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WTO Members Secure “Historic” Nairobi Package for Africa and the World

WTO members concluded their Tenth Ministerial Conference in Nairobi on 19 December by securing an historic agreement on a series of trade initiatives. The “Nairobi Package” pays fitting tribute to the Conference host, Kenya, by delivering commitments that will benefit in particular the organization’s poorest members.

The Nairobi Package contains a series of six Ministerial Decisions on agriculture, cotton and issues related to least-developed countries. These include a commitment to abolish export subsidies for farm exports, which Director-General Roberto Azevêdo hailed as the “most significant outcome on agriculture” in the organization’s 20-year history.

The other agricultural decisions cover public stockholding for food security purposes, a special safeguard mechanism for developing countries, and measures related to cotton. Decisions were also made regarding preferential treatment for least developed countries (LDCs) in the area of services and the criteria for determining whether exports from LDCs may benefit from trade preferences.

“Two years ago in Bali we did something that the WTO had never done before — we delivered major, multilaterally-negotiated outcomes,” DG Azevêdo declared. “This week, here in Nairobi, we saw those same qualities at work. And today, once again, we delivered.”

The WTO’s Tenth Ministerial Conference was held in Nairobi, Kenya, from 15 to 19 December 2015, the first such meeting hosted by an African nation. The Conference was chaired by Kenya’s Cabinet Secretary for Foreign Affairs and International Trade, Amina Mohamed.

Ms Mohamed admitted that ministers “faced challenging moments,” in concluding the Nairobi Package, which required an extra day of intensive negotiations to conclude. “Tough calls had to be made but we did bite the bullet.”

“We have reaffirmed the central role of the WTO in international trade governance,” she added.

The Conference was opened on 15 December by Kenya’s President, Uhuru Kenyatta. During the opening session, the Conference was also addressed by Ms Mohamed, DG Azevêdo and the Chair of the WTO’s General Council, Fernando de Mateo. They were joined at the Opening Ceremony by President Ellen Johnson Sirleaf of Liberia, whose country concluded its WTO membership negotiations on 16 December.

Agreements on agriculture
A centrepiece of the Nairobi Package is a Ministerial Decision on Export Competition (WT/MIN(15)/W/47), including a commitment to eliminate subsidies for farm exports. DG Azevedo described it as the “most significant outcome on agriculture” in the organization’s 20-year history.

“WTO members — especially developing countries — have consistently demanded action on this issue due to the enormous distorting potential of these subsidies for domestic production and trade,” he declared. “Today’s decision tackles the issue once and for all.”

A number of countries are currently using export subsidies to support agriculture exports. The legally-binding decision would eliminate these subsidies and prevent governments from reverting to trade-distorting export support in the future.

Under the decision, developed members have committed to remove export subsidies immediately, except for a handful of agriculture products, and developing countries will do so by 2018. Developing members will keep the flexibility to cover marketing and transport costs for agriculture exports until the end of 2023, and the poorest and food-importing countries would enjoy additional time to cut export subsidies.

The decision contains disciplines to ensure that other export policies are not used as a disguised form of subsidies. These disciplines include terms to limit the benefits of financing support to agriculture exporters, rules on state enterprises engaging in agriculture trade, and disciplines to ensure that food aid does not negatively affect domestic production. Developing countries are given longer time to implement these rules.

Ministers also adopted a Ministerial Decision on Public Stockholding for Food Security Purposes (WT/MIN(15)/W/46). The decision commits members to engage constructively in finding a permanent solution to this issue. Under the Bali Ministerial Decision of 2013, developing countries are allowed to continue food stockpile programmes, which are otherwise in risk of breaching the WTO’s domestic subsidy cap, until a permanent solution is found by the 11th Ministerial Conference in 2017.

A Ministerial Decision on a Special Safeguard Mechanism (SSM) for Developing Countries (WT/MIN(15)/W/45) recognizes that developing members will have the right to temporarily increase tariffs in face of import surges by using an SSM. Members will continue to negotiate the mechanism in dedicated sessions of the Agriculture Committee.

In addition, a Ministerial Decision on Cotton (WT/MIN(15)/W/48) stresses the vital importance of the cotton sector to LDCs. The decision includes three agriculture elements: market access, domestic support and export competition.

On market access, the decision calls for cotton from LDCs to be given duty-free and quota-free access to the markets of developed countries — and to those of developing countries declaring that they are able to do so — from 1 January 2016. The domesticsupportpart of the cotton decision acknowledges members’ reforms in their domestic cotton policies and stresses that more efforts remain to be made. On export competition for cotton, the decision mandates that developed countries prohibit cotton export subsidies immediately and developing countries do so at a later date.

Decisions of benefit to LDCs
The Nairobi Package also contains decisions of specific benefit to LDCs, including enhanced preferential rules of origin for LDCs and preferential treatment for LDC services providers.

Preferential rules of origin for LDCs
The Ministerial Conference adopted a decision that will facilitate opportunities for least-developed countries’ export of goods to both developed and developing countries under unilateral preferential trade arrangements in favour of LDCs.

The decision in Nairobi builds on the 2013 Bali Ministerial Decision on preferential rules of origin for LDCs. The Bali Decision set out, for the first time, a set of multilaterally agreed guidelines to help make it easier for LDC exports to qualify for preferential market access.

The Nairobi Decision expands upon this by providing more detailed directions on specific issues such as methods for determining when a product qualifies as “made in an LDC,” and when inputs from other sources can be “cumulated” — or combined together — into the consideration of origin. It calls on preference-granting members to consider allowing the use of non-originating materials up to 75% of the final value of the product.

The decision also calls on preference-granting members to consider simplifying documentary and procedural requirements related to origin.

Key beneficiaries will be sub-Saharan African countries, which make up the majority of the LDC Group, the proponent for the Nairobi Decision on Preferential Rules of Origin for LDCs. More information on rules of origin is available here; a briefing note on the negotiations for a Nairobi Decision is available here.

LDC trade in services
The Ministerial Decision on Implementation of Preferential Treatment in Favour of Services and Service Suppliers of Least Developed Countries and Increasing LDC Participation in Services Trade (WT/MIN(15)/W/39) extends the current waiver period under which non-LDC WTO members may grant preferential treatment to LDC services and service suppliers. The period has been extended 15 years until 31 December 2030.

The waiver allows WTO members to deviate from their most-favoured nation obligation under the General Agreement on Trade in Services (GATS). To date, 21 members have submitted notifications granting preferences to LDC services and service suppliers; the notifications are available here. The decision also instructs the WTO’s Trade in Services Council to encourage discussions among members on technical assistance aimed at increasing the capacity of LDCs to participate in services trade. It also sets up a review to monitor the operation of the notified preferences.

Ministers reaffirm central role of WTO in global trade talks, acknowledge divide on future of Doha Round
In their Nairobi Declaration, ministers cited the “pre-eminence of the WTO as the global forum for trade rules setting and governance” and recognized the contribution the rules-based multilateral trading system has made to the strength and stability of the global economy.

“We reaffirm the need to ensure that Regional Trade Agreements (RTAs) remain complementary to, not a substitute for, the multilateral trading system,” ministers declared, adding that the WTO’s Committee on Regional Trade Agreements (CRTA) would discuss the systemic implications of RTAs for the multilateral trading system and their relationship with WTO rules.

Ministers acknowledged that members “have different views” on how to address the future of the Doha Round negotiations but noted the “strong commitment of all Members to advance negotiations on the remaining Doha issues.”

“This work shall maintain development at its centre and we reaffirm that provisions for special and differential treatment shall remain integral,” ministers declared.

Ministers also stated that, while negotiators should prioritize work where results have not yet been achieved, “some wish to identify and discuss other issues for negotiation; others do not. Any decision to launch negotiations multilaterally on such issues would need to be agreed by all Members.”
DG Azevêdo acknowledged “persistent and fundamental divisions on our negotiating agenda” and said WTO members “have to face up to this problem.”

“Members must decide — the world must decide — about the future of the Doha Round,” he declared. “This impasse is already harming the prospects of all those who rely on trade today — and it will disadvantage all those who would benefit from a reformed, modernized global trading system in future.” His full speech is available here.

Ministers also welcomed the adoption of Decisions covering a Work Programme on Small Economies; TRIPS Non-violation and Situation Complaints (; and a continued Work Programme on Electronic Commerce .

WTO members secure landmark $1.3 trillion IT trade deal
In another significant outcome from the Nairobi Ministerial, WTO members representing major exporters of IT products agreed on 16 December on the timetable for implementing a landmark deal to eliminate tariffs on 201 information technology products valued at over $1.3 trillion per year.

Negotiations on the expanded Information Technology Agreement (ITA) were conducted by 53 WTO members, including both developed and developing countries, which account for approximately 90 per cent of world trade in these products. However, all WTO members will benefit from the agreement, as they will all enjoy duty-free market access to the markets of the members eliminating tariffs on these products.

The list of 201 products was originally agreed by the ITA participants in July 2015.

This breakthrough followed months of intensive negotiations among the ITA participants. Their review of “draft schedules” involved a process whereby each of them indicated over what timeframe and how they intended to implement the elimination of duties on these products.

For every product on the list, ITA participants have negotiated the level of reductions and over how many years it will fully eliminate the tariffs. As a result of these negotiations, approximately 65% of tariff lines will be fully eliminated by 1 July 2016. Most of the remaining tariff lines will be completely phased out in four stages over three years. This means that by 2019 almost all imports of the relevant products will be duty free.

Accessions
Trade ministers on 16 December welcomed the conclusion of negotiations on the accessions of Liberia and Afghanistan at the Tenth Ministerial Conference. Liberia’s President, Ellen Johnson Sirleaf, was present at the ceremony marking the formal conclusion of the negotiations, eight years after it applied for WTO membership. President Sirleaf said the country’s “accession to the WTO marks another turning point in our history” and an important step towards meeting Liberia’s “aspirations for the growth and development of our people.”

Liberia will formally become a member of the WTO 30 days after notifying the organization that it has ratified its accession terms. More information on Liberia’s accession is available here.

Trade ministers also welcomed the conclusion of Afghanistan’s WTO accession negotiations on 17 December. Afghanistan’s First Deputy Chief Executive Mohammad Khan Rahmani said Afghanistan’s WTO accession “is a clear sign for all the world to see that the country is building a business-friendly environment.”

Afghanistan applied for WTO membership in 2004 and will formally take its seat at the WTO 30 days after its ratification instrument is received. More information on Afghanistan’s WTO accession is available here.

USDA Report Warns Climate Change Likely to Impede Progress on Global Food Security

PARIS, — Climate change is likely to impede progress on reducing undernourishment around the world in the decades ahead, according to a major scientific assessment released today by the U.S. Department of Agriculture (USDA) on global food security and its implications for the United States. The report, entitled Climate Change, Global Food Security and the U.S. Food System, identifies the risks that climate change poses to global food security and the challenges facing farmers and consumers in adapting to changing climate conditions. Secretary Vilsack released the report during the COP-21 Paris Climate Conference.

In the absence of response measures, climate change is likely to diminish continued progress on global food security through production disruption that lead to constraints on local availability and price increases, interrupted transport conduits, and diminished food safety, among other causes. The risks are greatest for the global poor and in tropical regions.

