sustainable chains - agrifirmsustainable raw materials sustainable production starts with the...

IN COOPERATION WITHSUSTAINABLE CHAINS

link to success

CorporATE SUSTAINABILITy rEporT 2015

3Agrifirm Corporate Sustainability Report 20152

Facts and Figures

> Cooperative with approximately 17,250 members.

> Executive Board: 2 members.

> Supervisory Board: 8 members.

> Net revenue: € 2,385 million.

> Operating result

(exclusive of exceptional charges): € 48.0 million.

> Net result: €76.2 million.

> Number of employees: 3,570

> Number of FTEs: 3,179

Sales volume (x 1,000 tonnes) 2015

Compound feeds 4,256

Co-products 2,306

Premixes & concentrates 494

Cereals, potatoes, onions and carrots 489

Fertilisers 394

Organic fertilisers 561

Crop protection products (€ millions) 126.9

Corporate Sustainability Report 2015

The Corporate Sustainability Report is published annually and includes all companies within the

Agrifirm Group, unless indicated otherwise for specific components. The previous report was

published in May 2015.

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 ‘Publications’.

For additional information about Agrifirm’s sustainability policy, please contact Ruud Tijssens, Director

Corporate Affairs, Strategic R&D and CSR, E [email protected], T 088 488 29 00.

Reading Guide

In this Corporate Sustainability Report, Agrifirm reports on its sustainability policy and the

accomplishments realised in this domain in 2015.

Section 1 sets out Agrifirm’s mission, corporate principles and ambitions. It provides an overview

of the main events within the Agrifirm Group in 2015, such as the Members’ Days and the Dutch

Farming Vision.

Section 2 describes Agrifirm’s sustainability policy, including the objectives set for the six pillars. In

addition, it focuses on the results of the first symposium on Agrifirm’s sustainability policy held in

June 2015 and on the introduction of sustainability labels for feed concepts and products.

Sections 3 through 8 focus on the objectives and key performance of the six sustainability policy

pillars. For each pillar, a responsible Agrifirm officer or an external partner highlights an example with

high sustainability impact.

The Appendices list Agrifirm’s KPIs relating to the organisation, the environment, terms and

conditions of employment and human rights.

In the associated protocol, Agrifirm provides clarity about the chosen methodology, the selection of

themes, and the method used to collect information and perform the necessary calculations. Agrifirm

adheres to the GRI G4 reporting guidelines.

5Corporate Sustainability Report 20154 Agrifirm

prEfACE

Last year, the spotlight in the Netherlands and beyond was

on sustainability, and climate in particular. During the COP21

International Climate Conference held in Paris in December

2015, government leaders made serious agreements aimed

at combating climate change. In 2015, various companies

promised to deter deforestation in their chains; water scarcity is

back on the agenda and there was a greater focus on regional

food systems. These developments offer opportunities for

Agrifirm, as frontrunner, to demonstrate how we contribute to,

for example, a lower water and CO2 footprint and sustainable

forest management with our innovative feed concepts, tailored

advice, and initiatives such as Dutch soy and the procurement

of sustainable raw materials.

At the same time, 2015 was an eventful year from a geopolitical

perspective. The unrest in the Middle East, Africa and Ukraine had a

direct impact on the markets in which Agrifirm operates.

The agricultural sector is in a continuous state of flux. Our members

and customers were confronted with a persistent Russian boycott, a

renewed manure policy and debate concerning reduced discharges

of contaminants to water. In spite of these challenges, the sector

mainly demonstrated resilience and a future-oriented approach. As

a company we achieved a positive result and helped our customers

with innovative, sustainable concepts. We are brining our operating

principle ‘Working towards Tomorrow’ into actual practice by

transforming today’s challenges into tomorrow’s market opportunities.

For many of our members and customers in the Netherlands, 2015

was characterised by the land-tied principles governing the dairy

farming sector and manure. The milk quota was replaced by a system

of phosphate rights causing many farmers to run into problems. In

addition, the government announced stricter regulations to curtail

discharges of contaminants to ground and surface waters. Just as it

did in previous years, the pig farming sector globally experienced a

very difficult year. We consider it our task to make a contribution to

the resolution of these issues and challenges with our products and

services. In spite of turbulent political and economic developments,

Agrifirm’s operating result improved significantly in 2015 in

comparison to the preceding years. The sales volume in the Dutch

compound feed market rose by 100,000 tonnes; the net result was

significantly better than in 2014 and the Member Dividend rose to

€20 million. It is a result to be proud of. But it is also a success that

would be impossible without the success of the sector as a whole.

This is exactly what we want to aim for and focus the attention

on with our Dutch Farming vision. The Dutch approach to food

production is efficient, sustainable and highly technological, without

losing sight of society’s wishes. No better theme therefore than

Dutch Farming, as a follow-up to our campaign ‘In cooperation

with’. Dutch Farming demonstrates the outstanding quality of our

livestock farmers and growers, and at the same time guides Agrifirm’s

innovation and development agenda for the coming years. Our

sustainability policy seamlessly matches the Dutch Farming vision.

Thanks to our chain parties and stakeholders, we were able to

further refine this policy last year. During our ‘In cooperation with’

symposium that we organized on 2 June 2015, these parties openly

and transparently joined us in developing more specific sustainability

objectives.

This sustainability report describes the activities that have

contributed to achieving the objectives. For example, we were

the first animal feed company in the Netherlands to introduce

sustainability labels for our feed concepts and products. These

labels support our members and customers in producing food in

a profitable and sustainable way. Furthermore, at the end of 2015,

we laid the groundwork for a sustainable procurement policy for

all of our major raw materials. You will be hearing a great deal more

about this from us in the near future. We also conducted a customer

satisfaction survey for Agrifirm Feed as well as Agrifirm Plant. In this

survey, a large majority of customers indicated that they are satisfied.

The personal contact with – and the expert advice of – consultants

is the key factor in this regard. Customers and members are positive

about the quality of our products, the ordering and delivery process,

and the handling of complaints. We would like to continue to be

as closely involved as possible in the day-to-day operation of our

customers’ farms in the future as well. The continued improvement of

our services consequently remains a top priority for us.

We took major steps last year. Naturally, we were only able to do this

together with our employees, our members, our customers, various

social organisations, research institutes, retailers and all of our other

stakeholders. At Agrifirm we want to become sustainable through

means of cooperation, now and in the future.

Ton Loman

Chairman Executive Board Agrifirm Group


Sustainable Raw MaterialsSustainable production starts with the production and procurement of sustainable raw

materials. This is why, in 2015, Agrifirm, together with suppliers and key stakeholders,

developed a policy framework for a sustainable procurement policy.

“I find it inspiring to see that everyone is open to the challenge of becoming more

sustainable, also at the international level. And that we are not alone in this.”

Peter Boudeling, Director Procurement, Production & Logistics, Agrifirm Feed

2015 HIgHLIgHTS

Efficient Production and LogisticsAgrifirm aims to structurally reduce energy use by means of efficient production and smart

logistics. A key step in achieving more efficient production is to modernise production sites.

In 2015, Agrifirm Feed renewed two plants in Veghel.

“The renovation is producing considerable cost and energy savings. However, the biggest

gain lies in the further improvement of the feed’s quality and the ability to even better

anticipate customer needs.”

Frits de Wit, Sector Production Manager Pigs, Agrifirm Feed

Sustainable Consumer SupplyAnimal health and welfare are becoming increasingly more important to buyers. Agrifirm

can innovate in this area on a market-oriented basis, by working together with partners and

customers. A good example of this is the SLOWFEED concept that Agrifirm has developed in

cooperation with its chain partner Plukon.

“Together with the hatchery, Agrifirm and Plukon, we are responding quickly to

new developments. In 2009, we switched to the SLOWFEED FREE RANGE concept.

The animals are far more robust and did not need any antibiotics. It has made our

work more enjoyable.”

Erald Brilman, Livestock Farmer with 46,000 free range chicks, 60 dairy cows and 50 young cattle.

Efficient Use of Raw MaterialsAgrifirm invests in product innovations that help our members and customers achieve

higher production with less input. This is not only good for the environment. It also improves

returns at the farm level.

“In 2015, Agrifirm Exlan managed various cooperative ventures in the area of manure

processing and mineral management. I expect that over the coming years, we will

be supporting many more farmers by helping them achieve positive environmental and

business results.”

Gerrit Schilstra, Director Agrifirm Exlan

Healthy Plants, Soil and Animals for Healthy PeopleTogether with customers and members, Agrifirm works on creating a healthy soil, resistant

crops and strong animals. Agrifirm’s policy is focused on structurally using less polluting

agents, while still achieving good results.

“I see that it is becoming increasingly more important to grow high-quality products with

less fertilisers and crop protection products. I wanted to see with my own eyes whether

the mycorrhiza fungus also has positive effects on hyacinths. As a grower of flower bulbs,

I would like to grow beautiful hyacinth bulbs in a more sustainable way.”

Arjan Hogervorst, Flower Bulb Grower with 22 ha of hyacinths in Noordwijkerhout

Our Employees: the Foundation for SuccessAgrifirm’s employees are the foundation for the company’s success. Agrifirm is devoted to the

health and safety of its employees and visitors. Our safety policy aims to create a safe work-

ing environment for everyone working at Agrifirm.

“Our employees are passionate about their profession, but this must not cause us to lose

sight of safety. This is why, in 2015, we started working on refining our safety policy. So

that all of us will reach our retirement age in good health.”

Jacques Wassenberg, Team Leader Quality Assurance, Agrifirm Plant


TABLE of CoNTENTS

Preface 4

Highlights 6

Table of Contents 8

1. Agrifirm, a Link to Success 10

2. Six Pillars for More Impact 14

3. Working on Sustainable Raw Materials 21

4. Efficient Production and Logistics 26

5. Efficient Use of Raw Materials 30

6. Healthy Plants, Soil and Animals for Healthy People 33

7. Contributing to a Sustainable Consumer Supply 38

8. Our employees: The foundation for Success 42

Colophon 47

Appendices 48


1. AgrIfIrm, A LINk To SUCCESS

Koninklijke Coöperatie Agrifirm U.A. combines the strength and professionalism of approximately 17,250

Dutch farmers in the agriculture and horticulture sectors. Agrifirm 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. On the basis of the breadth of its international activities, sector knowledge and innovative

strength, we have been supplying products and services that yield added value at the farm level to livestock

farmers and growers alike since 1892.

Strong TogetherThe world population is growing, as a result of which the demand

for food, animal feed and bio-fuels is increasing. Agricultural farmers

are vitally important to the world food supply. Enterprising livestock

farmers and growers are aware of this and have been anticipating

social trends for years. Towards the end of the 19th century they had

already established cooperatives for this purpose. To be in a stronger

position together and to head into the future in a better position.

To this day this is a value for our cooperative. With its cooperative

character, Agrifirm differentiates itself in the market: we always

think in terms of customer-oriented solutions. The interests of our

members are decisive in this respect.

Mission Agrifirm is an agricultural cooperative that operates globally, with

members in the Netherlands only. Our Mission: “Generating value for

our members in a sustainable manner.” Agrifirm accomplishes this by:

> Supporting customers by providing sustainable and profitable

products and concepts that enable livestock farmers

and growers to achieve the best possible results.

> Creating growth in value for the company that is partially

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

cooperative profit-sharing scheme (Member Dividend and

Member Discount).

The Agrifirm Group creates value for members, customers,

companies and employees through means of various subsidiaries

and participating interests in the Netherlands and abroad. This

creates an opportunity for distributing profits to the members.

Corporate Principles Agrifirm is a committed specialist in high-quality products,

such as animal feeds, sowing seeds, fertilisers and crop protection

products. With these products and innovative concepts and services,

Agrifirm supports its customers, enabling them to achieve the best

AmbitionAgrifirm wants to be known as the expert, innovative and

knowledge-driven partner that supports its members and

customers by anticipating the challenges of today and tomorrow.

Agrifirm wants to further strengthen its leadership position on the

Dutch market both in terms of turnover and perception by being a

frontrunner in terms of customer-oriented consulting and support

services. This is to result in an increase in the number of customers

(for the member companies Feed and Plant) and in higher profits

(for the non-member companies). Knowledge and innovation are

indispensable in this respect, as are well-trained employees who are

committed to their customers and to the agricultural sector.

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 they enjoy going the

extra mile in order to achieve the best possible service and results for their customers.

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

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.

Always Staying on Top

of Things

Working towards

Tomorrow

Passion for our

Profession

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

three leading corporate principles. These principles guide Agrifirm

in everything it does and ensure that Agrifirm optimally responds to

the requirements and needs of livestock farmers and growers.


