The life of... Ukraine Milk
Communities
Placing people at the heart of the approach is
one of the conditions for ensuring the success of
cooperatives. Danone and Heifer have therefore
offered cooperative members training on quality,
but also on management for women. Alongside
this, in the spirit of the ‘DanFarm’ (Newsletter n°2),
a plan for a «School Farm» is being looked into
to provide agriculture and agronomy services to
the cooperatives.
Through these projects, we are showing that
Danone sourcing can be based on different
kinds of farms : large, medium-sized or small,
grouped together in innovative and cooperative
organizations. Danone and farmers can now aim
for new ambitions.
ISSUE 3
OCTOBER 2010
Danone
EcosyStEM FUND
Current Danone
Ecosystem projects
http://ecosysteme.danone.com
Ukraine Cooperative Demo-Farm
Sourcing – Ukraine – 09/2010
Pepenadores
Recycling – Mexico – 09/2010
Cartoneros
Recycling – Argentina - 07/2010
"
Newsletter
It is in a company’s best interests to take good
care of its economic and social environment,
in one word its ‘ecosystem’
Franck Riboud, Chairman & CEO, Danone
"
Margarita Milk Club
Sourcing – Mexico – 07/2010
Anatolia
Territory – Turkey – 05/2010
The life of...
Horizon 2015
Sourcing – France – 05/2010
“
“
Interview
VIKTOR KMYTKO,
UKRAINE MILK COMMUNITIES Project
manager AT DANONE UKRAINE
« We have just inaugurated the first
cooperative. By the end of the year, we
hope to have launched a dozen. Our
partner Heifer is working hard to update
the legal basis of existing cooperatives.
We are helping them to purchase
efficient equipment for milking and
storage. We complement each other
very well indeed : Heifer supplies its
knowledge of cooperatives and the local
social environment, while we provide
technical and managerial expertise »
The initial aim was to launch 40 dairy cooperatives.
Currently, we have 26 candidates signed up to
the programme. That figure reflects a change of
direction that was decided upon jointly by Danone
Ukraine and the NGO Heifer.
As explained by Viktor TERES, Heifer’s Project
Manager, «it’s not so much about launching new
cooperatives, but more a matter of modernizing
and strengthening the existing structures». The
cooperative model has been extensively reworked
to bring about genuine change in farming
communities : leaders are trained, equipment is
provided, commercial outlets are opened and the
contribution to local development is defined.
After working on milk production - in terms
of quantity and quality - the priority will be on
diversifying the activities of small farmers and
improving environmental practices.This exemplary
co-creation project has gained unexpected
regional and national media coverage. Journalists
are hailing the new initiative, which respects the
local communities and their environment, whilst
promoting modernization.
“
“
Interview
VIKTOR TERES,
HEIFER UKRAINE*, UKRAINE MILK
COMMUNITIES PROJECT PARTNER
« Heifer-Ukraine provides legal support
for institutional and capacity building to
launch operations of new cooperatives.
It was very important to identify and
train leaders (heads of co-ops and
accountants) for those co-ops and
help them produce economically
solid business plans. In addition,
together with Danone Ukraine, we are
helping in community mobilizing and
consolidation through participatory
governance. On top, special training
programs are being delivered for
veterinary and artificial insemination
specialists. We also developed gender
training for all communities to emphasis
women leadership within microfarming. »
*NGO specialized in rural community development
UKRAINE MILK
COMMUNITIES
Klaten
Territory – Indonesia – 05/2010
Reine Mathilde
Sourcing – France – 03/2010
DanFarm Egypt
Sourcing – Egypt – 01/2010
Pemulung recycling communities
Recycling – Indonesia – 01/2010
Ukraine Milk Communities
Sourcing – France – 11/2009
Proxicity
Distribution – France – 09/2009
To find out more, visit our website at :
http://ecosysteme.danone.com
Contacts
Philippe Bassin
Jean-Christophe Laugée
Natacha Le Bescond
Yann Brault (Asia)
Pilar Fourcade (LATAM)
[email protected]
T +33 (0) 1 44 35 24 54
Press Office
Danone Corporate Communications
T +33 (0) 1 44 35 20 75
[email protected]
Recently approved
projects
Photograph credits :
R.Meigneux / SIPA PRESS,
Design Pics / Darren Greenwood.
