Carlo Galli, Technical & Strategy Advisor, Water Resources Corporate Operations at Nestic S. A. (Nestle Group). Presentation at The Water Network event on Efficient use of Agricultural Water in Zurich on January 23, 2013

1. Water: Impacts, Risks
and Solutions for
an efficient use
in agriculture
Carlo C.Galli
The Water Network
23 January 2013

2. Our Impacts: Consumptive Water Use for Nestlé
agricultural raw materials
Total CWU (rainwater + irrigation) Blue CWU (irrigation)
(~ 44.8 billion m3) (~ 2.9 billion m3)
Soya (Excl Tea Vanilla Egg & Soya (Excl Tea Vanilla Egg & Green Coffee
Poultry Lecithin) 0% 0% Products Poultry Lecithin) 0% 1% Products 3%
0% 2% 1% 0% 1% 0%
Cocoa
Vegetables
Vegetables 0%
1%
0% Meat Meat
8% 5%
Green Coffee Sugar
27% 24%
Dairy
25% Dairy
35%
Oil and Fat
DRAFT
4%
Cocoa
17%
Cereals and Cereals and
Grains Grains
11% Sugar 26%
6%
Oil and Fat
3%
 Blue CWU of 460 Nestlé factories = 0,1 billion m3

3. Our risks/locations: watershed risk assessment of our
direct operations (and agricultural supply chain)
WATER STRESS NESTLE FACTORIES (497)
DATA FROM COMBINED INDEX (WRI/ETH/WRF)
400
of total)
ries (13%
350 329
risk facto
igh water Combined
65
300
h nd 5 from
N. FA.CTORIES
a
250
nt class 4
200 king
ta into accou
150
103 Index
%
tories (33
er risk fac
100 65
t
o high wa and 5 from
168 medium t
50
t class 3, 4
0
to accoun
WATER STRESS CLASS of tota l) taking in
Index
Combined

4. Nestlé Commitments on W.A.T.E.R.
ork to achieve water efficiency across our operations
Leading in water resource management and excelling in the reduction of the
direct water use in all our facilities
dvocate for effective water policies and stewardship
Promoting public policies that place value on water at every level
reat the water we discharge effectively
Setting strict targets for returning clean water to the environment
ngage with suppliers, especially those in agriculture
Helping to improve their water management with focus on impacts at watershed
level
aise awareness of water access and conservation
Engaging employees, communities and consumers in the water imperative

5. Responsible sourcing of agricultural raw materials
Traceability
Nestlé
Responsible
Sourcing
Programme
For
high
risk
spend
categories
Direct
engagement
with
680,000
farmers
Audit
Programme
vs.
NSC
2010/2011:
1735
3rd
party
audits
of
key
suppliers

6. Water Stewardship
National / Int’l level
Stakeholder
Water
engagement
Resources
Review
Factory
Local level
IniHaHves
Inside factory Outside factory
Area of influence

7. SAIN Case India Moga
 Moga is a major fresh milk collection district
(85’000 farmers, >1 million lt milk/day)
 Groundwater is the major source of irrigation
and is overexploited everywhere (1 million
tubewells in Indian Punjab; >60’000 tubewells
in the Moga District alone)
 Almost 90% land is cultivated; all cultivated
land is irrigated (97.6% with groundwater)
 Milk, wheat and rice is the favoured production
system of 80% of the Moga farmers
 Recommended intensification of dairy farming
 But sustainability of fresh milk production is
about...rice
 Better irrigation and cultivation practices for
rice
 SRI trials in Punjab

8. SAIN Case Vietnam Dak Lak
 Coffee farming booming in Central highlands
 Very productive but... with unsustainable
practices
 Need for improvement of water use efficiency
and fertilizers management
 Water footprint project with SDC, IWMI and
EDE 2011/2013
 Confirmed that potential water savings are
huge
 Demo plots within “4C” Units
 Dissemination of BPs and scale up within the
Vietnam Coffee Task Force

9. SAIN Case Venezuela El Pinal
 Silvo-Pastoreo project launched in 2010 with
TNC and ULA
 2015 objective: 1’000 hectares / 200’000 trees
 New natural shading improves animal well fare
and milk productivity
 Climate change mitigation and adaptation (cope
with growing temperatures)
 Water Resources Protection
 Prevent soil erosion
 Ecological corridor
 Alternative water sources (RWH)
 Water use efficiency in cleaning (KPIs)
 Minimize pollutant load from farm effluents
 Vermi-composting (solid waste)
 Biogas digesters (liquid waste)

10. SAIN Case France Agrivair Vittel
 Watershed conservation with stakeholders
 Natural Mineral Waters protection
 Over 20 years, 10’000 hectares
 Improved farming practices to avoid pollution
 Technical/Financial support to farmers for
change of agricultural production/practices
 Support to other activities (e.g.: golf course,
horse race track and railways)
 Local / national support and recognition ( e.g.:
Municipalities, INRA, French Ministry for
Ecology and French Environment and Energy
Control Agency).
 More on biodiversity:
 agro-forestry
 river reshaping/conservation
 Biodiversity labelelling

11. Solutions for efficient water use (in agriculture): thoughts
 Water Stewardship
 Not all about Hi–Tech
 Quantity but also Quality
 Food waste and modern supply chains
 Water price
 Water allocations

12. Principle 10 - Water
Questions?
carlo.galli@nestle.com