Organisation Chart Agrifirm operates in four core areas: compound feed, arable farming and horticulture, co-products and specialties. A professional knowledge

& innovation cluster serves as the engine for knowledge development and product innovation. In addition, Agrifirm is active with a number of

service companies and participating interests.

Districts

Members CouncilYoung People's

Council

Board Koninklijke Coöperatie

Agrifirm U.A.=

=

Supervisory Board

Agrifirm Group BV

AGM Agrifirm Group BV

Knowledge & Innovation ClusterAIC, NutriControl, Agrifirm Exlan, Schothorst*

Agrifirm Group BV

Arable Farming & Horticulture

Compound Feed Co-products Specialties

Agrifirm Feed Netherlands

BV Oldambt

Agrifirm Belgium

Agrifirm Feed Deutschland

Agrifirm Magyarország

Agrifirm Polska

Sto Posto*

* Minority interest

Agrifirm Plant Netherlands

Agrifirm PlantDeutschland

Agrifirm Co-products

(Bonda)

Nuscience Group

Agrimec (51%)

Agrifirm Winkel BV

Agri Retail

Plukon

Service Companies Participating Interests

=

=

Members of the Koninklijke Coöperatie Agrifirm U.A.

In 2015, Agrifirm consisted of six divisions:> Compound Feed Division: production and sale of animal feeds

and artificially dried fodder legumes and straw products;

consultancy and research.

> Arable Farming and Horticulture Division: production and

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

cereals, onions and carrots; equipment, consultancy and research.

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

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

> Specialties Division: production of premixes, mineral mixes,

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

> Service Companies Division: technical and legal agricultural

advice, sale of agricultural consumer products.

> Participating Interests Division: minority interest in Plukon.

Members’ and Young People’s DaysThe 2015 Agrifirm Members’ Days were visited by 650 enterprising

members of the Koninklijke Coöperatie. In addition to inspiring

workshops on a wide range of topics, the 2014 financial statements

were explained in depth. At the Agrifirm Young People's Day on 7

January 2015 in Apeldoorn, young farmers spoke with each other

about the theme ‘farming risks’. As a young farmer, how far are you

willing to go? What is the risk profile if you want to break through

your boundaries? The weather, harvest uncertainty, financial risks

associated with borrowing capital and investments, as well as your

own health; the risks faced by farmers are diverse, just like the

discussions held during this Young People’s Day.

Partnerships and AcquisitionsIn 2014, Agrifirm’s business strategy was further specified in concrete

detail in the refined ‘Focus and Acceleration’ vision. In line with this

vision, the specialties division Nuscience acquired the Brazilian

company Nutrifarma; a leading supplier of premixes, concentrates,

specialties, additives and services. Due to this key acquisition,

Agrifirm’s specialties division has reinforced its position in the

strategically important Brazilian market.

At the beginning of 2015, Plukon announced that it intended to look

for new shareholders to realise its business plan. At the request of

the new shareholders it was decided that the existing shareholders

would retain a minor interest in Plukon for a short period of time.

Dutch Farming The strong position of various products, such as milk powders for baby

food, seed-potatoes and flower bulbs, proves that Dutch growers and

livestock farmers are performing at a top level. Agrifirm believes in

the Dutch way of farming. Due to well-structured ‘green’ education,

the education level of agricultural entrepreneurs is high, and the

Netherlands is known as the breeding ground for high technological

and knowledge-intensive innovations for a sustainable and efficient

agriculture. Furthermore, an extensive SME sector enriches the

agricultural business community with market-oriented developments.

We believe in a future-proof, ground-breaking food production to

scale and size, by farmers working in harmony with the environment

and society. According to Agrifirm, that is the strength of Dutch

livestock farmers and growers. We are disseminating this in our vision

titled Dutch Farming.

Dutch Farming comprises three themes:

1. Smart Feeding.

2. Healthy Soil, Plants and Animals.

3. Strength in the Chain.

These three themes guide Agrifirm’s innovation and development

agenda and provide direction to our partnerships. Agrifirm,

independently and in cooperation with chain partners,

develops innovative applications (knowledge, concepts and

recommendations) related to the three themes. Over the coming

years, Agrifirm will be increasingly designing its R&D programmes on

the basis of this vision.

To realise its strategic objectives – to acquire more customers as a

means of increasing its market share – Agrifirm in 2014 initiated the

communications campaign ‘In cooperation with’. After all, growers

and livestock farmers contribute to making Agrifirm’s success

possible. The Dutch Farming vision represents the follow-up to this

campaign and was started in June 2015.

Agrifirm aims to optimally support agricultural entrepreneurs and

wants to showcase the world of innovation and sustainability

underlying the products on retail shelves. The website www.

dutchfarming.com includes striking examples of leading livestock

farmers and growers who cooperate in making Dutch Farming a

reality. In 2015, we placed advertisements in various trade journals

that featured these livestock farmers and growers.

Naturally, Dutch Farming is consistent with Agrifirm’s sustainability

policy. In addition to the three themes focused on the farm, the

sustainability policy also includes themes that fall within Agrifirm’s

responsibility: sustainable raw materials, energy consumption and

good employment practices. These themes, focused on the internal

organisation, are of major importance to Agrifirm We not only want

to challenge our members and customers to take steps in the area

of sustainability, we ourselves want to take responsibility in this area

as well.

Organisation chartRoyal Agrifirm Group

Organisation Chart as at 31 December 2015

Agrifirm Corporate Sustainability Report 201514

Six pillars form the foundation for the practical elaboration of

Agrifirm’s sustainability policy. These six pillars comprise all of the

links in the chain where Agrifirm can make an impact: from growing

raw materials to food on the plate. Agrifirm wants to achieve

sustainability mainly through cooperation in the supply chain. If the

different links - from farmer and horticulturist to retailer - coordinate

their activities, it becomes possible to quickly achieve gains from

working more sustainably. In this respect, Agrifirm always opts for

solutions that are profitable for farmers and horticulturists.

2. SIx pILLArS for ImpACT wITHIN THE SUppLy CHAIN

Agrifirm wants to create value for customers and members in a sustainable manner through means

of its corporate social responsibility. Increasing prosperity and a growing world population are putting

increased pressure on limited raw materials, water, land and the natural environment. Efficient

and sustainable agriculture is a prerequisite for producing sufficient and healthy food. Agrifirm’s

sustainability policy derives from its ‘Working towards Tomorrow’ operating principle.

Working on Sustainable Raw Materials By 2020, we will have implemented our sustainable procurement

policy for agro raw materials on the basis of regional risk analyses.

Agrifirm processes residual flows from the

food and bio-based industry into high-quality

animal feeds. Together with suppliers, Agrifirm

is working on the sustainable and responsible

cultivation and use of raw materials, such as

wheat, corn and soy.

Efficient Production and Logistics By 2025, Agrifirm will have improved its energy efficiency by 15%.

The energy efficiency of production sites will have increased by 15%

in comparison to 2015. As a major buyer of transportation, Agrifirm

has made binding agreements with its carriers about achieving the

reduction objectives for energy use and the emission of various

substances, such as particulate matter.

Agrifirm aims to structurally reduce its energy

consumption by means of the efficient

processing of raw materials and smart logistics.

Objectives for the 6 Pillars

After monitoring its sustainability performance for a period of five years, Agrifirm formulated its strategic objectives in 2014. The

strategic objectives for each of the six pillars create focus in Agrifirm’s sustainability policy. From 2015 we have been focusing on

achieving these strategic objectives; this forms an integral part of Agrifirm’s commercial and development focus.

15

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

that have the ability to reduce the environmental footprint of the

production of animal and plant products by our customers by 15%.

Agrifirm invests in product innovations that

help our members achieve higher production

with less input.

Healthy Plants, Soil and Animals for Healthy PeopleBy 2025, Agrifirm will have developed sustainable agricultural practices

with a key focus on greening the use of crop protection products, and

in which the natural resistance of animals will have been strengthened

to such an extent that the use of veterinary medicines by our customers

can be reduced by a further 20% to 30%.

Agrifirm develops products and services that

reinforce the natural resistance of plants,

animals and soil.

Contributing to a Sustainable Consumer Supply By 2025, Agrifirm will be the main partner for chain parties in developing

and testing new chain concepts.

Agrifirm is collaborating with chain partners to

develop and market sustainable concepts for

consumers.

Our Employees: the Foundation for Success By 2020 Agrifirm will be the ‘employer of choice’ in the field of agricultural

products and leadership will have visibly developed into one of the

company’s crucial success factors. This manifests itself in various ways

within the company, for example by means of a high rate of internal

promotions.

Agrifirm creates a stimulating environment

for its employees and invests in sound terms

and conditions of employment, training

opportunities and career development.

From Objectives to Specific ActionsTo achieve the specified objectives, a work plan was developed in

2015 for the first two pillars: ‘Sustainable Raw Materials’ and ‘Efficient

Production and Logistics’. This plan contains specific objectives,

actions and measurable indicators to measure the interim results

achieved. This is an important step in our ability to achieve Agrifirm’s

sustainability objectives. Both pillars are close to Agrifirm’s own area

of responsibility. For example, in terms of sustainable raw materials,

the first steps have been taken in the development of a sustainable

procurement policy for all key raw materials. This multi-year process

is to result in having Agrifirm, together with the suppliers of raw

materials, identify the issues in specific production areas to enable it

to implement feasible and high-impact measures where necessary.

In 2016, Agrifirm will also translate the objectives for the other

four pillars into a work plan with specific actions and measurable

indicators.


Working together on Sustainability

“The symposium ‘In Cooperation with’ held on 2 June 2015, was a milestone for Agrifirm’s sustainability

policy. During the first phase we established the six pillars and the strategic objectives and we invested in

creating support, internally as well as externally. With the symposium we started up the second phase.

We published our strategic sustainability objectives and discussed them with stakeholders and chain

parties. The symposium caused us to substantively refine our policy related to sustainable raw materials,

crop protection products, biodiversity and soil life.”

Support from the Chain and Society

“In 2015, we also made a start on translating the policy into

operational indicators for measuring progress in terms of the six

pillars. This involves a specific review to determine how we can

translate our ambitions into objectives and the steps required to

achieve them. We have already completed this step for procurement

and energy efficiency, and we will complete this process for the

other pillars in 2016. In 2015, we conducted pilots together with our

suppliers for three major raw materials: corn, wheat and rapeseed

meal. This produced valuable information about possible realistic

approaches. We consider it of great value that the new method of

sustainable procurement of raw materials can count on support from

the chain and society. We therefore engaged a number of suppliers,

social organisations and chain partners, such as Solidaridad, IUCN

Nederland, Rainforest Alliance, FrieslandCampina, Unilever and an

expert from one of our suppliers with a great deal of experience in

trading and processing agro commodities, in a dialogue.

Greening

We also took key steps for the other pillars in 2015. For example,

we are devoting large efforts to greening crop protection

products by discussing ambitions and practices with various

parties, such as growers, researchers and social organisations.

There is a great deal of debate about the exact definition of

green crop protection products. Does it concern raw materials

that are natural, identical to natural raw materials, or rather

crop protection products with a low risk of affecting non-

targeted organisms? We are also working on integrating

the environmental footprint of feeds and concepts into our

consulting tools. These tools are currently optimised for feed

efficiency and animal health. To integrate the environmental

footprint, we require information from throughout the entire

chain; information that normally is not linked. Quite the

challenge and not only at the ICT level.

Increasing Market Demand

“I consider the introduction of the sustainability labels for feeds and

concepts to the market in 2015 a good example of how we give our

sustainability policy substance. As the first animal feed company

in the Netherlands we thus support chain partners, interested

livestock farmers and our consultants in making farming operations

sustainable. In discussions with retailers about new chain concepts

I clearly see that the market demand for sustainably produced

products is increasing. Dutch and international retailers increasingly

often opt for more specific sustainability criteria as part of their

procurement process. Sustainability is now a real priority, and that is

true within Agrifirm as well. For each edition of our newsletter MVO-

Actueel (CSR News) we have more than enough good examples

that prove Agrifirm is fully devoting its efforts to sustainable and

innovative solutions.”

Ruud Tijssens

Director Corporate Affairs, R&D and CSR

Cooperation-based Sustainability

Cooperation within the chain is essential in order to make the agri

and food sector sustainable. That was the conclusion of the first

symposium on the sustainability policy organised by Agrifirm in June

2015. Over 80 representatives of chain parties, social and farming

organisations together engaged in an open dialogue. Agrifirm’s

sustainability objectives and approach, as well as the opportunities

and pitfalls of sustainable chains, were topics on the agenda. From

the presentations and discussions it became clear that sustainability

is not just a short-lived trend, but a permanent movement in the

market. Consumers want to know increasingly more about the origin

of a product and are more critical in their assessment of companies

in the food chain. Cooperating and developing new business models

is then the only way to create sustainable added value.

