Social Responsibility

Sugar. Starch. Fruit; the three areas in which AGRANA operates on five continents. The group’s international standing today has shed new light on the issue of corporate responsibility.

Sustainability for AGRANA does not just mean seeking harmony between the economic and environmental spheres; as the third dimension, it also includes social responsibility. As a major industrial group that is based in Central Europe but has a global presence, AGRANA endeavours to fulfil its obligations to society in all regions in keeping with the principles of modern corporate social responsibility (CSR).

The European sugar industry’s social partners have, for many years, adhered to a joint Code of Conduct for social development and respect of fundamental rights. The European starch industry, too, has declared its commitment to the efficient use of natural and renewable resources and to promoting sustainable development.

Several different codes are applied in the Fruit segment. In the fruit juice concentrate unit, the SGF/IRMA Code of Conduct is seen as a significant step towards sustainable and ethical standards in the international fruit juice industry. In the absence of an industry code, AGRANA has developed an AGRANA Code of Conduct in the fruit preparations unit, based on the standards formulated by the International Labour Organisation. This Code of Conduct addresses topics such as the prevention of child labour, forced labour and all forms of discrimination, as well as the promotion of health and safety in the work place.

Furthermore, in addition to sponsoring cultural events, as it has done for many years, AGRANA also supports social projects as well as science and research institutions.

CULTURE

AGRANA sees itself as a globally oriented company that is proud of its cultural roots in Austria. This combination of international and Austrian identities is reflected in AGRANA’s corporate commitment to promoting art and culture in Austria.

This way of thinking is also reflected in the projects that are sponsored. AGRANA always sets great store by reconciling the importance of Austrian cultural history at the core of the company’s identity and the demands faced in the age of globalisation.

AGRANA is the main benefactor of Theater an der Wien

Theater an der Wien, with its reputation as a renowned Viennese opera house, and AGRANA, Austria’s leading industrial company, have a lot in common. Bridging the gap between traditional and modern ways of achieving the highest levels of quality is of paramount importance to both.

The aim of this project is to organise cultural events that are accepted and appreciated in all of the world’s cultures, and which create a successful link spanning European tradition and international modernity. This is just what AGRANA sets out to be: an Austrian company that is able to combine the principles of the European way of life and tolerance with commercial success in a globalised world.

For its commitment to sponsoring the Theater an der Wien project, AGRANA was awarded the Austrian prize for art sponsorship, MAECENAS 2006, in the category “best art sponsorship: beginner”.

AGRANA is also in Grafenegg, Lower Austria

In line with the motto, “enjoy the sweetness of music, the strength of impression and the fruits of culture”, AGRANA would like to take a role in promoting the “Symphony of Senses” at the Grafenegg music festival. As a major employer in Lower Austria, AGRANA is committed to playing its part in the development of the region through its sponsorship of this event.

Thanks, in part, to AGRANA’s support, Grafenegg can now be counted as one of Lower Austria’s key cultural locations of an international format.

AGRANA as official sponsor of the Theater in der Josefstadt

Since autumn 2009, AGRANA has been refining not only the sugar products which make up the extensive Wiener Zucker product range but also the lives of visitors to the Theater in der Josefstadt and the Kammerspiele in its role as a key sponsor. Through its support for the German-language musical hit “SUGAR – some like it hot”, AGRANA is further promoting culture in Austria.

SOCIAL RESPONSIBILITY

As one of the most important foodstuff producers in Austria, AGRANA supports a number of social projects in order to make a meaningful contribution to social and charity initiatives. Examples of this support during the 2008|09 financial year include SOS Kinderdorf centres, the Wiener Hilfswerk organisation, the H. Stepic CEE charity, SOMA stores and the Caritas “Coffee to help” initiative.

In addition and as part of its efforts to promote good corporate citizenship, nearly all international AGRANA sites also support cultural or charity projects in their local communities by means of cash or product donations. In the 2008|09 financial year, the know-how transfer projects in Mexico and the Ukraine were the main focus of our international efforts.

AGRANA FRUIT – Strawberry cultivation in Mexico
AGRANA Fruit México’s project for strawberry cultivation is a successful model for sustainability in practice and social responsibility in the agricultural sector through efficient management of the cooperation between small growers, industrial customers, financial and government institutions and NGOs.

AGRANA Fruit México is located in the heart of the largest strawberry growing area in Mexico. The first steps were taken in 1995 to move parts of the until then lengthy and cumbersome quality assurance process closer to the strawberry fields. Farmers were given advice on pest control, production techniques and the use of hygienic production methods. In addition to receiving firm volume commitments for the purchase of crops, the growers also obtain financial support and access to strategic alliances with supplier and buyer companies.

AGRANA has developed its own traceability software for the direct, on-site measurement of productivity and pesticide use, water and soil quality (with respect to pesticides, nutrients and pollutants) and cross-contamination from other fruits from nearby fields. The company has created a network of field inspectors who use mobile data transfer devices to send information daily to a data storage archive. In this way, it is now possible to assure full traceability of the production chain.

AGRANA Fruit México launched a project for the financing of field mechanisation. This enabled AGRANA to introduce high-technology equipment such as macro tunnels, mulch technology and computer-controlled drip systems and fertilisation on 241 hectares of strawberry fields of 56 contract farmers. Field productivity doubled as a result, from a yield of approximately 40 tonnes per hectare to roughly 80 tonnes. In the social dimension as well, the project has made an important contribution to the prevention of child labour in the fields. 

Spurred by the resounding success of the strawberry project, a quality and food safety project has also been developed for mangoes. In addition, the project is to be extended to other types of fruit for the next season and will also be copied by the AGRANA organisations in Argentina and Brazil.

AGRANA JUICE – Financing programme for the cultivation of raw materials
The central Ukrainian region around Vinnitsa is one of the most important fruit growing areas in Ukraine, producing about 10% of Ukrainian fruit on ten thousand hectares of orchards. Many orchards have become overaged, so that productivity and quality of produce have suffered.

In order to overcome these barriers to growth, an alliance was created in 2007 between the International Finance Cooperation (IFC, a subsidiary of the World Bank), the Austrian Federal Ministry of Finance and AGRANA Fruit Ukraine, the largest fruit processor in the region. The purpose of the alliance is to ensure the future sufficiency of the raw material base through the cultivation of new, resistant apple varieties and the expansion of berry cultivation. AGRANA provides planting stock and advice to the growers of the new apple varieties, as well as a purchase guarantee for their crop. The project plan call for the continual expansion of growing areas until 2011.

To develop a stable platform of suppliers through long-term cooperation, AGRANA supports the fruit growers in the following ways:

o Improvement of farms’ competitiveness through the introduction of new varieties, efficient management and improvements in quality and productivity
o Establishment of long-term relationships with suppliers, with a demand and supply planning system, a predetermined, contractual system of incentives, integrated quality assurance and traceability techniques
o Improved availability of financing for farms through support provided by AGRANA in business planning and management, assistance in determining title to farm land under existing land law and, finally, access to credit facilities.

In addition to the economic success factors, the implementation of Good Agricultural Practice (GAP) represents a crucial element. This predominantly involves the improvement of food safety through the traceability of fruit, and the reduction of any adverse environmental impacts of fruit cultivation in Ukraine.
  

SCIENCE & RESEARCH

AGRANA believes investing in science and research is of great importance. For many years, AGRANA has been working closely with the University of Natural Resources and Applied Life Sciences, setting up in the process a foundation that supports continuing scientific projects, as well as subsidising selected modules at the university.

University of Natural Resources and Applied Life Sciences