1. The Business Case for
Sustainable Agriculture

2. Overview
• Brief Overview of HQO
• Sustainability Defined
• Organic Agriculture
• Case Studies
• Steps You Can Take

3. Who is HQO?
• Largest 100% organic bulk, herb, spice and tea
ingredient company in the U.S.
• Provide custom formulations, packaging, private
label and conversion from conventional to organic
• The result of a merger in 2009
• Located in Reno, NV
• Growing at 20% a year

4. Who is HQO?
• Our passion is reflected in our values
Sustainability
Quality Reliability
HQO Values
Wellness Food Safety
Innovation

5. Sustainability Defined
The Business Case for Sustainable Agriculture

6. What is sustainability?
Ability to maintain
Maintain ecological balance
Source: Bing online dictionary

7. Sustainability Defined
Food Business Sustainability

8. Sustainability Defined
Corporate Sustainability
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9. Sustainability Defined

10. Sustainability Defined
Corporate Social Responsibility
Defined by Lord Holme and Richard Watts in The World Business Council for Sustainable Development’s
publication ‘Making Good Business Sense’

11. Sustainability Defined
Food Companies Focus on
Sustainability
“ Our products’ biggest environmental impacts occur during the growing
and processing of our food ingredients…
Specifically, we seek to:
 Identify agricultural practices and strategies that will help meet the
world’s growing need for safe, nutritious food;
 Decrease agriculture’s impacts on the environment;
 Improve the social and economic well-being of agricultural
communities.”
Source: Kellogg 2010 Corporate Responsibility Report

12. Sustainability Defined
Food Companies Focus on
Sustainability
• Food Marketing Institute
and Grocery Manufacturers
Association holds first
Sustainability Summit in
2010

13. Sustainability Defined
Food Companies Focus on
Sustainability
General Mills has a long-standing commitment to minimize its
impact on the environment by working closely with the
agricultural community.
 Green Giant brand has practiced sustainable agriculture for more
than a century
 Research continues to develop and improve crop breeding and
agronomic practices that benefit farmers and the environment.
Source: GM Sustainable Agriculture document found at
http://www.generalmills.com/~/media/Files/sustainability/GM_agriculture.ashx

14. Sustainability Defined
Summary
Sustainable agriculture is part of being a
corporately and socially responsible
sustainable food business

15. Organic Agriculture
The Business Case for Sustainable Agriculture

16. Organic Agriculture
Source: Organic Trade Association

17. Organic Agriculture
• Demand for organic food continues to grow

18. Organic Agriculture
• Demand for organic food continues to grow
Source: Kiwi Magazine

19. Organic Agriculture
• Organic shopping moves mainstream
Source: Organic Trade Association’s 2011 Organic Industry Survey

20. Organic Agriculture
• Organic growth outpaces conventional
Source: Organic Trade Association’s 2011 Organic Industry Survey ($mil consumer sales)

21. Organic Agriculture
• Organic growth outpaces conventional
Source: Organic Trade Association’s 2011 Organic Industry Survey

22. Organic Agriculture
• Organic consumption grows globally
Source: Organic Monitor ($ bil consumer sales)

23. Organic Agriculture
2012 Food Trends Support Sustainable
Agriculture
• “Sustainability” noted as overall culinary
theme in National Restaurant Association’s
2012 Chef Trends
– National Restaurant Assn on
launches ConServe Program
– Many restaurants feature or only use
seasonal/local food

24. Organic Agriculture
2012 Food Trends Support Sustainable
Agriculture
• SustainableBrands.com notes the “Why?”
consumer as a 2012 Trend
– Mostly millennials
– Frugal
– Resourceful
– Technologically savvy
– Focused on being socially
responsible

25. Organic Agriculture
2012 Food Trends Support Sustainable
Agriculture
• MyNewsDesk Blog 2012 Marketing & PR Trends
includes “Consumer Engagement”
– Companies that provide the resources for consumers to
save money, time and the environment and help others
will be favored.
– Example: Häagan-Dazs® Save the Bees Campaign
• Save the bees that help pollinate the ingredients Häagan-Dazs
uses to make its ice cream
• Buy a pint, save the bees
• Campaign has been so successful it’s
continuing into a second year not
originally planned

26. Häagan-Dazs® Save the Bees Campaign

27. Case Studies
The Business Case for Sustainable Agriculture

28. Case Studies
Improving Farming Capabilities in India

30. Case Studies
Improving Farming Capabilities in India
Pre-Organic Conditions
• 82% of farmers borrowed against
future crop year to pay for
pesticides, fertilizers and seed
• Average income US $440/acre
• Average amount spent on
cultivation US $115.74/acre
• Average net income was USD
$154/acre – not sufficient to
meet household expenses
• Result was farmers losing land