Special Report
Recycling
The ecosystem, lever for
functions transformation
By Muriel Pénicaud, Executive Vice President Human Resources,
and Chair of the Board of the Danone Ecosystem Fund
For nearly four decades, ever since Antoine Riboud gave his now famous speech in 1972,
Danone has been constantly reinventing the way the company interacts with its environment,
through what is known as the dual economic and social project. Our ambition today is built on
an approach that incorporates social issues into every stage of our value creation chain.
The Danone Ecosystem Fund enables each subsidiary to experiment with new business
practices. Every one of the company’s functions is involved, from manufacturing to marketing,
from sourcing to distribution.
For our procurement teams, for example, working with very small milk producers means
forging new kinds of partnerships, securing the supply chain whilst promoting economic and
social development in the agricultural community, without losing any focus on productivity
and quality. Our packaging increasingly uses recycled materials, and this means working with
waste picker communities and structuring new collection networks.
Similarly, setting up a proximity distribution network with micro businesses allows us to
generate new jobs in disadvantaged areas, and requires the sales managers to come up with
new techniques for marketing and selling our products.
Our subsidiaries have embarked upon a genuine process of change through operational
experimentation. The number of projects approved is a reflection of the management’s firm
commitment to this process. Meanwhile, the Danone Ecosystem Fund received the 2010
Human Capital Trophy Award for Social Responsibility, for its pioneering approach to human
development beyond the ‘legal borders’ of the company.
So just a year after the Fund was created, thanks to the hard work and commitment of our
subsidiaries and partner NGOs, our approach is already firmly established.
KEY FIGURES :
12
projects approved
29
projects on the books
RECYCLing
Special report
Editorial
recently
approved
PROJECTS
Recycling
DID YOU KNOW ?
What is rPET ?
“Interview“
Annie Wahyuni,
PEMULUNG RECYCLING
COMMUNITIES PROJECT MANAGER
AT DANONE AQUA
> PEPENADORES
Bonafont Mexico - Ashoka1 & Foundation
Mundo Sustentable2
Organize waste pickers’ work on a platform
outside the landfill to ensure better working
conditions and secure Bonafont rPET
sourcing.
1
2
NGO specialist on social entrepreneurship
NGO specialist on the education on environmental protection
SOURCING
> UKRAINE COOPERATIVE DEMO-FARM
Danone Ukraine - Heifer Ukraine1 and
CIDA-Socodevi2
Contribute to develop farming through
demonstration farm which provides sanitary
services and supports a 1100 micro-farmers
community, increasing and improving milk
production for Danone.
1
2
NGO specialized in rural community development
Canadian International Development Agency
Millions of waste pickers throughout the
world earn a living - or just survive - from
recycling waste. They work alone in the
streets or open landfill sites. They do a
difficult job, at the very end of a long
chain of intermediaries, in a still informal
economy. This means they are very often
condemned to a life of poverty. For Danone,
this is a major human issue coupled with an
environmental one, namely the use of rPET
in the manufacture of plastic bottles. An
efficient system for collecting and sorting
waste is therefore essential.
It is this belief that underpins the three
«Recycling» projects currently supported by
the Danone Ecosystem Fund. Aiding the waste
pickers is also a way for Danone to honour
its commitments: reducing its environmental
footprint, making increased use of recycled
materials and improving its social impact on
local communities.
In Indonesia, collection rates for plastic bottles
are very high (at over 90%), especially in towns
and cities. A dense network of waste pickers,
known as «Pemulung», works to collect them
for a derisory wage. Danone Aqua has joined
forces with the NGO Ashoka to develop a new,
much fairer model for collecting and recycling
(plastic, card, cans).
The «pemulung» mainly come from the
countryside, having joined the rural exodus in
the hope of a better life in the city. In reality,
they work alone in exchange for a roof over
their heads and a very modest amount for the
raw materials they collect. Between the waste
pickers and the recycling plant, there may be
more than five different intermediaries. The
profits from the activity are shared grossly
unevenly between the different stages in the
chain. The project supported by the Danone
Ecosystem Fund aims to reduce the number
of intermediaries involved, by organizing
“Interview“
Gonzalo Roqué,
Foundation AVINA*, CARTONEROS
PROJECT PARTNER
« There are plenty of obstacles to overcome.
The waste pickers aren’t used to work
together in an organized way, they lack
managerial skills... this serves to limit their
negotiating power. In addition, they are not
recognized by the rest of the population and
the public authorities as providing a public
service for society.They also have insufficient
financial and technical resources. We have
the opportunity to create a solution. »
*NGO that works to promote alliances between business
and civil society for sustainable development.
