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SUSTAINABILITY MARKET INTELLIGENCE
April 2010 Quarterly Report
The growing importance of sustainability as a market driver in some of New Zealand’s
food and beverage export markets has led the Ministry of Foreign Affairs and Trade
and New Zealand Trade and Enterprise to prepare a quarterly report for business
people highlighting trends and issues in key markets.
NETHERLANDS
SUMMARY:
• Recent reports stress sustainability as a business imperative: A recent Deloitte
report on global consumer trends highlights food safety as a top ranking issue,
and sustainability as an important theme for 2010. An ING report argues that
sustainable production is becoming the norm and increasingly demanded by
consumers. Separate market research shows 86 percent of Dutch people find it
important that companies concern themselves with sustainability, and highlights
steps considered important (e.g. companies reducing packaging and waste;
supermarkets promoting sustainability labelling and setting criteria for
suppliers).
• Agreement on Sustainable Cocoa: Food companies, retailers and the Dutch
Government have signed an agreement for 100percent guaranteed sustainable
cocoa consumption in the Netherlands by 2025.
• Aquaculture Stewardship Council ready to launch consumer label in mid-2011:
The Dutch Sustainable Trade Initiative continues work with WWF to set up the
Council and launch a consumer label, and to help fish farmers in developing
countries to comply with certification standards.
• Water Footprint Manual published: The Netherlands-based Water Footprint
Network has published a ‘Water Footprint Manual’ with the aim of providing a
consistent accounting methodology for calculating the water footprint for
individual processes and products.
• Sustainability system replaces proposed all-encompassing label: The Dutch
Government’s desire to create a sustainability label to replace all others looks
unfeasible. Instead, the Platform for Sustainable Food Systems wants to
develop an electronic system that will enable consumers to look up how
products score on all the different criteria.
• Agriculture Minister and researchers disagree over meat consumption:
Researchers say there is “broad scientific consensus” that high meat
consumption is less sustainable and that by calling efforts to reduce meat
consumption “symbolic politics” the Minister is discouraging more sustainable
behaviour. The Minister has focussed on sustainable production, including
requesting an action plan from industry to increase availability of sustainably
produced free range pork in line with a 2009 memorandum.
Sustainability market intelligence: April 2010
• Dutch Government supports EC authorisation of genetically modified potato:
Biotech company BASF has approval from the Netherlands for the commercial
cultivation of the GM Amflora potato in coming years.
CONSUMER TRENDS
Deloitte: Food safety is number one concern
Deloitte Touche Tohmatsu has released its report, ’Global Powers of the Consumer
Products Industry 2010‘, the third in a series identifying the 250 largest consumer
products companies around the world. The report also provides an outlook for the
global economy and discusses major trends in consumer products.
According to the report, global spending on food and beverages has remained robust,
despite the global economic downturn, but people have traded down to private labels
and are searching for better value. The economic crisis has affected consumer
confidence overall, so consumers are not looking for just the lowest price, but
scrutinising their spending habits, critiquing their choices and rethinking their attitudes
to consumption.
Food safety has been one of the highest ranking issues in the Consumer Goods
Forum’s Top of Mind Survey for the last two years. Deloitte attributes this to
globalisation of supply chains, large product recalls, and examples of diseases being
spread through food. The issue must remain a priority for producers, food processors
and retailers in 2010 and beyond, especially with the focus on growth in emerging
markets. In a (Dutch language) VMT Online article, Marcel van Leeuwen, Head of
Food at Deloitte in the Netherlands, said that this issue needs to be “at the top of the
list” for producers and retailers, as consumers "demand transparency concerning the
origin, nutritional value and quality of food.”
Deloitte also argues that sustainability is an important theme in 2010, remaining high
on the agenda for executives who understand the need to “get ahead of regulation” and
also that using less water and energy and reducing waste can benefit a company’s
bottom line. Van Leeuwen summed it up: “More sustainable products, use of
sustainable materials, investments in measuring sustainability — these are all action
points for producers”.
http://www.deloitte.com/view/nl_NL/nl/branches/consumentenmarkt/article/8db6217a46
bd6210VgnVCM100000ba42f00aRCRD.htm
ING: Sustainable production is becoming the norm
Dutch financial services provider ING has produced a report, “The Third Industrial
Revolution: Multi-committed company: the archetype to capture consumer loyalty”,
saying that by 2050 the vast majority of consumers will prefer sustainably produced
goods. The major transition will occur in the next ten years. Producers should respond
now to this trend or miss out on opportunities. ING was to discuss these findings with
major companies like Ahold, Heineken, Philips and Unilever.
The report points out that brands like Ben and Jerry’s, which already demonstrate
concern for sustainability, achieve above-average growth. That trend will continue,
according to the bank’s analysts. And sustainable production will be the cheaper
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Sustainability market intelligence: April 2010
option in the future, due to scarcity of water, energy and food, and the need to reduce
greenhouse gas emissions.
