Weekly Roundup: Nespresso ramps up efforts against illicit coffee farming in Colombia and FAO renews treaty governing trade in hazardous pesticides

31 May 2019 --- This week, Nespresso, together with the Colombian Coffee Growers Federation (FNC) and the Howard G. Buffett Foundation announced a pilot program to help revitalize coffee production in Colombia. The Food and Agriculture Organization of the United Nations (FAO) has signed a Memorandum of Understanding to renew its participation in the UN Rotterdam Convention, an international treaty governing trade in hazardous pesticides. Louis Dreyfus Company B.V. (LDC) declares the renewal of its US$750 million revolving credit facility (RCF) in North America, which includes, for the first time, a sustainability-linked pricing mechanism. Ajinomoto Co., Inc., announces its support of the climate-related financial risk assessor Task Force on Climate-related Financial Disclosures (TCFD) established by the international Financial Stability Board (FSB), through its joining of the TCFD Consortium. US-based stevia producer Sweet Green Fields (SGF) will be launching a new stevia-based natural taste modulator for high intensity sweeteners, SteviAroma at IFT 2019. The Hain Celestial Group, Inc. and Amyris Inc. announce their new executive hires. Dairygold milk supplier Edward Donovan from Cloyne, East Cork was declared the overall winner of the 2018 Dairygold Milk Quality Awards. Róisín Hennerty, Managing Director of Ornua Foods, was chosen as The Irish Times Business Person of the Month for April.

In-brief: Sustainability
Nespresso, together with the Colombian Coffee Growers Federation (FNC) and the Howard G. Buffett Foundation have announced a pilot program to help revitalize coffee production in the municipality of El Rosario, in the Nariño Department of Colombia. The Howard G. Buffett Foundation has committed almost US$2 million to improve coffee farms and community infrastructure in El Rosario, a municipality where illicit crops continue to be cultivated. The pilot program will work with 100 farmers to implement sustainable farming practices that facilitate the growth of high quality coffee. Nespresso, in turn, has expressed its commitment to purchasing the coffee beans that these farmers will harvest. "We welcome the strong involvement of the private sector, the strength of this Nespresso, the Colombian Coffee Growers Federation (FNC) and the Howard G. Buffett Foundation have announced a pilot program to help revitalize coffee production in Colombia. partnership and dedicated program to help restore the area back to a thriving coffee region with the highest levels of coffee production, contributing to a better quality of life for farmers in El Rosario. We hope similar efforts can exist in other regions of Colombia that are in need of change,” says Colombian President Iván Duque Márquez.

The Food and Agriculture Organization of the United Nations (FAO) has signed a Memorandum of Understanding to renew its participation in the UN Rotterdam Convention, an international treaty governing trade in hazardous pesticides. The agreement covers what is known as the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, a protocol first set up 30 years ago as a critical tool helping governments obtain information necessary to assess the risk of certain industrial inputs. Some 161 countries have signed on to the Convention, which was set up by FAO and the United Nations Environment Programme (UNEP) and entered into legally-binding force in 2004. Some 52 chemicals – 37 of which are pesticides – including the two additional chemicals added earlier this month, are now listed on Annex 3 of the Convention, meaning they are subject to trade control measures. Such decisions are taken at meetings of the Community of Practice on food loss reduction (CoP). A new tripartite Memorandum of Understanding lays out the responsibilities of FAO, UNEP and CoP, and holds each of them accountable.

Louis Dreyfus Company B.V. (LDC) has announced the renewal of its US$750 million revolving credit facility (RCF) in North America, which includes, for the first time, a sustainability-linked pricing mechanism. The transaction replaces its previous three-year US$750 million RCF. Through the sustainability-linked mechanism, the RCF interest rate is linked to performance against LDC’s four key performance indicators, which set reductions in CO2 emissions, electricity consumption, water usage and solid waste sent to landfill. As part of the agreement, there will be an interest rate margin reduction for each year in which LDC makes improvements in its sustainability performance, with an independent auditor providing validation. “Our position in the food value chain puts us at the heart of some of the world’s most pressing challenges, such as the need to feed a growing world population sustainably,” says Federico Cerisoli, LDC’s Group Chief Financial Officer. “We intend to implement similar sustainability-related targets as our other two RCFs come up for renewal in Asia and EMEA,” he adds. The transaction was led and anchored by BNP Paribas, Bank of America, ICBC, ING, MUFG, Société Générale and SunTrust as joint lead arrangers and bookrunners, with ING acting as sustainability structuring agent and BNP Paribas as sustainability coordinator.