Symposium ‘Helping make Sustainable Chains a Reality’

“Supplying consumers directly is an opportunity for growers and Agrifirm.

Farmers and growers need a bit of support in marketing their sustainable

products. Agrifirm has a lot of investment strength and can support its

members and customers in this respect.”

Sijas Akkerman (Nature & the Environment)

“Whereas once you had to know your customers in order to do business,

now you have to know about the world to properly serve your customers.”

Chris Kalden, former Secretary General, Ministry of Agriculture,

Nature Management and Food Quality

“Sustainability is part of our ‘licence to operate’. More and more

consumers want to know from where a product originates and how

it is produced. In addition, we sell increasingly more organic products,

for example, and anticipate the consumer’s demands.”

Hugo Byrnes (Ahold)

“For me, health, wellbeing and sustainability are the core of doing

business. These three sometimes run counter to each other, but we

always look for optimal balance.”

Gerald Deetman (Pig Farmer)

“Agriculture has become increasingly more efficient over the past 60 years.

The key question is whether we will be able to manage in the future with

the further optimisation of existing chains. To explore new avenues it is

important for companies to free up funds to experiment with new

business models.”

Jan Jonker, Professor of Sustainable Entrepreneurship at

Radboud University


Sustainability Labels for Feed Concepts and ProductsIn 2015, Agrifirm Feed was the first animal feed company to introduce

sustainability labels for concepts and products. The labels provide

livestock farmers with specific information about the sustainability

performance of the feed concepts. These labels support members

and customers in producing food in a profitable and sustainable way.

Five Labels

There are five sustainability themes that are used as a basis for

labelling concepts and products:

> Mineral efficiency: the nitrogen and phosphate efficiency of

the feed concept;

> Animal health: qualitative information about the contribution

of the feed concept to the gastrointestinal health of animals;

> Climate: greenhouse gas emissions per kg of end product

(milk, meat and eggs);

> Recycling: percentage co-products used for the

feed concept;

> Sustainability of raw materials: how much land is required for

the cultivation of the agro raw materials incorporated into the

feed concept.

These sustainability themes are consistent with the social challenges

faced by the livestock farming sector, such as improving phosphate

efficiency. A feed concept or product can have one or more

sustainability labels. The sustainability information supplements the

usual information on the use and yield of the feed concepts.

Feed concepts with sustainability labels are:

> Mixed Feeding 2.0, OPFOK24, 100-day approach and

TopStart® for the cattle farming sector;

> SOLIQ and VIGOR for the laying hen poultry farming sector;

> Line-up for the broiler farming sector.

Better utilisation of phosphate room and reduction in

greenhouse gas emissions

TopStart® is a good example of a new feed concept with a sustainability

label. This start-up strategy enables cows to absorb much more energy

in the first crucial 60 days of lactation. Through smart feeding, cows start

up more easily, produce more milk and remain in optimal condition.

This helps dairy farmers to make more efficient use of the phosphate

room on their farms. Trials show that TopStart® can improve the climate

footprint by 5.8% and nitrogen efficiency by 11.6%.

1,3%

The land use (m2) per kg of milk increases due to an increase in feed concentrates in TopStart®.

Land Use

Land Use

Increase

Sustainabilityof Raw Materials

4,1%

The share of co-products rises significantly due to the increased use of beet pulp and soy husks in TopStart® pellets.

Recycling

Co-products

Co-products

Increase

5,8%

The volume of greenhouse gas emissions that are released to produce 1 kg of milk declines due to fewer methane emissions because of a shift from fermentation in the rumen todigestion in the intestine.

Climate

Carbon Footprint

Carbon Footprint

Reduction

TopStart® contributes to animal health through means of a relatively high Buffer-Acid Balance.

Animalhealth

Health Effects

TopStart® improves feed efficiency. Given the same protein concentration in the rations, this also translates into higher N efficiency.

Mineralefficiency

11,6% 9,2%

N efficiency

N and P efficiency

P efficiency

Reduction Increase

N efficiëntie P efficiëntie

TopStart® Sustainability Labels*

*The labels for products and/ or concepts of Agrifirm Feed NL are normally not communicated in brochures or leaflets for the foreign market.

‘Sustainability labels help make farming operations sustainable’“Sustainable production is a prerequisite for producing for the international food market. Consumers and companies that purchase our

dairy products not only expect guaranteed quality, they also expect them to be sustainably produced. Feed plays an important role in all

aspects of our Foqus Planet Programme, including animal health, biodiversity or the climate footprint. Phosphate is a good example. The

feed industry is at the basis of the animal production chain.

Just like any other chain, the feed industry must make a contribution to lowering phosphate emissions so that

we continue to meet our agreements with the government. A reduced concentration of phosphate in feed and

a better utilisation is an important challenge for our sector, followed by reducing the emission of greenhouse

gases and maintaining biodiversity. Dairy farmers are looking for ways to make their farm sustainable. The

sustainability labels help dairy farmers in this respect.”

Jaap Petraeus, Manager Corporate Sustainability FrieslandCampina

New and Remarkable Partnerships in 2015In 2015, Agrifirm Feed and Vitens signed a partnership agreement

at the international Aquatech trade exhibition. Agrifirm Feed will

investigate whether the lime pellets produced by Vitens as a residual

product from its drinking water production can be used as laying

hen poultry feed. If the findings of the trials are positive, Agrifirm

Feed will use the Vitens pellets for its laying hen poultry feed.

Agrifirm Feed is also working on innovative animal feeds with

Nutrifeed, a subsidiary of FrieslandCampina Ingredients. In 2015, both

parties introduced Kalvolac Unlimited, a milk powder specifically

developed for unlimited milk provision. The starting point was to

help dairy farmers produce sustainably with fewer young animals.

In 2015, the Agrifirm Innovation Center (AIC) was the only foreign

partner to join the Foods of Norway consortium. In this consortium,

Norwegian companies and universities are working together with

the Norwegian government to improve the utilisation of vegetable

protein in animal feed from a chain perspective. AIC, together with

other partners, is developing innovations in the area of protein

utilisation and alternative protein raw materials. The entry of AIC

to Foods of Norway is consistent with Agrifirm’s development of a

sustainable raw materials policy.

Our ObjectivesBy 2020, Agrifirm aims to buy all major raw materials required for

animal feed, including wheat, corn and soy, in accordance with a

sustainable procurement policy. This will be based on regional risk

analyses in which we chart the specific environmental and social

risks relating to major raw materials produced in the production

region, such as discrimination against certain ethnic minorities in

the Baltic States. These regional risk analyses also contain an action

plan for implementing our sustainable procurement policy. For the

time being, the sustainable procurement policy is limited to Agrifirm

Feed’s procurement in the Netherlands. Over the coming years this

will be expanded to include Agrifirm branches that are major buyers

of agro raw materials or other agricultural raw materials.

3. workINg oN SUSTAINABLE rAw mATErIALS

The demand for food will increase over the coming decades. This increases the pressure on limited raw

materials, water and the natural environment. We want to encourage our members and customers to

respond to the current and future demand for food in a sustainable way. Sustainable production starts

at the front-end of the chain, with the purchase of sustainable raw materials. Agrifirm encourages

growing and using sustainable raw materials. We also incorporate co-products from the food industry

into animal feeds, and we are committed to buying sustainable raw materials. Towards a complete, objective and verifiable approach for the responsible procurement of significant raw materials for feed.

Agrifirm’s responsible procurement ApproAch

link to success

Vers

ion

1.1

01-

16


Sustainable Procurement PolicyUp until now, Agrifirm’s

procurement policy focused

on sustainable palm oil and

soy products. To secure the

sustainable procurement

of all key raw materials, in

2015, Agrifirm, together with

suppliers and key stakeholders,

developed a policy framework

for a sustainable procurement

policy. Through means of

discussions with chain parties,

social organisations and

experts, Agrifirm aims to work

on sustainable raw materials

in a transparent way. Where

possible we do this together

with suppliers.

‘Proactively assuming responsibility for sustainability’“Sustainable procurement is an issue for all players in the food chain. Suppliers, retailers and

processing companies are all working on making their key raw materials sustainable. Agrifirm is

an important link in the chain. We do not want to adopt a wait and see attitude; instead we want

to assume our responsibility. In recent years, a great deal of energy has gone into initiatives aimed

at sustainable soy and palm oil. Agrifirm is now taking the next step in its sustainable procurement

policy by proactively tackling all of Agrifirm Feed’s major raw materials.

In 2015, Agrifirm spoke with suppliers, knowledge institutes and social organisations about our

sustainable procurement policy framework. The subject of these discussions was the basic principles

of the regional risk analyses. We use theses analyses to identify the specific risks associated with

production in a certain region. We also discussed the measures Agrifirm can take when certain

risks manifest themselves in a certain region. In 2015, we conducted regional risk analyses for three

of the key raw materials for animal feed - corn, wheat and rapeseed meal - in order to determine

our priority in relation to social and environment-related issues. Our discussions with stakeholders

provided us with valuable insights for this purpose.

In 2016, we will continue discussions with our suppliers, buyers and stakeholders concerning the

key areas for attention in certain production regions. Coming two years, we aim to have completed

discussions with suppliers for at least 80 percent of the volume of key raw materials. I find it

inspiring to see that everyone is open to the challenge of becoming

sustainable, even at the international level. And that we are not alone

in this.”

Peter Boudeling

Director Procurement, Production & Logistics, Agrifirm Feed

Greening of Crop ProtectionAgrifirm Plant is fully focused on

the greening of crop protection

products. As a market leader,

Agrifirm Plant is a frontrunner

when it comes to the greening

of crop protection products.

Agrifirm Plant’s cultivation spe-

cialists are involved in working

on sustainability processes on

a daily basis. The objective is to

achieve more with less environ-

mentally harmful products and

through means of the efficient

use of crop protection products

and fertilisers. An integrated

control approach starts off

by making a crop protection

product plan that is primarily

focused on prevention. Decision

support systems also assist

growers in this respect. Precision

agriculture, whereby the right

product volume is applied at

the right place, is an important

greening method.

‘Accelerated Greening’“We want to further increase our head start in the field of greening crop protection products. In 2015,

we therefore adjusted our organisation to improve the sharing and application of knowledge. Our

procurement policy for crop protection products furthermore has been more specifically geared

towards sustainability criteria. We aim to increase our procurement from companies that are

frontrunners in terms of the greening of crop protection products. Low-risk products of a natural

origin are a good example of this.

From the perspective of the grower, the greening of crop protection products starts off with an

integrated approach in which you first and foremost avoid the use of environmentally harmful

agents whenever possible. When crop protection products are nevertheless required, it is important

to use them effectively. Developments in the field of precision agriculture are making a contribution

to this. For example, in the future it will be possible to use specialised spraying heads to accurately

apply the right dose down to the square centimetre. That also reduces the risk of having crop

protection products end up in surface waters. A farm discharge scan has been developed together

with the Dutch Federation of Agricultural and Horticultural Organizations (LTO), the water boards,

Agrodis and Nefyto to provide additional support to growers in this area. The scan helps growers

identify the risk of discharge of crop protection products from their

farm. The application of crop protection products in accordance with

current laws and regulations naturally forms part of our cultivation

recommendations. We also translate new knowledge about precision

agriculture and Big Data into practical cultivation recommendations.”

André Groot Nibbelink

Product Manager, Crop protection, Agrifirm Plant



Insects, Feed of the FutureInsects make up the largest living biomass on earth and efficiently

convert low-quality organic material into high-quality nutrients, such

as proteins, fats and micro-nutrients. Insects are a perfect fit for a

sustainable food supply. Agrifirm is actively involved in researching

opportunities for processing insects or parts thereof into animal

feeds. Living insects also have the potential for being used as a raw

material in animal production. In 2015, the first trial in which laying

hens were fed living larvae was successfully completed. Together

with EKOZ Pluimvee partnership in Schore (Province of Zeeland)

and the insect company Protix, Agrifirm Feed has tested the effect

of a combination of 80 per cent kernel feed and 20 per cent living

larvae on a trial group of several hundred Bovans Brown free range

hens. The initial results are positive. Egg production is higher, feed

conversion is better and the loss percentage lower. The trial at the

company will be further expanded in 2016.