« Recycling is an up-and-coming market.
If we can demonstrate that a standard
«social business» model can generate
social and economic value for the
recycling industry, then we could
see a country-wide transformation in
the next decade ! For that to happen,
we need partners, resources and
a healthy dose of positive thinking
and energy. »
the «pemulung» into co-operative networks.
Ashoka, the world’s largest network of social
entrepreneurs, is coordinating the work
carried out by local NGOs on the ground.
Other partners involved in the project are the
government and Namasindo, which supplies
Danone Aqua with recycled PET beads. All
the stakeholders involved in recycling, both
public and private, are mobilized.
In Mexico, the water brand Bonafont is the
Group’s star act when it comes to using
recycled material (see ‘Did You Know?’). Since
the beginning of this project on environmental
impact reduction, the brand set itself some
ambitious targets.
However, the plan’s success is dependent on
the expansion of rPET manufacturing. That is
why Bonafont has joined forces with Ashoka
and the Foundation Mundo Sustentable,
Empty plastic (PET) bottles are collected, washed and shredded to
make granules of recycled PET (rPET). These granules are then used to
manufacture new bottles.
Danone’s Waters business unit aims to use rPET for 35% of its production
by 2011.
In 2009, Danone’s water brand in Mexico, Bonafont, launched the first
100% rPET bottle. With this innovation, Bonafont saves some 20,000
tonnes of CO2 per year.
to launch the Pepenadores (waste pickers)
project. A cooperative network of waste
pickers is currently being set up, with the aim
of pooling the collection, sorting and sale
of waste outside landfill sites, on platforms
designed to guarantee improved working
conditions , health and safety. In addition, social
and educational programmes are set to be
developed, to give young Pepenadores more
power over their own futures.
In Argentina, the situation is different : rPET is
not yet manufactured there on an industrial
scale. However, Aguas Danone de Argentina
plans to introduce rPET into its bottles from
2011. The waste pickers, or ‘cartoneros’, who
began to come together to form cooperatives,
thus represent the primary source for supplies
of this material. The Ecosystem project, run
in partnership with the Foundation AVINA,
involves investing a total of €1m to set up two
sorting centres – one in Mendoza and another
in Buenos Aires -, purchase two machines for
compacting PET, and provide professional
training for the Cartoneros.
These three projects all serve Danone’s dual
objective : securing the supply of rPET and
improving working conditions and pay for
waste pickers
*PET: Polyethylene Terephtalate, the plastic used
to make bottles
“
“
Interview
Alfonso Martínez Muñoz,
Foundation Mundo sustentable*,
Pepenadores project partner
« Today, just 20% of waste is recycled
in Mexico. The intensive mechanical
processing of waste is simply not
possible in our country. Waste pickers’
cooperatives are a credible alternative
for us. It’s up to us to prove, with
Danone’s support, that collection and
sorting can be organized in a way that
respects both the environment and the
health of waste pickers. »
*NGO specializing in environmental protection awareness
Special Report
The life of... Ukraine Milk
Communities
Placing people at the heart of the approach is
one of the conditions for ensuring the success of
cooperatives. Danone and Heifer have therefore
offered cooperative members training on quality,
but also on management for women. Alongside
this, in the spirit of the ‘DanFarm’ (Newsletter n°2),
a plan for a «School Farm» is being looked into
to provide agriculture and agronomy services to
the cooperatives.
Through these projects, we are showing that
Danone sourcing can be based on different
kinds of farms : large, medium-sized or small,
grouped together in innovative and cooperative
organizations. Danone and farmers can now aim
for new ambitions.
ISSUE 3
OCTOBER 2010
Danone
EcosyStEM FUND
Current Danone
Ecosystem projects
http://ecosysteme.danone.com
Ukraine Cooperative Demo-Farm
Sourcing – Ukraine – 09/2010
Pepenadores
Recycling – Mexico – 09/2010
Cartoneros
Recycling – Argentina - 07/2010
"
Newsletter
It is in a company’s best interests to take good
care of its economic and social environment,
in one word its ‘ecosystem’
Franck Riboud, Chairman & CEO, Danone
"
Margarita Milk Club
Sourcing – Mexico – 07/2010
Anatolia
Territory – Turkey – 05/2010
The life of...
Horizon 2015
Sourcing – France – 05/2010
“
“
Interview
VIKTOR KMYTKO,
UKRAINE MILK COMMUNITIES Project
manager AT DANONE UKRAINE
« We have just inaugurated the first
cooperative. By the end of the year, we
hope to have launched a dozen. Our
partner Heifer is working hard to update
the legal basis of existing cooperatives.
