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Taking responsibility

2010 Corporate sustainability report Agrifirm

a link to success AgriFirm

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AgriFirm


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Preface Eating is a basic necessity of life. We are faced with major challenges in our food supply. Projections are that by 2050 we will have to supply 9 billion people with

nutritious and varied meals. In addition, food and other agricultural products must be produced in sustainable ways. This includes complying with demands from the local surroundings, such that farmers are given the respect they deserve.

Agrifirm stands ready to make a contribution to this future. Ready to support farmers in producing meat, dairy, eggs, cereals, sugar and countless other agricultural

products. Ready to develop products and services that help the arable farming,

horticulture and livestock sectors in meeting the demands of the future. The merger of Cehave Landbouwbelang and Agrifirm in 2010 created an additional opportunity in this respect. An opportunity to allow knowledge, innovations and expert

employees from both companies to reinforce each other in this domain as well. Sustainability and innovation are important pillars of Agrifirm’s strategy.

In this, the first corporate sustainability report of our new company, we demonstrate, on the basis of five links, how we specifically assume our responsibility and how we

intend to make a contribution to sustainable food production: now and in the future.

Kees Sijssens

CEO Agrifirm

AgriFirm

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Agrifirm =

A link to success Agrifirm is a cooperative in which approximately 15,000 Dutch enterprising farmers and have bundled their strength. This bundling provides a sustainable advantage with regard to high quality products such as animal feeds, sowing seeds, fertilisers and crop protection products.

“As an enterprising farmer you need an enterprising cooperative interested in being an extension of your farm. And Agrifirm has to deliver on this by providing added value to its members. The fact that Agrifirm is a cooperative I consider a major plus. That makes you a strong trading partner.”

Roelof Otten, Arable Farmer (Geesburg)

Creating a new company through the merger of two partners is a great challenge.

In 2010, the Agrifirm cooperative in Meppel and Cehave Landbouwbelang in Veghel

took on this challenge. Effective 1 June 2010, there is a single Coöperatie Agrifirm U.A. registered in Apeldoorn. A new enterprise, with clear core values and brand equity

that is recognised in the market. An enterprise that operates as a ‘link to success’ for

farmers. Agrifirm is currently active throughout the entire Netherlands in the livestock, arable farming and horticulture sectors. In addition, we have an international network of subsidiaries. Agrifirm supplies products and services for feeding animals and the cultivation of crops. It differentiates itself as the player of choice when it comes to providing customers with solutions that produce better results. Cooperative

Agricultural entrepreneurs are of vital importance to society. Enterprising farmers

are aware of this and have been anticipating social developments for years. Farmers established the first cooperatives around the year 1900. Together they acquired

greater strength in various areas, for instance, knowledge development and the

purchase and sale of products. This principle still applies today, more than a century later. Agrifirm, as a cooperative comprising approximately 15,000 farmers, is living proof of this.

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Agrifirm


Brand Equity • Committed

Agrifirm's thinking and actions are

always customer-centred. The issues and problems encountered by

entrepreneurs in actual practice

constitute our starting point for

developing solutions, products and services. The commitment of our

employees is inspired by their personal affinity with the agricultural sector.

• Innovative

Agrifirm is a front runner when it comes

to innovation, by offering new products, knowledge and concepts. We are

progressive in terms of our market approach and product innovation.

• Results-oriented

Agrifirm provides solutions that focus on the customer's results. All of our

Mission

The role of the cooperative has of course grown along with developments in the market and in society. The interests of members are decisive in this respect. This is why Agrifirm’s mission is as follows: to create sustainable value for members.

We do this by supporting farmers with sustainable, profitable concepts for achieving optimal results. The increase in the value of our enterprise, by strengthening

our market position and profitable growth, is returned to our members through profit distribution.

Core Values and Ambition

Agrifirm is synonymous with cooperation, fair business practices and quality. Agrifirm is competitive in the market in terms of price and service. We want to further strengthen our position, in terms of sales as well as image. By being a

products contribute to a higher return for the farmer.

• Sustainable

Only sustainable agriculture and

horticulture are future-proof. This is

ultimately the only form of operating that is socially acceptable (license to

produce). Agrifirm's employees believe in the necessity and feasibility of

sustainable agriculture and horticulture.