An emphasis on sustainability also makes sense as demand grows rapidly in emerging
markets. Consumers there are more aware of sustainability issues, according to ING,
because they are confronted daily with resource scarcity and pollution. The report says
80percent to 90percent of consumers in Brazil, China and India realise the importance
of sustainability versus just 40percent in the West. The winners will be companies that
best adapt to the consequences of population growth, demographic shifts and changes
in purchasing behaviour.
http://www.fondsnieuws.nl/images/stories/pdf/ing_rapport_240310.pdf
2010 ’Sustainability Compass‘ Report
The market research and consultancy firms MarketResponse and Schuttelaar &
Partners have published their third ’Sustainability Compass‘ report for the Netherlands.
According to a Dutch language summary of the February 2010 report, 86percent of
Dutch people find it important that companies concern themselves with sustainability
and make sustainable choices easier for consumers. In the food industry, they
consider the following initiatives contribute the most to sustainability:
Rank Initiative Dutch Cultural
Creatives*
1 Taking regular steps to reduce packaging 67% 75%
2 Taking regular steps to reduce waste 60% 63%
3 Making transport of products as efficient and 45% 47%
sustainable as possible
4 Having products and services that promote health 44% 50%
5 Labelling products as e.g. organic, fair-trade 43% 49%
* The marketing group known as ’Cultural Creatives‘ comprises approximately 15percent of the
adult Dutch population.
For supermarkets, the list was similar, but labelling was the number one initiative (61
percent / 63 percent) and there was emphasis too on supermarkets setting criteria for
suppliers (ranking sixth, with 47 percent / 51 percent).
The research found one third of Dutch people are already very conscious of the
impacts of their personal consumption. They demonstrate this in various ways: by
considering and comparing products at the point of sale (18 percent); by separating
waste (18percent); by choosing organic products; and by saving energy. However, far
fewer are motivated to take steps that involve reducing consumption, for example not
using plastic bags (5 percent) or eating less meat (5 percent).
Half of the respondents said they would be willing to pay more for sustainable products.
The ’Sustainability Compass‘ report contains the results of regular surveys of 479
respondents regarding their opinions on current sustainability issues. The aim is to
inform business investment decisions in this area. The report and summary are
available in Dutch only.
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Sustainability market intelligence: April 2010
PRIVATE SECTOR ACTIVITY
Agreement on Sustainable Cocoa
In March, the Dutch chocolate industry and retailers signed a letter of intent with the
Dutch Ministers of Agriculture, Economic Affairs and Foreign Affairs for sustainable
cocoa. The aim is to achieve 100percent guaranteed sustainable cocoa consumption
by 2025, with intermediate goals for 50percent of all cocoa used in products consumed
in the Netherlands to be sustainable by 2015, and 80percent by 2020. Participants
intend to achieve these goals by investing in international initiatives, including the
International Cocoa Organization, the Roundtable for the Sustainable Cocoa Economy
and the World Cocoa Foundation, and public-private initiatives focussing on the Dutch
supply chain, led by the government/industry Sustainable Trade Initiative (IDH).
Activities will include stimulating consumer demand for sustainable cocoa, and efforts
to align labels and reduce certification costs. The more than 20 participants include
UTZ Certified, FrieslandCampina, Ports of Amsterdam, Albert Heijn, Mars, Unilever
and the Dutch Food Retail Association. Twenty-five percent of all cocoa processing
occurs in the Netherlands.
Agriculture Minister Gerda Verburg said the agreement was “unprecedented” in terms
of the number of participants, and said she would like to see more in other sectors,
including timber, soy and palm oil. She argues that international collaboration on
standards and agreements among parties in various supply chains are more effective
ways of increasing sustainability than regulation, and also avoid falling foul of
international trade rules.
http://www.duurzamehandel.com/en/news/sustainable-cocoa-through-idhunder
Aquaculture Stewardship Council ready to launch consumer label in mid-2011
In 2004, the Worldwide Fund for Nature initiated the Aquaculture Dialogues for 12 fish
species (including bivalves), leading to the development of sustainability standards for
the sector, addressing issues such as wastewater management, protection of coastal
areas and responsible use of antibiotics. Two of the 12 standards — for Tilapia and
Pangasius — have been completed.
Together with the Dutch Sustainable Trade Initiative (IDH), WWF has established an
Aquaculture Stewardship Council, similar to the Marine Stewardship Council for wild
fish. The ASC will implement the aquaculture standards, certifying fish farms and
launching a consumer label in mid-2011. IDH is also supporting fish farmers in
Vietnam, Thailand, Indonesia, Bangladesh, India and China to comply with the
standards.
For more information on the ASC visit www.ascworldwide.org and
www.duurzamehandel.com/en/aquaculture.
For more information on other IDH activities — aimed at increasing the sustainability of
supply chains for timber, tea, natural stone, soy, tourism and cotton — visit
www.duurzamehandel.com .