We are helping them to purchase
efficient equipment for milking and
storage. We complement each other
very well indeed : Heifer supplies its
knowledge of cooperatives and the local
social environment, while we provide
technical and managerial expertise »
The initial aim was to launch 40 dairy cooperatives.
Currently, we have 26 candidates signed up to
the programme. That figure reflects a change of
direction that was decided upon jointly by Danone
Ukraine and the NGO Heifer.
As explained by Viktor TERES, Heifer’s Project
Manager, «it’s not so much about launching new
cooperatives, but more a matter of modernizing
and strengthening the existing structures». The
cooperative model has been extensively reworked
to bring about genuine change in farming
communities : leaders are trained, equipment is
provided, commercial outlets are opened and the
contribution to local development is defined.
After working on milk production - in terms
of quantity and quality - the priority will be on
diversifying the activities of small farmers and
improving environmental practices.This exemplary
co-creation project has gained unexpected
regional and national media coverage. Journalists
are hailing the new initiative, which respects the
local communities and their environment, whilst
promoting modernization.
“
“
Interview
VIKTOR TERES,
HEIFER UKRAINE*, UKRAINE MILK
COMMUNITIES PROJECT PARTNER
« Heifer-Ukraine provides legal support
for institutional and capacity building to
launch operations of new cooperatives.
It was very important to identify and
train leaders (heads of co-ops and
accountants) for those co-ops and
help them produce economically
solid business plans. In addition,
together with Danone Ukraine, we are
helping in community mobilizing and
consolidation through participatory
governance. On top, special training
programs are being delivered for
veterinary and artificial insemination
specialists. We also developed gender
training for all communities to emphasis
women leadership within microfarming. »
*NGO specialized in rural community development
UKRAINE MILK
COMMUNITIES
Klaten
Territory – Indonesia – 05/2010
Reine Mathilde
Sourcing – France – 03/2010
DanFarm Egypt
Sourcing – Egypt – 01/2010
Pemulung recycling communities
Recycling – Indonesia – 01/2010
Ukraine Milk Communities
Sourcing – France – 11/2009
Proxicity
Distribution – France – 09/2009
To find out more, visit our website at :
http://ecosysteme.danone.com
Contacts
Philippe Bassin
Jean-Christophe Laugée
Natacha Le Bescond
Yann Brault (Asia)
Pilar Fourcade (LATAM)
[email protected]
T +33 (0) 1 44 35 24 54
Press Office
Danone Corporate Communications
T +33 (0) 1 44 35 20 75
[email protected]
Recently approved
projects
Photograph credits :
R.Meigneux / SIPA PRESS,
Design Pics / Darren Greenwood.
Special Report
Recycling
The ecosystem, lever for
functions transformation
By Muriel Pénicaud, Executive Vice President Human Resources,
and Chair of the Board of the Danone Ecosystem Fund
For nearly four decades, ever since Antoine Riboud gave his now famous speech in 1972,
Danone has been constantly reinventing the way the company interacts with its environment,
through what is known as the dual economic and social project. Our ambition today is built on
an approach that incorporates social issues into every stage of our value creation chain.
The Danone Ecosystem Fund enables each subsidiary to experiment with new business
practices. Every one of the company’s functions is involved, from manufacturing to marketing,
from sourcing to distribution.
For our procurement teams, for example, working with very small milk producers means
forging new kinds of partnerships, securing the supply chain whilst promoting economic and
social development in the agricultural community, without losing any focus on productivity
and quality. Our packaging increasingly uses recycled materials, and this means working with
waste picker communities and structuring new collection networks.
Similarly, setting up a proximity distribution network with micro businesses allows us to
generate new jobs in disadvantaged areas, and requires the sales managers to come up with
new techniques for marketing and selling our products.
Our subsidiaries have embarked upon a genuine process of change through operational
experimentation. The number of projects approved is a reflection of the management’s firm
commitment to this process. Meanwhile, the Danone Ecosystem Fund received the 2010
Human Capital Trophy Award for Social Responsibility, for its pioneering approach to human
development beyond the ‘legal borders’ of the company.
So just a year after the Fund was created, thanks to the hard work and commitment of our
subsidiaries and partner NGOs, our approach is already firmly established.