Enhancing Residual FlowsAnimal feeds based on co-products from residual flows are

sustainable and offer market opportunities. For example, in 2015, we

transformed approximately 3,000 tonnes of vinasse, a co-product

from the sugar industry, into a fertiliser for the organic agriculture

sector. Proti+, a protein-rich cattle product and Gluco+, an energy-

rich cattle product are two other striking examples. Following their

introduction phase, Proti+ and Gluco+ are clearly in a growth phase.

The sale of both cattle mixtures experienced strong growth in 2015.

The volume sold more than doubled in a period of one year. Proti+

and Gluco+ both are very tasty milk yield stimulating products that

are available throughout the year. The mixtures are also interesting to

dairy farmers from a pricing perspective.

Reuse of Residual Products from the Food Industry 48.4 per cent 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 2015, more co-products were used as a raw material

for animal feed for dairy cattle and pigs than in the previous year.

Percentage per Animal Type 2015 2014

Dairy cattle 64.8 59.9

Pigs 39.6 37.5

Laying hens 31.6 34.6

Broilers 40.9 43.3

Sustainable Soy and Palm OilIn recent years, Agrifirm has invested a great deal of energy into

initiatives aimed at sustainable soy and palm oil. For example, we

endorse the Nevedi convenant for the Dutch market that refers to

the FEFAC Guidelines for responsible produced soy. In 2015, the

Federation of European Compound Feed Manufacturers (FEFAC)

published its benchmark standard. This benchmark compares

different standards for sustainable soy on the basis of the FEFAC Soy

Sourcing Guidelines. Ruud Tijssens, Agrifirm’s Director Corporate

Affairs, R&D and CSR, has played an active role in the development of

the FEFAC benchmark.

In 2015, Agrifirm bought RTRS credits for 240,000 tonnes of

sustainable soy. With this quantity, Agrifirm meets the market’s

demand for RTRS certified soy. Agrifirm also covered the volume of

soy that does not fall under market agreements by purchasing soy

that is produced according to standards that are accepted within

the FEFAC Sourcing Guidelines and the Nevedi Convanant. In 2015,

the Dutch animal feed sector collectively and responsibly procured

the volume of palm oil products required for the Dutch market with

Green Palm certificates.

Soy cultivation in north western Europe offers benefits, such as

closing regional cycles and reducing feed miles. In 2015, some 50

farmers grew a total of 175 hectares of soy. The best 25% of these

growers harvested an average of 3.2 tonnes per hectare and with

a higher protein content than the year before. Agrifirm Plant looks

after the sale of the Dutch soy via a special soy pool. In addition, trials

were conducted on a small scale with several new varieties. Agrifirm

Plant believes there are good prospects for the cultivation of these

new varieties, because the yield as well as the protein content is

higher than that of current varieties. This is a positive development,

because the market for human consumption can be better served

with a higher protein content.


Our ObjectivesAgrifirm aims for a structural decrease in energy consumption. By 2025, Agrifirm will have improved its energy efficiency by 15%. The energy

efficiency of production sites will have increased by 15% in comparison to 2015. As a major buyer of transportation, Agrifirm has made

binding agreements with its carriers about achieving the reduction objectives for energy use and the emission of various substances, such as

particulate matter.

4. EffICIENT prodUCTIoN ANd LogISTICS

Efficient processing of raw materials and smart logistics are high priorities for Agrifirm. Agrifirm’s logistics

contributes to the emission of greenhouse gases and particulate matter, among other things. This has

an environmental impact, which is a factor in climate change. Also, plants use energy for the production

of products and feedstuffs. Investing in efficient production and logistics enables Agrifirm to decrease its

environmental footprint.

Energy Efficiency Since 2013, Agrifirm has calculated the EEI (Energy Efficiency

Index) for most plants. This enables Agrifirm to identify the energy

consumption by product unit at key production sites. The index

indicates the energy efficiency in comparison to the 2010 reference

year. For Agrifirm Feed, the reference year is 2011, as this was

the first year Agrifirm measured the EEI of production sites. By

annually repeating this survey, the energy efficiency trend at each

site becomes evident and this provides Agrifirm with an accurate

impression of the impact of implemented reduction measures.

Agrifirm invests in reduction measures to improve the EEI of

production sites. In the past few years, we made progress. The goal is

to make further EEI improvements over the coming years. Increasing

the share of renewable energy is a performance indicator for Agrifirm

that we monitor on a yearly basis. Reducing the impact of our energy

consumption is not a strategic objective, but simply a performance

indicator that we monitor each year.

The EEI of Agrifirm Feed’s Drachten production site has improved

due to the investment in a new milling and mixing line, a new press

and the improved utilisation of the plant’s capacity. Veghel too

was the subject of a high level of investment and the EEI here also

improved. The investments in Veghel were made at the end of 2015.

We therefore expect the EEI to further improve in 2016 and at the

beginning of 2017. By investing in the plant in Oss we expect the EEI

of this production site to improve over the coming years as well. The

EEI of the Meppel and Wanssum production sites dropped in 2015

because the capacity of these plants was not fully utilised. Because

the plant in Zwolle produces high-quality Air Line® pellets, the EEI

of this production site dropped. Air Line® feeds result in better feed

utilisation on the farm. Due to the closure of the plant in Emmen,

there are no EEI results for this production site.

At the German production site in Neuss, the EEI declined because

since mid-2015, gas instead of oil was used for heating steam. In

addition, an investment in pallet quality, increased production of

cattle feeds and a defect in the production system resulted in an

EEI reduction. The factories of Nuscience Drongen and Nuscience

Baasrode are integated with each other due to the building of the

new Nuscience factory in Drongen in 2016.’ The EEI of the factory

of Drongen is unusual high due to inefficient use of energy as a

result of the extra energy use that was needed for the construction

of the new production location. The EEI of the Baasrode (BE) plant

decreased due to the phase-out of production at this site. Because

of renovations and investments we expect that energy consumption

will significantly decline and that efficiency will improve in 2016.

The EEI in the Hungarian plants in Kaba and Györ improved. The

significant improvement in Kaba (compared to an EEI of 110 in 2014)

is due to a Lean Six Sigma (Business Excellence) project that resulted

in optimised production. The improved EEI in the Polish factory is

explained by the modernisation of the production line and the use

of more energy-efficient machines.

2015 Energy Efficiency in Comparison to Reference Year160

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Our ObjectivesAgrifirm aims for a structural decrease in energy consumption. By

2025, Agrifirm has improved its energy efficiency by 15 percent

compared to 2015. For the branches, the focus is on improving the

energy efficiency of the production sites. Furthermore, Agrifirm

is entering into binding agreements with its carriers on reducing

energy consumption and emissions due to transport.

Renovation of the Veghel Production SiteA key step in achieving

more efficient production

is the modernisation of the

production site for pig feed

in Veghel. Agrifirm Feed is

investing €28 million in fully

modernising production

facilities in two plants. The

objective of the investment

is the further improvement

of feed quality and better

efficiency, including a reduction

in energy consumption.

‘Gain in quality through means of smarter operations’“Compared to the current state of affairs of technology the existing equipment in the plants in

Veghel is due for replacement. Some press, milling and mixing lines are over thirty years old. In the

near future, the plants would no longer meet various laws and regulations such as the Working

Conditions Act (Arbowet), ATEX and government regulations concerning odour, noise and dust. We

first started planning for the renovation in 2012.

During the renovation we will be replacing the machines in the plant with machines of a much

higher capacity. Through means of the much smarter placement of silos and machines, we will

reduce the internal transport of raw materials within the plant. After the renovation we will only

need 7 hammer mills instead of the current 24. One of the sites will exclusively produce feed for

piglets and lactating sows, while the other site will exclusively produce feed for fattening pigs and

pregnant sows.

The renovation will result in considerable cost and energy savings.

However, the biggest gain lies in the further improvement of the feed’s

quality and the ability to even better anticipate customer needs.”

Frits de Wit

Sector Production Manager Pigs, Agrifirm Feed


Agrifirm 2015 Energy Consumption

Energy consumption of the companies in the Agrifirm Group last

year amounted to:

2015 2014

Gas (m3) 13,248,917 12,888,053

Gas (l) 21,288 329,836

Electricity (kWh) 163,237,467 154,468,567

Coal (tonnes) 12,873,450 13,631

Heating oil (l) 481,957 639,908

Diesel oil (l) 724,065 507,062

Petrol (l) 2,800 20,518

AdBlue (l) 0 0

Percentage renewable energy 1.85% 2.56%

Electricity consumption (kWh) rose because production in the

Agrifirm Feed Netherlands plants in Zwolle and Drachten increased.

Nuscience also consumed more energy by switching over to the

new plant in Drongen (BE). This caused three production sites to be

temporarily used for the same production; the new and old plants in

Drongen and the plant in Baasrode (BE).

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Renewable Energy by Site

Agrifirm Transport Energy Consumption Agrifirm wants to as much as possible optimise its transport

movements as a means of achieving financial and environmental

gains and to increase its operating efficiency. Agrifirm Plant works

together with various main carriers for the transport of fertilisers,

cereals, sowing seeds, crop protection products and auxiliary farming

materials (such as bulb nets and agricultural film). Agrifirm Plant

has made agreements with the main carriers of mixed cargo about

making efficiency improvements. Furthermore, Imperial (formerly

Van den Anker), a carrier of crop protection products, each month

reports its carbon footprint per volume transported.

Agrifirm’s scheduling also focuses on the efficient layout of routes,

thus avoiding unnecessary mileage, while the customer receives

his orders well on time. For example, Agrifirm Plant uses discounts

to encourage growers to order their product well in advance. The

internal Business Excellence project continued to focus on the more

efficient transport of fertilisers, as a result of which the load factor

has since risen to 98%. Naturally, we continue to provide services as

‘ordered today - delivered today’ and ‘3-hour emergency delivery’ for

situations such as unexpected weather conditions, planning issues or

estimating errors. In such situations, the optimal combination of trips

continues to be a key factor, but the timely delivery of the order then

becomes the main priority.

In terms of volume, cereals are the most important transport flow.

The introduction of the ‘from-the-farm’ concept means that the

grower no longer needs to concern himself about transportation

and that this responsibility has shifted to Agrifirm With the launch

of the cereals app, a grower can now also use his smartphone to

communicate on a timely basis what and how much he is going to

supply, enabling Agrifirm Plant to create a transport schedule with

the highest possible level of efficiency.

CO2 Emissions

Based on its energy consumption, Agrifirm also calculated its

CO2 emissions (Organisational Environmental Footprint) in 2015.

The results of the CO2 emissions are based on the

emission factors published by Stimular (on the basis of CE

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

Agency, 2012 CO2 Performance Ladder).

In 2015, our emissions amounted to:

CO2 emissions from direct energy: 57,624,572 kg CO

2 equivalent;

CO2 emissions from indirect energy: 81,296,211 kg CO

2 equivalent.

Double Efficiency in New Drongen Plant In October 2015, the Nuscience Group opened a brand new,

hyper-modern production site in Drongen near Gent in

Belgium. The new production site affected efficiency in more

ways than one. First, the new plant has doubled production

capacity to over 10,000 tonnes per month as planned. Second,

the new plant replaces two existing production sites. Producing

the full Nuscience Belgium product portfolio at a single site,

has significantly improved internal logistics. The new plant

contains the most modern automation and process systems.

This enables Nuscience Belgium to quickly and efficiently

anticipate market demand and technological innovations in the

production of ingredients and premixes.

31Corporate Sustainability Report 2015Agrifirm 30

Phosphate, from Problem to SolutionPhosphate is a key component

of animal and plant food.

There is no alternative.

Agriculture uses phosphate

from raw phosphate in

animal feed and fertilisers.

An excess of phosphate

harms the environment.

Furthermore the stocks of

raw phosphate are becoming

scarce over time. Phosphate

is a finite raw material: once

depleted it’s gone. Agrifirm

therefore focuses on reducing

phosphates in animal feed

and on its efficient use and

re-use. That not only benefits

the environment, but the

operating result of our

members and customers

as well.

Integral Mineral Efficiency Farming Advice“The manure and mineral legislation is becoming increasingly complex. Agricultural entrepreneurs are

expected to increasingly focus on farm-specific mineral efficiency. Agrifirm Exlan therefore offers its

members and customers the Mineraal Optimaal package. In this package, we combine expert advice

with support services, such as the calculation of the BEX (farm-specific excretion), the preparation of

fertilising plans and the completion of the Cycle Management Guide. On the basis of these services and

advisory meetings at the kitchen table on the farm, the farmer can take timely measures to improve

efficiency and consequently increase the operating result.

