Responsible supply chain
Strict adherence to our corporate responsibility policy applies to every link in our supply chain, and we work continuously to enhance our responsibility, efficiency and transparency.
Targeting a demand-driven meat supply chain
Responsible and efficient meat supply chain management plays a vital role in creating profitable growth, and demand is the key driver of supply chain management. During the past few years, we have systematically harmonized and standardized the Group’s supply chain management. This has resulted in improved collaboration and information sharing Group-wide across countries and function borders.
Most of the meat HKScan uses in its production is of domestic origin, and is produced by our long-term contract producers. All products marketed under the HK®, Kariniemen® and Scan® brands contain only domestic meat. Imported meat accounts for only a few per cent of our raw material needs, and we strictly monitor the origins of the meat and collaborate only with audited slaughterhouses. All imports from third parties are audited to meet HKScan’s quality and corporate responsibility requirements. Imported meat sold in our home markets strengthens the Group’s offering especially in those product categories where availability of local raw material is limited.
Cooperation with PRODUCERS
Our experienced advisors and partners work together with our contract producers to improve the efficiency and sustainability of their meat production. Producers are provided advisory services related to feeding, animal welfare and profitability. Careful planning and optimization of feeding, for instance, has significant effects on the wellbeing of animals, production volumes and the environment.
We have contributed to improving primary production:
- by upgrading poultry primary production services in Finland, see our press release.
- by boosting feed operations in Sweden, see our press release.
Sustainable and transparent supply chain
The food industry requires large amounts of meat and other raw materials, energy, water, packaging materials, and various services. For this reason, the sourcing function has a significant impact on the Group’s resposibility, overall cost structure and efficiency.
To improve efficiency and responsibility we have during several years rationalized Group-level purchases and improved the transparency of our supply chain by identifying and managing risks. Our suppliers are evaluated and qualified in the areas of food safety, quality, environment, ethical procedures, as well as selected in accordance to pre-defined evaluation criteria for each tendering project.
Responsible soy and palm oil
In its supply chain HKScan has identified two raw materials whose social and environmental impact can be significant: soy and palm oil. To manage these raw materials in a responsible way, we adhere to third party audit standards provided by the Round Table on Responsible soy (RTRS) and Roundtable on Sustainable Palm Oil (RSPO).
Soy is used in large amounts in animal feed because of its good protein composition and efficiency. See our commitment on our website.
HKScan has committed to 100 per cent responsible soy in animal feed by the end of 2018, and in Sweden by the end of 2015. The Swedish commitment is currently under follow-up, and the results will be presented later in the spring of 2016. In Denmark, approximately 18 per cent of the soy used in the feed was responsibly produced in 2015.
Palm oil is used in very small amounts in only a few of the Group’s products. In 2015, HKScan became a member of RSPO. We and our suppliers initiated a project to map palm content in all our food products to find the exact volumes and the certification level of each palm ingredient. This work will be finalized during 2016.