KEY FIGURES :
12
projects approved
29
projects on the books
RECYCLing
Special report
Editorial
recently
approved
PROJECTS
Recycling
DID YOU KNOW ?
What is rPET ?
“Interview“
Annie Wahyuni,
PEMULUNG RECYCLING
COMMUNITIES PROJECT MANAGER
AT DANONE AQUA
> PEPENADORES
Bonafont Mexico - Ashoka1 & Foundation
Mundo Sustentable2
Organize waste pickers’ work on a platform
outside the landfill to ensure better working
conditions and secure Bonafont rPET
sourcing.
1
2
NGO specialist on social entrepreneurship
NGO specialist on the education on environmental protection
SOURCING
> UKRAINE COOPERATIVE DEMO-FARM
Danone Ukraine - Heifer Ukraine1 and
CIDA-Socodevi2
Contribute to develop farming through
demonstration farm which provides sanitary
services and supports a 1100 micro-farmers
community, increasing and improving milk
production for Danone.
1
2
NGO specialized in rural community development
Canadian International Development Agency
Millions of waste pickers throughout the
world earn a living - or just survive - from
recycling waste. They work alone in the
streets or open landfill sites. They do a
difficult job, at the very end of a long
chain of intermediaries, in a still informal
economy. This means they are very often
condemned to a life of poverty. For Danone,
this is a major human issue coupled with an
environmental one, namely the use of rPET
in the manufacture of plastic bottles. An
efficient system for collecting and sorting
waste is therefore essential.
It is this belief that underpins the three
«Recycling» projects currently supported by
the Danone Ecosystem Fund. Aiding the waste
pickers is also a way for Danone to honour
its commitments: reducing its environmental
footprint, making increased use of recycled
materials and improving its social impact on
local communities.
In Indonesia, collection rates for plastic bottles
are very high (at over 90%), especially in towns
and cities. A dense network of waste pickers,
known as «Pemulung», works to collect them
for a derisory wage. Danone Aqua has joined
forces with the NGO Ashoka to develop a new,
much fairer model for collecting and recycling
(plastic, card, cans).
The «pemulung» mainly come from the
countryside, having joined the rural exodus in
the hope of a better life in the city. In reality,
they work alone in exchange for a roof over
their heads and a very modest amount for the
raw materials they collect. Between the waste
pickers and the recycling plant, there may be
more than five different intermediaries. The
profits from the activity are shared grossly
unevenly between the different stages in the
chain. The project supported by the Danone
Ecosystem Fund aims to reduce the number
of intermediaries involved, by organizing
“Interview“
Gonzalo Roqué,
Foundation AVINA*, CARTONEROS
PROJECT PARTNER
« There are plenty of obstacles to overcome.
The waste pickers aren’t used to work
together in an organized way, they lack
managerial skills... this serves to limit their
negotiating power. In addition, they are not
recognized by the rest of the population and
the public authorities as providing a public
service for society.They also have insufficient
financial and technical resources. We have
the opportunity to create a solution. »
*NGO that works to promote alliances between business
and civil society for sustainable development.
« Recycling is an up-and-coming market.
If we can demonstrate that a standard
«social business» model can generate
social and economic value for the
recycling industry, then we could
see a country-wide transformation in
the next decade ! For that to happen,
we need partners, resources and
a healthy dose of positive thinking
and energy. »
the «pemulung» into co-operative networks.
Ashoka, the world’s largest network of social
entrepreneurs, is coordinating the work
carried out by local NGOs on the ground.
Other partners involved in the project are the
government and Namasindo, which supplies
Danone Aqua with recycled PET beads. All
the stakeholders involved in recycling, both
public and private, are mobilized.
In Mexico, the water brand Bonafont is the
Group’s star act when it comes to using
recycled material (see ‘Did You Know?’). Since
the beginning of this project on environmental
impact reduction, the brand set itself some
ambitious targets.
However, the plan’s success is dependent on
the expansion of rPET manufacturing. That is
why Bonafont has joined forces with Ashoka
and the Foundation Mundo Sustentable,
Empty plastic (PET) bottles are collected, washed and shredded to
make granules of recycled PET (rPET). These granules are then used to
manufacture new bottles.
Danone’s Waters business unit aims to use rPET for 35% of its production
by 2011.
In 2009, Danone’s water brand in Mexico, Bonafont, launched the first
100% rPET bottle. With this innovation, Bonafont saves some 20,000
tonnes of CO2 per year.
to launch the Pepenadores (waste pickers)
project. A cooperative network of waste
pickers is currently being set up, with the aim
of pooling the collection, sorting and sale
of waste outside landfill sites, on platforms
designed to guarantee improved working
conditions , health and safety. In addition, social
and educational programmes are set to be
developed, to give young Pepenadores more
power over their own futures.