Facts and Figures

• Cooperative with approx 15,000 members

front runner in terms of knowledge and innovation and by putting the emphasis

• Managed by a Supervisory Board

within the Netherlands, as well as beyond, through organic growth and profitable

• Approx 3,100 FTEs

who are sincerely interested in their customers. Agrifirm has a strong Research

• 17 subsidiaries operating in the

on the customer in our consulting practice. We want to expand our market share acquisitions. To realise this ambition, we work with well-trained employees

& Development department, the Agrifirm Innovation Centre. Vitamex, as well

as Agrifirm Plant, also have their own R&D departments. We therefore invest in innovation and operate on the basis of leading concepts. As such we provide

sustainable and innovative concepts that enable customers to anticipate the challenges of today and tomorrow.

(12 members)

• Head office in Apeldoorn

Netherlands, Belgium, Germany,

France, Spain, Romania, Hungary, Poland, the Ukraine and China

• Sales: A 2 billion

• Profit (EBIT): A 37.2 million


Agrifirm =

Opting for sustainability “Agrifirm is taking important steps towards sustainability. This starts with obtaining information, building up knowledge and developing a vision. Innovations automatically flow from this that lead to a more sustainable business. I think that Agrifirm has done well in opting for its own thorough and specific approach.”

Hans Blonk, Environmental Consultant

Sustainability and innovation represent key brand value for Agrifirm and are the pillars of Agrifirm’s strategy. It is our ambition to be part of sustainable food chains with our business operations and to contribute this way to a healthy world for future generations. In addition, we view investing in sustainability as an important precondition for continuity. Both for our own enterprises, as well as that of farmers. Our farmers operate in highly competitive markets. Prices for dairy, meat, eggs,

cereals, etc are set on international markets with strong competition. Sustainable solutions must therefore be financially profitable as well. This basic premise does not represent an obstacle to our ambition, instead it sharpens our focus. Most

certainly also because our innovation strategy for the most part coincides with our sustainability strategy: efficient production of food using healthy plants,

healthy soil, healthy animals and the optimal use of co-products from the food industry.

Links in the chain

Characteristic of Agrifirm’s sustainability strategy is that we not only scrutinise our own operations. Agrifirm specifically analyses all links in the chain, ranging from the cultivation of raw materials right through to the point at which the food is

served to the consumer. Within every link there are issues and opportunities for

increasing the level of sustainability. This is why Agrifirm continuously asks itself:

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Agrifirm


Agrifirm’s five sustainability links Agrifirm’s sustainability policy comprises five themes.

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Working on sustainable raw materials

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Sustainable production

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Efficient food and feed

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Contributing to a sustainable consumer supply

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Investing in employees

“Can our company exercise significant influence on the relevant subject area.” Because we believe that our contribution must originate from within our core

competencies. Our employees have a key role to play in this regard. Their safety,

well-being, commitment and motivation form the core of sustainable enterprise. Agrifirm’s sustainability policy comprises five links. In this report we highlight our accomplishments in the area of sustainability for each link. Dilemmas

Of course our sustainability-related ambition also creates dilemmas. Agrifirm wants to clearly identify these dilemmas and to enter into a dialogue with members of

the cooperative and the surrounding community about the various subject areas.

We realise that we operate in various markets and sub-markets. Each market has its own particular themes. This is why we have structured our stakeholder dialogue in

accordance with ISO 26000 and focus on markets in which we have a market share of more than 20%.

“Without profitability on the part of our members, it is impossible to ever create sustainability.” Ruud Tijssens, Director CSR

Anchoring policy

Agrifirm’s sustainability policy is anchored in the core activities of the entire

organisation. The core of the policy is consequently formed by the activities of our operating companies. The responsibility for this at the corporate level rests with

the Director CSR, who fulfils an initiating and coordinating role from head office. The Agrifirm Innovation Centre’s innovations play a key role in this.

Agrifirm

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Agrifirm = Working on sustainable raw materials Sustainable production starts at the front of the chain: with the procurement of sustainable raw materials. As a major player in the market for animal feeds, sowing seeds,

fertilisers and crop protection products, we specifically

consider this our responsibility. Agrifirm processes large

quantities of co-products released by the food industry into

high quality animal feeds. Furthermore, we actively promote the sustainable cultivation of high-protein raw materials.


Working on sustainable raw materials

47,5% of all dry raw materials that

Agrifirm processes into livestock

feeds (4.4 million tonnes) consists of co-products that originate

from the food industry. Dairy cattle feeds contain 67% in co-products.

Feeds for pigs and poultry contain 41% and 38% respectively. 27%

of the co-products processed by

Agrifirm consists of soy meal. 100% of the wet raw materials used

by Agrifirm (2.2 million tonnes) consists of residual products.

