Responsible procurement promotes sustainability of the food chain
Quality, safety and responsibility are the key criteria for Raisio’s raw material procurement. Raisio’s consumers and customers are increasingly interested in the traceability of product raw materials and in the production in line with sustainable development. As an expert in animal feeding and healthy foods, Raisio has an ability and opportunity to promote the sustainable food chain with its raw material choices.
Main events in 2016
- Raisio harmonised its responsible procurement practices. The Group’s common Supplier Code of Conduct will be introduced in all our businesses during 2017.
- Healthy Snacks business prepared its transfer to the use of UTZ certified cocoa.
- At the Nokia mill, Raisio decided to get the RSPO Supply Chain certificate and it will enter into force in the spring 2017.
Raisio’s value chain is part of the sustainable food chain. All the company’s raw materials are renewable. Raisio’s key raw materials are grains (wheat, oats, rye, barley) and rapeseed. These account for some 70 per cent of all raw materials. Raisioagro’s share of the Group’s all raw materials is almost 70 per cent. Key raw materials in the feed manufacturing are wheat, barley and rapeseed.
Raisio has almost 80 years of experience in contract farming and the company acquires 85 per cent of its grain directly from farmers. Raisio’s grain products are largely made in Finland and the grain transport distance from the producer to the factory is on average less than 100 kilometres.
Subcontractors manufacture part of Raisio’s branded products. Quality criteria for the raw materials used in contract manufacturing are defined in the agreements. Raisio acquires raw materials for part of its Finnish subcontractors.
Raisio secures the responsibility of raw materials by requiring its suppliers to commit to the Supplier Code of Conduct regarding, for example, human rights, working conditions in accordance with international regulations, environmental responsibility and anti-corruption.
Certified raw materials
To secure the responsibility of soy, palm oil and cocoa, Raisio has drawn up policies regarding the use of certified raw materials.
Soy accounts for about one per cent of all raw materials and the company uses it mainly for fish feeds. All the soy Raisio used in feeds is either ProTerra or RTRS certified. Raisio is a member of the Round Table on Responsible Soy association.
Since 2014, all the palm oil used in Raisio’s foods has been responsible. In 2016, 70 per cent of the palm oil used in Raisio’s foods was physically traceable (mass balance or segregated) and 30 per cent was Green Palm certified. Our long-term goal is to transfer to the use of physically traceable palm oil in food products. Palm oil accounts for less than one per cent of all Raisio’s raw materials. Raisio is a member of the Roundtable on Sustainable Palm Oil.
Raisio’s goal is that the cocoa used in its own branded products is certified by the end of 2018. This does not, however, apply to the confectionery since major part of the confectionery is produced for contract partners who themselves define the certification requirements of raw materials. During 2016, we were preparing the transfer to the use of certified cocoa, and the first products containing certified cocoa will be available in 2017. Cocoa accounts for less than 0.5 per cent of all raw materials of our branded products.
Origin of the fishmeal and oil used in fish feeds is always known, and no endangered fish species are used in the manufacturing of our feeds.
Certified raw materials account for some four per cent of all Raisio’s raw materials. In addition to certified palm oil and soy, Raisio uses, for example, small amounts of organic oats and other organic grains.
Objectives for 2016-2018
- We will further develop the responsible procurement of our key raw materials. Raw materials that we use the most include grains, particularly oats and wheat, and rapeseed.
- We require our suppliers to operate in accordance with our Supplier Code of Conduct.
- We expect the suppliers to complete the Supplier Self-Assessment Questionnaire at least every three years.
- We continue to purchase Proterra or RTRS certified soy.
- We are committed to the use of GMO free raw materials.
- We use only responsible palm oil. The responsibility of palm oil used in foods will be improved through our transfer to the use of physically traceable palm oil.
- We only use UTZ certified cocoa in our foods (excluding confectionery).
- We will further decrease our raw material acquisitions from the countries classified as risk countries.