Agriculture and farming practices - Grocery

The businesses within our Grocery segment are highly dependent upon agricultural commodities and supply chains to deliver their leading brands and ESG agenda.

A farmer growing Hom Mali rice for Westmill using the Sustainable Rice Platform Standard, Ubon Ratchathani, Thailand. Farmers are trained to test local soil conditions and produce optimised fertilizer mixes that improve efficiency A farmer growing Hom Mali rice for Westmill using the Sustainable Rice Platform Standard, Ubon Ratchathani, Thailand. Farmers are trained to test local soil conditions and produce optimised fertilizer mixes that improve efficiency

Responsible agriculture, biodiversity and land use

Our Grocery businesses have strong connections to the global farming sector, sourcing products from crops grown on farms, tea gardens, and smallholdings around the world. The diverse approaches and solutions they pursue reflect the structure of the supply chains and the nature of their operations in that context.

Our Grocery businesses are adapting to the evolving regulatory ESG landscape by expanding their approach to managing environmental and social risks, opportunities and impacts within their agricultural supply chains. In the past, they focused on a few targeted initiatives, but now they are taking a broader approach to address a wider range of issues. Recognising the need for collaboration across the industry, they are working with civil society partners and other industry players to address supply chain issues.

To help address environmental risks such as deforestation and biodiversity loss, our Grocery businesses are focusing on specific projects within their supply chains, especially for those products particularly impacted by climate change. They are also prioritising water reduction and yield increase for commodities like rice. Climate change is particularly impactful for the gardens, farms and people that grow tea and herbs in the supply chains across the division, as extreme weather and natural disasters continue to affect the growth of healthy crops and the livelihoods of the communities that rely on them.

Several businesses leverage third-party certifications from organisations such as the Rainforest Alliance, Fairtrade, and the Roundtable for Sustainable Palm Oil (RSPO). For example, these certifications are a minimum requirement for Twinings’ suppliers of key raw materials such as tea and palm oil. Twinings is also actively involved in the International Cocoa Initiative, the World Cocoa Foundation, the Ethical Tea Partnership (ETP), the Sustainable Spices Initiative and the RSPO.

How our Grocery businesses approach a range of commodities is presented below.
 

Rice

Traditional rice-growing methods are water-intensive and release a significant amount of greenhouse gases into the atmosphere. Rice cultivation is estimated to be responsible for 8% of the world’s methane emissions1. Westmill Foods, a Grocery Group business in the UK and a leading supplier of food products to the Indian, Chinese and Thai foodservice sectors, is committed to promoting the standards of the Sustainable Rice Platform (SRP).

As a founding member of the SRP, a multi-stakeholder partnership set up by the United Nations Environment Programme, Westmill Foods supports initiatives to promote climate-smart agriculture, protect biodiversity, fight climate change and support smallholder farmers. By adopting SRP standards, the business is contributing to the production of high-quality rice while minimising environmental impact.

In Pakistan, where Westmill Foods sources basmati rice, the business is now in the sixth year of its collaborative project with Galaxy Rice, a key supplier in Pakistan, to equip them with the tools and techniques needed to train their farmers on sustainable farming methods in line with the SRP standard.

This programme aims to benefit both farmers and their communities and covers several topics such as water management, pesticide management and agribusiness techniques. In particular, it covers the use of water-saving technologies, including land laser levelling and alternate wetting and drying (AWD) techniques which also help to reduce GHG emissions.

As of May 2023, the project had included 1,000 farmers across 75km of land. Since the programme started in 2018, farmers within the programme have seen a 48% reduction in GHG emissions, a 31% reduction in water usage, a 13% increase in net yield and a 21% increase in net income compared to a set of non-SRP farmers.

Westmill Foods has also completed the first year of a similar project working with its supplier Olam Agri to train smallholder Thai Hom Mali rice farmers located in Ubon Ratchathani, Thailand, on the SRP standards. In 2023, this project supported 600 farmers, with plans to increase by 200 farmers per year for the next three years. During the first year the programme achieved a 13% reduction in GHG emissions, a 56% reduction in fertiliser usage and a 10% increase in net income for farmers.

Tea and spices

Twinings Ovaltine sources approximately 13,000 tonnes of tea and over 180 herbal raw materials, including spices. It does not own any tea or herb estates, farms or gardens and is selective about who it sources from, only purchasing tea from sources certified to internationally recognised standards, such as the Rainforest Alliance and Fairtrade International. It sources all its tea from seven regions – China, Kenya, India, Sri Lanka, Argentina, Indonesia and Japan.