Percentage of co-products in compound feed in different countries

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Dairy Cattle

Netherlands 64.2% • Germany 75.7% Poland 63.4%

Sustainable Soy 2

Pigs

Netherlands 37.4% • Belgium 34.8% Germany 46.1% • Poland 39.1% Hungary 35.1%

Soy meal, the portion of the soybean left over after pressing to extract the vegetable

oil, is a key raw material for producing high-protein animal feeds. The demand for soy for use in food, animal feed and as a biofuel is sharply increasing all over the world

and consequently also its cultivation. The major share of this soy comes from North and South America. It is important for the acreage of soy to be expanded in

responsible ways and not at the expense of tropical rain forest, for example. To

promote this, the Round Table on Responsible Soy (RTRS) was established in 2006. This international platform unites soy growers, processors, trade, users and social 3

Laying Hens

Netherlands 33.5% • Belgium 31.2% Germany 33.5% • Poland 29.5% Hungary 39%

organisations such as the World Wildlife Fund and Solidaridad. Agrifirm is a member of these organisations.

The RTRS in 2010 established the criteria for sustainable soy cultivation. In advance

of this event, the Netherlands Feed Industry Association (Nevedi) in 2010 purchased 140,000 tonnes of soy meal in accordance with comparable criteria on behalf of the livestock feed sector. Agrifirm, together with other Dutch firms, has also created a 4

Broilers

Netherlands 49.2% • Belgium 31.7% Poland 31.7% • Hungary 34.3%

national partnership: the Taskforce Duurzame Soja (Sustainable Soy Taskforce). This taskforce promotes the work of the RTRS and regularly consults with government

and social organisations concerning the potential contribution from the Netherlands.

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Protein from the Farmer’s own Farm

In 2010, Agrifirm initiated the trial ‘Protein from own Farm’ project. The objective of the project is to research how cultivated protein-rich crops in the Netherlands can

In the ‘Protein from own Farm’ project, Agrifirm is investigating the possibility of cultivating various protein-rich crops in the Netherlands for use as raw material in animal feed.

contribute to supplying proteins for the livestock feed sector as a replacement for soy, for example. In the context of this project, eight arable farmers in the western region of the Province of Brabant planted forty hectares of field beans as a trial. Due to

improvements made to the field bean over the years, the trial achieved a production volume of 6.3 tonnes per hectare. This is significantly more than the approximately

3 to 4 tonnes per hectare normally achieved with conventional cultivation methods. The analysis also demonstrates that the field beans contain excellent proteins for pigs and poultry feed. This represents a solid step in making the cultivation of protein-rich crops profitable in the Netherlands in the future.

In addition, Agrifirm is investigating the possibility of cultivating various other

protein-rich crops in the Netherlands for use as raw materials in animal feed. The

subsidiary Cehave Pasze (Poland) is collaborating with local arable farmers to facilitate soy cultivation in Poland and to make it an attractive option. Other countries with a continental climate have already scored successes in this area. Agrifirm also wants to explore opportunities for soy cultivation in the Netherlands.

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Agrifirm


Wheat: food, feed, fuel? Györ

Böcs Kaba

Budapest Danube

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Hungary

Locally grown wheat is an

important raw material for animal feeds in Hungary.

However, due to the country’s

favourable climate, Hungarian wheat is of high quality and is therefore an excellent source

of raw materials for foodstuffs such as bread and pasta.

Because of the rising demand for wheat for human consumption, Agrifirm’s Hungarian subsidiary Kabai Táp is actively searching

for alternative raw materials for animal feeds. Reuse of co-products from the food industry

Co-products that are not suitable for human consumption are released during the production of all foodstuffs ranging from bread, margarine, beer, sugar and chips

Amsterdam

to, for example, orange juice. In addition, producers are faced with a large number

of residual batches. All these products, provided they are mixed to create an optimal

Rhine

composition, are extremely well suited as raw material for animal feeds.

Meuse

2 Agrifirm is actively working on the reuse of co-products in animal feeds, so that these products do not end up as waste. We are conducting extensive research

related to this and are continuously expanding activities in this area in Europe.

For example, the subsidiary Profarm specialises in processing bread, confectionery, cookies and chips into high-quality raw materials for animal feed. The company

looks after the entire recycling process from collection and logistics to processing and quality assurance support for animal feed customers, as well as suppliers.

The Netherlands

Dutch wheat is less suited for human consumption.

On the other hand, much

Dutch wheat is used for the

production of bioethanol. As a

consequence the availability of wheat as a source for animal

feed is declining here as well.


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Agrifirm = Sustainable production The second link in Agrifirm’s sustainability policy

comprises our own business activities: ranging from the processing of raw materials up to and including the delivery of our products to the customer. As an organisation, we have maximum control over this

link. Determining factors in creating a sustainable production process include energy consumption, transport and logistics. These are directly related to the availability of finite raw materials and the emission of greenhouse gases.