President Obama has pledged to reduce U.S. greenhouse gas emissions in the range of 26-28 percent below 2005 levels by 2025. U.S. agriculture is helping meet this goal, and American farmers, ranchers and foresters have demonstrated their leadership in recognition that their contributions send a strong message to the rest of the world.

“The past six years have been a success story in terms of global food security. Two hundred million fewer people are food insecure today than they were six years ago. The challenge we now face is whether we can maintain and even accelerate this progress despite the threats from climate change,” said Agriculture Secretary Tom Vilsack. “The report we are releasing today highlights these challenges and offers pathways to avoid the most damaging effects of climate change.”

“The report found that climate change is likely to cause disruptions in food production and a decrease in food safety, which in turn leads to local availability limitations and increases in food prices, with these risks greatest for the global poor and in tropical regions,” said Dr. John Holdren, Assistant to the President or Science and Technology and Director of the White House Office of Science and Technology Policy. “Accurately identifying needs and vulnerabilities, and effectively targeting adaptive practices and technologies across the full scope of the food system, are central to improving global food security in a changing climate.”

Food systems in the United States benefit from a large area of arable land, high agricultural yields, vast integrated transportation systems, and a high level of overall economic development. However, changes in climate are expected to affect U.S. consumers and producers by altering the type and price of food imports from other regions of the world, as well as by changing export demand, and transportation, processing, storage, infrastructure that enable global trade.

Climate risks to food security increase as the magnitude and rate of climate change increase. Higher emissions and concentrations of greenhouse gases are much more likely to have damaging effects than lower emissions and concentrations. The author team reviewed a range of scenarios. Under scenarios with continued increases in greenhouse gas emissions the number of people at risk of undernourishment would increase by as much as 175 million above today’s level by 2080. Scenarios with lower population growth and more robust economic growth coupled with lower greenhouse gas emissions resulted in large reductions in the number of food insecure people compared to today. Even in these scenarios, higher greenhouse gas emissions resulted in more food insecurity than lower emissions.

Effective adaptation can reduce food system vulnerability to climate change and reduce detrimental climate change effects on food security, but socioeconomic conditions can impede the adoption of technically feasible adaptation options. The agricultural sector has a strong record of adapting to changing conditions. There are many opportunities to strengthen agricultural economies and bring more advanced methods of crop production to low-yielding agricultural regions. Other promising adaptations include reducing food waste through innovative packaging, expanding cold storage to lengthen shelf life, and improving transportation infrastructure to move food more rapidly to markets.

On April 23rd, 2015, Agriculture Secretary Vilsack announced USDA’s 10 Building Blocks for Climate Smart Agriculture, a comprehensive set of voluntary programs and initiatives that is expected to reduce net emissions and enhance carbon sequestration by over 120 million metric tons of CO2 equivalent by 2025 – about 2 percent of economy-wide emissions. The ten “building blocks” span a range of technologies and practices to reduce greenhouse gas emissions, increase carbon storage, and generate clean renewable energy. USDA also supports global food security through in-country capacity building, basic and applied research, and support for improved market information, statistics and analysis.

‘Climate Change, Global Food Security and the U.S. Food System’ was prepared as part of the United States National Climate Assessment and part of the President’s Climate Action Plan. USDA led the production of the report on behalf of the thirteen Federal Agencies of the U.S. Global Change Research Program. Thirty-one authors and contributors prepared the report, representing nineteen federal, academic, nongovernmental, and intergovernmental institutions in four countries.

Partnering with Farmers and Ranchers to Address Climate Change and Food Security Challenges

As world leaders gather in Paris this week to negotiate a new global climate agreement, it is important to recognize the contributions of farmers, ranchers and foresters in the United States towards achieving a more food secure world while adapting to climate change, increasing carbon sequestration, and reducing greenhouse gas emissions.

Over the course of my tenure as Secretary of the United States Department of Agriculture, U.S. producers have faced a record drought, which the University of California estimates has cost farmers in California alone an estimated $3 billion in 2015. We’ve seen increasing incursions of invasive pests and diseases and extreme weather, everything from bark beetle to severe droughts, which have cost billions in lost productivity. We’ve faced a series of record wildfire seasons in the western United States—the worst decade in U.S. history for wildfire. The growing El Nino weather pattern in the Pacific has created the perfect storm for disasters to strike the already damaged and weakened western landscape.

Tomorrow in Paris at COP 21, the U.S. Department of Agriculture will release a new report, titled Climate Change, Global Food Security, and the U.S. Food System. This report will outline the impacts of climate change on global food security, including food availability, access, utilization, and stability.

Never before has agriculture faced challenges of this magnitude. We’ve all seen the statistics: Nine billion people by 2050. Feeding these new citizens will require at least a 60 percent increase in agricultural productivity. We must do all of this in the face of climate change that is threatening the productivity and profitability of our farms, ranches and forests.

As we embark on our efforts, we have found that one of the first steps is to educate and inform our farmers, ranchers, and forest land managers – and our own USDA professional staff in the field – about climate change and the threats posed to our resources and the opportunities to contribute to solutions.

For example, earlier this year, USDA announced our 10 Building Blocks for Climate Smart Agriculture, a comprehensive set of voluntary programs and initiatives that we expect to reduce net emissions and enhance carbon sequestration by over 120 million metric tons of CO2 equivalent by 2025 – about 2 percent of economy-wide emissions, building upon a U.S. government-wide commitment to emission reduction. And through efforts by the federal government and a broad coalition of partners, the United States has restored more than 9 million hectares of lost or degraded forest since 2011 – more than half way to our Bonn Challenge commitment of restoring 15 million hectares by 2020.

We are promoting the building blocks strategy through our extension and technical service providers. To support our efforts, we have established a network of regional climate hubs to analyze risks and deliver localized information to help farmers adapt to climate change. We continue to support research into technologies and practices that will reduce climate risks. We are moving rapidly to integrate climate change into our domestic conservation and renewable energy programs.

Collectively, these efforts make U.S. agriculture and forestry a more publicly visible part of the climate change solution in the United States and abroad. They demonstrate to the world that these sectors can provide solutions to reduce greenhouse gas emissions, while simultaneously boosting productivity to meet growing demands for food and fiber, stimulating the rural economy, and offering compatible environmental and economic benefits.

We don’t face these challenges in a vacuum. These same conditions have dire effects across the world, especially for poor, rural smallholder farmers in developing nations. Drought in the western United States and drought in Central America threaten farmers and livelihoods, disrupt communities, and strain food systems. Increasing climate threats, whether it is drought, high temperatures, increases in pests, or wildfire, are separate symptoms of the same problem.

That is why the United States is committed to sharing information globally. The lessons we learn, we want to share through the Global Alliance for Climate-Smart Agriculture. Through our collective efforts, agriculture can make meaningful contributions to the effort to limit global temperature increases to less than two degrees Celsius. We are also proud of our efforts through the Global Open Data for Agriculture and Nutrition initiative, which supports efforts to make data available, accessible, and usable for unrestricted use worldwide.

USDA also directly supports international cooperation and development projects to help promote climate-smart agriculture. For example, last year we supported 11 Borlaug Fellows to work on climate change topics. This program allows agricultural scientists from around the world to work side-by-side with U.S. scientists on finding ways to increase food production while mitigating the effects of climate change.

In order to address climate change, we have to get ahead of it, and I’m convinced that no one innovates in the face of challenge better than agriculture. This will not be an easy task, but I am confident that working together and building on a legacy of partnership, efficiency and innovation, the Alliance members and other interested parties will continue to strive to achieve the three important goals of climate-smart agriculture: achieving food security, sustainably increasing agricultural productivity, and reducing greenhouse gas emissions, where possible.

Food security has implications far beyond what’s on our plates. A more food-secure, nourished world, able to feed itself and the future, is essential to the long-term prosperity and security of individuals, communities, economies, and nations.
– See more at: http://blogs.usda.gov/2015/12/01/partnering-with-farmers-and-ranchers-to-address-climate-change-and-food-security-challenges/#sthash.hXcZOcJA.dpuf

Maggi Noodles Back on Sale in India – Welcome Back MAGGI Noodles Happy Deepawali!

NESTLÉ HOUSE, Gurgaon, Nov 9, 2015 – We are delighted to announce that your beloved MAGGI Noodles is back. The roll out has begun today. It has been a challenging period for the Nestlé Organisation and therefore, there is a feeling of satisfaction at bringing back MAGGI Noodles to the market.


Commenting on the roll out of MAGGI Noodles, Mr. Suresh Narayanan, Chairman and Managing Director of Nestlé India said: "The return of MAGGI Noodles on the auspicious eve of Deepawali and on the day of Dhanteras is a moment of celebration for all of us! MAGGI Noodles has very special relationships and strong emotional bonds with its consumers across the country and I am confident that our bonds will grow even stronger. On behalf of over 7000 Nestlé India employees, I would like to thank all our suppliers, distributors, retailers, and millions of consumers from every corner of India and overseas for their support, love, reassurance, and for being there during our difficult period. MAGGI Noodles rightfully belongs to them and I feel happy to be able to give back to them their familiar taste during the auspicious and festive Deepawali season."
Over the past 32 years, MAGGI has become the most relevant, trusted and valuable food brand in India. It has understood the changing lifestyles of generations, provided products that the family enjoys and constantly innovated products that add value. The MAGGI Noodles being rolled out now have the same masala taste that the consumers have always enjoyed.
With the commencement of sale of MAGGI Noodles Masala today, we will make our best endeavor to reach the product to our consumers at the earliest. We are in touch with our channel partners and distributors to achieve this. They are enthusiastic about the reintroduction of MAGGI Noodles and are helping us in ensuring that our beloved MAGGI Noodles are available to consumers soon. Separately, Nestlé India is pleased to partner with "Snapdeal" to roll out online offers to mark this special occasion.
Most States do not have a ban on the sale of MAGGI Noodles. For States where specific directions are required, we are engaging with them.

MAGGI Noodles is presently being manufactured at three locations, at Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa). For the other two locations at Tahliwal and Pantnagar, we are engaging with the relevant authorities to obtain directions to commence manufacture.
MAGGI Noodles are 100% safe. The test results from all laboratories mandated by the Hon'ble Bombay High Court has validated Nestlé India's position that MAGGI Noodles were and are safe. The health and safety of consumers is and will always remain highest priority at Nestlé.
Nestlé India is committed to collaborate and work proactively with FSSAI, the apex food regulator, FDA authorities in States and other stakeholders.
We wish everyone a very Happy and Prosperous Deepawali.