Through close cooperation among Agrifirm Exlan’s and Agrifirm Feed’s consultants we supply the farmer

with true integral farming advice. And with success: more than 2,500 livestock farmers made use of Mineraal

Optimaal in 2015. We prepared a Cycle Management Guide for more than 900 farmers. A more efficient use

of phosphate than the norm provides livestock farmers with additional room for the production of milk.

In 2015, Agrifirm Exlan also provided guidance to various joint ventures among livestock farmers and arable

farmers. Generally this concerns farmers who want to exchange manure and soil, as well as livestock farmers

who jointly want to develop a manure processing installation. I expect that over the coming years, we will be

providing guidance and support to many more farmers to enable them to further improve environmental

and farm performance. It is good to see that we, as the Dutch agricultural sector,

are putting our best foot forward and are genuinely making every effort to make

agriculture more sustainable.”

Gerrit Schilstra

Director, Agrifirm Exlan

Solutions for the Improved Utilisation of Phosphate Room“Our members and customers want to achieve maximum performance subject to the conditions imposed by government. The effective use of the

phosphate room is of major importance. To support farmers in this respect, Agrifirm Feed provides nP feeds. These feeds contain 25 per cent less

phosphate than regular feeds, and yet a high ratio of usable phosphate. Cattle is better able to absorb this type of phosphate from the feed. This way

you avoid having non-usable phosphate end up on your farm. Naturally, the nP feeds do not reduce the results produced on the farm. The almost 500

dairy farmers making use of the nP feeds indicate that animal health and milk production are staying up to par.”

“The Mineraal Optimaal package that we offer together with Agrifirm Exlan is another good example. By means of expert knowledge and advice, a

farmer can aim for a more efficient cycle. When the farmer does this properly, it is possible to perform optimally within production limits. Every year we

research how we can use valuable raw materials, such as phosphate, more efficiently. A professional advisory arm, such as

Agrifirm Exlan, is really indispensable. This way we stand out in the market and we help our members and customers take

steps to close the cycle.”

Jan Kamphof

Commercial Director, Agrifirm Feed

Our ObjectivesBy 2025, Agrifirm will have developed sustainable agricultural practices that have the ability to reduce the environmental footprint of the

production of animal and plant products by our customers by 15%. For instance, Agrifirm actively encourages manure processing so that the

valuable components in organic manure are put to optimal use.

5. EffICIENT USE of rAw mATErIALS

Doing more with less is the cornerstone of our sustainability policy. Agrifirm aims to be a leader in

this area by doing research into product innovations that help our members and customers achieve

higher production levels with less feed, fertilisers or crop protection agents. This is not only good for the

environment. It also improves returns at the farm level.

Phosphate Reduction Agrifirm Feed is focusing on reducing phosphates in animal feed.

In 2015, we achieved a reduction of 758,529 kg of phosphate in

comparison to the 2009 reference year.

Reducing Phosphate in Animal Feed

Phosphate Reduction (kg) 2015 2014

Cattle 878,190 615,322

Pigs -119,661 295,110

In 2015, Agrifirm reduced the amount of phosphate in cattle feed by

using fewer phosphate-rich raw materials in the feed. The phospho-

rous - raw protein ratio (P/RP Ratio) declined to 2.36% in comparison

to 2014. As such we stayed below the 2.5% standard as agreed in

the Nevedi covenant. In 2015, Agrifirm realised lower phosphate

reductions in pig feeds. This drop in the reduction of phosphate was

caused by an increase in the use of phosphate-rich co-products from

the food industry. These co-products often have high phosphorus

content that is not always bio-available to the animals and limits

phosphate reductions.

Zero Stable EmissionsTo protect public health and to combat any inconvenience caused

by odours and noise, the livestock farming sector has already been

implementing various measures. Agrifirm Exlan is currently working

together with Grontmij and InnovatieNetwerk on the development

of the ZERO-stal®. This is a new livestock farming system that reduces

all emissions from substances such as ammonia, odours and particu-

late matter to zero. Furthermore, any pathogens no longer have the

chance of reaching the outside atmosphere. The interior climate of this

zero-emission stable also improves, with a better work environment for

employees and healthier livestock as a result. This increases production

and results in better social acceptance of the livestock farming sector.

Phosphorous Sales Volume per Period

sale

s vo

lum

e in

tonn

es

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

2013

2014

2015


Our ObjectivesBy 2025, Agrifirm will have developed sustainable agricultural practices with a key focus on greening the use of crop protection products, and

in which the natural resistance of animals has been strengthened to such an extent that the use of veterinary medicines by our customers can

be reduced by a further 20% to 30%.

6. HEALTHy pLANTS, SoIL ANd ANImALS for HEALTHy pEopLE

Healthy, resistant plants and animals need fewer supporting substances such as crop protection products

and veterinary medicines. Agrifirm’s policy is focused on structurally using less agents of this nature, while still

achieving good results. This way we are also anticipating stricter government regulations and social pressure

to use fewer such agents. Together with customers and members, Agrifirm works on creating a healthy soil,

resistant crops and strong animals that at the same time form the basis for a profitable farming operation.

Organic Fertilisers The sales volume of organic fertilisers for the Dutch market as a

whole increased in 2015 and Agrifirm was no exception in this

respect. The providers of organic fertilisers strongly anticipated the

need to make maximum use of the limited phosphate room available

to arable farmers. Naturally, the offer of liquid organic fertilisers also

increased significantly throughout the country. Particularly in the

northern part of the country where previously there was a shortage,

there was a significant increase in availability due to the strong

growth of the dairy farming sector. Because dairy farmers and arable

farmers in the northern part of the country now more often directly

exchange organic fertilisers as well, Agrifirm was not anywhere nearly

as often required to act as intermediary. This explains the decrease in

the sales volume of liquid organic fertilisers in 2015. The sales volume

of compost increased as the result of a sales promotion.

Big Data and Precision AgricultureInnovative and sustainable agriculture is impossible without data

analysis. Increasingly more arable farmers and growers are making

use of GPS-driven machines that enable them to collect accurate,

location-specific data about soil conditions, for example. This enables

agricultural entrepreneurs to more specifically apply fertilisers and

the right quantity of crop protection products. This reduces the

environmental impact, while returns improve due to reduced costs,

and more and better yields.

Agrifirm Plant supports growers with various tailor-made tools for

improving efficiency and returns. Together with Agrometius we

use the Veris soil scan to precisely chart a plot’s soil characteristics.

Agrifirm Plant uses this information to develop task maps that can be

used by growers to location-specifically apply fertilisers. The scan can

now also be used for clay soils. By using the NemaDecide Geo tool,

we also provide growers with location-specific management advice

about harmful nematodes. By linking the readings of a soil sample

to geographical coordinates, a grower can immediately prepare

location-specific control recommendations via the Akkerweb

platform.

In 2015, we launched the eBee drone together with three agricultural

contractors who carry out the flights. The agricultural drone creates

crop maps that at a single glance reflect the condition of a plot down

to a 10 x 10 cm piece of land. Agrifirm Plant next translates the scan

maps in combination with the crop and soil analyses into ready-made

advice in consultation with the grower. In 2015, modules for fertilising,

crop protection and precision agriculture were developed. These

modules run on the Akkerweb platform. This is an initiative of Agrifirm

Plant and the Wageningen University Research Centre (WUR). The

platform was elaborately tested in actual practice by members and

customers and has been freely accessible since last year.

600,000

500,000

400,000

300,000

200,000

100,000

0

Liquid (t)

2008 2009 2010 2011 2012 2013 2014 2015

Stackable (t) Compost (t) Organic Fertilisers

Organic Fertilisers


Improved Resistance “The mycorrhiza fungus grows inside and around the roots of crops and supplies them

with water and nutrients, such as nitrogen, phosphate, potassium and magnesium. The

crop in turn supplies the sugars it produces to the fungus. The root system furthermore

develops better when we add mycorrhiza fungi to the crops. This improves the crops’

resistance, making them better able to ward off diseases. The initial results show that

the symbiosis between the flower bulb and the fungus is not yet as good as we had

expected. Together with the KAVB and the bulb growers we are now going to see whether

we can improve the conditions so as to enable the BiomyPro mycorrhiza fungi to

function optimally. As a supplier we want to offer our members and customers profitable

alternatives to crop protection products and fertilisers. I notice

that our members and customers appreciate this.”

Leen van der Heiden

Agrifirm Flower Bulb Specialist

Cultivating hyacinths with fewer agents “I often participate in practical innovation trials aimed at more sustainable bulb cultiva-

tion. I notice that it is becoming increasingly important to grow high-quality products

with less fertilisers and crop protection products. I wanted to see with my own eyes

whether the mycorrhiza fungus also has positive effects on hyacinths. In consultation with

Agrifirm’s cultivation specialists, I mixed the fungus into a one hectare plant bed. The sci-

entific substantiation, guidance and the regular analysis supporting the practical trial give

me confidence that we can truly achieve something with the

trial. As a grower of flower bulbs, I would like to grow beautiful

hyacinth bulbs in a more sustainable way.”

Arjan Hogervorst

Flower Bulb Grower with 22 ha of hyacinths in Noordwijkerhout

Mycorrhiza for a Healthy Soil BalanceSoil with a variety of soil life is in balance

and healthy. Fungi, bacteria and organisms

such as rain worms enrich the soil and

contribute to vital crops. A good example of

this is the symbiotic relationship between

fungi, such as mycorrhiza, in the soil and

crops. The fungus forms filaments within

the soil that attach themselves to the plant’s

roots. These filaments grow deep into the

soil and provide the plant with moisture

and minerals from deeper soil. Agrifirm

Plant works together with the company

Biomygreen to provide mycorrhiza fungi

and associated advice. Following a series

of successful practical trials with BiomyPro

mycorrhiza fungi with onions, sport fields

and tulip bulbs, Agrifirm Plant supervised

a number of practical trials with hyacinth

bulbs in the autumn of 2015. Twelve bulb

growers in the Sustainable Bulb Cultivation

Study Group of the Royal General Bulb

Growers' Association (KAVB) investigated

how hyacinth bulbs can benefit from the

BiomyPro mycorrhiza fungi.

VIGOR for Good Intestinal HealthVIGOR has a positive effect on the intestinal health of laying hens

and stimulates digestion and feed utilisation. Agrifirm Feed is

investigating whether VIGOR can be even further improved to

prevent intestinal problems among laying hens. This is a relevant

improvement, because debeaking will be prohibited in the

Netherlands starting in 2018. The prohibition on debeaking increases

the risk of feather pecking whereby laying hens harm themselves

and each other. Intestinal irritation causes stress among laying hens

and are an important cause of feather pecking. To prevent this,

Agrifirm Feed in cooperation with Feed4Foodure also invests in the

development of feed that prevents intestinal problems

in poultry.

Biodiversity

The Biodiversity Earnings Model

Farmers and growers make their living from the natural environment.

They play an important role in preserving biodiversity. As a

cooperative organisation Agrifirm serves the interests of farmers

and growers. We therefore are fully dedicated to sharing knowledge

about biodiversity, especially at a level where this also benefits the

earnings model of agricultural entrepreneurs.

Four Levels

We make a distinction between four levels in terms of increasing the

biodiversity of agricultural areas. The first two levels have a positive

effect on the farmer’s or grower’s financial results, now or in the near

future. For example, the use of mycorrhiza fungi has a proven positive

effect on soil life and soil structure. Measures on this first level are

currently already resulting in increased biodiversity and in the increased

productivity of farmers and growers. Knowledge about disease control

using natural enemies is still lacking, but is certainly expected to yield

added value for the agro-ecological system in the future.

Biodiversity as a Social Function

There are also other conceivable measures that stimulate

biodiversity, but that do not fit into the farmer’s and grower’s

earnings model. Biodiversity with an added value for the ecological

system (third level) or for the layout of the landscape (fourth level).

For the sake of the social importance of biodiversity, farmers and

growers could, for example, decide to provide space for meadow

birds at the edges of their fields or maintain meandering rivers. These

are perfect measures for preserving biodiversity that farmers can

only take if they are sufficiently compensated for this financially. As a

cooperative organisation we like to work on preserving biodiversity

with a clear earnings model for our farmers and growers. Because

they know better than anyone else that nature sustains life, now and

in the distant future.

CleanLight’s UV light halts the spread of virus in liliesAgricultural and horticultural crops can be protected against fungi,

bacteria and viruses using a special form of ultraviolet (UV) light.