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Sustainability market intelligence: April 2010
‘Water Footprint Manual’ published
The Netherlands-based Water Footprint Network has published a ‘Water Footprint
Manual’ with the aim of providing a consistent accounting methodology for calculating
the water footprint for individual processes and products, as well as for consumers,
nations and businesses. Recognising that methodologies are still developing, the
Network has put in place a process for annual revisions of the manual. The Water
Footprint Network is also a contributor to the International Organization for
Standardization’s development of a standard in this area.
http://www.waterfootprint.org/?page=files/Publications
GOVERNMENT ACTIVITY
Sustainability system replaces proposed all-encompassing label
It will not be possible to develop a label that encompasses all aspects of sustainability.
That is the outcome of discussions at the first meeting of the Platform for Sustainable
Food Systems, which was set up by Agriculture Minister Gerda Verburg and includes,
amongst others, the Dutch Food Retail Association CBL and the Food Industry
Association FNLI.
The Dutch Government had hoped to come up with a label that could cover the various
dimensions of sustainability — e.g. environment, animal welfare and fair trade — and
replace all the other labels and logos in the sector. However, with 25 criteria to
incorporate, the Platform has decided such a label is not feasible.
Efforts will now be directed towards the development of a sustainability system. The
idea is to provide a technical tool for consumers that will rank products against certain
sustainability criteria such as animal welfare, the environment, and carbon emissions.
Consumers can then select products with the attributes they care most about.
“What such a system will look like in reality is not yet known”, stated a press release
from the Ministry of Agriculture, Nature and Food Quality. “Think for example about a
cell phone you could use as a scanner. You could then measure products against
certain sustainability measures such as animal welfare or the environment”.
Alternatively, the system might be internet based. It is possible that there will be a
label of some sort to support the system.
Minister and researchers disagree over meat consumption
Agriculture Minister Verburg has accused those calling for reduced meat consumption
in the name of sustainability of playing symbolic politics. Such efforts “do not resolve
issues of sustainability or climate problems in any way”, she has stated. Instead, she
sees more potential in efforts to promote more sustainable meat production, including
internationally, where the Netherlands should lead the way.
However, the Agricultural Economic Institute (LEI) of respected Wageningen University
has criticized her for these comments. Researchers there say there is “broad scientific
consensus” that high meat consumption is less sustainable. By calling efforts to
reduce meat consumption “symbolic politics” the Minister is discouraging more
sustainable behaviour, they say.
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Sustainability market intelligence: April 2010
Meanwhile, political party D66’s suggestion of a meat tax to raise €1billion, discourage
consumption and improve animal welfare was quickly rejected by Minister Verburg and
her party, the Christian Democratic Appeal, which is currently governing in caretaker
mode until elections on 9 June. Bernard ter Haar, the most senior official at the
Ministry of the Environment, made a similar proposal for higher VAT on fish and meat
as part of an overall greening of the tax system, in a memo to the interdepartmental
Tax System Study Committee.
Minister demands more free range meat in supermarkets
Agriculture Minister Verburg expects supermarkets, caterers for company canteens
and the meat sector to offer more sustainably-produced pork and has requested an
action plan from them to achieve this
Increasing the availability of free range pork aligns with the 2009 Sustainable Food
memorandum. That memorandum was signed between the Minister and several
important players in the meat industry and was an agreement to increase the amount
of sustainable animal products in the shops by 15 percent each year (see our report of
July 2009). Chicken and beef with a star from the Animal Protection Society have
since become more available. Pork, however, is lagging behind.
"Every year, 15 percent more sustainable (meat) is the agreement. I am beginning to
get impatient," Minister Verburg has said. She also wants to put a stop to special offers
of cheap meat which she sees as conflicting with the goal of persuading consumers to
buy meat produced in a more animal-friendly and environmentally-conscious way: "The
consumer demands sustainability and competition should be based on this."
Dutch Government supports EC authorisation of genetically modified potato
The Netherlands was supportive of the European Commission's 2 March decision to
authorise the commercial cultivation of the genetically modified Amflora potato1. The
potato, rich in amylopectin starch, is intended for industrial non-food applications such
as paper, glue and concrete. The Netherlands has previously participated in GM field
trials for amylopectin potatoes and BASF has approval from the Netherlands for the
commercial cultivation of the Amflora in coming years. However, no timetable for this
is indicated.
DISCLAIMER:
While the Ministry of Foreign Affairs and Trade and New Zealand Trade and Enterprise have verified the information in
this document, we make no representation as to the completeness, correctness, currency, accuracy or fitness for any
purpose of the information. The Ministry of Foreign Affairs and Trade and New Zealand Trade and Enterprise will not be
responsible for any damage or loss suffered by any person arising from the information contained in this document,
whether that damage or loss arises from negligence or otherwise.
1
Commission decision 2010/135/EU
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Sustainability market intelligence: April 2010