                      
              ConAgra Foods to Sell Private Label Operations to TreeHouse Foods
              
                OMAHA, Neb. Nov. 2, 2015 – ConAgra Foods, Inc. (NYSE:CAG) today announced that it has reached a definitive agreement to sell its private label operations to TreeHouse Foods for approximately $2.7 billion in cash, excluding transaction-related expenses. 
Sean Connolly, president and chief executive officer, ConAgra Foods, said, “The sale of our private label business marks another important milestone as we remake ConAgra Foods into a focused, higher-margin, more contemporary and higher-performing company. This transaction will enable ConAgra to sharpen our focus and resources on our Consumer Foods and Commercial Foods segments as we continue to move quickly to drive sustainable growth and deliver enhanced shareholder value.” 
Mr. Connolly continued, “Today’s announcement follows a robust sale process involving more than 35 potential buyers, including both strategic buyers and financial sponsors. We are confident that the private label business will be in good hands with TreeHouse Foods, and better-positioned to reach its full potential as part of a focused private label company.” 
Under the terms of the agreement, ConAgra Foods will divest the vast majority of its private label operations, which are classified as discontinued operations. Among other assets, this includes a network of 32 manufacturing facilities in the U.S., Canada and Italy. ConAgra Foods will retain certain private label operations with a strong connection to its existing Consumer Foods business, specifically canned pasta, cooking spray, peanut butter, pudding/gels, Gelit frozen pasta product offerings, as well as the HK Anderson and Kangaroo brand equity, trademark and business portfolios; the results for these operations, which were not material, were moved to the Consumer Foods reporting segment in the first quarter of fiscal 2016. 
The Company expects to generate approximately $2.7 billion in proceeds from the sale, less transaction expenses, and intends to utilize the net proceeds primarily for debt reduction. Following the transaction, the company expects to have a capital loss carryforward of approximately $4.2 billion with an approximate tax value of $1.6 billion, which can be used to offset potential future capital gains over the next five years. ConAgra Foods will provide details regarding the revised presentation of historical results for its remaining reporting segments, as well as its use of proceeds and long-term financial goals, in due course. 
The transaction is subject to customary closing conditions and regulatory clearances, and is expected to close in the first quarter of calendar year 2016. Goldman Sachs and Centerview Partners acted as financial advisors to ConAgra Foods on the transaction. Davis Polk & Wardwell LLP served as legal advisor. 
About ConAgra Foods

ConAgra Foods, Inc., (NYSE:CAG) is one of North America’s largest packaged food companies with branded and private label food found in 99 percent of America’s households, as well as a strong commercial foods business serving restaurants and foodservice operations globally. Consumers can find recognized brands such as Marie Callender’s®, Healthy Choice®, Slim Jim®, Hebrew National®, Orville Redenbacher’s®, Peter Pan®, Reddi-wip®, PAM®, Snack Pack®, Banquet®, Chef Boyardee®, Egg Beaters®, Hunt’s® and many other ConAgra Foods brands, along with food sold by ConAgra Foods under private labels, in grocery, convenience, mass merchandise, club and drug stores. Additionally, ConAgra Foods supplies frozen potato and sweet potato products as well as other vegetable, spice, and bakery products to commercial and foodservice customers. ConAgra Foods operates ReadySetEat.com, an interactive recipe website that provides consumers with easy dinner recipes and more. For more information, please visit us at www.conagrafoods.com.
              
            
                      
              Land O’Lakes, Inc. and United Suppliers Complete First Step of Merger
              
                ARDEN HILLS, MN and AMES, IA – Land O’Lakes, Inc. and United Suppliers, Inc.’s seed and crop protection businesses are now merged. The new entity will do business as Winfield US. The member-owners of both organizations overwhelmingly approved the merger in August, setting the stage for the close. 
Under the merger, which was announced in June, Ames, Iowa-based United Suppliers, Inc. will join  Arden Hills, Minnesota-based Land O’Lakes, Inc.’s crop inputs business. A second step will merge the crop nutrient business. 
“As we launch Winfield US, our shared mission remains the same as it’s always been—to enhance our owners’ capabilities and help them compete,” said Chris Policinski, president and CEO of Land O’Lakes, Inc. and chairman of the combined business’ board. “We are merging because we’re focused on our owners’ future. By coming together, we now offer the full range of solutions to help independently owned and controlled agricultural retailers compete and win in an environment of growing national retail chains.”
The merger builds on the recent successes of the two companies and aims to support a competitive system of independent agricultural retailers. Customers are expected to benefit in a number of ways, from the advantages the combined organization’s size and scale provide in negotiating to expanded product offerings, enhanced decision agriculture tools and technologies, improved product insights and more. The merged organization will continue to approach and serve customers to meet their needs and help them succeed as independent agricultural operations in an environment of consolidation.
In 2014, WinField had $4.9 billion in seed and crop protection product sales, and United Suppliers had $2.6 billion in crop protection, seed and crop nutrient sales. 
###
About Land O’Lakes, Inc.

Land O’Lakes, Inc., one of America’s premier agribusiness and food companies, is a member-owned cooperative with industry-leading operations that span the spectrum from farm production to consumer foods. With 2014 annual sales of more than $15 billion, Land O’Lakes is one of the nation’s largest cooperatives, ranking 203 on the Fortune 500. Building on a legacy of more than 94 years of operation, Land O’Lakes today operates some of the most respected brands in agribusiness and food production including LAND O LAKES® Dairy Foods, Purina Animal Nutrition and Winfield Solutions. The company does business in all 50 states and more than 60 countries. Land O’Lakes, Inc. corporate headquarters are located in Arden Hills, Minn.About United Suppliers, Inc.
United Suppliers is a unique, customer-owned wholesale supplier of crop protection inputs, seed and crop nutrients, with headquarters in Eldora and Ames, Iowa. Founded in 1963, United Suppliers today is comprised of 600 agricultural dealers (Owners) that operate nearly 2,800 retail locations throughout the United States and parts of Canada. The mission of United Suppliers is to be the supplier of choice while increasing Owners’ capabilities and competitiveness. To meet this goal, United Suppliers strives to provide Owners with transparent market intelligence, innovative products, reliable market access and customized business solutions.
              
            
                      
              Kellogg Company Acquires Mass Food Group, Egypt’s Leading Cereal Company – Advances Emerging Markets Growth Strategy
              
                Kellogg Company (NYSE: K) today announced it has acquired Egypt’s leading cereal company, Mass Food Group, advancing Kellogg’s emerging market growth strategy.
“As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg,” said Chris Hood, President, Kellogg Europe. “The combination of Mass Food Group’s manufacturing capabilities, established local brands, and sales and distribution infrastructure, coupled with Kellogg’s product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa.” 
Founded in 1996, Mass Food Group is a family-owned business headquartered in Cairo. As the first company to introduce breakfast cereal to Egyptian consumers, Mass Food Group has grown into an $18 million business (sales) with 600 employees in less than 20 years. The company makes such popular local brands as Temmy’s cereals and NutriFit cereal bars. Mass Food Group also exports foods to more than 30 markets, including Europe, East Asia and Africa.
“On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world’s leading cereal producer. With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers. We know the dedicated people of Mass Food Group, who have helped make this company a success, will continue to grow and develop under Kellogg’s leadership,” said Tamer El Bahay, Vice President, Mass Food Group. 
“Today’s announcement builds upon significant progress against our emerging market growth strategy announced earlier this year,” said John Bryant, Chairman and CEO, Kellogg Company. “We are building a strong foundation for emerging market growth.”
Earlier this year, Kellogg acquired Bisco Misr, Egypt’s leading packaged biscuit company. And in mid-September, Kellogg Company announced a joint venture with Tolaram Africa to develop snacks and breakfast foods for the West African market, as well as noodles across Africa, which are often eaten at breakfast. In addition, Kellogg acquired 50 percent of Multipro, a premier sales and distribution company in Nigeria and Ghana.
“We’re delighted to welcome Mass Food Group to the Kellogg family,” added Bryant.
Financial Details of the Transaction

Kellogg Company has agreed to pay approximately $50 million for Mass Food Group.

Kellogg Company is financing the transaction with international cash on hand. 
Due to the size of Mass Food Group’s annual sales, the transaction is not expected to have a material impact on Kellogg Company’s annual operating profit and net earnings in 2015.
About Kellogg Company

At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2014 sales of $14.6 billion and more than 1,600 foods, Kellogg is the world’s leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. Our brands – Kellogg’s®, Keebler®, Special K®, Pringles®, Kellogg’s Frosted Flakes®, Pop-Tarts®, Kellogg’s Corn Flakes®, Rice Krispies®, Kashi®, Cheez-It®, Eggo®, Mini-Wheats® and more – nourish families so they can flourish and thrive. Through our Breakfasts for Better DaysTM initiative, we’re providing 1 billion servings of cereal and snacks – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. To learn more, visit www.kelloggcompany.com or follow us on Twitter @KelloggCompany, YouTube and on Social K.
              
            
                      
              Coca-Cola Bottling Co. Consolidated, and Partners to Coordinate Efficient Operation of Production Assets
              
                ATLANTA, – The Coca-Cola Company today took another significant step toward building a stronger, more streamlined production system in its flagship market by announcing the formation of a new National Product Supply System (“NPSS”) in the United States.  The mission of the NPSS will be to facilitate optimal operation of the U.S. product supply system for Coca-Cola bottlers in order to:

•Achieve the lowest optimal manufactured and delivered cost for all bottlers in the Coca-Cola system

•Enable system investment to build sustainable capability and competitive advantage

•Prioritize quality, service and innovation in order to successfully meet and exceed customer and consumer requirements
Under the new NPSS, three existing independent producing bottlers, Coca-Cola Bottling Co. Consolidated (“Consolidated”), Coca-Cola Bottling Company United (“United”), and Swire Coca-Cola USA (“Swire”), as well as the Company-owned     Coca-Cola Refreshments (“CCR”) along with Coca-Cola North America, will be members of Coca-Cola’s National Product Supply Group (“NPSG”).  The NPSG will administer key national product supply activities for these NPSS bottlers, which currently represent approximately 95 percent of the U.S. produced volume.  
“Our U.S. operating model continues to become stronger, more aligned and more competitive.  Today we are taking further action to enable profitable growth for our entire U.S. system,” said Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company. “We will leverage the strengths and capabilities of the four largest producing bottlers in our U.S. system, CCR, Consolidated, United and Swire to operate as one highly aligned and highly competitive national product supply system.” 
Under the initial terms of the Letters of Intent, it is anticipated that each NPSS bottler will acquire certain production facilities from CCR within their transitioning distribution territories.  Initially, it is contemplated that CCR will divest the following nine production facilities with an estimated net book value of $380 million:

•Consolidated will acquire production facilities in Sandston, Va., Baltimore and Silver Spring, Md., Indianapolis and Portland, In. and Cincinnati, Oh.

•United will acquire the production facility in New Orleans, La.

•Swire will acquire production facilities in Phoenix, Az. and Denver, Co.
The transition of these production facilities from CCR to NPSS bottlers is anticipated to take place between 2016 and 2018.  The sale of additional production facilities from CCR to NPSS bottlers in previously announced transitioning distribution territories will be considered in due course.  CCR’s territories will continue to be refranchised as previously announced and decisions on any remaining production facilities in those territories will also be considered at that time.   
“The National Product Supply System will benefit all of our U.S. bottling partners by driving our production system to manufacture products at the lowest optimal cost,” said Sandy Douglas, Executive Vice President and President, Coca-Cola North America.  “The board of the NPSG will focus on infrastructure planning, innovation planning, and optimal sourcing.  Importantly, we believe the NPSS structure allows us to leverage our significant system scale with the unique competitive advantage of being able to act with speed.  This will be enabled by the outstanding commercial capabilities of a strong local bottling system.”  
The new transactions announced today are subject to the parties reaching definitive agreements.  The parties are committed to working together to implement a smooth transition with minimal disruption for customers, consumers and system associates.
About The Coca-Cola Company

The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, one of the world’s most valuable and recognizable brands, our Company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, we are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy our beverages at a rate of 1.9 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together with our bottling partners, we rank among the world’s top 10 private employers with more than 700,000 system associates. For more information, visit Coca-Cola Journey at www.coca-colacompany.com, follow us on Twitter at twitter.com/CocaColaCo, visit our blog,  Coca-Cola Unbottled, at www.coca-colablog.com or find us on LinkedIn at www.linkedin.com/company/the-coca-cola-company. 
              