The bulb sector in particular has experimented with this. This means

fewer agents would be required and that produces environmental

gains. At the beginning of 2015, Agrifirm Plant together with

CleanLight B.V. developed a treatment unit designed to curtail the

Plantago asiatica mosaic virus in lily bulbs. By illuminating lily bulbs

all around with the right concentration of CleanLight UV light, the

virus does not have any chance of spreading. Practical Research Plant

& Environment - part of Wageningen UR (WUR) - concluded that

a high concentration of CleanLight UV does not have any adverse

affect on the lily’s bulb quality and growth.

37Corporate Sustainability Report 201536 Agrifirm

Contribution of Innovation Projects to SustainabilityAgrifirm invests in fundamental and practical research to realise

higher yield and sustainability impact at the farm, to maintain its

position as market leader and to contribute to a sustainable food

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

Excellence (BE) conducted a sustainability scan to determine which

R&D and Business Excellence projects in 2015 contributed to the six

The diverging rates are explained by the fact

that research can score on different topics. The

topics that are part of the six sustainability pillars

naturally are consistent with the Dutch Farming

vision. The three Dutch Farming themes guide

Agrifirm’s innovation and development agenda

and provide direction to our innovation agenda

and partnerships.

pillars of the sustainability policy. The percentage of the research

projects that address specific topics related to the six pillars is

presented in the summary below.

Sustainable Raw Materials AIC Plant Business Excellence

Alternative proteins 7 % 2 %

Efficient Production and Logistics

Improved plant efficiency 14 %*

Improved transport efficiency no specific

BE projects

Efficient Use of Raw Materials

Improved phosphate efficiency at the farm 47 % 41 %

Improved nitrogen efficiency at the farm 43 % 41 %

Reduced carbon footprint of end-products at the farm 43 %, 5 %

Developments that contribute to reducing/preventing

air and water quality pollution through means of agricultural input 27 % 66 %

Improved use of crop protection products

(more with less, or use of low-impact products) 49 %

Reduced water consumption at the farm 2 %

Scarcity/reuse of raw materials 20 % 5 %

Healthy Plants, Soil and Animals for Healthy People

Contribution to improved public health at consumer level 3 % 20 %

Contribution to preventing human resistance to antibiotics 17 %

Improved animal health and welfare 50 %

Development of products that enhance the natural resistance

of plants, soil and animals 30 % 29 %

Improved soil physics 32 %

Sustainable Consumer Supply

Direct cost reduction of own and/or member activities or improved balance sheet 43 % 46 % 29 %

Development of sustainable chains 10 % 17 % 29 %

Employees, the Foundation for Success

Contribution to training internal or external parties 3 % 17 % 43 %

* In 2015, the focus of Business Excellence primarily was on quality improvement projects.

Healthy Soil, Plants and Animals The research into the use of mycorrhiza fungi is a good fit with the

theme ‘Healthy Soil, Plants and Animals’. In cooperation with Agrifirm

Plant, the company Biomygreen carried out tests with potatoes and

the mycorrhiza fungi. The trials demonstrated that potatoes with

the mycorrhiza fungi suffer from fewer attacks and that the yield

improves by 4 per cent. Agrifirm Plant consequently developed

commercial products with the mycorrhiza fungus in 2015.

Strength in the Chain Agrifirm has been working with the Veldleeuwerik Foundation for

several years. It is a good example of research and cooperation

within the theme ‘Strength in the Chain’. In 2015, there were

consultations to determine ten themes for which Agrifirm can furnish

input for providing additional training to foundation members. In

total, approximately 600 growers received additional training. In the

future, Agrifirm will share knowledge at meetings on sustainable

agriculture. This way we support growers in taking steps towards

more sustainable food production.

Smart Feeding Research into DairyStart, a concept for the accelerated breeding

of young cattle within 22 months is a good example of ‘Smart

Feeding’. DairyStart makes it possible to have young cattle calve at 22

months in an efficient manner with lower nitrogen and phosphate

concentrations in rations, while maintaining fewer calves. This

concept supports the health of young cattle and contributes to a

further improvement in efficiency in comparison to breeding young

cattle within 24-26 months.


Our ObjectivesBy 2025, Agrifirm is the main consultation partner for chain parties in developing and testing new chain concepts.

7. CoNTrIBUTINg To A SUSTAINABLE CoNSUmEr SUppLy

Smart entrepreneurs look beyond their own enterprise. Insight into the entire chain and new earnings

models are more important than ever for sustainable and profitable enterprise. A broader choice of

sustainable and healthy food helps people make a positive change to their consumption pattern.

Chain cooperation is essential for this purpose. Agrifirm is convinced that every party in the chain

makes an indispensable contribution. Together we work on product concepts with shorter chains

and on the use of local raw materials.

More enjoyment from our work due to the free range concept“In 2009, we switched to the free range

concept. Our chickens are very active. They

often jump on the hay bales in the stable

and over a period of seven weeks or so pick

it completely apart. The animals are also far

more robust and over the past five years no

longer needed any antibiotics. The chickens

are fed 100 per cent vegetable feed each day.

By adjusting the proportion of the additional

cereals we spread we are able to effectively

manage the cost of the feed and the weight

of the animals. It also has made our work

more enjoyable. No longer any stress for peo-

ple and animals! Together with the hatchery,

Agrifirm and Plukon, we are responding

quickly to new developments. The poultry

sector truly is a strong chain.”

Erald Brilman

Livestock Farmer with 46,000 free range

chicks, 60 dairy cows and 50 young cattle.

Increased Animal health and Welfare“Since 2009, we have been working with Agri-

firm Feed on the development of SLOWFEED,

a husbandry system and feed concept for

slower growing broiler chickens that produc-

es good yields. The system safeguards animal

welfare and veterinary medicines are virtu-

ally absent. We now have an optimal mix of

genetics, feed and a husbandry system with

daylight, enriched with hay bales and sprin-

kled feed with cereals for the Goed Nest Kip

and the free range chicken. The high scores

in terms of walking behaviour, cleanliness

of the plumage and loss demonstrate that

together we have achieved higher animal

health and welfare.”

René Welpelo

Director Corporate Quality

at Plukon

Joint Market-oriented Innovation“SLOWFEED FREE RANGE is the best feed for

the Goed Nest Kip, Plukon’s trade mark for

chickens raised in a high-quality environ-

ment, that should only grow a maximum

of 50 grams per day. By frequently assessing

growth, feed conversion, losses, the use of

antibiotics and the balance sheet, we can

provide tailored advice and help achieve

good returns for the poultry farmer. In just

one year, the Goed Nest Kip has already

achieved a greater market volume than the

free range chicken. Poultry farmers can now

choose the market for which they wish to

produce: traditional, free range or the Goed

Nest Kip market. Our consultants help poul-

try farmers choose the right concept for their

farm with the best equilibrium between their

balance sheet and work enjoyment.”

Mathieu Woltring

Commercial Director Broiler Poultry

at Agrifirm

SLOWFEED for more sustainable chicken meat Animal health and welfare are becoming increasingly more important to buyers. We can innovate in this area on a market-oriented basis, by

working together with partners and customers. A good example of this is the SLOWFEED concept for slower growing broiler chickens. The

product consists of two feed lines: SLOWFEED COMFORT for slow growing broiler chickens and SLOWFEED FREE RANGE for free range chickens

with outdoor access. Agrifirm Feed developed this feed in cooperation with chain partner Plukon, one of the largest players on the market for

poultry meat.

> These slower growing broiler chickens are raised in accordance with the SLOWFEED concept.


Sustainable Milling Wheat Agrifirm Plant is working together with Koopmans Koninklijke

Meelfabrieken to make sustainably cultivated milling wheat

available to Dutch bakers. Increasingly more bakers like to

bake bread using mixes that include milling wheat from Dutch

fields, cultivated in accordance with the sustainable cultivation

principles of the Veldleeuwerik Foundation. The partnership is

to produce 5,000 tonnes of milling wheat within three years.

Both partners aim to process the first milling wheat produced by

the project in the Koopmans mixes for Dutch bakers starting in

September 2016

Agrifirm Plant provides advice to the Veldleeuwerik growers on

topics such as the choice of varieties, cultivation and harvest, and

ensures the product is stored separately. Koopmans Koninklijke

Meelfabrieken tests the baking properties of every batch of

milling wheat it receives. By conducting milling and baking

trials for each batch, the quality of the various varieties becomes

clear. Agrifirm Plant then provides this feedback to the relevant

arable farmers. By working together, Koopmans Koninklijke

Meelfabrieken and Agrifirm Plant improve the quality of Dutch

milling wheat and create a shorter and transparent chain. For

Dutch arable farmers this is a wonderful opportunity to convert

an anonymous bulk product into a local and sustainable product

for Dutch bakers and their customers.

Koopmans Partnership“Koopmans consciously opts for more regionally and sustainably

cultivated raw materials that can be fully traced back to Dutch

farming fields. We want to offer our customers ingredients

that are produced with maximum purity and sustainability. A

number of years ago, we initiated a sustainable milling wheat

project in the northern Netherlands. We wanted to scale this

up to all of the Netherlands and Agrifirm was a logical partner

for us. Agrifirm can supply the volume we need to increase the

proportion of Dutch milling wheat in our mixes. The choice of

variety, fertilisation and harvest of milling wheat require new

knowledge. Agrifirm is able to translate our needs to the farm

and to help growers improve their crops. By working together

in a chain context and by sharing practical knowledge, we work

together with Agrifirm to improve the quality of Dutch milling

wheat and create a shorter and transparent chain.”

Bauke Wierda

Manager Sourcing Koopmans Koninklijke Meelfabrieken

Carbon FootprintingCarbon footprinting is the calculation of the total greenhouse gas

emissions of a product throughout its entire lifespan. Since 2014,

Agrifirm has been working within the Federation of European

Compound Feed Manufacturers (FEFAC) on a Product Environmental

Footprinting (PEF) study supported by the European Commission.

Pilots are conducted within the study to develop a collective

methodology designed to determine the CO2 footprint at the

product level. In addition, Agrifirm is consulting the Food and

Agriculture Organization (FAO) and the American animal feed

industry concerning the creation of a global database, the Global

Feed LCI database, with background data for calculating the CO2

footprint.

The CO2 Footprint of Milk, Meat and Eggs

The infographic below illustrates the CO2 equivalent number of

kilograms of emissions released during the production of a kilogram

of milk, meat or eggs produced using Agrifirm Feed’s feeds. The

carbon footprint of chicken meat has declined in comparison to

2014. In 2014, corn from South America was used as part of the

raw materials that make up the animal feed for chickens. In 2015, a

higher concentration of soy was used in the animal feed, which is

favourable in terms of the carbon footprint. In addition, the use of

soy in the animal feed for chickens resulted in a better utilisation of

nutrients. In 2015, the feed supplied 8.9 cycles, while it supplied 7.3

cycles in 2014.

By reducing the amount of corn and increasing the amount of

soy in animal feed, the carbon footprint of milk and eggs declined

somewhat in comparison to 2014. In 2015, a lower carbon footprint

was realised for pig meat as well. This decline too can be explained

by a reduction in the use of corn and an increase in the use of soy in

animal feed. The adjustment of the calculation method for piglets is

not evident from the figures.

Carbon Footprint kg Co2 eq/kg product

Pig meat Chicken meat Milk Eggs

2010

2010

2010

2010

2011

2011

2011

2011

2012

2012

2012

2012

2013

2013

2013

2013

2014

2014

2014

2014

2015

2015

2015

2015

6,000

4,000

2,000

0

LuLuc

Feed

Farm


Working Safely Together“Following several incidents at production sites, we asked ourselves whether we were

actually doing well in the area of safety. Our employees are passionate about their

profession, but this must not cause us to lose sight of safety. Naturally all of us want

everyone to return home safely after a day’s work. Following an initial safety survey, we

identified 23 areas for improvement. Together with management and the Works Council

Safety Committee, we are fine-tuning our policy therefore.

A key component of the renewed safety policy is the traffic plan that we are developing

for Agrifirm Plant’s four production sites. The two production sites that are shared with

Agrifirm Feed will be tackled jointly. For each site we are preparing a brochure with safety

instructions and a floor plan. The biggest gain, however, is in discussing safety risks during

regular work meetings. By putting safety on the agenda of work meetings, we can hold

each other to account for our responsibility for our own safety

and that of others. So that all of us will reach our retirement age

in good health.”

Jacques Wassenberg

Team Leader Quality Assurance, Agrifirm Plant

Re-stated Safety PolicyAgrifirm’s employees are the foundation for

the company’s success. Agrifirm is devoted

to the health and safety of its employees

and visitors. Our safety policy aims to create

a safe working environment for everyone

working at Agrifirm. We want all of our

employees and visitors to arrive back home

safely and in good health after a day’s work.

