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Progress of CSR projectives

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Sustainability

Our policy

The activities of our companies have an impact on the environment and climate. Through innovation and collaboration throughout the chain, we aim to close cycles and make production processes more sustainable. This is how we are working to reduce our ecological footprint and contribute to European climate goals.

Circular production

We are working to increase the share of sustainably sourced raw materials and minimise waste streams within our supply chain. In doing so, we seek to close cycles and increase biodiversity.

Sustainable Animal Feed

Anno 2022, the raw materials we source for our animal feeds are to a considerable extent made up of residual and co-products or former foodstuffs from various dairy and food producers. For example, our calf milk consists of about 80 per cent residual waste flows such as whey, skimmed milk powder and permeate (residual waste flows from the dairy and cheese industry). When selecting the raw materials, we try to buy these as locally as possible. With a share of over 80 per cent, we source the vast majority of our raw materials for both calf milk and muesli from Europe. Over a third of the total raw material package comes from within a 250-kilometre radius of our feed production locations.

Sustainable Animal Feed Monitor

Under the banner of the Netherlands Feed Industry Association (Nevedi), we have been working on a Sustainable Animal Feed Monitor since 2022 to make animal feed sustainability measurable. We want to make a significant contribution towards circular agriculture and to reducing the environmental impact of our chain by means of our animal feed. With the Monitor Duurzaam Diervoeder (Sustainable Animal Feed Monitor), we are making the sectoral commitment measurable, through Nevedi, not only for ourselves, but also for the government, chain parties and societal stakeholders. The ambition is that it will be possible to work with all Nevedi members using the dashboard from 2024 onwards. Of course, in doing so, it is important that the results of the calculation and monitoring system set up are recognised by chain parties, civil society organisations and the government.

Sustainable palm oil production

Oils and fats are an important source of energy in the feeds we make; they provide the essential fatty acids (linoleic acid and linolenic acid) that cannot be produced by an animal itself. These essential fatty acids subsequently help with the absorption of vitamins and are therefore indispensable as means of ensuring the calves’ good health. Important raw materials for these essential fatty acids are palm oil and palm oil derivatives.

Palm oil is also used in calf milk. About 0.55 per cent of calves' diet consists of palm oil, which comes from Asia (40 per cent comes from Malaysia and Indonesia) in particular. In addition, 40 per cent comes from Latin America, primarily from Honduras, Guatemala and Colombia. The remaining 20 per cent are from Papua New Guinea and Africa. The VanDrie Group conforms to Nevedi's agreements that all palm oil and related products sourced by its members will be 100 per cent sustainably certified from 2024 onwards.

Responsible soy procurement

In 2022, we joined the Roundtable on Sustainable Palm Oil (RSPO). This is a multi-stakeholder organisation that determines the standard for sustainable palm oil production and sets rules such as not chopping down rainforests and observing human rights. Having joined that organisation, we endorse the importance of producing certified, sustainable palm oil.

Compared to other animal feeds, our calf feed contains limited quantities of soya. About 4 per cent of calf nutrition consists of soya products. Most soya is imported from South America (Brazil and Argentina) and North America. We do this because a good or adequate alternative to soya is not yet available. Soya also has the lowest footprint per kilogram of protein compared to other proteins such as peas, beans and lupins from Europe.

The company sources its soya in compliance with the Soy Sourcing Guidelines 2021 of the European Feed Manufacturers' Federation (Fefac). These guidelines are designed to make responsible purchases of soya. The guidelines take environmental, social and economic aspects of soybean production and trade into account. When sourcing soya from a particular sustainability scheme, we can compare that scheme to the guidelines to see to what extent it complies with it and is therefore a good choice. This ensures that the soya we buy meets important sustainability requirements and that soya is produced responsibly, from deforestation-free land. Among other things, the VanDrie Group uses RTRS-certified soy. We guarantee the certified soy with the ‘book & claim' method.

Full utilisation

The VanDrie Group supplies whole carcasses, backs or necks, as well as smaller pieces of meat, such as schnitzels, entrecotes and veal escalopes. However, a calf consists of much more than meat. Less obvious parts of the calf, such as bones and fats, also have a use. By adapting processes and cutting products more intelligently, we are increasingly able to achieve a higher degree of utilisation. Parts that are not suitable for human consumption are also given a purpose. That way, we can utilise everything and nothing is wasted.

  • Bones are ideally suited for use in the kitchen, to make veal stock, for example. In addition, some of the bones are used for the production of gelatine. Gelatin is extracted from the collagen of the bones and is an important raw material for the production of vitamin preparations, sweets, puddings and desserts.

  • Meat parts that are not suitable for human consumption or for which there are reduced sales, including part of the organs, are sterilised by heating and then processed into pet food, especially into dry dog and cat food.

  • Some of the offal is used to produce animal meal (blood meal and bone meal), a useful component in animal feeds and fertilisers. Offal that does not qualify for human food or animal feed can also be used to generate energy. It serves as biofuel for the production of energy in power stations and cement kilns.

  • A calf's fat reserves are used, among other things, as a substitute for palm oil. These fats are used in make-up and care products.

  • Some of the calf blood released in the processing process is collected separately. This blood is processed hygienically and cooled immediately. It is an important ingredient for the pharmaceutical industry. Calf blood helps in human medication to strengthen the blood supply of the brain and heart muscle.

  • Manure still present in the calf's intestinal system (unborn manure) and released in the treatment process is collected and transported to fermentation plants, enabling biogas to be generated.

  • The skin is processed into leather. Worldwide there is a great demand for the calf skins because of their fine structure and good application possibilities. After tanning, the skins go as leather to producers of shoes, bags and clothing.