            
                      
              Global Food Companies Unite On Climate Action
              
                With key international climate negotiations quickly approaching in Paris, Paul Grimwood, Nestlé USA’s Chairman and CEO, released a joint letter to U.S. and world leaders alongside the chief executive officers of Mars, Incorporated, General Mills, Unilever, Kellogg Company, New Belgium Brewing, Ben & Jerry’s, Clif Bar, Stonyfield Farm and Dannon USA pledging to accelerate business action on climate change and urging governments to do the same by forging a robust international agreement this December. 
 “Global weather patterns affect crop yields, water availability and infrastructure integrity. These changes impact the business we do every day as well as the work of farmers, suppliers and distributors across our vast network of partners, said Paul Grimwood, Chairman and CEO, Nestlé USA. “Nestlé intends to flourish for at least another 150 years, and we believe tackling climate change is key to a healthy planet and healthy people.”  
 The letter, coordinated by the nonprofit sustainability advocacy organization Ceres, was spotlighted today at a bipartisan, bicameral briefing on climate change in Washington, D.C. featuring a half-dozen food company executives, including a representative from Nestlé. 
 “Climate change is bad for farmers and agriculture. Drought, flooding, and hotter growing conditions threaten the world’s food supply and contribute to food insecurity,” states the letter, which appears in the Washington Post and Financial Times.  “As world leaders convene in Paris you will have an opportunity to take action on climate change that could significantly change our world for the better.” 
  “It’s extraordinary to see these iconic food companies, many of which are long-standing competitors, unite at this pivotal moment to urge our political leaders to act swiftly and decisively on global warming, which poses a direct threat to global food supplies,” said Mindy Lubber, President of Ceres.
 Nestlé has set targets to reduce direct greenhouse gas emissions per ton of product by 35 percent since 2005, by 2015. The company has also pledged to achieve 100 percent renewable energy across their operations, through RE100, a global initiative to engage, support and showcase influential companies committed to using 100 percent renewable power that now involves more than 30 companies globally.  
 Nestlé is a member of Ceres’ Business for Innovative Climate and Energy Policy (BICEP), an advocacy coalition of companies working with policymakers to pass meaningful energy and climate legislation. This marks the first time these businesses have publicly united on the need for a strong global climate deal at the 21st Conference of Parties to the United Nations Framework Convention on Climate Change, also known as “COP21.”  Governments of more than 190 nations will meet in Paris this December at COP21 to discuss a possible new global agreement on climate change aimed at keeping global warming below the 2°C threshold. 
 Read the full letter here: http://www.ceres.org/press/press-releases/global-food-companies-unite-on-climate-action
About Ceres: Ceres is a nonprofit organization mobilizing business leadership on climate change, water scarcity and other global sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of more than 110 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs BICEP, an advocacy coalition of 36 businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit http://www.ceres.org or follow on Twitter @CeresNews.
              
            
                      
              Nestle Releases 2014 U.S. Creating Shared Value Report
              
                Nestlé in the United States today released its second Creating Shared Value (CSV) report outlining the company’s accomplishments in nutrition, health and wellness; environmental sustainability; and social impact in 2014, as well as its forward-looking commitments. The company celebrates key achievements such as more than 1,000 product reformulations for consumer health and preference considerations, as well as a new commitment to achieve zero waste to landfill status in all U.S. factories by 2020.
 As Nestlé approaches its 150th anniversary, it continues to make strides to become the world’s leading nutrition, health and wellness company and to create a more sustainable future while adapting to shifting consumer preferences. Nestlé recognizes its opportunity – and responsibility – as the world’s largest food and beverage company to improve more than just the way we eat. 
 This year’s CSV report is a culmination of the company’s achievements in protecting scarce resources and improving lives, while at the same time continuing its journey to make good food even better. Progress in 2014 included more than 1,000 product reformulations signifying major steps toward long-term nutrition, health and wellness goals, as well as significant momentum in sustainability initiatives like water and energy conservation, and social impact programs, including community engagement and workplace practices. 
 “In our second year of the Nestlé in the U.S. CSV report, we’ve made significant progress against 27 commitments originally outlined in 2013 and added even more objectives as we continue to raise the standard for a leading nutrition, health and wellness company,” said Paul Grimwood, Chairman and CEO of Nestlé USA. “Creating shared value has been at the heart of Nestlé’s journey for the past 150 years, and we’re bringing that sentiment to life here in the United States as we continue to make great food even better while improving the lives of those we reach.”
 The 2014 report shares specific commitments and progress in the categories of nutrition, health and wellness; environmental impact and water use; social impact and responsible sourcing. The cycle of improvement continues even beyond the publication of this latest report. Nestlé Waters North America (NWNA) announced today that Arrowhead® Brand 100% Mountain Spring Water will increase the amount of recycled content used by the brand by nearly 40 percent in California. Arrowhead already uses recycled material in its half liter bottle, but today’s announcement will expand the use of recycled polyethylene terephthalate (rPET) to additional bottle sizes by the end of 2016. This builds on NWNA’s commitment to reuse more plastic.
 Highlights from the 2014 report include:
 Nutrition, Health and Wellness

 Critical to Nestlé’s vision as a nutrition, health and wellness leader is to go beyond the reduction of salt, sugar and fat. Nestlé aims to reinvent its products with added nutrition and increased variety to satisfy diverse consumer preferences. Nestlé has reformulated 1,058 food products and pet products to consider nutrition or consumer preferences, including reduced sodium, sugar, trans fat and artificial colors and flavors, as well as increased essential nutrients. Highlights include: 
Sodium: In 2014, 100 percent of Nestlé’s children’s products met the Nestlé Nutritional Foundation (NNF) criteria for sodium, as committed to in 2013. Nestlé evaluates its products using the NNF criteria, which are based on nutrition science and public health dietary recommendations. Additionally, Nestlé has committed to reducing the salt content by an average of 10 percent from 2012 levels in all relevant products that don’t meet the NNF criteria for salt.

Sugar Reduction: In 2014, 96 percent of children’s products were compliant with the Nestlé Nutrition Foundation guidelines for sugar. Nestlé identified the SKUs that still need reformulation to meet the 100 percent compliance goal by 2015 and is on target to meet it. Additionally, Nestlé committed to reducing the sugar in its relevant products that don’t meet the NNF criteria by an average of 10 percent between 2014 and 2016.

Portion Guidance: In 2013, Nestlé made the commitment to provide portion guidance on 100 percent of its children and family products by 2015. During 2014, Nestlé continued working toward this goal by introducing more portion guidance messaging across the portfolio. Additionally, Nestlé committed to providing portion guidance on all relevant products by 2017.
 Environmental Sustainability

 Nestlé is putting as much care into preserving natural resources as it puts into improving its products, focusing on responsible sourcing and environmental stewardship. 
Resource Efficiency: In 2014, 12 facilities in the United States achieved zero waste to landfill status, and, in 2015, 25 facilities—including all Nestlé USA factories—accomplished this feat. Nestlé has committed to achieve zero waste to landfill status in 100 percent of its U.S. factories by 2020.

Climate Change: In the 2014 report, Nestlé highlighted an increase in onsite energy consumption from renewable resources of 24 percent compared to 2010. We also committed to develop a low-carbon energy plan for each Nestlé operating facility in the U.S. to use renewable energy where possible by 2016 and encourage utilities where we operate to shift to a low-carbon energy mix

Water: In 2014, Nestlé reduced water withdrawals per metric ton of product by nine percent compared to 2010 and, in this report, added three objectives to address heightened concerns around water conservation: By 2016, implement projects in California facilities that will save 144 million gallons of water annually; by 2017, implement the Alliance for Water Stewardship (AWS) international standard in its water bottling and food manufacturing factories in California; and by 2018, commit to conducting a water resources review at six of its priority sites across the U.S.
 Social Impact

 With 97 percent of households in the U.S. purchasing our brands, Nestlé impacts many millions of lives every day – from farmers who produce our ingredients to consumers who enjoy our products, with partners and employees connecting these groups. We’re committed to creating a positive impact in the communities where we live and work. 
Gender Balance: In the 2014 report, for the first time, Nestlé defined its commitment to gender balance in the workplace and began work to implement the new Parental Support Policy in the U.S. By 2016, Nestlé in the U.S. is committed to fully implementing this policy that grants eligible employees up to 14 weeks partially paid leave for primary caregivers.

Career Opportunities: In 2014, Nestlé began the process and strategy for the 2015 launch of our Project Opportunity workforce development initiative, which expands apprenticeship opportunities in 31 Nestlé factories and commits to reaching 300,000 people with “readiness for work” activities by 2017.

Social Impact:  In 2014, Nestlé furthered its relationship with Boys & Girls Clubs of America to promote physical activity and established a new initiative to reach 50,000 kids in hundreds of clubs by 2017. 
 To learn more about the Nestlé in the U.S. 2014 Creating Shared Value report, visit http://www.Nestleusa.com/CSV.
 About Nestlé in the United States

 Nestlé in the United States is committed to being a trusted leader in nutrition, health and wellness. Our diverse portfolio of food and beverage products provide nutritious options for every member of the family, including infants, toddlers, teens and adults, mature adults, and dogs and cats. Nestlé in the U.S. consists of eight main businesses: Nestlé USA, Nestlé Purina PetCare Company, Nestlé Waters North America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Skin Health and Nestlé Health Science. Together, these companies operate in more than 120 locations in 47 states and employ over 51,000 people. The United States is Nestlé S.A.’s largest market with combined product sales in the United States totaling more than $26 billion in 2014.
 At Nestlé, we believe that for our business to prosper in the long term, we must create value for our employees, customers, stakeholders, consumers and the communities where we live and work. Nestlé embeds Creating Shared Value into every part of its business, from nutrition and wellness to environmental sustainability and responsible sourcing.
              
