VIVESCIA GROUP Annual report July 2021 - June 2022
Agriculture(s)
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Agriculture(s)
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Takeaways
WELCOME TO VÉRONIQUE FONTAINE-HEIM,
the new Managing Director of the VIVESCIA Cooperative and its agricultural subsidiaries since 1 September 2022. Véronique succeeds Jean-Luc Jonet.
EVERY PRIORITY OF THE ‘MY COOP 25’ STRATEGIC PLAN IS NOW BEING DEPLOYED!
➔ Acceleration of our value chain and new markets strategy
➔ Agronomic innovation and committed carbon reduction policy
➔ Support and local presence: new digital tools and new services
➔ New logistics and operational efficiency models to increase farm delivery services and silo specialisation.
➔ Agronomic innovation and committed carbon reduction policy
➔ Support and local presence: new digital tools and new services
➔ New logistics and operational efficiency models to increase farm delivery services and silo specialisation.
THE UNUSUAL HARVEST OF 2021
Repeated torrential rainstorms (up to 150 mm in places), wet grain, dryers at full capacity, allocations, cleaning, ventilation audits, support for on-farm storage...
Every Cooperative team then worked flat out to process the grain!
Every Cooperative team then worked flat out to process the grain!
LAUNCH OF THE FREE SIMPLIFIED CARBON ASSESSMENT FOR ALL COOPERATIVE FARMERS.
VIVESCIA is the first cereal-growing agricultural cooperative to offer this type of tool on such a large scale. The initiative was featured in a France 2 evening TV news bulletin in July.
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THE COOPERATIVE SPIRIT IN ACTION
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LOOKING BACK ON THE 2021 HARVEST: HISTORICALLY WET, LONG AND CHALLENGING
Unpredictable weather, stop/start harvesting, allocation complexity and close monitoring of stored grain... The 2021 harvest was late, long and gruelling for the Cooperative’s farmers and teams.
The heavy rains obviously impacted production quality and disrupted the organisation of the Cooperative between July and November. All the Cooperative’s dryers were running at full capacity, increasing energy consumption and the number of inter-silo transfers. With variable grain quality, logistics and storage management were particularly complex, requiring multiple transfers and allocations to maximise value. Nevertheless, all the Cooperative’s teams showed impressive solidarity, adaptability and unfailing commitment in the way they successfully coped with all unforeseen eventualities to provide daily support for cooperative partners through this testing and stressful time, which was made all the more difficult by the effects of the health crisis.
A NEW NORMAL: THE COOPERATIVE PUTS ITS ADAPTABILITY AND ANTICIPATORY SKILLS TO WORK FOR ITS COOPERATIVE FARMERS
Against a background of markets already burdened with post-Covid tensions, the conflict between Russia and Ukraine has added a new level of uncertainty. To ensure business continuity in this increasingly unstable environment, the Cooperative has demonstrated its adaptability across the board.
At the end of February, it tightened its management of market positions (on inputs and grain), and introduced a more rigorous system of cash monitoring in response to the considerable fluctuations seen in grain prices; sometimes within the same day.
Over and above grain price volatility and inflationary pressures on agricultural inputs, agriculture still faces the unprecedented risk of not having the supplies of fertiliser needed for crops in March 2023. So as early as April 2022, the teams were preparing for the 2022-2023 campaign by launching an early call for nitrogen fertiliser requirements, giving cooperative farmers the opportunity to secure at least a proportion of their eventual purchases.
‘MY COOP 2025’ POWERS AHEAD
New services and logistics plans are being rolled out, relationships with VIVESCIA Industries and its customers are being strengthened with the introduction of supply agreements and new carbon challenges, and work is underway to customise support to farmers...
So despite the current level of economic instability, the Cooperative continues to look resolutely to the future with a commitment to work more closely than ever with farmers, and contribute to the ongoing vitality of its regions. From competitiveness to climate and biodiversity, there is no shortage of challenges.