Sustainable production

5% of the energy used by Agrifirm in 2010 originated from renewable sources, such as solar panels or

wind turbines. Voeders Van den Berghe (Belgium) set the right

example: in 2010, this subsidiary purchased 100% green gas as well as power.

Use of renewable energy by operating companies

Covenant

In 2008, the Dutch agricultural sector and the government signed the ‘Schone en Zuinige Agrosectoren’ (Clean and Efficient Agricultural Sectors) covenant. The covenant contains agreements governing clean energy and reductions in the

emission of greenhouse gases. The animal feed sector has set a target calling for a

30% reduction in the emission of greenhouse gases by 2020 in comparison to 2005. In addition, the sector is planning to reduce energy consumption by 2% annually. Agrifirm is of course subscribing to these objectives in the Netherlands.

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Voeders Van den Berghe (Belgium) 100%

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Strahmann and Kofu (Germany) 30%

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Cehave Pasze (Poland) 10%

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Vitamex 11%

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Bongard 30%

One of the next steps designed to

provide even greater insight into our energy consumption is to determine energy consumption per tonne of end-product produced.

Energy Consumption

Sustainable energy and reducing energy consumption is a high priority within the

entire Agrifirm Group - in the Netherlands as well as internationally. Voeders Van den Berghe in Belgium is setting the right example: in 2010, this subsidiary purchased

100% green gas as well as electricity. Furthermore, the company invested in a new compressor and a new steam boiler that together produce energy savings

amounting to 13% annually. An energy scan furthermore indicated that further energy savings can primarily be achieved through product innovations and organisational adjustments. Tank Storage

Agrifirm Feed in Veghel last year built a new, very well insulated tank storage facility

for feed oils. This new tank storage facility does not require any additional energy for

the purpose of keeping oils liquid. The residual heat from the compressors is used for this purpose. In addition, the installation of new machines for mixing liquids with feeds has also reduced energy consumption.

AgriFirm

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“By supplying customers by boat rather than by truck, we are significantly reducing the number of kilometres of transport annually. In addition, there are time savings, because the administrative processing is much faster.� Janneke van Dijk (Head Internal Sales Department Pre-Mervo)

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Agrifirm

Agrifirm 2010 Energy Consumption

Gas: 12.75 million m3, electricity: 152 million kWh, oil: 600,000 litres, coal:

13,000 tonnes. The total electricity consumption is partially based on estimates. Energy Index

The energy scan conducted for Voeders Van den Berghe in Belgium has yielded

insights into how we are going to monitor Agrifirm’s energy performance by site, starting in 2011. We are developing a uniform indexing system for energy

consumption and CO2 emissions that we can use to measure and compare the

performance of the various production sites in this area. We are collaborating with the sector associations Nevedi and NL Agency for our Dutch sites for this purpose.


Transport and Logistics

Transport and Logistics are responsible for a significant portion of the total energy consumption and the total CO2 emissions. It is important to reduce the number of required kilometres and to organise our transport in the

Green roof for CCL Nutricontrol

most efficient and energy efficient way possible. Various initiatives have

The subsidiary CCL Nutricontrol in

Some examples:

2010 designed to better insulate

been started up in this area within the Agrifirm Group.

Transport BV, a subsidiary of Agrifirm Feed in the Netherlands, each year replaces a number of trucks with energy-efficient versions. At the end

of 2010, 28 of the 95 truck engines met the Euro 5 standard, the strictest European guideline governing the emission of hazardous substances. In addition, trucks are driven in two shifts, thus reducing the number

of trucks required. The number of ‘empty’ kilometres driven is limited through smarter scheduling and collaboration with Voeders Van den Berghe (Belgium).

Bongardt, Profarm and Bonda, trading companies dealing in dry and wet co-products throughout Europe, jointly opened new branches in 2010 in

Berlin (Germany) and Ancenis (France). Because these locations are close to customers and suppliers, the number of transport kilometres driven is significantly reduced.

Veghel installed a green roof in

the laboratory. The roof is covered with a layer of sedum plants. A green roof blocks heat in

summer and cold in winter. This

reduces the energy consumed for cooling and heating the building. Furthermore, the green layer

protects the roof covering so that it deteriorates less quickly. And

of course a green roof gives the

building a beautiful appearance, although the plants at CCL

Nutricontrol still need to grow for a while.

Abemec, a dealer in tractors, multi-purpose machines and agricultural

implements, each year trains about 200 drivers in the use of these vehicles and self-propelled machines. Part of this training addresses how to reduce fuel consumption through ‘efficient driving’.