In Argentina, the situation is different : rPET is
not yet manufactured there on an industrial
scale. However, Aguas Danone de Argentina
plans to introduce rPET into its bottles from
2011. The waste pickers, or ‘cartoneros’, who
began to come together to form cooperatives,
thus represent the primary source for supplies
of this material. The Ecosystem project, run
in partnership with the Foundation AVINA,
involves investing a total of €1m to set up two
sorting centres – one in Mendoza and another
in Buenos Aires -, purchase two machines for
compacting PET, and provide professional
training for the Cartoneros.
These three projects all serve Danone’s dual
objective : securing the supply of rPET and
improving working conditions and pay for
waste pickers
*PET: Polyethylene Terephtalate, the plastic used
to make bottles
“
“
Interview
Alfonso Martínez Muñoz,
Foundation Mundo sustentable*,
Pepenadores project partner
« Today, just 20% of waste is recycled
in Mexico. The intensive mechanical
processing of waste is simply not
possible in our country. Waste pickers’
cooperatives are a credible alternative
for us. It’s up to us to prove, with
Danone’s support, that collection and
sorting can be organized in a way that
respects both the environment and the
health of waste pickers. »
*NGO specializing in environmental protection awareness
Special Report
The ecosystem, lever for
functions transformation
By Muriel Pénicaud, Executive Vice President Human Resources,
and Chair of the Board of the Danone Ecosystem Fund
For nearly four decades, ever since Antoine Riboud gave his now famous speech in 1972,
Danone has been constantly reinventing the way the company interacts with its environment,
through what is known as the dual economic and social project. Our ambition today is built on
an approach that incorporates social issues into every stage of our value creation chain.
The Danone Ecosystem Fund enables each subsidiary to experiment with new business
practices. Every one of the company’s functions is involved, from manufacturing to marketing,
from sourcing to distribution.
For our procurement teams, for example, working with very small milk producers means
forging new kinds of partnerships, securing the supply chain whilst promoting economic and
social development in the agricultural community, without losing any focus on productivity
and quality. Our packaging increasingly uses recycled materials, and this means working with
waste picker communities and structuring new collection networks.
Similarly, setting up a proximity distribution network with micro businesses allows us to
generate new jobs in disadvantaged areas, and requires the sales managers to come up with
new techniques for marketing and selling our products.
Our subsidiaries have embarked upon a genuine process of change through operational
experimentation. The number of projects approved is a reflection of the management’s firm
commitment to this process. Meanwhile, the Danone Ecosystem Fund received the 2010
Human Capital Trophy Award for Social Responsibility, for its pioneering approach to human
development beyond the ‘legal borders’ of the company.
So just a year after the Fund was created, thanks to the hard work and commitment of our
subsidiaries and partner NGOs, our approach is already firmly established.
KEY FIGURES :
12
projects approved
29
projects on the books
RECYCLing
Special report
Editorial
recently
approved
PROJECTS
Recycling
DID YOU KNOW ?
What is rPET ?
“Interview“
Annie Wahyuni,
PEMULUNG RECYCLING
COMMUNITIES PROJECT MANAGER
AT DANONE AQUA
> PEPENADORES
Bonafont Mexico - Ashoka1 & Foundation
Mundo Sustentable2
Organize waste pickers’ work on a platform
outside the landfill to ensure better working
conditions and secure Bonafont rPET
sourcing.
1
2
NGO specialist on social entrepreneurship
NGO specialist on the education on environmental protection
SOURCING
> UKRAINE COOPERATIVE DEMO-FARM
Danone Ukraine - Heifer Ukraine1 and
CIDA-Socodevi2
Contribute to develop farming through
demonstration farm which provides sanitary
services and supports a 1100 micro-farmers
community, increasing and improving milk
production for Danone.
1
2
NGO specialized in rural community development
Canadian International Development Agency
Millions of waste pickers throughout the
world earn a living - or just survive - from
recycling waste. They work alone in the
streets or open landfill sites. They do a
difficult job, at the very end of a long
chain of intermediaries, in a still informal
economy. This means they are very often
condemned to a life of poverty. For Danone,
this is a major human issue coupled with an
environmental one, namely the use of rPET
in the manufacture of plastic bottles. An
efficient system for collecting and sorting
waste is therefore essential.
