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| | | | Agriculture
| | | | Never before has agriculture been of such importance to the global brewing business. A number of factors have come together to make both quality and availability of our raw materials (grains and hops) an even greater strategic issue for the Heineken business. Supply of quality brewing barley has been limited due to the poor harvest yields in the main barley-growing areas as well as the increased level of land under cultivation for biofuel. The demand side is under pressure because strong economic growth in highly populous countries has led to a significant increase in the consumption of flour, meat, dairy products as well as beer. A positive solution to the question of sustainable agriculture is no longer just a ‘nice thing to do’; it is an increasing necessity.
Our objectives
- To secure the highest quality barley and other grains and hops at reasonable prices in the short and long term
- To assure the safety and quality of our beers through the selection of raw materials with the right specifications from approved suppliers
- To stimulate the sustainable farming of barley to contribute positively to yield, beer quality and the environment.
Our strategy
With the diversification of crops and the land on which they are grown, we want to keep barley farming an attractive proposition for farmers. To this end we have long-term relationships with our maltsters in order to secure availability and assure the right quality of grain. We encourage them to introduce sustainable production of barley with their farmers and to protect the environment to preserve the long-term future and benefit the yield. Through long-term agreements we are committed to working closely with supply chain partners in order to achieve a sustainable value chain with long-term benefits for our stakeholders.
We constantly look at opportunities to maximise local cultivation and supply of barley or to substitute imported barley by locally grown crops in countries where this is possible. Our increased sourcing of barley from areas outside Western Europe reduces our exposure to partial crop failures, avoids the transport of bulk raw materials over greater distances and creates an income for the farming sector in the country of origin. A professional and well-developed malting sector with a global geographical spread is of key importance to reach a healthy and sustainable supply chain. We will continue to support this by participating in joint development projects with malting companies in countries where we operate.
We maintain strict quality criteria for raw materials and have further enhanced our control and assurance systems. We continue the strict monitoring of raw materials to assure compliance with our non-GMO policy.
With regard to the sustainability of barley growing, our key approach is to use the ten indicators on sustainable agriculture (as defined in our Skylark project) as the foundation for sustainable development (see also the case study below or the project's website (Dutch only). These indicators cover the sustainability of the farm management and include the local economy, biodiversity, energy and water usage as well as fertiliser and pesticide usage. The main driver is soil health and soil fertility. This approach respects the independence of the farmer and recognises that sustainable agriculture can only exist in an economically viable farming business.
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