In 2010, Pre-Mervo, a producer of mixed animal feeds containing vitamins and minerals, in cooperation with Agrifirm started to supply major

clients - compound feed factories - by boat instead of truck. The supply

of raw materials was already being effected by boat. Pursuant to a permit amendment, it has also been possible to make shipments by boat from Utrecht harbour since the end of 2009. The new supply method works extremely well for customers purchasing large quantities and who are

located along the water themselves. Each week two ships each loaded

with 500 tonnes MervoBest depart from Utrecht to supply customers.

This is equivalent to approximately 30 one-way truck trips of 100 km each. CCL, Agrifirm’s analytical expertise centre, designs the routes for delivering

analysis samples as efficiently as possible. In addition, the company tries to tailor to the logistics networks of (large) customers, colleague laboratories and couriers where possible. This limits the number of kilometres driven. Agrifirm Winkel BV, the organisation operating the Boerenbond and

Welkoop shops, has made arrangements with the franchiser to deliver supplies as condensed and concentrated as possible. This significantly reduces the number of transport trips.

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Vegetation layer

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Substrate layer

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Filter layer

4

Drainage layer

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Protective layer

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Roof covering


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Agrifirm = Efficient food and feed Due to the projected growth of the world population to 9 billion people and changing consumption patterns,

food production must double by 2050 in comparison to 2010. The efficient use of finite raw materials is one of

the keys in achieving this goal, as well as limiting the food production’s ecological footprint: the total quantity of

productive soil and water surface areas required. ‘Efficient food and feed’ constitutes the core of Agrifirm’s business

strategy. We have a great deal of knowledge and expertise to help ensure that plants and animals perform optimally.


Efficient food and feed

Feedmiles and land use

Agrifirm tracks the origin of the raw materials used in its livestock feeds.

This information is used each year to calculate the quantity of agricultural land required for the cultivation of crops and how many transport kilometres are required for the

supply of raw materials. To gain

insight into the efficiency of the

entire chain, Agrifirm calculates how

much agricultural land and transport

is required in total for the production of 1 kilogramme of milk, pig meat,

poultry meat or eggs. The quantity of agricultural land (land use) is

expressed in square metres; the

transport distance (feedmiles) in km. Additional information about the

calculation of land use and feedmiles is available at www.agrifirm.com.

5 4 3 2

Eggs 4.4 m2/kg

Poultry meat* 4.0 m2/kg

Pig meat* 4.0 m2/kg

Milk 0.99 m2/kg

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Yield

‘Efficient food and feed’ is also the leading theme of our innovation strategy.

All of our products and services are focused on efficiently cultivating and feeding our customers’ crops and animals. A key aim in this regard is to achieve optimal returns for our members and customers and a good return for the enterprise.

Agrifirm translates ‘efficient food and feed’ in the arable and horticulture sectors

into minimising the use of fertilisers and pesticides, and optimising yield per hectare. The focus in the livestock sector is on further increasing the production of meat,

7,407 km

6,347 km

4,147 km

2,174 km

milk and eggs per kilogramme of feed and on sound animal health. Precision Agriculture

GPS, ICT and smart sensors make it possible to accurately give crops per square

metre the nutrients and treatment they require. This enables plants to produce optimally and at the same time this sharply reduces the spillage of nutrients, pesticides or direct spray irrigation.

* live weight AgriFirm

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Yara N-sensor

Precision agriculture is a key area of attention for Agrifirm Plant. For example, we provide our customers with advice concerning the use of the Yara N-sensor in applying fertilisers. This sensor, on the basis of the quantity of reflected light,

“The N-sensor yields significant savings because the dosing process is highly focused. This does not only save costs, it is also better for the environment.” Harold Zondag,

Arable Farmer (Biddinghuizen)

calculates the optimal quantity of nitrogen required for every area on the field, so that dosing can continuously be adjusted. Variable fertilisation results in better

yields and reduces the emission of greenhouse gases. Arable farmer Harold Zondag

from Biddinghuizen is testing the Yara N-sensor. He has been working with Agrifirm since 2008 on optimising variable fertilisation and haulm destruction, particularly for potatoes. Zondag considers the N-sensor a true godsend. “The installation of

the hardware and software takes some effort, but once complete, the sensor barely requires any work, while it yields significant savings because the dosing process is

highly focused. This does not only save costs, it is also better for the environment.” Efficient feed concepts

Agrifirm Feed continuously works on developing new animal feed concepts with the objective of improving animal performance and health. Core feed concept for broilers

The core feed concept for broilers was introduced to the market in 2010. The chicks are fed a special concentrated feed that is mixed with whole wheat grains. The benefit of this concept is that poultry farmers can purchase this wheat from

nearby arable farmers. This prevents unnecessary processing and transport and thus yields energy savings. The development of this feed concept furthermore led to a sharp improvement in the growth of and feed conversion by chicks

administered this feed. The animals grow more efficiently and require less feed to reach the desired weight.