It is this belief that underpins the three
«Recycling» projects currently supported by
the Danone Ecosystem Fund. Aiding the waste
pickers is also a way for Danone to honour
its commitments: reducing its environmental
footprint, making increased use of recycled
materials and improving its social impact on
local communities.
In Indonesia, collection rates for plastic bottles
are very high (at over 90%), especially in towns
and cities. A dense network of waste pickers,
known as «Pemulung», works to collect them
for a derisory wage. Danone Aqua has joined
forces with the NGO Ashoka to develop a new,
much fairer model for collecting and recycling
(plastic, card, cans).
The «pemulung» mainly come from the
countryside, having joined the rural exodus in
the hope of a better life in the city. In reality,
they work alone in exchange for a roof over
their heads and a very modest amount for the
raw materials they collect. Between the waste
pickers and the recycling plant, there may be
more than five different intermediaries. The
profits from the activity are shared grossly
unevenly between the different stages in the
chain. The project supported by the Danone
Ecosystem Fund aims to reduce the number
of intermediaries involved, by organizing
“Interview“
Gonzalo Roqué,
Foundation AVINA*, CARTONEROS
PROJECT PARTNER
« There are plenty of obstacles to overcome.
The waste pickers aren’t used to work
together in an organized way, they lack
managerial skills... this serves to limit their
negotiating power. In addition, they are not
recognized by the rest of the population and
the public authorities as providing a public
service for society.They also have insufficient
financial and technical resources. We have
the opportunity to create a solution. »
*NGO that works to promote alliances between business
and civil society for sustainable development.
« Recycling is an up-and-coming market.
If we can demonstrate that a standard
«social business» model can generate
social and economic value for the
recycling industry, then we could
see a country-wide transformation in
the next decade ! For that to happen,
we need partners, resources and
a healthy dose of positive thinking
and energy. »
the «pemulung» into co-operative networks.
Ashoka, the world’s largest network of social
entrepreneurs, is coordinating the work
carried out by local NGOs on the ground.
Other partners involved in the project are the
government and Namasindo, which supplies
Danone Aqua with recycled PET beads. All
the stakeholders involved in recycling, both
public and private, are mobilized.
In Mexico, the water brand Bonafont is the
Group’s star act when it comes to using
recycled material (see ‘Did You Know?’). Since
the beginning of this project on environmental
impact reduction, the brand set itself some
ambitious targets.
However, the plan’s success is dependent on
the expansion of rPET manufacturing. That is
why Bonafont has joined forces with Ashoka
and the Foundation Mundo Sustentable,
Empty plastic (PET) bottles are collected, washed and shredded to
make granules of recycled PET (rPET). These granules are then used to
manufacture new bottles.
Danone’s Waters business unit aims to use rPET for 35% of its production
by 2011.
In 2009, Danone’s water brand in Mexico, Bonafont, launched the first
100% rPET bottle. With this innovation, Bonafont saves some 20,000
tonnes of CO2 per year.
to launch the Pepenadores (waste pickers)
project. A cooperative network of waste
pickers is currently being set up, with the aim
of pooling the collection, sorting and sale
of waste outside landfill sites, on platforms
designed to guarantee improved working
conditions , health and safety. In addition, social
and educational programmes are set to be
developed, to give young Pepenadores more
power over their own futures.
In Argentina, the situation is different : rPET is
not yet manufactured there on an industrial
scale. However, Aguas Danone de Argentina
plans to introduce rPET into its bottles from
2011. The waste pickers, or ‘cartoneros’, who
began to come together to form cooperatives,
thus represent the primary source for supplies
of this material. The Ecosystem project, run
in partnership with the Foundation AVINA,
involves investing a total of €1m to set up two
sorting centres – one in Mendoza and another
in Buenos Aires -, purchase two machines for
compacting PET, and provide professional
training for the Cartoneros.
These three projects all serve Danone’s dual
objective : securing the supply of rPET and
improving working conditions and pay for
waste pickers
*PET: Polyethylene Terephtalate, the plastic used
to make bottles
“
“
Interview
Alfonso Martínez Muñoz,
Foundation Mundo sustentable*,
Pepenadores project partner
« Today, just 20% of waste is recycled
in Mexico. The intensive mechanical
processing of waste is simply not
possible in our country. Waste pickers’
cooperatives are a credible alternative
for us. It’s up to us to prove, with
Danone’s support, that collection and
sorting can be organized in a way that
respects both the environment and the
health of waste pickers. »
*NGO specializing in environmental protection awareness
Special Report
The life of... Ukraine Milk
Communities
Placing people at the heart of the approach is
one of the conditions for ensuring the success of
cooperatives. Danone and Heifer have therefore
offered cooperative members training on quality,
but also on management for women. Alongside
this, in the spirit of the ‘DanFarm’ (Newsletter n°2),
a plan for a «School Farm» is being looked into
to provide agriculture and agronomy services to
the cooperatives.