The new support models are now being consolidated, and a largescale training plan for technical sales staff has been launched to upskill them on agronomic issues. Agriservices is now fully operational and assisting cooperative farmers with all their logistics needs, and meeting the challenges of the logistics flows of VIVESCIA Industries and the Group’s external agrifood industry customers. Implementation of the Grain & Inputs Logistics Performance Plan continued throughout the year (achieving 78% progress by 30 June 2022). As part of improving efficiency, the Cooperative is also taking its digital solutions to a new level: examples include DigitAppro, which is now available to more than 4,500 cooperative farmers. Farm deliveries of fertiliser and plant protection products also continue to grow. New value chains are taking shape (Club Francine, Coeur d’Épi, the hard wheat value chain, soya, etc.), discussions are underway on low-carbon value chains, and the working structure for silo allocations is evolving in parallel to support their development.
IMAGE ANALYSIS AND ARTIFICIAL INTELLIGENCE
POCKETLAB: A WIN-WIN PARTNERSHIP WITH INARIX
This mobile app turns a smartphone into a pocket laboratory, and uses a standard photograph to enable rapid analysis of plant production quality.
Its abilities include measuring the grain's protein content and varietal purity, both of which are essential criteria for the malting barley and milling wheat sectors under the terms of supply contracts.
65,000
analyses conducted for the 2022 summer harvest
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NEWS IN BRIEF...
LAUNCH OF THE CLUB FRANCINE SPECIFICATION
This new 100% VIVESCIA premium value chain actively promotes the development of initiatives that take us towards increasingly virtuous certified agricultural practices that are compliant with Level-2 environmental certification as a minimum.
The Club Francine launch at the Foire de Châlons agricultural show on 6 September 2022.
For more information : click here
ENVIRONMENTAL CERTIFICATION: A PROGRESS-DRIVEN PROCESS
LOGISTICS AND OPERATIONAL EFFICIENCY
The Cooperative is extending its range of digital solutions with the addition of DigitAppro. This app allows you to reorder supplies from your mobile, tablet or computer.
AN ONGOING ROLE IN SUPPORTING NEW COOPERATIVE PARTNERS AND YOUNG FARMERS
€765,480+
distributed to 94 farmers
An average of between €8,000 and €12,000 in assistance to support young cooperative partners in setting up their own businesses.
GRAIN STORAGE PREMIUMS
1/3
of grain collected by VIVESCIA
is stored on-farm
3,671
farmers storing grain
€7.7
million
The premiums of €17 for long-term storage and €8 for short-term storage align with logistics flows and customer demand.
NEW MOMENTUM FOR ORGANIC
Support for organic certification is a key component of the My Coop 2025 plan. This support aims to provide solutions tailored to the needs of 500 cooperative partners who have already made the transition to organic or are in the process of doing so, and to seize growth opportunities for VIVESCIA Industries milling, malting and animal feed companies.
PLAYING A FUNDAMENTAL ROLE IN STRUCTURING THE MARKETS OF OUR REGION AND DRIVING THE CREATION OF SUSTAINABLE PLANT-BASED VALUE CHAINS
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CARBON AND BIODIVERSITY
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Our agricultural practices have never been so central to the challenges of the future and our core mission of Feeding People on the basis of a resilient agriculture model with the ability to withstand adverse climate events and work proactively to achieve carbon neutrality and promote biodiversity. In this section, we asked some of our VIVESCIA cooperative farmers to talk about their agricultural practices...
Malt
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Malt
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TAKEAWAYS
OLIVIER HAUTIN,
the new Managing Director of MalteuropWith a presence in 14 countries worldwide, Malteurop has the broad international presence needed to respond with winning agility to all its markets.
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MALTEUROP CONSOLIDATES ITS GROWTH STRATEGY
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RESILIENCE AMONG THE TURMOIL
The financial year was marked by unprecedented levels of cost hyperinflation for barley, energy, transport, etc., and by the suspension of production in Ukraine as soon as the conflict flared up at the end of February. Despite this unique set of adverse circumstances, Malteurop has shown great resilience in delivering a robust financial performance, at the same time as committing itself with the same determination to a number of medium-term sustainable development projects. Customer innovation, decarbonisation and new markets are the three main cornerstones of this strategy.
The company’s approach to innovation focuses on its range of products and services, with the aim of setting itself apart distinctively in the craft beer market, and on its production resources, where it is leveraging the power of artificial intelligence to optimise process controls. A pilot project is already underway at Great Falls in the USA, and consideration is now being given to extending it to include other Group sites. At the same time, Malteurop is focusing more than ever on varietal innovation, and working closely with the VIVESCIA Cooperative teams to identify varieties that combine environmental and agronomic performance (to achieve significant water and energy savings) with the technological qualities sought by maltsters, brewers and distillers.