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Air Line [2.0] 60%

phosphate

30%

nitrogen

10-20%

emission of greenhouse gases

In 2008 we introduced the Air Line [2.0] meat pig feed to the

marketplace. This innovation in the meat pig feeds market reduces

phosphates in manure by 60% and nitrogen by 30%, and at the same

time produces increased growth and lower feed conversion. Experience in actual practice demonstrates that it is possible to reduce the emission of greenhouse gases by 10 to 12% with Less antibiotics in animal feeds

It is Agrifirm’s goal to halt the production of medicated feed in 2011, feed that

contains antibiotics. This is laid down in the agreements concluded in the livestock

feed sector by the Nevedi sector organisation. Medicated feeds are used to treat pigs and poultry in groups against disease. By halting the production of such feeds it is

expected that the use of antibiotics in the livestock sector will be limited. In addition, Agrifirm has made arrangements with ZLTO, Topigs and Vion to train its own

Air Line [2.0]. As such the product

has a positive environmental impact on the entire pig chain. Air Line [2.0] has proven itself in actual practice

over the past two years. Sales figures have risen sharply.

Reducing the phosphate surplus

consultants so that they can advise livestock farmers on completely eliminating the

To tackle the phosphate surplus in the

of antibiotics aside from its administration through feeds as well. Major steps have

agreed that improved pig feeds must

use of antibiotics in the livestock sector, in other words eliminating the application since been taken in reducing the use of medicated feeds. Agrifirm has already reduced the use of antibiotics in animal feeds by 54% since 2007. Indexed use of antibiotics in pig feeds*

2007 2008

2009 2010

100% 85% 67% 46%

* Information provided by the former Cehave Landbouwbelang

Organic fertilisers

Agrifirm Plant is investigating the possibility of using liquid and stackable organic

fertilisers for arable farming crops. This enables us to optimally use local minerals, close the cycle and limit the use of fertilisers. Agrifirm each year trades approximately 450,000 tonnes of organic fertilisers.

Netherlands, LTO and Nevedi have

contribute to reducing the phosphate in pig manure in the Netherlands by 10

million kg. The Air Line [2.0] sales figures

can be used to calculate the reduction in

the quantity of phosphate in pig manure

in comparison to the use of conventional pig feeds.

2008: 30,788 kg reduction in phosphates (0.31 % of the phosphate surplus in the pig feed track)

2009: 145,528 kg reduction in

phosphates (1.46 % of the phosphate surplus in the pig feed track)

2010: 247,680 kg reduction in

phosphates (2.48 % of the phosphate surplus in the pig feed track)


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Agrifirm = Contributing to a sustainable consumer supply The demand and opportunities for new market concepts for foodstuffs are continuously increasing. Health and

sustainability play a key role in this respect. This provides consumers with greater choice while the sustainability of food chains increases. For example, Dutch residents are increasingly buying organic products. In the first three quarters of 2010, supermarkets in fact sold 20

percent more organic products that they did in 2009 (Source: Dutch Food Retail Association (CBL)).


Contributing to a sustainable consumer supply

70%

of the organic cereals is destined for the consumer market.

30%

Ample Choice

Agrifirm supplies products and services to livestock farmers, arable farmers and gardeners. We do not produce for the consumer market. Agrifirm does however

consider it important that our customers can provide consumers with a wide range

of choice of products that are consistent with current trends. We adjust our product

70%

range accordingly. For example, we supply feeds that make it possible for cows to

produce milk that contains higher levels of unsaturated fats. In addition, we have a

wide range of organic feeds, fertilisers, sowing seeds and sowing grains, specifically

Organic Cereals

for organic farmers. We also provide them with advice on organic animal husbandry. The sale of organic feeds has grown from 10,000 tonnes in 2008 to 20,000 tonnes in 2009 and 30,000 tonnes in 2010.