31. Case Studies
Improving Farming Capabilities in India
Pre-Organic Conditions
• Soil condition too poor for
successful production
• Existing soil carbon content ~
0.5%
• Sustainable crop production
requires 3-4% soil carbon
content

32. Case Studies
Improving Farming Capabilities in India
Conversion to Organic
• Reduction of pesticide and fertilizer
applications
• Increased organic farming practices
• Water Conservation
• Pooling fund from local farming Bunding
projects by NGOs allowed for
bunding/trenching to gather and
conserve water
• Soil Fertility
• Manuring
• Crop rotation
• Green leaf manuring

33. Case Studies
Improving Farming Capabilities in India
Other Activities Implemented for Organic Success
• Partnered with local processer that focuses on growing indigenous crops in a
sustainable manor
• Partner with local NGOs across India to assist in mobilizing farmers for best in
class organic agriculture training and education
• Work with leading research organizations in India and abroad to evolve
organic practices for improved productivity, sustainability and quality
• Certified organic processing facilities close to farms

34. Case Studies
Improving Farming Capabilities in India
Results
• Reduced Financial Risk – need to borrow
money essentially non-existent due to
reduced need for pesticides and fertilizers.
• More Income – farmers currently achieving
10-20% more income with projections of up
to 40-50% more income based on type of
crop producing.
• Water Conservation – 30% water
conservation making droughts less
stressful
• Soil Fertility – Improved biological
activity resulting in
expected 3-5% soil carbon level within five
years

35. Case Studies
Creating a Sustainable Agriculture System in Egypt

37. Case Studies
Creating a Sustainable Agriculture System in Egypt
Farming in the Dessert
• Food scarcity and security real concerns for Egypt
• Egypt consists of over 95% desert
• Leaves only 84 square meters of arable land per person
for 84 million people
• Egypt’s population is growing at 2% per year
• According to the World Bank, 20% of Egypt’s population
lives below the poverty line
• Food scarcity and security real concerns for Egypt

38. Case Studies
Creating a Sustainable Agriculture System in Egypt
Biodynamic Agriculture
• Specific form of organic agriculture
• Looks at the farm as a self-sustaining
ecosystem including:
• Soil
• Plants
• Animals
• People

39. Case Studies
Creating a Sustainable Agriculture System in Egypt
Biodynamic Agriculture
Practices Turn Dessert Land
into Fertile Soil
• Closed nutrient cycle approach –
what is on the land must sustain
the land
• Composting from human waste
(garbage, food waste, etc.)
• Using animal waste for fertilizer
• Intercrop forestry (planting trees
within fields) and crop rotation help
maintain soil structure

40. Case Studies
Creating a Sustainable Agriculture System in Egypt
Biodynamic Agriculture Practices Turn Dessert
Land into Fertile Soil
• Native predators reduce need for
pesticides
• Chrysoperla carne and ladybird (to control
aphids)
• Orius and amplyseius cucumeris (to
control thrips)
• Trichogramma (to control butterfly
eggs)
• Phytoseiulus persimilis (to control
spider mites)

41. Case Studies
Creating a Sustainable Agriculture System in Egypt
Biodynamic Agriculture Practices
Turn Dessert Land into Fertile Soil
• Results
• Increase water retention in soil (up to
70%)
• Decrease water consumption (20-40%)
• Soil’s ability to hold water decreases
soil erosion
• Reduced costs on inputs allow for
farmers to cover increased costs in
labor and help improve the livelihood
of the local community

42. Case Studies
Typical
desert 30 years
soil later –
arable land
evolved

43. Steps You Can Take
The Business Case for Sustainable Agriculture

44. Steps You Can Take
7 Steps Towards Sustainable Agriculture
1) Where is sustainable agriculture in
your corporate/social responsibility
strategy?
2) What are your benchmarks to
identify success?
3) Who is the passionate player on
your team to help lead the effort.
4) Partner with current suppliers to
explore conventional to
sustainable/organic opportunities.

45. Steps You Can Take
7 Steps Towards Sustainable Agriculture
1) Reach out to your local organic
certifier to learn the requirements
and what is needed to convert.
3) Don’t be afraid to ask other
organic manufacturers for help,
tips and guidance.
7) If organic supply isn’t feasible for
your company, explore alternative
activities to support sustainable
agriculture. (Ex: provide funds for
African female farmers.)

46. Steps You Can Take
Examples of Sustainable Benchmark Tools

47. Steps You Can Take
Examples of Sustainable Benchmark Tools

48. Steps You Can Take
Sustainable Agriculture Projects
HQO
partners
with
Rwanda
girls
school

49. Steps You Can Take
HQO Partners with Rwanda Girls School

50. The Business Case for
Sustainable Agriculture
Presented By: Boligala Raju
Predisident & CEO, High Quality Organics
www.HQOrganics.com