            
                      
              Forest Service Chief Reviews Fire Season, Calls for Two-Part Solution to Fire Budget
              
                WASHINGTON, Today, U.S. Forest Service Chief Tom Tidwell reviewed the 2015 fire season and provided insight into longer term trends and challenges for the agency during testimony before the House Agriculture, Conservation and Forestry Subcommittee. Tidwell highlighted concerns over the increasing cost of suppressing wildfire, emphasizing that more than half of the agency’s annual budget now goes toward fire suppression. 
Tidwell outlined two key issues the Forest Service is wrestling with that must be resolved by Congress. 
First, the chronic increase in the portion of the Forest Service budget devoted to fire suppression must be stopped. The current rate of increase results in progressively less funding for fire prevention and restoration activities. In 1995, fire suppression made up 16 percent of the Forest Service’s annual appropriated budget-this year, for the first time, more than 50 percent of the budget will be dedicated to fire. 
This trend is having a debilitating impact on the Forest Service budget, as well as non-suppression activities within the agency. According to the Forest Service Report Rising Firefighting Costs Raises Alarms three quarters of Forest Service trails cannot be maintained to standard. That not only impacts families wanting to use those trails, it also puts at risk small businesses and communities that depend on recreation jobs and dollars. 
“Left unchecked, the share of the budget devoted to fire in 2025 could exceed 67 percent,” said Tidwell. “We are at a critical moment in the history of the Forest Service. Urgent action is needed in order to ensure that the Forest Service does not become further hindered by the continually increasing percentage of our budget that is dedicated to wildfire suppression activities.” 
Second, we must stop the practice of “fire transfer” which occurs when fighting fires in a given year costs more than Congress appropriates for that specific function, and the Forest Service must deplete restoration, watershed and recreation programs to pay for fire suppression. This fiscal year the transfer was a record $700 million. 
It is this double-hit-permanent shifting and fire transfer-that severely impacts the Forest Service’s ability to restore forests and serve the public. Experience shows that acting now to reduce the threat of future wildland fires drastically reduces costs in the long run. 
The agency’s fire management goal, especially near homes and communities, is to prepare forests and grasslands to resist stresses like drought and to be more resilient following disturbances, including wildfires. Large-scale restoration projects are designed to restore fire-adapted forests while helping, in the long run, to lower the growth of both wildfire suppression cost and the share of the Forest Service budget that goes to fight wildfires. To accomplish this, the Forest Service is accelerating restoration and management of the national forests through innovative, science-based approaches, increased collaboration and using new authority provided by the 2014 Farm Bill to increase the pace and scale of restoration. 
“Despite the severe loss of resources and staffing for restoration work, we are still getting good work done,” said Tidwell. “We accomplished more than 4.6 million acres of restoration that improves the health of our forests and watersheds in 2014, an increase of nine percent compared to 2011. We are eager and poised to do even more, if we can solve the two-part suppression budget crisis.” 
The cost of fighting wildfires this season reached a record high, exceeding $1.7 billion. During the 2015 fire season, the Forest Service spent 24 days with all available ground and air assets committed to priority work managing more than 50,000 wildfires across the nation. 
The frequency and intensity of wildfire, prolonged drought, increased development in areas near forests, and the way that fire suppression is paid for all combine to limit the agency’s capacity to realize additional gains in land management and restoration. More than nine million acres have already burned across the United States this season, destroying 2,500 single family homes and disrupting many businesses. 
“The greatest losses this year involved the fatalities of 13 wildland firefighters who made the ultimate sacrifice to protect the lives of others,” said Tidwell. 
The mission of the U.S. Forest Service, an agency of the Department of Agriculture, is to sustain the health, diversity and productivity of the nation’s forests and grasslands to meet the needs of present and future generations. The agency manages 193 million acres of public land, provides assistance to state and private landowners and maintains the largest forestry research organization in the world. Public lands the U.S. Forest Service manages contribute more than $13 billion to the economy each year through visitor spending alone. Those same lands provide 20 percent of the nation’s clean water supply, a value estimated at $7.2 billion per year. The agency also has either a direct or indirect role in stewardship of about 80 percent of the 850 million forested acres within the U.S., of which 100 million acres are urban forests where most Americans live. 
              
            
                      
              PepsiCo Sustainability Initiatives Delivered More Than $375 Million in Estimated Cost Savings Since 2010
              
                PURCHASE, N.Y., PepsiCo, Inc. (NYSE: PEP) today announced that its environmental sustainability programs saved the company more than $375 million since its goals were established in 2010. The savings were achieved through the continued progress of the company’s water, energy, packaging and waste-reduction initiatives. During the same time period, the company delivered double-digit net revenue and operating profit growth1 – demonstrating that investments in sustainability are mutually beneficial for business and society.
These efforts are part of the company’s commitment to Performance with Purpose, which is PepsiCo’s vision to deliver financial performance over the long term by integrating sustainability into its business strategy, leaving a positive imprint on society and the environment. The company’s achievements and progress are detailed in its 2014 Corporate Sustainability Report, Global Reporting Initiative (GRI) Report and first-ever sustainability microsite, howwillwe.com.
“Performance with Purpose helps drive our business growth and prepares us to meet the needs of our changing world,” said Indra Nooyi, Chairman and CEO of PepsiCo. “As leaders gather this month to adopt the UN Sustainable Development Goals, PepsiCo will reflect on progress made to date and renew its focus on doing more in the years ahead. By continuing to apply our scale and capabilities to address shared societal challenges, we will further strengthen our company and the communities where we operate.”
Highlights of the company’s 2014 sustainability progress include the following:

PepsiCo reduced its water use per unit of production by 23 percent since 2006, already exceeding its public target of a 20 percent reduction by the end of the 2015. This delivered cost savings of approximately $17 million in 2014. In addition, the company’s absolute water use decreased by approximately one billion liters in 2014.
In 2014, the company held absolute greenhouse gas (GHG) emissions for legacy operations flat against a 2008 baseline despite significant production volume growth in its business. By driving best practices through its Resource Conservation program and investments in greener fleet initiatives – such as alternative fuels and electric-vehicle delivery trucks – PepsiCo has improved the energy efficiency of legacy operations by nearly 16 percent compared with its 2006 baseline.
In 2014, PepsiCo diverted 93 percent of its waste from reaching landfills, surpassing its goal of recycling and reusing 90 percent of its waste. The company decreased the overall amount of packaging by 89 million pounds in 2014 versus the prior year, and used 134 million pounds of food-grade recycled polyethylene terephthalate (rPET) packages and bottles, an increase of 23 percent from 2013.
PepsiCo deployed its Sustainable Farming Initiative (SFI) to growers across 11 countries in 2014 and increased acres covered by more than 20 percent over the prior year. SFI guides global suppliers in sustainable agricultural practices and provides them with resources, training and support to meet PepsiCo’s social, economic and environmental standards.
The company continues to work towards achieving its goals for reducing sodium, added sugars and saturated fats in its foods and beverages. Five of 10 key countries have reached the company’s saturated fats reduction goal; seven of 10 key countries have reduced average added sugars per serving compared to a 2006 baseline; and all 10 key countries achieved sodium reductions in 2014. At the same time, PepsiCo is continuing to invest in expanding its nutrition business, which represented approximately 20 percent of the company’s net revenue in 2014.
In 2014, through its philanthropic arm the PepsiCo Foundation, PepsiCo met its goal to partner to provide access to safe water to 6 million people in developing countries by the end of 2015. Communities in extreme poverty in some of the world’s most water-stressed areas, including regions of Brazil, China, India, Mexico, Jordan and Colombia, received access to safe water through partnerships around the world.
PepsiCo continues its focus on creating a safe, healthy and diverse workplace around the world. Representation of females and people of color in senior executive positions increased from 2013 to 2014. Additionally, PepsiCo reduced its lost time incident rate by 23 percent compared to 2013.

In addition to the PepsiCo Sustainability Report and Global Reporting Initiative (GRI) Report, the company has launched a groundbreaking companion microsite, howwillwe.com, which is an interactive and immersive experience to explore and share ideas about issues relevant to the world and to PepsiCo’s business. The microsite engages users through compelling storytelling, vivid design and interactive digital elements to inspire discussion around the questions of “How Will We: Grow Sustainably, Thrive in a Changing Environment and Create Opportunity?”
To learn more about Performance with Purpose and download PepsiCo’s 2014 Sustainability Report and 2014 GRI Report, please visit howwillwe.com.
About PepsiCo

PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $66 billion in net revenue in 2014, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose – our vision to deliver financial performance over the long term by integrating sustainability into its business strategy, leaving a positive imprint on society and the environment. We do this in part by offering a wide range of products; increasing the number of our nutritious foods and beverages; reducing our environmental impacts; and supporting our employees and the communities where we do business; all of which will help position the company for long-term sustainable growth. For more information, visit www.pepsico.com.
              
            
                      
              USDA Partners with EPA, Offers New Resources to Support Water Quality Trading
              
                LINCOLN, Neb., – This week, following the recent announcement of $2 million in Conservation Innovation Grants to support water quality trading markets, the Department of Agriculture (USDA) and the Environmental Protection Agency (EPA) hosted a joint workshop to expand markets for water quality benefits generated on farms, ranches and forest lands. 
Water quality trading is an innovative approach to reduce pollution and efficiently achieve water quality goals. Trading is based on the fact that sources in a watershed can face very different costs to control the same pollutant. Trading programs allow facilities facing higher pollution control costs to meet their regulatory obligations by purchasing environmentally equivalent (or superior) pollution reductions from another source at lower cost, thus achieving the same water quality improvement at lower overall cost. 
USDA and EPA signed a partnership agreement in 2013 to advance water quality trading and other market-based approaches that provide benefits to the environment and economy. The workshop attracted over 200 participants involved in water quality trading from across the nation. 
“Conservation practices that improve soil health and conserve nutrients also produce real water quality benefits. With support from USDA and our Federal partners, water quality markets can create incentives to increase these environmental benefits and boost investment in rural America. The actions we are announcing today will help us get there,” said Ann Mills, USDA Deputy Under Secretary for Natural Resources and Environment. 
Among the new water quality trading resources announced: 
EPA-USDA Water Quality Trading Roadmap

The Water Quality Trading Roadmap is a decision support tool for those designing and participating in water quality trading programs. The Roadmap is a searchable database that consolidates policy guidance from EPA, information from State programs, and examples and supporting materials from across the U.S.
EPA-USDA partnership on EnviroAtlas to support environmental markets

USDA and EPA will incorporate environmental markets data layers into the Federal ecosystem service decision support tool, EnviroAtlas. The data layers will show where markets for water, carbon, wetlands, and habitats occur on the U.S. landscape, provide information about these markets, and allow this information to be displayed in the context of existing environmental data from Federal agencies.
Nutrient Tracking Tool (NTT)

USDA will release this fall the next version of NTT, ready for use in the Pacific Northwest and Ohio River Basin. The new version of NTT is a USDA hosted, user-friendly, web-based tool that calculates edge of field nutrient and sediment loads for use in conservation planning and environmental market credit calculation. NTT will be made available in additional regions in 2016.
USDA Environmental Markets Website