Through these projects, we are showing that
Danone sourcing can be based on different
kinds of farms : large, medium-sized or small,
grouped together in innovative and cooperative
organizations. Danone and farmers can now aim
for new ambitions.
ISSUE 3
OCTOBER 2010
Danone
EcosyStEM FUND
Current Danone
Ecosystem projects
http://ecosysteme.danone.com
Ukraine Cooperative Demo-Farm
Sourcing – Ukraine – 09/2010
Pepenadores
Recycling – Mexico – 09/2010
Cartoneros
Recycling – Argentina - 07/2010
"
Newsletter
It is in a company’s best interests to take good
care of its economic and social environment,
in one word its ‘ecosystem’
Franck Riboud, Chairman & CEO, Danone
"
Margarita Milk Club
Sourcing – Mexico – 07/2010
Anatolia
Territory – Turkey – 05/2010
The life of...
Horizon 2015
Sourcing – France – 05/2010
“
“
Interview
VIKTOR KMYTKO,
UKRAINE MILK COMMUNITIES Project
manager AT DANONE UKRAINE
« We have just inaugurated the first
cooperative. By the end of the year, we
hope to have launched a dozen. Our
partner Heifer is working hard to update
the legal basis of existing cooperatives.
We are helping them to purchase
efficient equipment for milking and
storage. We complement each other
very well indeed : Heifer supplies its
knowledge of cooperatives and the local
social environment, while we provide
technical and managerial expertise »
The initial aim was to launch 40 dairy cooperatives.
Currently, we have 26 candidates signed up to
the programme. That figure reflects a change of
direction that was decided upon jointly by Danone
Ukraine and the NGO Heifer.
As explained by Viktor TERES, Heifer’s Project
Manager, «it’s not so much about launching new
cooperatives, but more a matter of modernizing
and strengthening the existing structures». The
cooperative model has been extensively reworked
to bring about genuine change in farming
communities : leaders are trained, equipment is
provided, commercial outlets are opened and the
contribution to local development is defined.
After working on milk production - in terms
of quantity and quality - the priority will be on
diversifying the activities of small farmers and
improving environmental practices.This exemplary
co-creation project has gained unexpected
regional and national media coverage. Journalists
are hailing the new initiative, which respects the
local communities and their environment, whilst
promoting modernization.
“
“
Interview
VIKTOR TERES,
HEIFER UKRAINE*, UKRAINE MILK
COMMUNITIES PROJECT PARTNER
« Heifer-Ukraine provides legal support
for institutional and capacity building to
launch operations of new cooperatives.
It was very important to identify and
train leaders (heads of co-ops and
accountants) for those co-ops and
help them produce economically
solid business plans. In addition,
together with Danone Ukraine, we are
helping in community mobilizing and
consolidation through participatory
governance. On top, special training
programs are being delivered for
veterinary and artificial insemination
specialists. We also developed gender
training for all communities to emphasis
women leadership within microfarming. »
*NGO specialized in rural community development
UKRAINE MILK
COMMUNITIES
Klaten
Territory – Indonesia – 05/2010
Reine Mathilde
Sourcing – France – 03/2010
DanFarm Egypt
Sourcing – Egypt – 01/2010
Pemulung recycling communities
Recycling – Indonesia – 01/2010
Ukraine Milk Communities
Sourcing – France – 11/2009
Proxicity
Distribution – France – 09/2009
To find out more, visit our website at :
http://ecosysteme.danone.com
Contacts
Philippe Bassin
Jean-Christophe Laugée
Natacha Le Bescond
Yann Brault (Asia)
Pilar Fourcade (LATAM)
[email protected]
T +33 (0) 1 44 35 24 54
Press Office
Danone Corporate Communications
T +33 (0) 1 44 35 20 75
[email protected]
Recently approved
projects
Photograph credits :
R.Meigneux / SIPA PRESS,
Design Pics / Darren Greenwood.
Special Report
Recycling