Its tea supply chain includes approximately 120,000 workers and 110,000 farmers. Central to Twinings' responsible sourcing programme is the ‘Sourced with Care’ initiative, which aims to drive positive change through empowering women, supporting incomes and improving living standards within these communities. Through this initiative, Twinings recognises and supports the vital contributions of people and communities in tea and herb production. The business also collaborates with key partners in the tea sector, such as the Ethical Tea Partnership (ETP) and IDH - the Sustainable Trade Initiative.

Twinings publishes a sourcing map on its website, Sourcing – Sourced With Care, detailing the tea gardens it buys from as well as the countries it sources its key herbs from, as part of its efforts to drive collaboration and greater transparency of reporting.

In 2024, it achieved 92% traceability by volume (back to farm or producer community) for its 17 key herbs2 and spices and is working with suppliers to ensure full traceability of its key herbs by 2025.

Twinings, AB World Foods and Westmill are all members of the Sustainable Spice Initiative (SSI). AB World Foods and Westmill Foods are collectively working towards the goal of sourcing 25% of spices from SSI-certified sources in at least their top three product categories among spices, herbs and dehydrated vegetables by 2025, and 50% by 2030.

Westmill Foods is making progress towards these targets. During 2023/24, it sourced 47% of its top three spices (turmeric, chilli and cumin) with SSI certification. It also set a new target to reach SSI certification for 10% of the paprika it sources and in 2023/24 it has achieved 14%. AB World Foods is making similar progress towards these targets and in 2023/24 sourced 34% of its top three products (coriander, paprika and kibbled onions) from SSI-certified sources.

In addition, since 2019, AB World Foods has been working on Project SPICE with partner NGOs Mercy Corps (an international NGO working globally to help people affected by crisis, disaster, poverty and climate change) and GRAVIS (a community development organisation in Rajasthan, India) to support rural cumin and coriander farming communities in Rajasthan. The project has delivered agronomy and business skills training to over 1,000 farmers.

Cereals

Our Grocery businesses buy 5.9% of the UK milling wheat crop which is a core ingredient for Allied Mills, Allied Bakeries, Jordans Dorset Ryvita (JDR), Silver Spoon and Westmill Foods. JDR are also buyers of UK oats and rye.

Jordans Cereals, a premium cereal brand within our Grocery Group, sources all of its grains through the Jordans Farm Partnership, which covers its branded sales volume in the UK and France. This collaboration pays a premium to the farmers involved for their oats, wheat and barley in exchange for them managing at least 10% of their land for the benefit of wildlife. Since 1985, Jordans Cereals has worked with these farmers to promote biodiversity on their land.

Allied Mills ensures all the UK wheat it sources is Red Tractor / TASCC (Trade Assurance Scheme for Combinable Crops) assured. The business is piloting its Wheat Sustainability Supply Project, where select farmers adopt techniques that aim to improve soil health and support wildlife. 

Animal health and welfare

Grocery Group

Grocery Group produces products primarily derived from ingredients of plant origin, except for a small quantity of dairy products, eggs and honey. It believes in the importance of high animal health and welfare standards within agricultural systems and supports the principles in ABF’s Animal Welfare Position Statement.

Grocery Group businesses are working towards sourcing 100% cage-free eggs by 2025. While Westmill Foods and Silver Spoon have already achieved this, Allied Bakeries will transition its branded lines to 100% cage-free eggs from September 2024. 

George Weston Foods

George Weston Foods purchases ingredients derived from animals, including eggs, dairy products, pork and other meat. The business believes in maintaining and improving high animal welfare and meeting relevant animal welfare standards, including the internationally recognised Five Domains. George Weston Foods follows groupwide ABF commitments to purchase 100% of cage-free eggs by 2025.  The business has already started the transition process and is on track to meet this commitment. Tip Top in New Zealand has already achieved the goal.

George Weston Foods-owned piggeries in Australia have been sow stall-free since 2010, with directly owned and supplier owned piggeries in Australia certified by the Australian Pork Industry Quality Assurance (APIQ) programme. For pork sourced by George Weston Foods from overseas, suppliers in Europe and North America are expected to undertake continuous improvement in welfare standards.

1. World Bank Group, World Bank Steps Up Efforts to Address Methane Emissions, December 2023

2. These herbs represent 85% of Twinings’ herb volume and include: peppermint, camomile, ginger, hibiscus, orange, lemongrass, rosehip, lemon peel, spearmint, blackberry leaves, apple, liquorice, cinnamon, rooibos, turmeric, cardamom and vanilla.

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