The need for safety to continue to be a

priority was emphasized by a fatal accident

at a farm involving one of the transport

carriers hired by us.

To assume responsibility in the area of

safety, we initiated a large safety project in

cooperation with Nevedi in 2015.

Our GoalTo remain successful, Agrifirm aims to be the employer of choice in the field of agricultural products by 2020. By 2020, Agrifirm will have visibly

developed leadership as one of the key success factors for our company. This manifests itself in various ways within the company, for example

by means of a high rate of internal promotions.

8. THE foUNdATIoN for SUCCESS

Expert and motivated employees are indispensable to the success of a company. Agrifirm is an

attractive employer with excellent terms and conditions of employment, and excellent training and

career development opportunities. Characteristics include a pleasant company culture and appealing

company objectives with corporate social responsibility as a key theme. This is how we attract the

best employees and achieve the best possible results.

Agrifirm Academy Agrifirm wants to take good care of its employees. We do this

by providing excellent terms and conditions of employment,

as well as by investing in good training opportunities. In 2015,

Agrifirm’s Human Resources (HR) department introduced the

Agrifirm Academy: a combination of existing training courses

supplemented with new training opportunities. In the future,

we will be investigating how to provide access to the Agrifirm

Academy to employees abroad and possibly to our members and

customers as well.

Ethical Business Conduct WorkshopAlmost all Agrifirm Plant’s employees attended the ethical

business conduct workshop. This workshop, presented by the

Hofmann agency, was developed to stimulate awareness about

this theme. The objective is to operate completely transparently

and to embed this approach in the form of clear rules of conduct.

This can include all kinds of practical examples, such as making

use of photocopiers for personal purposes, accepting or politely

declining gifts from suppliers or customers, and how to provide

advice concerning products that are not permitted to be applied

to crops in the Netherlands. These rules of conduct are discussed

in the workshop and therefore originate from the group of

employees itself.

Customer SatisfactionAgrifirm surveys customer satisfaction every two years. It is

very important to any company to understand their customers’

opinion of them. Agrifirm Feed’s and Agrifirm Plant’s customers

are generally satisfied. The personal contact with – and the

expert advice of – consultants is the key factor in this regard.

Agrifirm Feed’s customers give product quality, online ordering

options and the ordering app a high score. The survey also shows

that customers would like the general service to be somewhat

more personal. Agrifirm Feed will most definitely work on this

over the coming period. Agrifirm Plant’s customers consider

the significantly improved handling of complaints a positive

development. A striking finding is that Agrifirm Plant’s innovative

character is not immediately recognised as such by members

and customers. In the coming period, Agrifirm Plant is going to

investigate how to better convey this aspect to members and

customers.

Personal Development“Development is important for the future of employees and

the company. This is why Agrifirm offers its employees good

education and training opportunities. The Agrifirm Academy

provides the logical structure needed for this. The goal is

to provide new employees, as well as employees that have

worked for Agrifirm for many years, suitable education and

training programmes that support their personal development.

The Agrifirm Academy meets the 70:20:10 principle: 70 per cent

of learning through working, 20 per cent through coaching and

10 per cent through formal training. In addition to traditional

training, we also focus on other forms of learning, such as

online learning and on-the-job coaching. The traditional

way of education in a classroom setting also continues to be

important, because it is important to learn from each other and

to exercise skills in a ‘live’ environment.

As of December 2015, e-books about various occupation-

specific topics have been available and we are going to develop

e-learning modules that include training modules for process

operators. With the Agrifirm Academy we want to stimulate our

employees to make learning a life-long process for personal

development and positive commercial

results.”

Joke Mens

Manager Learning & Development,

Agrifirm Feed

AgrIfIrmACAdEmy


Employee TrainingAgrifirm aims to be the best company in its market. The way in which

employees exercise their responsibilities is very important in this

respect. This is why Agrifirm regularly organises training for ‘Young

Employees Agrifirm’ (YEA) for employees up to age 35 with a higher

education level. In addition to leadership training, Agrifirm invests in

(further) training, for example relating to working conditions, safety

and leadership.

Accidents and Absence Due to IllnessAgrifirm's average absence due to illness rate was 3.4 % in 2015. In

comparison to 2014, the absence due to illness rate declined from

0.6 % to 0.2 %. The duration of absence increased from 10 working

days in 2014, to 25 working days. The frequency of accidents also

increased from 3.9 % in 2014 to 4.8 % in 2015.

Expenditures Employee Training as

Number of Incidents Absence due to Illness a % of employees per €K

Average 2015 2014 2015 2014 2015 2014

Agrifirm Group (excl. participating interests) 0 0 2.0 4.5 803 1,367

Member companies

Agrifirm Feed 8 3 3.7 2.1 1,023 98

Agrifirm Plant 2 1 2.8 1.9 164 945

Compound Feed Europe

Agrifirm Belgium 1 0 2.8 2.7 340 1,125

Agrifirm Deutschland 2 0 3.3 7.1 590 155

Agrifirm Polska 3 1 2.9 1.1 449 120

Agrifirm Magyraroszág 1 1 1.3 3.7 358 86

BV Oldambt 0 0 8.3 2.9 1,536 90

Specialties

Nuscience Group 3 9 1.8 3.4 864 244

Co-products

Agrifirm Co-products 2 2 2.1 1.2 356 42

Knowledge & Innovation Cluster

NutriControl 0 5 3.2 4.0 74 0

Agrifirm Exlan 3 0 1.8 4.6 504 549

Service Companies

Agrimec Group 0 0 1.9 7.3 681 1,944

Agrifirm Winkel BV 8 0 4.3 4.6 77 91

Agri Retail 0 0 5.0 4.4 638 297

2,500

2,000

1,500

1,000

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2011

2012

2013

2014

2015

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CoLopHoN

Agrifirm’s 2015 Corporate Sustainability Report is a publication of the

Agrifirm Group and is available in digital format on Agrifirm’s website.

Editorial Committee

CSR Department of the Agrifirm Group, Communications Department of the Agrifirm Group,

HR Department and Finance Agrifirm Group, Agrifirm Innovation Center, R&D Plant

Text

Schuttelaar & Partners

Concept and realisation

DTP Agrifirm

Contact details

Agrifirm Group

Landgoedlaan 20

7325 AW Apeldoorn, The Netherlands

PO Box 20000

7302 HA Apeldoorn, The Netherlands

T +31 (0)88 488 10 00

E [email protected]

website: www.agrifirm.com/duurzaam

June 2016

Workforce Composition

Total number of FTEs in 2015: 3,179

Total number of employees in 2015: 3,570

Distribution of Total Number of Employees (FTEs)

Agrifirm Group 69

Agrifirm Plant (Netherlands and Germany) 272

Agrifirm Magyarország Zrt. 127

Agrifirm Feed Nederland 552

Abemec Group 202

Agrifirm Winkel BV 419

Nuscience Group 1,021

Oldambt 20

Agrifirm Co-products 103

Agrifirm Deutschland 123

Agrifirm Exlan 43

Agrifirm Belgium 26

Agrifirm Polska 122

NutriControl 79

Job Families

Management 4%

Commerce 23%

Staff, Support 15%

and Services

Research and 3%

Innovation

Operations 53%

Miscellaneous 2%

Gender

Male 74%

Female 26%

Employment Contract

Indeterminate 81%

Determinate 19%

Age

< 29 30%

30-50 47%

> 51 23%

Total 3,179 employees


Appendix 1: KPIs Relating to the Organisation

Memberships and Endorsed Codes/Principles

Agrifirm Group BV

FEFAC, Sustainability Taskforce

FEFAC Praesidium

Project Leadership, Responsible Soy Chain Transition Foundation

Dairy Campus Innovation Committee

SAI (Sustainable Agriculture Initiative)

Agrifirm Feed / AIC

Schothorst Feed Research, Basic Package Committee

Feed4Foodure Top Sectors Project

Netherlands Animal Feed Research Association

GMP Committees for Logistics and Product Assessment

Schothorst: Foundation Board, Animal Committee Cattle,

Animal Committee Pigs

Agrivaknet PR and Communications

Trustfeed, Supplier Assessment Working Group

Organic Food and Livestock Platform

Schothorst Feed Research, Animal Committee Poultry

CVB

WPSA

Nevedi ATEX

Nevedi Board

Trustfeed Board

CVB

GMP+ International Expert Committee

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 Working Group Product Assessment

SecureFeed Technical Committee

Nevedi/LTO Feed Track Agreement

Nevedi Long-term Agreements

GMP+/AS

GMP+ Sub-committee on Responsibility

SecureFeed Board

HACCP

SKAL

VLOG

GMP+ FRA (Responsible)

GMP+ Countrynote’s Antibiotic-free Feed and Dioxin Agreement

Avined Salmonella Working Group (formerly PPE)

FND Risk Assessment Working Group

SecureFeed Supplier Assessment Working Group

Nuscience Group

GMP

GMP+

ISO 9001 / 22000

ACS

Socially Responsible Soy Contracts

Cochon de Bretagne

Viande de Porc

A+ Futter

QS

AMCRA

Bemefa

Pig Veterinaries Survey Group

WPSA

European Pig Producers Platform

Nevedi Premixes Consultation Platform

Fefana

Frana

Animal Feed Research and Animal Feed Product Board Advisory Committee

IPVS

AppENdICES Ava Schothorst

Ava AniMedica

Agrivaknet

Agrifirm Belgium

VLOG

GMP+

Ovocom/FCA (KAT,HFA)

SecureFeed

Bemefa

AMCRA

WPSA

Flanders Food

Agrifirm Deutschland

QS

KAT

QM-Milk

Agrifirm Poland

GMP

ISO9001:2008

Agrifirm Hungary

ISO 22000:2005 (Kaba, Győr)

HACCP (Kaba, Győr)

ISO 14001:2005 (Kaba)

Global GAP (Kaba, Győr)

GMP+B1 (Kaba, Győr)

OSI Food Solutions (Kaba, Győr)


GMP+

SecureFeed

FEFAC Working 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 Precision Agriculture Programme

Steering Group SGGV Crop Protection Products

Top Sector Consultation Body: Soil Programme

Nemadecide

Geonema

Agrodis

Mineral Fertilisers Federation (MMF)

Plantum, Cereals Section

Plantum, Trade Section Cultivation License

NAK

Veldleeuwerik Foundation

Dutch Carrot Group

LLTB

ZLTO

Netrecycle

Mineral Fertilisers Federation

Mineral Fertilisers Distribution

Arable Farming Product Board

Top Sectors Chain Platform

Steering Group Thorough Corn Farming in Drenthe

NIBEM (Barley Brewing Advisory Committee)

Nemadecide

Geonema

Abemec

SCC Standards

KA Certifications Standards

SCC Certification

STEK Certification

Oldambt

Dutch Fodder Legumes Driers Association

CIDE (European Fodder Legumes Driers Association)

Copa-Cogeca, Fodder Legumes Working Group

Dutch Federation of Agricultural and Horticultural Organizations (LTO)

ANOG

GMP+

SKAL

SecureFeed

QS

ETS


Agrifirm Exlan

Cumela Section Manure Distribution

Manure Sales Office

Steering Group Project Office Local Manure Processing

Nevedi Cycle Management Guide Working Groups

Cycle Management Guide User Working Group

Cycle Management Guide Database User Group

RAV Committee

NutriControl

NEN Food Committee

NEN Animal Feed Committee

NEN Halal Food Committee

Fenelab Agrofood Committee

Fenelab Accreditation Committee

VRS

GMP+ Reliability of Laboratory Testing Steering Group

Agrifirm Winkel

Agri Retail/Agrifirm Winkel

Flowering Platform

RND

BPN

Dibevo

NMF/NMD

Fagrovet

51

Overview of key themes that emerged in consultation with stakeholders

Arable Farming and Horticultural Activities

Sustainable Raw Materials Biodiversity Transport Health and Safety of Customers

and Consumers

(recycling, crops, certifications) (plant health, soil health, flowers & bees) (safety at work, consulting)

From-the-farm collection of Partnership with

empty crop protection barrels Veldleeuwerik Foundation

by Netrecycling,

Van Gansewinkel Groep. Continuation of Sustainable

Brewing Barley Chain

(Heineken & Holland Malt)

Partnership with Koopmans on

sustainable milling wheat

Resetting soil, public-private

partnership (biological soil

remediation)

Partnership with Agrometium

(Veris Scan): soil analysis in

combination with task cards

for growers

Partnership with Nefyto sector

organisation for using toolbox

cards to limit emissions caused

by crop protection products

Public-private Partnerships

/ top sectors programmes: PPP

sustainable soil, IJkakker.