AH ‘puur&eerlijk’ free-range chicken meat

Agrifirm plays a key role in the

Agrifirm Feed Nederland produces the animal feed for the free-range chickens sold

cereals. Approximately 80 to

AH own brand represents products that are produced with special care for humans,

Dutch market for organic

85% of the organically cultivated baking wheat, oats, rye, barley, spelt and poppy seed is traded via Agrifirm’s grain pool. We operate as an intermediary

between growers and sellers,

and offer our suppliers various

by Albert Heijn supermarkets under the ‘puur&eerlijk’ (pure&honest) label. This

animals, nature or the environment. Agrifirm is the supplier of chick feed to poultry farmers who supply AH with free-range chicken meat throughout the entire

Northern Netherlands. In addition, we provide them with advice concerning the

layout of their stalls on the basis of the European guidelines for free-range meat.

The meat carries a single Better Living Quality Mark star issued by the Dutch Society for the Protection of Animals.

options in terms of storage,

Shop formulas for country living

Currently, 70% of the organic

shops. Our intent is to help customers better experience country life through these

processing and marketing. cereals is destined for the

consumer market. The other

30% is processed into livestock

feeds and is ultimately available to the consumer in the form of organic eggs, milk or meat.

Agrifirm Winkel B.V. is the organisation operating our Boerenbond and Welkoop

shops. Boerenbond/Welkoop wants to be the brand name for garden and animal

products and services in the Netherlands. A successful brand to which customers

feel connected. This success is evident from the fact that we opened two new shops in 2010 in Dronten and Werkendam. Three branches were furthermore moved this

year. The necessary energy-saving measures were of course implemented as part of the renovation and new construction of these new shops.

AgriFirm

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Agrifirm = Investing in employees Agrifirm’s employees make the difference. This is why we invest in our employees. We not only translate this into

excellent primary and secondary conditions of employment, but also into sound education and training opportunities. Indeed, in an organisation for which knowledge and

innovation are key determining factors, the development of employees takes on key importance. This is why, for

example, we implement Performance Management as a performance remuneration system for the purpose of

helping our employees grow and realise their ambitions.


Investing in employees

2010

Investing in training and education (J per FTE)

Amsterdam

Rhine Meuse

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THE NETHERLANDS Feed Nederland F 601 Bonda F 252 Plant F 638 Exlan F 2,183 Oldambt F 520 Pre-Mervo F 627 CCL F 750 Abemec F 272 Winkel BV F 232

Investing in employees

Brussels Meuse

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Investing in people starts with the new generation. Agrifirm consciously elects to offer young, well-trained people opportunities to apply their knowledge in actual

BELGIUM

Voeders Van den Berghe F 1,070 Vitamex F 615

practice. We offer work placement and final study positions to students in all business units of our organisation. After all, cooperation with (agricultural) educational

institutions is of key importance to the future of our sector. We very much want to

retain expert, motivated colleagues within the organisation. This is why one of our Berlin

objectives is to encourage the promotion of our own talented staff members to

(international) management positions. This way we represent a link to the success of our people.

Danube

3

GERMANY

Kofu and Strahmann F 90 Bongardt F 0

Cehave Landbouwbelang - Agrifirm merger

The merger of Cehave and Agrifirm effective 1 June 2010, was a drastic intervention that affected all of the company’s business units. Naturally the merger also implied

considerable change for our employees. Generally for the better: the new organisation offers new opportunities for development. However, unfortunately we have also had

Warsaw Wista

4

in respect of this negative side of the merger through means of a solid social plan

based on the ‘transferring from work to work’ principle. Supernumerary employees are actively counselled by a professional placement agency, often resulting in new

POLAND

Cehave Pasze F 305

work within or outside the enterprise.

During the preparation and the first phase of the merger our staff carried out a

Budapest Danube

5

to part from colleagues due to the merger. We want to be scrupulous and committed

tremendous amount of work for the purpose of ensuring that the new organisation

would be off to a good start. A Merger Event was organised on 13 November 2010 to

thank everyone for their efforts. Over 2,500 Dutch Agrifirm staff members and their HUNGARY

Kabai Táp F 107

partners came together in Nijkerk to meet their new colleagues and to raise a toast to

the new organisation. The event had an international character, showing everyone the countries in which Agrifirm operates. From a German ‘Bierstube’ to a fortune teller

from the Balkans: everything had been thought of to make it an enjoyable occasion.

AgriFirm

21


Education and Training

Investing in employees means investing in good education and training. Indeed,

this is the key to innovation and to having motivated, competent employees. We are encouraging our people in various ways to (continue to) develop themselves. Some examples:

Employees who are missing certain diplomas, but who do have the prerequisite

work experience, have the option of completing a programme designed to obtain

Well-educated, skilled employees are a prerequisite to our ability to provide our customers with the quality, knowledge and service they expect from us. Now and in the future.

an experience certificate. The certificate documents the competencies they have so that they can demonstrate this if necessary.

