the indicators of a feed concept or product must always be positive. Only indicators with a positive score may be issued with a sustainability label. This analysis is set out in the protocol of the sustainability labels. This protocol is available from the sustainability page of the Agrifirm website.

61