In 2015 good progress has been made during the year against the objectives
set for 2020.

1.3.2.1

The focus on operational efficiency in manufacturing and logistics has yielded savings in the use of energy and the majority of the soya used was certified as responsible. While health and safety performance has improved, this remains a key objective for 2016 and beyond.
ForFarmers sustainability performance in 2015 is reviewed against the 2020 objectives published in last year’s Annual Report. In addition the policies that are in place to ensure good business practice when it comes to sustainability are described.

Procurement of raw materials

ForFarmers is a member of the Round Table on Responsible Soy (RTRS) and the Roundtable on Sustainable Palm Oil (RSPO). In Belgium and the Netherlands, sector agreements are in place to source 100% responsible soy from 1^st January 2015. ForFarmers has actively complied with these sector agreements. No such agreements are in place yet in the UK and Germany. However during 2015, ForFarmers has played an active role in the development of the FEFAC (European Feed Manufacturers Association) Soy Sourcing Guidelines which are designed to provide a mass market solution for the procurement of responsible soy. The guidelines are a set of professional recommendations which set minimum criteria for the following:

• Legal compliance
• Responsible working conditions
• Environmental responsibility
• Good agricultural practices
• Respect for legal use of land and land rights

These guidelines can be seen in conjunction with specific market requirements for certain certification schemes such as RTRS. In 2015, ForFarmers purchased across all four countries 800,000 tonnes of soybean meal of which 70% was certified as sustainable.

Sector agreements are in place in the UK and the Netherlands to source 100% responsible palm oil and again ForFarmers has been fully engaged with these initiatives. As a result, in 2015, 57.6% of palm oil used by ForFarmers was from a recognised certification scheme.

A number of research projects were undertaken aimed at reducing the dependency on imported raw materials. Examples include the use of live insect larva for feeding to poultry, the production of soy free diets and increasing the use of EU protein sources such as rapeseed and sunflower meal. Through ForFarmers DML (Dry, Moist & Liquid) feed division the use of co-products and by-products continued to be optimised.

Environment

A Lifecycle Analysis of the animal feed sector shows that the environmental impact of animal feed is primarily invested in the raw materials purchased (eg. the land used to grow the crops; the energy, fertilisers and crop protection products used in their cultivation and harvesting) and the efficiency with which it is used on farm (ie how much feed is required to produce 1 kg of liveweight gain or 1kg of eggs or milk). However, ForFarmers also has a responsibility to minimise its own energy consumption which is largely used in manufacture and logistics.

ForFarmers has 42 production facilities in four countries and operates a large fleet of vehicles. A range of approximately 80 projects, known as the Energy Saving Matrix, is in place to reduce energy consumption in the manufacturing plants. The Energy Saving Matrix provides an approach to the identification of measures which can be used to reduce energy consumption. Examples include heat recovery from boiler exhaust gasses, single pressing some products rather than double pressing, assessing energy consumption levels when purchasing new plant and equipment and using LED lighting. Solar panels have been installed at Penrith and Portbury mills in the United Kingdom. To stimulate these types of initiatives, the maximum payback period for sustainability projects has been extended. 

In logistics, fuel consumption per tonne feed delivered can be reduced by increasing the payload of the vehicle, effective planning, driver training  and purchasing more efficient vehicles. For example, ForFarmers has developed an innovative multifunctional trailer which is 2 tonnes lighter than a conventional tipper truck and will result in a significant reduction in CO₂ emissions per tonne of transported feed. In addition, its design means that it can effectively transport both finished feed and raw materials. This means more return loads, less empty miles and a further reduction in CO₂ emissions. From the beginning of 2016, ForFarmers car lease policy has been changed to encourage employees who drive company cars to do so sustainably and thereby reduce CO₂ emissions. In the first instance, the use of completely electric cars will be encouraged. For those employees who do not choose to use an electric vehicle, maximum CO₂ limits have been applied to the selection criteria for petrol and diesel cars. In addition, employees are encouraged to car share and reduce mileages as much as possible.

In 2015, 2.65% less energy was used per tonne of feed manufactured compared to 2014 and in logistics fuel efficiency increased by 2.17 % compared to 2014%.

ForFarmers is a member of the Technical Secretariat of the Product Environmental Footprinting (PEF) pilot study for feed for food producing animals. This is one of a number of pilot studies run by the European Commission to harmonise environmental impact assessments and includes 16 impact categories. As part of this project, ForFarmers will be undertaking one of the project’s supporting studies in 2016 to calculate the environmental footprint of its products from the sourcing of the raw materials, manufacturing and delivery to the farm gate.

In addition ForFarmers is involved in the Food & Agriculture Organization of the United Nations (FAO), Livestock Environmental Assessment and Performance Partnership (LEAP) and Global Feed LCA Institute (GFLI). The objective of these multi stakeholder projects is to produce meaningful methodology and data to enable the environmental impact of livestock production to be assessed and actions taken for its reduction.

In the Netherlands ForFarmers plays an active role in the ‘KringloopWijzer’. This is an initiative in the Dutch dairy sector in which the dairy sector, the feed sector, class organisations like the Dutch Federation of Agricultural and Horticultural Organisations and accountants are involved.

1.3.2.2

1.3.2.3

The ‘KringloopWijzer’ is an instrument with which dairy farmers gain insight into the mineral flows in the business as a result of which they can steer on the use of minerals. Objective is to shed light on and to manage the mineral efficiency of the farm as a whole. As from 1 January 2016 all dairy farmers must compulsorily complete the ‘KringloopWijzer’. In this respect ForFarmers takes its responsibility by, among other things, informing and training employees and customers about their role in improving this efficiency in study groups, training sessions and information meetings.