Livestock Farming Activities

Company Animal Health and Welfare Minerals Co-products

(efficiency, manure processing,

cycles)

Agrifirm Group

(excl. participating interests)

Agrifirm Feed / AIC Smart Dairy Farming

partnership

WUR + private partners:

research into intestinal health

of piglets

Employees and zoonosis:

Nevedi / Occupational Health

& Safety (Arbo) Catalogue

Manure processing

ForFarmers, De Heus, ZLTO

Smart Dairy Farming

partnership

Partnership Belgium (Fancom

and University of Leuven) for

precision feeding

Continuation of Manure

Investment Fund

Cycle Management Guide

partnership

Partners with scientific and

private partners on increasing

the availability of amino acids

Strategic partnership with

Vitens

53

Climate Sustainable Raw Material Safety and Liveability for Food Safety

(greenhouse gas emissions) (local raw materials, sustainable Local residents near

soy, sustainable procurement) Plants

LEAP partnership FAO,

FEFAC, AFIA

F4F Feedprint WUR, F4F

partners

Agreements with carriers

about more EURO 6 vehicles

Promoting awareness of

European soy, WUR, ILVO

Partnership with Provinces

and private partners for mar-

keting of Dutch soy

F4F alternative proteins, WUR,

F4F partners

Sustainable soy chain transition:

Sustainable Dairy Chain, Environ-

mental certificate and Nevedi

Agreement sustainable soy

Involvement in FEFAC Road-

map to Sustainable Soy

Procurement of sustainable

raw materials: sustainable soy

meal, sustainable soy oil from

RTRS, ProTerra, Amaggi, etc.

Foundation of SecureFeed

organisation

Nevedi/Hisfa, etc.





cycles)

Nuscience NV

Agrifirm Deutschland

Agrifirm Polska

Agrifirm Hungary


Feed Belgium

Partnership with the Free

University of Berlin: the effect

of functional feed ingredients

on animal health

IWT trial with precision feeding

of fattening pigs (partners:

Fancom KU Leuven AIC)

Partnerships with private

parties: conversion of

co-products into energy and

functional feed ingredients

55





parties: enhancement of

raw materials through

fermentation


raw materials: mostly non-

GMO broiler meat

Soy meal procured regionally

for specific customers

Lime used in animal feed pro-

cured from special mines

(GMO-free)

corn, wheat and barley

procured from local farmers


soy via Bemefa


parties: enhancement of

raw materials through

fermentation





cycles)

Abemec BV

Oldambt BV

Agrifirm Exlan BV

Nutricontrol BV

Agrifirm Winkel BV

57




Partnership

Grey Harrier Foundation


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 the Agrimec Group, and supplier of agricultural mechanisation systems, also provides services relating

to maintenance and 24-hour break-down service.

> Agrifirm Exlan: services relating to farm 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 Magyarország

> BV Oldambt

> Agrifirm Exlan

> NutriControl

> Agrimec Group

> Agrifirm Winkel BV

> Agri Retail

Agrifirm’s companies operate in:

The Netherlands, Belgium, Germany, France, the United Kingdom, Spain, Hungary, Poland, Ukraine, Serbia, Romania, Bulgaria, Russia, Brazil and

China.

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/kg functional unit (FU) (milk, meat or eggs). Conclusions and explanations from the 2015 report are as follows:

> The carbon footprint of chicken meat in 2015 declined in comparison to 2014 and prior years. In 2014, more corn was used in broiler feed,

while more soy was used in 2015. This shift in the use of these raw materials reduces the carbon footprint and results in a better utilisation

of nutrients. The 2015 feed on average supplied 8.9 cycles, while the 2014 feed on average supplied 7.3 cycles.

> In 2015, the carbon footprint of milk declined slightly in comparison to 2014 due to reduced use of corn and the increased use of soy

in dairy cattle feed.

> The carbon footprint of eggs stayed stable and a comparison of the 2015 feed composition with that of 2014 shows no discernible differences.

> In 2015, the carbon footprint of pig meat declined in comparison to 2014. This is also due to the reduced use of corn and the increased

use of soy. The adjustment of the calculation method for piglets as described in the 2014 Corporate Sustainability Report is not visible in

2015. It is possible that the shift last year was not due to a change in methodology.

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.

Land Use 2015 2014 Feed Miles 2015 2014

Pig meat 3.4 3.5 Pig meat 2.98 5.38

Eggs 2.6 2.8 Eggs 3.16 3.57

Poultry meat 2.6 2.8 Poultry meat 3.11 3.73

Milk 0.88 0.8 Milk 1.50 1.46

Carbon Footprint kg Co2 eq/kg product

Pig meat Chicken meat Milk Eggs

2010

2010

2010

2010

2011

2011

2011

2011

2012

2012

2012

2012

2013

2013

2013

2013

2014

2014

2014

2014

2015

2015

2015

2015

6,000

4,000

2,000

0

LuLuc

Feed

Farm


Investing in Energy Efficiency

Agrifirm’s production and logistics contribute to the emissions of greenhouse gases, among others. In 2015, Agrifirm therefore invested in

various measures designed to decrease the environmental footprint. Agrifirm Feed invested in the renovation of two production sites

in Oss. Agrifirm Deutschland invested in various facilities, including € 850,000 in a new and more energy efficient production line. Nuscience

invested in the purchase of two bale presses, thus reducing the need for packaging materials. Additional investments were also made in raw

materials silos resulting in a reduction in purchases of materials in big bags. Furthermore, new machine motors were acquired that consume

less energy. The Agrifirm Feed Belgian production site invested €30,000 in green energy.

Co-products

In the Netherlands, the use of co-products as a raw material for animal feed increased. The use of co-products in the production of pig feed in

particular resulted in higher phosphate concentrations. This reduced phosphate savings in pig feed.

Energy Efficiency Index

Agrifirm Feed

Dra

chte

n

Emm

en

Mep

pel

Oss

Vegh

el

Wan

ssum

Zwol

le

Gro

bben

donk

Mar

goni

n

Szam

otul

y

Topo

la

Neu

ss

Kaba

Gyo

r

Bocs

Dro

ngen

Baas

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Vegh

el

Old

ambt

Ope

inde

200180160140120100

80604020

0

2010 2011 2012 2013

AgrifirmBelgium

AgrifirmDeutschlandAgrifirm Polska

Agrifirm Magyarország Zrt.

Nutri-Control BV Oldambt

Nuscience Group

2014 2015

Energy efficiency 2015 in Comparison to Reference Year

160

140

120

100

80

60

40

20

0

Dra

chte

n

Agrifirm Feed Belgium Poland Germany Hungary Nuscience

Nutri-

Control Oldambt

Emm

en

Mep

pel

Oss

Vegh

el

Wan

ssum

Zwol

le

Gro

bben

donk

Mar

goni

n

Szam

otul

y

Topo

la

Neu

ss

Kaba

Gyo

r

Bocs

Dro

ngen

Baas

rode

Vegh

el

Old

ambt

Ope

inde

Pigs (live weight) Laying hens (eggs) Broilers (live weight) Cattle (milk)

NL BE DE PL HU NL BE DE PL HU NL BE PL HU NL

DE

90.080.070.060.050.040.030.020.010.0

0

2010

2011

2012

2013

2014

2015

PL

Co-products (%)

Recycling Materials

Recycling materials allows for more efficient use of raw materials. Just like any other year, Agrifirm Plant invested in the collection of bulb nets

that are recycled into a base product for the plastics industry. Agrifirm Plant also offers growers the option of having empty jerry cans of crop

protection agents, barrels and big-bags recycled. NutriControl also separated its different materials in 2015.

Location Type of Waste kg 2015 kg 2014

NutriControl chemical 4,396 3,722

NutriControl plastics 660 920

NutriControl paper 5,200 5,174

Nutricontrol glass 1,806 2,225

NutriControl hospital waste 38,175 18,575

NutriControl dry feed 12,180 15,040

NutriControl residual waste 23,400 19,087

Oldambt invested in the recycling of bottom ash, the residual product that remains after drying/incinerating raw materials, for use in

manufacturing bricks.

Quick Test for Organic Material Balance

A healthy and fertile soil is crucial for achieving positive cultivation results. Soil must not become depleted or overstrained. This is why we

continuously work with our customers on creating healthy soil and resistant crops. A good example of this is the quick test that provides

growers with insight into the organic material balance on their farm. On the basis of the quick test results, a grower can compensate the

annual decomposition of organic material so as to keep the soil’s fertility up to par. Organic material is of major importance to the soil’s

structure, the atmosphere and water management and has a major impact on the soil’s and crops’ resistance. Agrifirm Plant also conducts

more elaborate analyses to assess the soil. In case of any soil deficiency, the analyses produce location-specific recommendations. Growers can

then improve the soil through means of the variable distribution of gypsum or compost.


Resetting the Soil: Biological Soil Remediation

In the autumn of 2014, Agrifirm Plant together with various other parties conducted practical research into the application of Soil Resetting

in outdoor crop cultivation. Soil Resetting is an environmentally friendly and anaerobic (without air or oxygen) method of remediating the

soil from harmful nematodes. Anaerobic soil remediation is already being applied in open field crop cultivation, but takes up a full growing

season. The Soil Resetting method makes use of an easily biodegradable protein, Herbie®, which requires the soil to be covered for only

two to three weeks.

The practical research has already produced a great deal of useful knowledge concerning the use of Soil Resetting in open field crop

cultivation. In 2015, Agrifirm Plant conducted additional research into the economic rate of return of Soil Resetting in open field crop

cultivation. The nature-friendly and biological method matches Agrifirm’s policy on ‘green’ soil treatment and sustainable crop protection.

Furthermore, the new method offers growers and local residents a safe alternative to the traditional product Monam that can only be applied

under strict conditions.

Appendix 3: KPIs Relating to Terms and Conditions of Employment 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 2015 there were no reports concerning

corruption, discrimination or the violation of human rights submitted pursuant to these regulations. Agrifirm was not involved in any legal

actions concerning anti-competitive behaviour or cartel formation.

Collective Labour Agreements on Notice of Termination

In collective labour agreements, Agrifirm stipulates that for employees with temporary and permanent contracts, the employer must give up

to 13 weeks notice and the employee must give up to 6 weeks notice. This depends on the term of the employment contract and years of

service.

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. In 2015, Agrifirm organised a sports afternoon for its employees. Employees had the option of mountain biking, cycling, playing

tennis or hiking through nature.

Sponsorship

Contributing to an agricultural powerhouse and a sound society is important to Agrifirm. This is why Agrifirm cooperated on various projects

in developing countries with ZOA and Agriterra in 2015 as well. Furthermore, we sponsored various initiatives at home and abroad. For

example, Agrifirm Feed sponsored study meetings and LTO Netherlands. Agrifirm Poland provided €1,600 to sponsor local youth organisations,

and Agrifirm Magyarország and Nuscience sponsored various social initiatives in the amount of €3,500 and €8,511 respectively. Oldambt BV

provided in-kind sponsorship for landscaping and biodiversity projects.

Employee Satisfaction

In recent years, Agrifirm took major steps in achieving employee satisfaction and commitment. The 2013 employee satisfaction survey

demonstrated a requirement for improved internal communications. This topic consequently is on the agenda of the team and work meetings

of various subsidiaries. For example, Nuscience Belgium developed an employee newsletter. Agrifirm Feed and Agrifirm Winkel BV took steps

to further improve leadership qualities in 2015 as well.

Investments in local infrastructure:

- Hungary: renovation of a road.


2015 Aantal MT Doorgegroeid Lokaal

Agrifirm Group BV 2 2 2

Agrifirm Feed 5 4 5

Nuscience Group 4 0 4

Agrifirm Deutschland 5 1 5

Agrifirm Polska 3 0 3

Agrifirm Magyarország 5 1 4

Agrifirm Co-products 3 2 3

Agrifirm Belgium 2 2 1

Agrifirm Plant 5 4 5

Abemec 3 2 3

Oldambt 5 1 5

Agrifirm Exlan 3 3 3

NutriControl 4 3 4

Agrifirm Winkel BV / Agrifirm Retail 6 - 6

Diversiteit leden Management Team

Landgoedlaan 20

7325 AW Apeldoorn

Postbus 20000

7302 HA Apeldoorn

T +31 (0)88 488 10 00

F +31 (0)88 488 18 00

[email protected]

www.agrifirm.com

Agrifirm Group

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