ON SCHEDULE WITH ITS GHG REDUCTION TRAJECTORY*
Malteurop has succeeded in reducing its GHG emissions by 18% since 2015. Continuing the process of reducing its carbon footprint remains a major challenge and priority given the energy-intensive nature of the business. To make further progress, Malteurop continues to implement its energy efficiency policy and is investing to make all its sites energy virtuous. Many projects are underway or have already been completed (notably in Spain). Energy plans are in place at all Malteurop’s main sites, with particular focus on the development of renewable energy solutions (solar, biomass, etc.) like those already in place at Vitry-le-François (France) and Gdansk (Poland).
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STRONG RECOVERY IN THE BEER MARKET
Beer remains a resilient market, but is still below 2019 levels…
Arguably the world’s most sociable drink and relatively affordable for all pockets, beer remains popular with consumers despite today’s economic challenges. The world beer market is currently growing at between 1% and 2% year-on-year, although growth varies from region to region and country to country. It still has some way to go to regain pre-Covid levels, and beer drinking habits have changed, since home consumption is now higher than the out-ofhome market. Some historically strong markets are still in gradual structural decline (USA, Western Europe and China), although sales continue to rise in Central and South America, Africa and South East Asia. Growth in craft beers continues in most regions of the world within a market that is now beginning to consolidate. On the other hand, the distillery market is showing significant promise.
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DID YOU KNOW?
Malt is what gives beer its soul. It is actually the main ingredient, and up to 200 grams of malt go into brewing 1 litre of beer. The type of malt used influences the characteristics of the beer.
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FOCUS ON...
MEXICO: A NEW MALTINGS IN TIME FOR SUMMER 2023
At Meoqui, Malteurop is committed to a virtuous process from field to malt.
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In all its operating countries, Malteurop is focused on taking upstream integration to a new level: in other words, duplicating the original model from the VIVESCIA Cooperative region in France by making maximum use of local supply chains.
We call it the ‘local grain everywhere’ strategy. This strategy boosts security of supply, and facilitates crop varietal orientation with the emphasis on low-carbon agricultural practices.
It is also the precise development model for the Meoqui site in Mexico. Malteurop is fully committed to increasing its sourcing of local barleys from the anticipated two harvests per year. The site will have all the barley it needs thanks to partnership agreements signed with local producers. More than 300 farmers are involved, and that number will rise to more than 500 when the maltings is fully operational. Another major advantage is that the new maltings is being built in a region of the world where beer consumption is growing. Its proximity to its customer and partner Heineken also helps to limit its environmental impact.
Construction on site is progressing on schedule, and the new maltings is expected to go live in the second half of 2023. Nearly 70 employees are expected to be hired when the maltings comes fully on stream, positioning Malteurop as an important local employer aware of the key role it will play in the regional economy of Chihuahua.
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NEWS IN BRIEF...
THE LOW-CARBON BARLEY DEVELOPMENT JOINT PROJECT WITH HEINEKEN IS EXTENDED TO OTHER COUNTRIES
Reducing the carbon footprint of beer is a key issue for the company.
The aim of this project is to measure barley production GHG emissions while continuing to meet the quality expectations of our brewery customers. The eventual goal is to develop crop growing methods that reduce GHG emissions by increasing the carbon storage capacity of soils, at the same time as ensuring that we can still provide brewers with the quality of barley they need and expect.
Summer 2022 saw the second low-carbon barley harvest in the VIVESCIA region.
The results of this second harvest are encouraging, with CO2 emission reductions of between 15% and 20%. The experiment is now being duplicated by Malteurop and Heineken in five other countries, including Spain, Australia and Mexico. So what’s the challenge now? To achieve greater reductions...