Our employees in Hungary have the opportunity of taking free English lessons. Basic knowledge of the English language focused on their profession improves

performance and furthermore enhances their opportunities within our company. A group of higher educated ‘young employees’ under the age of 35 meets several

times each year to exchange knowledge and experience. These young employees held two conferences about finance and change management in 2010. In

addition to work-related matters, there is of course also room for social activities. Employee Participation

Almost every Agrifirm subsidiary has its own Works Council that represents its

employees. The Central Works Council in turn consists of a representative from every Works Council in the Netherlands. In addition, the first European Works Council (EWC) meeting was held. The EWC, via international representatives

22

Agrifirm


2010

Number of accidents involving absence from work Amsterdam

Rhine Meuse

1

THE NETHERLANDS

Feed Nederland: 11 (838 FTEs) Bonda: 0 (88 FTEs) Plant: 2 (359 FTEs) Exlan: 0 (16 FTEs) Oldambt: 0 (28 FTEs) Pre-Mervo: 0 (67 FTEs) CCL: 0 (76 FTEs) Abemec: 1 (175 FTEs) Winkel BV: 0 (380 FTEs) Brussels Meuse

2 from each European country, ensures there is involvement and employee

BELGIUM

Voeders Van den Berghe: 1 (41 FTEs) Vitamex: 3 (510 FTEs)

participation in certain subject areas that affect multiple countries.

Berlin

Events

Agrifirm considers it important that employees enjoy working with us.

On the shop floor, as well as from a social perspective. Various activities

were organised in 2010 to promote a good atmosphere and mutual contacts. Our subsidiary in Hungary organised the annual sports day. Because the

Danube

3

distance between locations is too great for everyone to come together, employees engaged in sportive competitions in Kaba as well as Györ.

GERMANY

Kofu and Strahmann: 1 (84 FTEs) Bongardt: 0 (14 FTEs)

Warsaw

Cehave Pasze in Poland each year organises the traditional family day.

This day is organised at a different branch each year so that everyone has an opportunity to familiarise themselves with all of the Polish factories.

In 2010 this day was organised in the village of Sypniewo. The day included

Wista

4

all kinds of activities for young and old, and of course was not lacking for

POLAND

Cehave Pasze: 5 (132 FTEs)

food, beverages and music.

Budapest

Agrifirm on 3 and 4 July 2010 held an open day at its production site in

Danube

Veghel. Over 7,000 visitors came to see the two factories which in total

produce 650,000 tonnes of pig feed each year. Employees acted as tour

guides and explained the innovations and process steps in the factories. A special element was the official opening of the new Profarm factory on the site.

5

HUNGARY

Kabai Táp: 2 (180 FTEs)

Accidents defined as ‘accident involving absence of own employees’.


Organisation Chart

Members

Cooperative Districts

Young People’s Council

Council of Members

Board of the Cooperative

Supervisory Board

Cooperative Executive Board

Company Executive Board

Company

Sector Councils

Agrifirm Group B.V.

Agrifirm Innovation Centre

Staff Services

24

Agrifirm

Compound Feed

Plants

Agrifirm Feed NL

Agrifirm Plant NL

Agrifirm Feed International

Agrifirm Plant International

Co-products

Bonda Bongardt Profarm

Specialities

Services

Pre-Mervo Vitamex

Abemec Exlan CCL Nutricontrol Oldambt Winkel BV

Participating Interests


Colophon Editors

CSR Department, Agrifirm Innovation Centre Agrifirm Group Communications Department

Concept and realisation Schuttelaar & Partners

Photography

Albert Brunsting, Marcel Bekken, Agrifirm Group

Printing

Ten Brink, Meppel Circulation: 400 April 2011

Address

Agrifirm Group Boogschutterstraat 1a 7324 AE Apeldoorn, The Netherlands PO Box 20004 7302 HA Apeldoorn, The Netherlands T +31 (0)88 488 10 00 F +31 (0)88 488 18 00 info@agrifirm.com

GRI

This is the first corporate sustainability report for Agrifirm, the corporation created in 2010 through the merger of Cehave Landbouwbelang in Veghel and Agrifirm in Meppel. The report renders account about our sustainability policy. The report pertains to 2010 and concerns all companies within the Agrifirm Group. The guideline used in preparing the report is the Global Reporting Initiative (GRI), the international guideline for sustainability reporting. We are reporting at the C Level this year (self declared). From now on the corporate sustainability report will be published every year, and our goal is to publish a report at the B Level next year. 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 CSR, r.tijssens@agrifirm.com, tel. +31 (0)88 488 29 00.


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Agrifirm


Corporate Sustainability Report Agrifirm 2010