The nitrogen impasse

The so-called ‘nitrogen crisis’ has preoccupied the whole of the Netherlands for years. But what is it about and what does it mean for the VanDrie Group?

A large proportion of all the air around us consists of nitrogen. In its gaseous form, nitrogen is not harmful to humans or the environment. However, there are other particles in the air containing nitrogen that are harmful. These are nitrogen oxides (NOx) (mainly emissions from exhaust gases and emissions from industry) and ammonia (NH3) (mainly emissions in livestock farming). These are the substances we are talking about whenever we refer to the nitrogen problem.

To reduce the nitrogen problem, the government launched the Integrated Approach to Nitrogen (Programma Aanpak Stikstof, PAS) in 2015. The approach consisted of two types of measures. On the one hand, it consisted of measures aimed at reducing nitrogen emissions at source, therefore involving agriculture, traffic and industry. On the other hand, it consisted of measures to repair the damage caused by nitrogen in nature as effectively as possible. For example, by designating Natura 2000 sites. These are places that the Netherlands itself once proposed to the European Commission and now have protected status, because there are so many different animals and plants.

Major task for agricultural sector

Based on the PAS, in anticipation of future positive impacts of measures on protected natural areas, activities potentially harmful to those areas were already approved. However, the measures to reduce nitrogen emissions failed to materialise to a sufficient extent. On 29 May 2019, the Council of State, the highest Dutch court, ruled that this nitrogen approach does not comply with European nature legislation. No more permits may be issued 'on credit from nature' for projects that will lead to more nitrogen, such as housing developments, expansion or conversion of stalls or road construction.

As a result of that ruling, the government had to develop new policies, so that nitrogen emissions will be sharply reduced and nature in the Netherlands will be protected more effectively. This represents a major challenge for the agricultural sector. Agriculture is responsible for about 45 per cent of nitrogen deposition in the Netherlands (the deposition of nitrogen on soil and water from airborne nitrogen compounds), while 32 per cent comes from abroad, traffic is responsible for 12 per cent, industry counts for 9 per cent and shipping 3 per cent.

Perspective is key

Although various policy intentions and some legal regulation have been made in recent years, a clear policy with support is still lacking. Farmers do not know whether they will be allowed to continue farming or whether they will have the opportunity to significantly reduce nitrogen emissions through innovation. This is creating major uncertainty among the farmers we work with. Although the Dutch veal sector's ammonia emissions are only 6 per cent of the total livestock farming in the Netherlands, we see great tension emerging for our own chain. Indeed, a significant proportion of our veal farmers have a farm near a nitrogen-sensitive Natura 2000 site. For us, it is essential that central government policy holds out prospects for farmers and that it becomes possible to make a significant contribution towards reducing nitrogen emissions and precipitation through innovations. If this does not happen, a significant shrinkage in the number of farmers and places for animals and disinvestments in our companies will be a harsh consequence.

Ammonia-reducing stall system

Our commitment focuses on innovation. In 2022, we launched a project together with the Dutch Veal Industry Association (SBK) and Stichting Mestverwerking Gelderland (Gelderland Manure Processing Foundation, SMG) to provide a new, recognised and easily applicable ammonia-reducing stall system for use in calf husbandry. In the research project, at participating veal farmers, acidified effluent (low ammonia liquid supplied by the SMG) is introduced into the manure pit at the beginning of the husbandry round, which continuously dilutes the manure produced (urine and solid manure) during the husbandry period. Dilution with water/effluent will reduce the ammonium concentration in manure and will reduce ammonia emissions from the pit.

Greenhouse emissions within the chain

Within our companies and together with partners, we are working in a targeted way to reduce greenhouse gas emissions from our activities and supply chain to limit environmental impacts.

Greenhouse gas emissions cause global warming. The reduction of these gases is therefore essential. However, our companies still produce these gases, for example when cooling meat, cleaning our locations, during transportation and indirectly on the farms, as calves emit methane. Methane is the second most important greenhouse gas after carbon dioxide and actually worsens the impact of the greenhouse effect. As a result, we are taking reduction measures in every link within the chain. To reduce emissions within calf husbandry, we work together with various knowledge partners. Read here for information about which strategic innovation we are focusing on.

Solar panels

In the summer of 2022, 800 solar panels were installed on the roof of the DrieVeld research centre in Uddel. These panels provide about 10 percent of the total energy needs of feed producer Alpuro, which is located across the street from DrieVeld and of the research centre itself. The result of this is that DrieVeld and Alpuro have been able to drive down their use of external energy flows.

Reduced energy consumption

In addition to making energy consumption more sustainable, continuous attention is paid to reducing energy consumption and producing more efficiently. For example, new optimisation projects were fast-tracked at several feed producers in 2022. The focus is on long-term optimisations, which should enable the companies to achieve further significant reductions in gas and electricity consumption in coming years.

UV sterilisation

Tests involving the UV sterilisation of knives were conducted in meat-producing companies in 2022. Clean knives are essential for ensuring food safety during meat processing. The tests serve to determine whether this form of sterilisation has at least the same effect as using hot water – the method that was previously the standard. The tests show that UV sterilisation works and also provides a potential reduction in gas consumption of around 15-20 per cent per location. The Netherlands Food and Consumer Product Safety Authority (NVWA) still has to give their approval in order to replace the current method of sterilisation with UV sterilisation.

Heat recovery

Several companies also installed new heat recovery systems in 2022. This allows us to recover hot water from cooling systems. We can then use that hot water to heat the air treatment units in the slaughter processes. As a result of this, energy efficiency was further increased.