USDA released the Department-level environmental markets website. The site integrates information, tools and resources on environmental markets from across the Department, allowing users to easily gain a snapshot of environmental market activities at USDA.
These new resources were announced days after the Natural Resources Conservation Service awarded over $2 million in Conservation Innovation Grants to support water quality trading markets. The 2015 Water Quality Trading Conservation Innovation Grant Awardees are: 
Conservation Marketplace Midwest ($243,933)-proposes to develop and pilot a Field Stewards program, an innovative conservation credit system designed to allow companies in the food industry to buy “offsets” for water quality and agricultural conservation. Through the purchase of certification credits, food companies can demonstrate sustainability to their customers without having to create a new chain-of-custody supply chain for agricultural commodities, keeping costs low for retailers and the consumer. (MN) 
Electric Power Research Institute ($300,000)-proposes to develop and execute, for the first time, trades of “stacked” ecosystem services-both water quality and greenhouse gas emissions reduction credits. EPRI administers the Ohio River Basin nutrient trading program, the only multi-state trading program in the country. (IN, KY, OH) 
Great Lakes Commission ($400,000)-substantial water quality issues plague the Western Lake Erie Basin (WLEB), leading to harmful algal blooms each summer in Lake Erie. The Great Lakes Commission proposes to develop a framework for water quality trading in the WLEB. (IN, MI, OH) 
Iowa League of Cities ($700,000)-proposes to develop a framework for water quality trading in Iowa to support the State’s Nutrient Reduction Strategy. (IA) 
National Association of Conservation Districts($116,725)-proposes to develop guidance materials and engage in outreach and training to increase participation of soil and water conservation districts in nutrient trading programs. In many water quality trading programs, district employees are the conservation experts interacting with agricultural producers generating credits from the installation of conservation practices. (Nationwide) 
Virginia Tech University ($285,729)-proposes to develop the information and tools required to incorporate agroforestry into Virginia’s nutrient trading program, which currently largely depends on the retirement of marginal agricultural lands for credit generation. In December 2014, USDA, EPA and the State of Virginia celebrated a first-of-its-kind transaction when the Virginia Dept. of Transportation purchased phosphorous credits generated by a Virginia farmer. (VA) 
              
            
                      
              Fantastic Year For British Cherry Growers
              
                British cherry growers are on course for their most productive season for over 30 years, latest industry figures can reveal.

Since the start of the British cherry season in May growers have produced 2682 tonnes – an uplift of 80 per cent on the 1488 tonnes produced in 2014 (British Summer Fruit data 24  August 2015).

Even better news for growers is that UK cherries are also in high demand with Tesco seeing record sales of nearly 80 per cent compared with what it sold in 2014.
The greater availability has led to Tesco more than doubling the amount of cherries it buys from British growers this summer.

Last year the supermarket bought more than 335 tonnes of British grown cherries while this year it took more than 750 tonnes – a rise of 125 per cent.
Tesco cherry buyer Tom Emmett said: “Shoppers prefer British cherries as they’re considered to be amongst the best in the world – not only the richness of their taste but also the juiciness of their flesh and overall texture. Nothing beats a British cherry.

“It’s all about availability – if we can get British grown cherries then we know our shoppers will buy them. They are extremely popular and one of the absolute joys of summer.”
English cherries were once one of Britain’s most popular fruits but poor weather, high labour costs and old-fashioned picking methods saw volumes of home grown cherries greatly diminish over the last 50 years.
The importation of cheaper cherries from Turkey, Spain and America also contributed to the decline in UK production.

Production hit rock bottom in the year 2000 when the entire British cherry industry produced just 400 tonnes. But since then things have slowly started looking up again.
More and more British growers are now seeing higher yields by using dwarf root stock, grafted onto new tree varieties. These produce much smaller trees which can be grown in plastic tunnels, creating a micro climate with temperatures similar to the Mediterranean. And these new smaller cherry trees can now be picked by workers on foot rather than ladders, cutting costs still further and enabling English cherries to compete with foreign rivals for the first time in many decades.
Tom Emmett added: “At the moment demand for British cherries exceeds supply. The good news is that by the end of the decade we should be able to completely meet that demand for the whole for the whole British season. That’s an amazing turnaround from just ten years ago.”

One of the UK’s biggest cherry producers is Haygrove Growing, whose 100 acre orchards are based near Kington in Herefordshire.
Their Managing Director James Waltham said: “Thanks to a combination of great varieties which are better suited to the UK climate, year-on-year performance of cherry orchards in general is far more consistent than it used to be, bringing greater yield and superior quality fruit.

“The British cherry season is also growing. Where it once lasted barely two months, the season now extends from early June until early September; thanks both to new varieties and modern growing systems, particularly the use of polytunnels.
“We’ve also had a good growing season. After a mild autumn in 2014, followed by a winter that was sufficiently cold, we had good weather for pollination at spring. Weather through the summer has also been relatively good with no periods of excessive heat”.
              
            
                      
              European Union To Give Struggling Farmers €500m In Aid
              
                Brussels, 7 September 2015
Annex: Comprehensive package of measures
1) To help farmers in short term cash flow difficulties

a)      Targeted aid: The most significant part of the comprehensive package will be provided to all MS in envelopes to support the dairy sector. The Commission is working on a package of targeted aid for all Member States, having particular regard to those Member States which have been most affected by market developments. The Commission will shortly finalise the distribution key for these national envelopes.

b)      Advancing Direct payments: Member States can pay up to 50% of their direct payment envelope from 16 October, provided that the necessary controls have been carried out. (Usual earliest date is December 1 – but existing rules already provide this flexibility.) The Commission will now propose to increase this to 70% – draft legislation in preparation.

c)      Advancing certain Rural Development payments: Member States can already advance the area and animal-related payments for rural development (such as agri-environment, organic farming, areas with natural constraints, animal welfare) by paying up to 75% from October 16. The Commission will now propose to increase this rate to 85%.

In addition to this:

d)     Financial instruments: The Commission is working closely with the European Investment Bank (EIB) on options for establishing financial instruments (NB Rural Development Programmes can be used for this). For example, Commission is working on designing Financial Instruments where re-payment schemes are linked to commodity price developments.

e)      Income stabilisation tool: Member States/regions already have the option to include an income stabilisation tool in their Rural Development Programmes. Only a few Member States have programmed this tool, but it could be introduced by others with the next modification of Rural Development Programmes.
2) To address the market imbalance – Stimulating demand, reducing supply

a)      Extending & Enhancing Private Storage Aid: In order to ease market pressure, the Commission has already extended the private storage aid and public intervention periods for butter and skimmed milk powder until next year. The Commission is now working on an enhanced scheme for SMP focusing on higher aid levels as well as on ways to ensure that the product is stored for the appropriate time to make the scheme even more effective in alleviating pressure on the supply side.

b)      A new private storage scheme for pigmeat: the Commission is ready to table a proposal to open a new PSA scheme for pigmeat.

c)      Promotion programmes: The Commission will increase the promotion budget in 2016 in addition to the €81 million already committed. A specific part of that enlarged budget will be reserved for the dairy and pigmeat sectors. The reformed promotion policy which also foresees higher co-financing rates (from 50 to 70-80%), a broader list of eligible products (including generic pigmeat promotion on the internal market), and a gradually increasing budget (up to 200 million € in 2019).

d)     Information on Promotion opportunities: The Commission will set up with Member States an extensive series of information workshops on the new promotion rules to secure the best possible use of increased the new rules and the increased funding.

e)      Strengthening of the Milk Market Observatory: For better market transparency, the Commission will continue to reinforce the Milk Market Observatory by further focusing on the type of information, the accuracy and the prompt publication of this information. Already over 30 000 people consult the new data on the MMO website every Thursday and the aim is to make the MMO the benchmark for the EU milk market.

f)       Bilateral Trade Agreements: The EU has worked hard on a range of free trade agreements (the Balkans, CARIFORUM, Central American countries, South Korea, Morocco, Peru, Colombia, Moldova, Georgia, Ukraine), the most recent being with Canada and Vietnam. In the trade agreement with Vietnam, dairy tariffs will be reduced from a maximum of 19% to zero within 3-5 years. Negotiations are ongoing with significant markets such as the USA and Japan.

g)      Tackling non-tariff barriers which block EU exports to non-EU markets: The Commission (DG SANTE, DG AGRI, DG TRADE) is working to resolve a number of Sanitary & PhytoSanitary (SPS) and technical barriers to trade (TBT) issues with third country partners. In 2014, specific SPS trade barriers for dairy products were resolved with Chile, China, Japan and S. Korea. Most recently, for African Swine Fever, the USA has accepted the EU regionalisation decisions, i.e. instead of listing Member States or regions individually, it will list any restricted zone in the EU established by the EU or any EU Member State. In concrete terms, this means that meat from cattle, sheep, pigs and goats slaughtered in Lithuania and processed in certified Lithuanian establishments is now eligible for export to the USA. The EU has also taken Russia to the WTO over its totally disproportionate EU-wide ban on all pigmeat products linked to African Swine Fever in 4 Member States.

h)      Opening new markets: Commissioner Hogan himself has scheduled a number of promotion visits to third countries where important opportunities exist for EU agriculture and to help open doors for new exports. Already, Commissioner Hogan is committed to visits to China and Japan later this year and to Mexico and Colombia early in 2016.

In addition to this:

i)        Using Rural Development Programmes: The 2014-2020 Rural Development Programmes also include 600 million EURO for quality products and promotion. Member states/regions have the possibility of increasing this envelope, provided that this is in line with the programmes’ underlying strategy. Moreover, Member States/regions have several other options under their RDPs to provide a wider range of effective measures to boost competitiveness, to preserve and valorise specific local production systems, or to accompany the restructuring of a sector, such as the dairy sector. There is also the option for support for restoring agricultural production potential damaged by natural disasters and catastrophic events, which has potential for the pigmeat sector, in order to have a ready-to-use measure at hand in case of an outbreak such as the African Swine Fever.
(3) To tackle supply chain challenges

a)      Establishing a new High Level Group: The Commission will set up a new, dedicated High Level Group to focus on a number of specific and clearly defined issues. This will include credit for farmers, and financial and risk hedging instruments such as futures markets for agricultural products. On this HLG, Commissioner Hogan will work closely with Commissioner Bienkowska. (A High Level Group normally comprises senior officials from national Ministries.)

b)      Evaluating the Milk Package and encouraging wider use of certain measures: The Commission will bring forward to 2016 the report on the (2012) “milk package” originally foreseen for 2018, in order to consider its possible prolongation and improvement, including the extension of its provisions to other sectors. Introduced as a response to the 2009 dairy crisis, the Milk Package provides a range of measures aimed at giving producers a stronger position in the dairy supply chain, such as written contracts, collective bargaining, encouraging Producer Organisations, but the take-up has been slow in some regions because market conditions have been relatively favourable since 2012. The Commission will also promote similar provisions under existing rules for other sectors, e.g. for producer organisations etc.

c)      Improving exchanges of experience, e.g. on unfair trading practices: The Commission will also organise a range of meetings to discuss experiences and share best practices. For example, on unfair trading practices, discussion can look at how the code of conduct is working and the experiences in Member States such as Spain and the UK. There is also the potential for events to discuss financial and risk hedging instruments, such as forward contracts, futures markets, etc.
(4) To tighten the link between agriculture and society at large:

a)      Addressing the needs of vulnerable groups: In the context of the current refugee crisis, there are ways of addressing the nutritional needs of refugees, for example through the distribution of dairy products.

b)      The scheme for school fruit and school milk: Under the present School Milk Scheme, there is room for increasing the use of the EU support for milk distributed to schoolchildren. (Unlike for the School Fruit Scheme, there is no financial ceiling per Member State.) Moreover, the Commission will work with the Council and parliament to try and reach an early conclusion in the ongoing negotiations for a wider school scheme currently in negotiation.
In addition to this:

State Aids: There are also a number of tools that can be mobilised at national level. Member States have the possibility of providing national funding under the de minimis rules (below €15.000 for agricultural primary production or €200.000 for marketing and processing activities over 3 years). Even outside RDPs, Member States may use State aids, for example aid for investments, for agri-environment-climate or animal welfare commitments, for organic farming, or for the participation in quality schemes, etc. Under certain conditions, State Aids can also cover promotion, the closure of production capacity and, under strict conditions, rescue and restructuring aid for companies in severe financial difficulties, etc.
              