Ajinomoto Co., Inc., has announced its support of the climate-related financial risk assessor Task Force on Climate-related Financial Disclosures (TCFD) established by the international Financial Stability Board (FSB), through its joining of the TCFD Consortium. Through this membership, Ajinomoto Co. is made responsible for assessing business risks and opportunities created by climate change and proactively disclosing related information from the four perspectives of governance, strategy, risk management and KPIs/targets. The company set forth the aim of “living [sustainably] with society and the Earth” as a non-financial target in its FY 2017-2019 Medium-Term Management Plan, with expressed goals of sustaining initiatives that reduce climate impacts and promote the preservation of life on land and below water.

In-brief: New product launchesSweet Green Fields (SGF) will be launching a new stevia-based natural taste modulator for high intensity sweeteners, SteviAroma at IFT 2019.
US-based stevia producer Sweet Green Fields (SGF) will be launching a new stevia-based natural taste modulator for high intensity sweeteners, SteviAroma at IFT 2019, the Institute of Food Technologists’ annual conference, on June 2 to 5 in New Orleans. The new additive offers food and beverage manufacturers a new avenue for retaining sweet taste, full-bodied mouthfeel and flavor of products when reducing most or all sugar. “We want to mimic 100 percent the sugar performance in sugar reduced food and beverages,” says Jack Shi, Chairman and Innovation Scientist of Sweet Green Fields. “Sugar doesn’t contribute sweetness only, it provides texture and flavor too. Now we have done it with SteviAroma, you can get three functions in one natural flavor; enhancing sweetness, mouthfeel and flavor.”

In-brief: New executive hires
Organic and natural products company The Hain Celestial Group, Inc., has announced the appointment of Seth Weis as its Senior Vice President of Business Development, who will be assuming this role from Denise Faltischek, Executive Vice President, Chief Strategy Officer and Corporate Secretary. Faltischek has “served an integral role” in the completion of several of the company’s mergers and acquisitions, which most recently includes the sale of the WestSoy tofu seitan and tempeh businesses and the pending divestiture of the Hain Pure Protein businesses. In this new role, Weis will be focusing on the implementation of Hain Celestial's business transformation strategy to simplify its product portfolio, strengthen capabilities and reinvigorate net sales growth in the US, as well as expand margins and cash flow – which follows an observed year-on-year decrease in overall net sales, as exhibited in its Third Quarter Fiscal Year 2019 Financial Results, issued on April 9, 2019.

Amyris, Inc., specializing in the production of sustainable ingredients for the health & wellness, “clean beauty” and flavors & fragrances markets, has announced the appointment of two new board members, Jim McCann, founder and chairman of 1-800-Flowers, and Lisa Qi, founder and CEO of Daling Family Company, a large e-commerce company, in China. In addition, the company also announced that long-time board members, His Highness Sheikh Abdullah bin Khalifa Al Thani of Qatar and Christophe Vuillez of Total have resigned from the board. Their resignations are connected with the company’s exit from renewable fuels and focus on becoming a leading health and beauty company. His Royal Highness will become a member of the company’s advisory board.

Dairygold milk supplier Edward Donovan from Cloyne, East Cork was declared the overall winner of the 2018 Dairygold Milk Quality Awards.In-brief: Awards and recognitions
Dairygold milk supplier Edward Donovan from Cloyne, East Cork was declared the overall winner of the 2018 Dairygold Milk Quality Awards, in addition to being awarded the East Cork Regional Award for consistently supplying the best quality milk to Dairygold throughout 2018. The Awards were based on 2018 milk quality data for all 2,800 Dairygold milk suppliers across counties Cork, Tipperary, Limerick and Clare. A shortlist was drawn up of three suppliers from each of the six Dairygold regions. “Our Milk Quality Awards are an excellent opportunity for us to reward the hard work and performance that we see all year across our milk supplier base,” comments Dairygold Chairman John O’Gorman. “In January we introduced a new milk supplier sustainability bonus, designed to deliver healthier herds with more productive cows.” In 2008, the company introduced the “A+B-C” milk price payment system, which rewards higher milk solids. Since then average milk solids for the Dairygold milk supply base has been rising incrementally ever since and the average Dairygold milk supplier is now delivering milk with 3.53 percent protein and 4.17 percent fat, notes Dairygold’s Chief Executive Jim Woulfe.

Róisín Hennerty, Managing Director of Ornua Foods, was chosen as The Irish Times Business Person of the Month for April. Róisín oversees Ornua’s portfolio of brands, including Kerrygold, which is exported globally. Last month Kerrygold celebrated becoming the first Irish food brand to exceed €1 billion (US$1.1 billion) in annual retail sales.

By Benjamin Ferrer

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