A HIGH-PROFILE PRESENCE FOR MALTEUROP AT DRINKTEC 2022 IN GERMANY
Drinktec à Munich a lieu tous les 4 ans. C’est LE salon de référence mondial pour l'industrie des boissons. Après la longue parenthèse due à la crise sanitaire, ce salon, qui s’est déroulé en septembre 2022, a été l’occasion de renouer de visu, et dans la convivialité, avec nos principaux clients du monde entier, notamment ceux d’Asie du Sud-Est, d'Afrique et d’Amérique du Sud. Des moments de partage et d’échanges appréciés de toutes et tous…
PHOTOVOLTAIC PANELS AT THE SAN ADRIÁN MALTINGS IN SPAIN
This new installation is one of the many initiatives implemented by the company to reduce its carbon footprint and become more energy efficient. In June 2022, Malteurop officially switched on its 12,000 m² photovoltaic power installation at the San Adrián maltings in Spain. This green energy generating system will meet around 12% of the site’s electrical energy demand.
Milling
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Milling
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TAKEAWAYS
June 2022 - The second Wheat Route trip attracts twice as many participants!
This event brings together the full range of wheat/flour/bread sector stakeholders and invites them to make the journey together along the value chain from fork to field.
9 Wheat Route trips were organised throughout France between 24 May and 23 June 2022, including 3 in the VIVESCIA cooperative region.
80 artisan bakers visited our field trials and the farms of the wheat growers who supply the mills.
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COMMITTED,PASSIONATE AND 100% FOCUSED ON THE FUTURE
With an updated digital offer, the extended market dominance of Francine, and the acceleration of work on developing supply channels to deliver on its customers expectations, the year was certainly a busy one, and the impressive results reflect the efforts made!
The financial performance of Grands Moulins de Paris is improving thanks to the effort, agility and remarkable resilience shown by its teams in what has been a turbulent trading environment. The company’s overall performance is right on forecast. At the same time, Francine has set a new historic high in terms of market share.
The ongoing production and logistics progress projects advanced further during the year. Particular efforts were focused on digital solutions, and especially the e-commerce website for artisan bakers, which was redesigned in September to deliver an improved user experience.
As the flour specialist with more than a century of experience, Grands Moulins de Paris continues to make its expertise available to bakers so that they can offer their customers innovative recipes for traditional French breads, pâtisseries, viennoiseries and snacks. Recent developments at Grands Moulins de Paris include building on the qualities of the Berrouga blend, launching several new products in its Sélection range, and expanding its organic range with the addition of new products and services to facilitate the certification of artisan bakers.
Grands Moulins de Paris continues to promote its distinctive qualities and agricultural roots by going even further in its commitment to responsibly sourced and local flours. Soil conservation agriculture CRC® accreditation, organic agriculture, Label Rouge accreditation and HEV...
The challenge is to reconcile the expectations of consumers looking for authenticity and naturalness, who pay close attention to the origin of the products they buy, and those of customers who are looking beyond labels, to find simple, high-quality flours that allow them to express their expertise. The success of the Grands Moulins de Paris Wheat Route trip was confirmed this year, with double the number of artisan baker customers taking up the opportunity.
The challenge is to reconcile the expectations of consumers looking for authenticity and naturalness, who pay close attention to the origin of the products they buy, and those of customers who are looking beyond labels, to find simple, high-quality flours that allow them to express their expertise. The success of the Grands Moulins de Paris Wheat Route trip was confirmed this year, with double the number of artisan baker customers taking up the opportunity.
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DID YOU KNOW?
Grands Moulins de Paris deactivated and dehydrated sourdough starters contribute their own unique aromatic signature. They are prepared in our new Reims mill sourdough starter studio using a traditional bakery method dating back more than 50 years. In operation since 2021, this new facility has allowed us to expand production of our wheat, CRC wheat, rye, CRC rye and wheat germ sourdough starters. And this year, we are really beginning to see the results!
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FRANCINE AS ICONIC - AND INNOVATIVE - AS EVER!
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NEWS IN BRIEF...
COMMUNICATION
"A story of many hands"
To mark its centenary in 2019, the positioning of Grands Moulins de Paris was redesigned to include a new brand signature: Un grain d’audace, un choix d’avenir (A grain of audacity, a choice for the future). So a new editorial line was developed for Instagram, expressing the precise meaning of this ‘grain of audacity’: the Une Histoire de-Mains (Story of Many Hands) campaign audaciously adopted a modern creative visual style to stand out distinctively in the marketplace. Launched in September 2021, it tells the story of the true and historic relationship between the men and women of Grands Moulins de Paris and everyone involved in the wheat value chain, from garden fork to table fork: consumers, bakers, millers and farmers.