            
                      
              Latest Hershey Learn to Grow Program to Benefit 8,000 Cocoa Farmers in Côte d’Ivoire
              
                The Hershey Company (NYSE: HSY) announced today a new partnership with Barry Callebaut, one of its long-term strategic cocoa sourcing partners, to help thousands of farmers in Côte d’Ivoire. Through Hershey Learn to Grow, Ivorian cocoa farmers will have the opportunity to improve their productivity, raise their incomes and benefit their entire community. 
In addition to training 8,000 farmers in sustainable, modern cocoa farming practices that will increase family incomes, the program will help hundreds of children obtain birth certificates, allowing them to enroll in school for the first time. Hershey and Barry Callebaut have also committed to build two new rural primary schools in Cote d’Ivoire as part of the program to further promote education for children in cocoa communities. In 2012, Hershey and Barry Callebaut collaborated to build the Abokro Primary School in western Côte d’Ivoire. Today, the 190-student school features a solar-powered water wheel, a school canteen for meals and a medical clinic. 
“We are expanding our Hershey Learn to Grow in Côte d’Ivoire because we have seen how farmer training improves cocoa sustainability and positively impacts the lives of farmers and their families,” said Terry O’Day, Senior Vice President, Chief Supply Chain Officer. “We are proud to be part of the overall industry efforts through CocoaAction to help improve the lives of cocoa farmers, empower women in the cocoa regions and make a difference for their communities. It’s also great to join forces with key partners, such as Barry Callebaut, to help farmers and their families by investing in schools and development projects that help children and benefit the entire community.” Both companies are founding members of CocoaAction, the industry strategy to accelerate cocoa sustainability and improve the livelihoods of 300,000 cocoa farmers and their communities. 
With today’s announcement, the Hershey Learn to Grow program plans to enroll approximately 70,000 West African cocoa farmers by 2019. 
“We are honored to have been selected by Hershey to support their cocoa sustainability programs and to source more certified cocoa,” said Dave Johnson, President and CEO of Barry Callebaut Americas. “As a long-term partner of Hershey, we will do everything to support the company in their commitment to purchase 100% certified and sustainable cocoa by 2020. With our strong presence on the ground, we help customers such as Hershey to implement their CocoaAction targets.” 
Helping Kids in Need

Hershey’s work to support children in cocoa communities links to the company’s heritage of sharing goodness by creating bright futures for children in need. This was a focus for the company’s founder, Milton Hershey, through his efforts to support children’s education. Today, the company has expanded that mission by working to provide children with the basic nutrition they need to learn and grow. For example, Hershey funded and helped build a factory in Ghana for Project Peanut Butter, a program that makes and distributes vitamin-enriched nutritional packets to alleviate childhood malnutrition. Through its Project Peanut Butter work, Hershey has also launched an innovative program to provide supplemental nutrition to school children in Ghana. Called Energize Learning, Hershey will distribute Vivi, a highly nutritious peanut-based supplement, to children through the Ghanaian school feeding program. Hershey also supports other child nutrition efforts around the world. 
Barry Callebaut to Support Hershey in Accelerating the Sourcing of Certified and Sustainable Cocoa 
The Learn to Grow programs in Côte d’Ivoire also help accelerate Hershey’s purchase of certified and sustainably grown cocoa. Hershey and its partners, such as Barry Callebaut, are working with recognized certified bodies such as UTZ Certified, Rain Forest Alliance and Fair Trade USA to certify many of the farms participating in its Learn to Grow programs. 
Hershey is committed to buying 100 percent certified and sustainable cocoa for all of its cocoa products worldwide by 2020. Thirty percent of all the cocoa Hershey sourced in 2014 was certified and sustainable, and the company expects to source at least 50 percent in 2015, reaching its original estimate of 40 and 50 percent certified and sustainable cocoa by 2016, a full year early. 
About The Hershey Company

The Hershey Company (NYSE: HSY), headquartered in Hershey, Pa., is a global confectionery leader known for bringing goodness to the world through its chocolate, sweets, mints and other great-tasting snacks. Hershey has more than 22,000 employees around the world who work every day to deliver delicious, quality products. The company, which has more than 80 brands around the world that drive over $7.4 billion in annual revenues, includes such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher, Ice Breakers and Brookside. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. Additionally, Hershey is poised to expand its portfolio into categories beyond confectionery, finding new ways to bring goodness to people everywhere. 
At Hershey, goodness has always been about more than delicious products. For 120 years, Hershey has been committed to good business by operating fairly, ethically and sustainably to make a positive impact on society. This means contributing to a better life for its employees, consumers, communities, and ultimately, creating a bright future for children in need. This commitment is exemplified by Milton Hershey School, established in 1909 by the company’s founder and administered by Hershey Trust Company. The children who attend the school receive education, housing, and medical care – thriving as direct beneficiaries of The Hershey Company’s success. 
              
            
                      
              Nestle’s Half-Year 2015: Organic Growth of 4.5%, Full-Year Outlook Confirmed
              
                Paul Bulcke, Nestlé CEO: “The first half results were in line with our expectations, broad-based across categories and geographies, solid even in difficult circumstances, and consistent with our strong performance over time. They reflect the relevance and strength of our Nutrition, Health and Wellness strategy and our discipline in execution. Our investments in the new growth platforms Nestlé Health Science and Nestlé Skin Health are delivering and complement the good momentum in our food and beverages businesses. This allows us to confirm the outlook for the full year.”
Group results

In the first half of 2015 organic growth was 4.5%, composed of 1.7% real internal growth and 2.8% pricing. Total sales of CHF 42.8 billion were impacted by foreign exchange (-5.8%). Acquisitions, net of divestitures, contributed 1% to sales.
Growth was broad-based across categories and geographies.

Organic growth in the developed markets accelerated to 2.2% while in the emerging markets we achieved strong organic growth of 7.3%.

Organic growth was 6.6% in the Americas (AMS), 3.4% in Europe, Middle East and North Africa (EMENA) and 2.2% in Asia, Oceania and sub-Saharan Africa (AOA). Real internal growth was 1.7% in AMS, 2.4% in EMENA and 0.6% in AOA. 
The continuous efforts to drive cost efficiencies, and the consolidation of Nestlé Skin Health, led to a 160 basis points drop in the cost of goods sold. The effect from input costs was neutral. 
Cost reductions were partly reinvested in increased consumer facing marketing support. The trading operating profit margin rose by 20 basis points in constant currencies. Trading operating profit was CHF 6.4 billion with a margin of 15.0%. 
Net profit was CHF 4.5 billion and reported earnings per share were CHF 1.43. Underlying earnings per share rose 7.3% in constant currencies.

The group’s operating cash flow was CHF 3.9 billion reflecting the appreciation of the Swiss Franc, lower dividend income from L’Oréal due to our reduced shareholding and the timing of tax payments. 
Zone AMS

Sales of CHF 12.0 billion, 5.2% organic growth, 0.1% real internal growth; 18.0% trading operating profit margin, +10 basis points

The Zone delivered good organic growth, driven by improvements in our business in North America and positive momentum in Latin America. Nescafé Dolce Gusto, creamers and petcare continued to be significant growth drivers.
In North America we relaunched our frozen meals brands with the new Lean Cuisine Market Place and Stouffers Fit Kitchen ranges. The first signs are promising and indicate that we are meeting the fast-changing expectations of consumers. New additions to the Snack Bites range helped deliver solid growth for Hot Pockets, and we saw some improvement in frozen pizza. In ice cream, new products delivered solid growth for Haägen Dazs in super premium and Outshine for snacks. Coffee-mate grew well, supported by innovations like Natural Bliss and Coffee-mate 2GO. Petcare showed good growth, in spite of the negative impact from the Beneful case. Among the drivers were Fancy Feast cat food, the Pro Plan platform for dog food, and cat litter. 
We continued to grow our business in Latin America in what is still a volatile environment. Investment behind our growth platforms drove performance in Brazil. Nescafé Dolce Gusto and KitKat both delivered strong double-digit growth, as did soluble coffee. Nescau achieved good growth for cocoa and malt beverages while Passatempo and Nesfit did well for biscuits. Mexico grew during the first half, led by Nescafé and Coffee-mate. Petcare continued to be a growth driver for Latin America and will benefit from new production capacity in Argentina and Mexico.

The Zone’s trading operating profit margin benefited from operational efficiencies and positive pricing. 
Zone EMENA

Sales of CHF 7.9 billion, 3.8% organic growth, 2.0% real internal growth; 16.2% trading operating profit margin, +80 basis points

After a strong start to the year the different geographies of the Zone continued to grow in spite of the volatile and challenging environment. The solid growth was broad-based with Nescafé Dolce Gusto, soluble coffee, petcare and frozen pizza among the highlights. Organic growth was also driven by price increases for coffee and some inflationary pressures in Russia, Ukraine and Turkey, compensating for the deflationary environment in Western Europe. 
Innovation and premiumisation continued to drive the growth in Western Europe. Single-serve cat food, Nescafé Dolce Gusto and frozen pizza were the main contributors. France, Benelux and the Nordics did well in the deflationary environment. Consumer confidence in Southern Europe was subdued, with Greece having an impact. 
Growth in Eastern Europe was strong, driven by petcare, soluble coffee and systems, and by chocolate with KitKat. Careful management of pricing in Russia has protected our competitiveness in an inflationary environment. Our business in Ukraine continued to deliver growth, despite the difficult economic situation. There were also solid performances from the Adriatic region, Bulgaria and Hungary. 
The Middle East and North Africa region delivered solid growth with soluble coffee and confectionery the highlights. Turkey had strong growth and there were solid performances across the Middle East, compensating for the challenges in Iraq and Yemen. 
The improvement in the Zone’s trading operating profit margin was driven by product mix and lower input costs that allowed for increased investment in consumer facing marketing support. 
Zone AOA

Sales of CHF 7.1 billion, 0.8% organic growth, -0.8% real internal growth; 18.2% trading operating profit margin, -60 basis points

There were strong results in the Zone’s developed markets and a gradual improvement in emerging markets, however the underlying improvement in the Zone’s performance was overshadowed by the issue in India. 
In India, our withdrawal of Maggi noodles resulted in negative organic growth which will continue into the second half. We are engaging fully with the authorities as we work to relaunch the product. 
The efforts in China to adapt our product portfolio to the changing consumer demand and the lower growth environment led to a gradual improvement across the categories, with ambient dairy, confectionery and soluble coffee all contributing. Ready-to-drink beverages, including Nescafé, delivered double-digit growth and ambient culinary made a solid contribution. 
In the developed markets Japan continued to perform well thanks to innovation in KitKat and in Nescafé which launched the premium Nescafé Gold Blend in the ready-to-drink format. 
 Despite the intensely competitive trading environment in the Oceania region, the business there contributed to the Zone’s positive growth, thanks mainly to confectionery with KitKat.