Resource efficiency is at the heart of ForFarmers feed solutions. For example, the Feed2Milk concept in the dairy sector delivers benefits to customers which include improved milk production, feed efficiency, and rumen health.

ForFarmers is able to monitor feed efficiency on many of its customer’s farms but particularly in the Netherlands via Agroscoop. As an example, in the Netherlands the average feed efficiency on ForFarmers broiler farmers improved by 2.28% in 2015 compared to 2014. As there are concerns over the environmental impact of certain minerals polluting land and water courses, ForFarmers continued to reduce zinc and copper levels in swine diets compared to the legal limits.

Animal Health & Welfare

As livestock nutritionists, ForFarmers has a responsibility to ensure that the animal’s basic needs are met. This is achieved through the ForFarmers nutritional knowledge and advice that is given to farmers. From 2015, all product innovation projects include sustainability in the assessment criteria. 
Good animal health and welfare is often defined as the ability to express the five freedoms:

• Freedom from hunger or thirst
• Freedom from thermal or physical discomfort
• Freedom from pain, injury and disease
• Freedom from fear and distress
• Freedom to indulge in normal behaviour patterns

ForFarmers proactively develops concepts which help its customers improve the health and welfare of their livestock. Examples developed during 2015 include the following:

• Nutritional solutions to mitigate the impact of the ban on beak trimming being introduced in the EU over the coming years
• Nutritional solutions reducing foot pad dermatitis
• The improvement in rumen health to reduce acidosis
• Improving piglet viability using a colostrum score
• Developing effective feeding regimes for the production of slower growing broiler chickens in the Netherlands

Trials have been undertaken feeding live insect larvae to poultry which in addition to the potential benefits in terms of reducing the dependency on imported sources of protein, enables the expression of natural behaviour.

The stakeholder dialogue conducted during 2015 identified that the use of antibiotics in livestock production is an importance issue. In feed medication is not used in the Netherlands and Germany. ForFarmers is using the experience it has gained in the Netherlands where the use of antibiotics in livestock production systems has been significantly reduced and sharing that in other markets such as the UK and Belgium to encourage best practice. 

People & Society

As a responsible business, ForFarmers plays its role in society in general and in the food and farming sector in particular. ForFarmers supplies over 25,000 farmer customers and has relationships with a large number of suppliers. ForFarmers supplies innovative feed solutions to its farmer customers so that they can provide high quality and safe food for consumers. ForFarmers should always be a good neighbour and take care of the local environment. This means observing the legal requirements for dust, smell and noise emissions from its plants and minimising vehicle movements.

Additional resource has been allocated to improve ForFarmers health and safety performance. This includes Safety Officers in each country who report to the Director Continuous Improvement who was appointed during 2015.

1.3.2.4

1.3.2.4.1

ForFarmers has supported the Lignine Project at Wageningen University for a number of years. This examines how the digestibility of feed materials such as straw that are difficult to digest can be improved and made available for feeding in developing countries. The “Feed on Tour” initiative aims to educate schoolchildren on food and farming. A ForFarmers Innovation Fund incentivises Dutch farmers to develop new technology. In 2015, 6 awards were made. The “Proud to Be a Farmer” initiative in the Netherlands aims to raise the profile of farmers and the contribution they make to the economy and society.

Communication and reporting

During 2015, a number of articles to raise awareness of sustainability were included in Connect Magazine, the employee magazine including one on the revised strategy. Sessions on sustainability were included in both Senior Management Conferences held during the year. Communication to all employees on ForFarmers sustainability strategy and what their role is in achieving the objectives set will be a major priority in 2016. An article explaining ForFarmers new approach to sustainability has also appeared in the cooperative member’s magazine, Ambitie.

As already mentioned, meetings with external stakeholders and supply chain partners were conducted during the year to discuss sustainability so that their feedback could be used to develop ForFarmers new approach. A number of press releases and interviews specifically focussing on ForFarmers approach to sustainability were undertaken.

As referred to above, a road map for external reporting of ForFarmers sustainability reporting will be developed during 2016.

Governance

During 2015 ForFarmers has had a number of policies in place which are carried out to ensure good business practice when it comes to aspects of sustainability. These include the following:

• Environmental Policy, the principles of which include the need to design, operate and maintain all operations in an environmentally responsible manner, complying with all relevant legislation and continuous improvement of environmental performance (including energy consumption, pollution, waste and the use of natural resources). The Company’s Environmental Policy and its implementation is the direct responsibility of the Board of Directors of ForFarmers.
• Quality policy, which focusses on the production and delivery of safe feed that meet the needs of ForFarmers customers and comply with all laws, regulations, and certified quality standards. The Quality Policy is implemented in procedures and instructions which are incorporated in ForFarmers document management system (HSQ) and relates to all aspects of ForFarmers.
• Health and Safety Policy, which governs the health and safety of employees (own and third parties), contractors and visitors. It includes the identification and implementation of safe working practices and safe systems of work and increasing knowledge, skills and safety awareness through education and training. ForFarmers Health and Safety policy is manifested in procedures and work instructions which are incorporated in the Company’s document management system (HSQ) and relates to all aspects of ForFarmers.
• Code of Conduct, which is issued to all employees and covers 14 subjects including the prevention of bribery and corruption and antitrust regulations. In addition a whistle blower policy is in place so that employees can raise concerns and includes reference to an external confidant where appropriate.

Relationships with suppliers are governed by all of the policies mentioned above. Regular review meetings are held with major suppliers to monitor performance. Meetings were held with a number of raw material suppliers during 2015 to brief them on ForFarmers approach to sustainability and the objectives which have been set.

1.3.2.4.2

Status susstainability objectives