SERVING ARTISAN BAKERS WITH GREAT FLAVOUR AND INNOVATION
Working side-by-side for all occasions
Consumers are constantly looking for new, unique and multi-sensory experiences. Grands Moulins de Paris is constantly developing new products to meet their expectations for every time of day and every season... So February was American month, while July switched to Lisbon time.
Flours and mixes: LOCAL, PLANT-BASED and ORGANIC... not to mention awards!
Another award for Berrouga this year! This milling mix delivers on the expectations of consumers (for authenticity, local provenance and plant-based proteins) and those of artisan bakers looking for raw materials with recognised nutritional benefits. Having won an award in the 2021 Pépites de la Boulangerie competition, it received a second at the 2022 Sirha Europain Awards.
FROZEN BAKERY
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FROZEN BAKERY-VIENNOISERIE-PÂTISSERIE PRODUCTS
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TAKEAWAYS
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SUSTAINED MOMENTUM AND NEW IMPETUS FOR CSR
Délifrance remains on course with the rollout of its strategic priorities. The 2021-2022 financial year also marks a major turning point in the development of its CSR policy in 100% alignment with LINK, the VIVESCIA Group Sustainable Development policy. We are still feeling the impact of the global health crisis, but its effects are now fading. Délifrance has benefited from the consumer recovery, and continues to build on its French-style baking expertise, and the naturalness and authenticity of its homemade products. Nevertheless, the market disruptions triggered by the war in Ukraine have resulted in supply challenges for some raw materials. The teams have therefore been particularly focused on securing supplies, managing the risks of shortages, and making purchases at the right time in what are highly volatile upwardtrending markets.
To boost efficiency at the same time as ensuring that we have the resources in place to combine global ranges with local specialities, Délifrance is continuing to optimise its operational processes and expand its production capacities. Examples of this trend include: the construction of a new cold storage facility at Romans-sur-Isère, which is scheduled to open in 2023, the installation of a new semi-automated artisan bakery product line at Landévant in Brittany, and the opening of a new artisan bread line at Liscate in Italy. At the same time, the teams at Délifrance have continued to work on further strengthening the customerfocused organisational structure of the company and developing new market segments.
As part of aligning with the sustainable development commitments made by the VIVESCIA Group and acting ahead of the increasingly high expectations of customers in terms of responsibility, Délifrance is giving new impetus to its CSR policy. The CSR team has been expanded to build new commitments and extend those already made. A precise roadmap is also being developed to address three key priorities.
The new cold storage facility on the Délifrance site at Romans-sur-Isère.
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NEWS IN BRIEF...
INNOVATION, QUALITY AND WELLBEING: ALL 3 ARE SECOND NATURE AT DÉLIFRANCE!
The amazingly successful Viennoisine range
Made using a blend of margarine and butter, the organoleptic profile of these products is very close to that of entry-level ‘pure butter’ products.
3 INTERNATIONAL TASTE INSTITUTE AWARDS FOR THE WHOLEMEAL BREADS MADE AT LISCATE IN ITALY
DÉLIFRANCE LEADS THE WAY IN THE VEGAN MARKET
Délifrance has developed the first Quorn-branded Vegan Ham and Cheese Basket. Targeted at vegan, vegetarian and flexitarian consumers, more than a year of R&D has been invested in this product. The success of this variation on a Deli bestseller is largely down to its co-branding with Quorn, one of the UK’s Top 50 FMCG* brands.
*Fast-Moving Consumer Good
COMMUNICATION AND DIGITAL
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FOCUS ON...
Fully aligned with the commitments made by the Group in its LINK policy, the Délifrance CSR focuses on 3 priorities, backed up by action plans and quantified targets.
A major project is now underway to minimise water consumption at every stage of production.
A feasibility study is currently being conducted at Romans-sur-Isère, which will eventually become the project pilot site.
A feasibility study is currently being conducted at Romans-sur-Isère, which will eventually become the project pilot site.
As part of the Sustainable Packaging roadmap, the teams are working to promote the eco-design of packaging, improve its recyclability, and reduce the weight of each packaging component. The ultimate aim is to achieve 100% recyclable and/or reusable packaging by 2025.
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