Vietnam, Indonesia, South Africa, Pakistan and the Philippines were among the highlights in the other emerging markets, delivering good growth. Sub-Saharan Africa continued to show good growth with Central West Africa Region regaining momentum after a slower start to the year.

The trading operating profit margin of Zone AOA was affected by the withdrawal and destruction costs of the returned products in India which have already had a material impact in the first half of the year. 
Nestlé Waters

Sales of CHF 3.8 billion, 5.3% organic growth, 5.6% real internal growth; 11.5% trading operating profit margin, +110 basis points

Nestlé Waters delivered solid broad-based growth across both emerging and developed markets, reflecting rising demand for healthy beverages. The business has a strong presence across the different channels globally. Nestlé Pure Life again delivered double-digit growth, and there was good single-digit growth for our premium international brands, Perrier and S.Pellegrino. The local brands also performed well with Poland Spring in the US, Levissima in Italy, Erikli in Turkey, Al Manhal in Saudi Arabia and Buxton in the United Kingdom all making good contributions.

The trading operating profit margin was driven mainly by the solid organic growth, rigorous cost management and lower input costs, allowing for increased investment in consumer facing marketing support. 
Nestlé Nutrition

Sales of CHF 5.3 billion, 3.9% organic growth, 1.3% real internal growth; 23.0% trading operating profit margin, +140 basis points

Nestlé Nutrition delivered growth across geographies and brands despite difficult comparisons, especially in Asia. The well-supported innovation pipeline continued to deliver new products for the Nido, Nan and Cerelac brands. Wyeth Infant Nutrition delivered good growth, in particular in Asia where the premium brands S-26 and Illuma expanded their e-commerce footprint. The South Asia Region, Mexico and the Philippines performed well for Nestlé Infant Nutrition. In North America innovation in our Gerber infant cereals range continued to support growth and there were new product launches in meals and drinks. 
The strong improvement in the trading operating profit margin was the result of our portfolio management and underlying margin improvement along with strict control of fixed costs and more favourable input costs. This allowed us to increase investment behind our brands. 
Other businesses
Sales of CHF 6.8 billion, 8.1% organic growth, 4.9% real internal growth; 15.8% trading operating profit margin, -250 basis points

Nestlé Professional is regaining growth momentum, with good acceleration in the strategic growth platforms of culinary flavours and beverage solutions. Emerging markets were the main drivers, particularly Latin America, Eastern Europe, Indonesia, Turkey, and Indochina and there was good growth in our culinary business in North America, compensating for the poor trading environment in Western Europe.

Nespresso continued to grow globally, capitalising on the significant development of the portioned coffee segment. It further expanded its Grands Crus range, opened 20 new boutiques around the world, launched a Nespresso Café in Vienna and continued the roll-out of the Nespresso Cube, an automated retail outlet. Also the VertuoLine system in North America performed well.

Nestlé Health Science delivered good growth across all regions and all three business areas. In Consumer Care, growth was supported by new product launches for Boost in the US, the continuation of the Meritene roll-out in Europe and continued strong growth of Nutren in Brazil. In Medical Nutrition, the allergy portfolio delivered good growth across all geographies, in particular Alfamino. Novel Therapeutic Nutrition also did well.

Innovation drove a good performance for Nestlé Skin Health. Prescription products achieved very good growth supported by the success of the rosacea treatments Soolantra and Oracea and the acne treatment Epiduo. Aesthetic & Corrective continued to do well with Restylane Skinboosters, and the launch of Restylane Lyft in the US. The Consumer business delivered a strong performance with Cetaphil cleanser and moisturiser, and in the US, Benzac over-the-counter was launched.

The trading operating profit margin was impacted by high coffee prices for Nespresso and Nestlé Professional and there was also a dilutive impact on the trading operating profit from the inclusion of Nestlé Skin Health in the first half. 
Outlook

The results of the first half allow us to reconfirm our outlook for the full year: we aim to achieve organic growth of around 5% with improvements in margins and underlying earnings per share in constant currencies, and capital efficiency.
              
            
                      
              WinField Partners with Fair Oaks Farms to Bring Modern Agriculture to Life
              
                SHOREVIEW, Minn. – Today’s farmers are facing the daunting challenge of producing enough food to support a rapidly growing global population. To help the public better understand the evolving technology and science that is pivotal to sustainably increasing food production, WinField is partnering with Fair Oaks Farms in Fair Oaks, Ind., to create the WinField Crop Adventure. Set to open in spring 2016, the exhibit will inform visitors about the science, agronomic practices and technologies that shape modern farming.
“It’s important that Land O’Lakes, leveraging the strength of the WinField brand, helps lead the effort to tell the American farming story and encourage people to make the connection to where their food comes from,” said Chris Policinski, president and CEO, Land O’Lakes, Inc. “This will help underscore the importance of sustainable, modern agricultural practices and innovations to our collective future.”
According to the Food and Agriculture Organization of the United Nations, global food production must increase by 70 percent to feed a projected population of 9.1 billion people in 2050. This is a well-known fact within the agriculture industry; however, satisfying this demand is only part of the production challenge:  There is little land available to add to existing farmland, and water demand is projected to outstrip supply by 40 percent by 2030. Simply put, the agriculture industry needs to produce more food with fewer resources, and do so with minimal environmental impact.
Far from the farm

At a time when the agriculture industry is undergoing considerable transformation, 98 percent of Americans are not directly connected to where their food comes from. This detachment from the farm leaves many people with misconceptions about how food is produced.
“There is confusion in the public arena about modern agriculture,” said Mike Vande Logt, executive vice president and chief operating officer, WinField. “We are partnering with Fair Oaks Farms to create an educational experience that will help people better understand farming and food production practices.”
Bringing modern agriculture into focus

The WinField Crop Adventure will share the modern agriculture story with people of all ages.  As visitors tour the exhibit, they will learn about not only the history of farming, but today’s practices and how agriculture might look in the future.  The exhibit will be a highly interactive and technology-driven experience, with videos, touchscreen displays, interactive puzzles and games that demonstrate the science behind farming — from insects in the field to satellites in outer space. Displays will include information, images and other assets from Purdue University’s College of Agriculture.
“With so much of the public removed from the farm, Purdue Agriculture is excited to work with WinField and Fair Oaks Farms to help visitors learn about modern agriculture and to enhance the public’s understanding of farming today and in the future,” said Jay Akridge, Glenn W. Sample Dean of Agriculture at Purdue University.
The WinField Crop Adventure will join The Dairy Adventure and The Pig Adventure, which are already available to guests of Fair Oaks Farms.
“We are excited to partner with WinField for the newest exhibit at Fair Oaks Farms,” said Julie Basich, chief operating officer, Fair Oaks Farms. “This will be a great opportunity for families and students to be inspired by and learn about the future of agriculture while gaining a deeper understanding of the role agriculture plays in their everyday lives.”
For more information on Fair Oaks Farms, visit fofarms.com.
About WinField

Winfield Solutions LLC (WinField), a wholly-owned subsidiary of Land O’Lakes, Inc. offers top-performing seed and crop protection products. With unmatched agricultural expertise and performance as core company values, WinField® brands match leading seed and crop protection products to help farmers, retailers and other industry partners achieve high levels of success.
WinField brands include CROPLAN® seed, crop protection products, plant nutrients and other proprietary products. Backed with unrivaled technical services and knowledge, WinField® products deliver outstanding solutions and value for the agricultural industry.
About Fair Oaks Farms

Fair Oaks Farms is an escape to the country with acres of great outdoor fun, food and learning where people of all ages can explore family farms and reconnect with nature, animals and our planet. Located in northeast Indiana, Fair Oaks Farms is not only committed to educating the public about modern farming efforts, but it also committed to protecting the environment, caring for its animals and ensuring the highest quality products possible.
About Purdue Agriculture

Purdue University’s College of Agriculture is one of the world’s leading colleges of agricultural, food, life, and natural resource sciences. As a land-grant institution, Purdue Agriculture is committed to preparing students to make a difference, wherever their careers take them; stretching the frontiers of science to find solutions to some of our most pressing global challenges; and, through Purdue Extension and engagement programs, helping the people of Indiana, the nation and the world improve their lives and livelihoods.
              
            
                      
              Golden Peanut and Tree Nuts Invests to Expand Peanut Oil Production
              
                ALPHARETTA, Georgia, — Golden Peanut and Tree Nuts, a subsidiary of Archer Daniels Midland Company (NYSE: ADM), announced today that it will invest to significantly expand the capacity of its peanut oil processing facility in Dawson, Georgia.
“The peanut—and peanut oil—business in the U.S. is poised for growth, and we’re investing to meet our customers’ needs,” said Greg Mills, president, Golden Peanut and Tree Nuts. “Consumers today are looking for cleaner labels, and peanut oil is non-GMO, non-trans fat, and—when highly refined—allergen-exempt. The U.S. is currently a net importer of peanut oil, and with the increase we’re seeing in domestic demand as well as the current strong outlook for the U.S. peanut crop, Golden is ready to meet customer needs with domestic production.”
The project is targeted for completion in Q2 of 2016.
About Golden Peanut and Tree Nuts

Golden Peanut and Tree Nuts, a subsidiary of Archer Daniels Midland Company, is a leading handler, processor and exporter of peanuts and tree nuts. Headquartered in Alpharetta, Georgia, the company has 13 processing facilities in the U.S., one in Argentina and three in South Africa.
About ADM

For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with more than 33,000 employees serving customers in more than 140 countries. With a global value chain that includes more than 460 crop procurement locations, 300 ingredient manufacturing facilities, 40 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, chemical and energy uses. Learn more at www.adm.com. 
              
            
                      
              USDA Invests $63 Million to Support 264 Renewable Energy and Energy Efficiency Projects Nationwide
              
                WASHINGTON, August 7, 2015 – Agriculture Secretary Tom Vilsack today announced $63 million in loans and grants for 264 renewable energy and energy efficiency projects nationwide that USDA is supporting through its Rural Energy for America Program (REAP). 
“This funding will have far-reaching economic and environmental impacts nationwide, particularly in rural communities,” Vilsack said. “Investing in renewable energy and energy efficiency projects supports home-grown energy sources, creates jobs, reduces greenhouse gas pollution and helps usher in a more secure energy future for the nation.” 
These REAP projects are expected to generate and/or save 207.8 million kilowatt hours (KWh) of energy – enough to power more than 13,600 homes for a year. 
For example, Bradley Phillips, owner of A.B. Phillips & Sons Fruit Farm, is receiving an $18,000 grant to install a photovoltaic solar system on his farm in the village of Berlin Heights, Ohio. The system will generate nearly 13,000 kilowatt hours of electricity annually. Phillips grows apples, peaches, pears, plums, raspberries, cherries and grapes on a farm that has been in his family for more than a century. 
Blue Sky Poultry, Inc., of Bainbridge, Ga., has been selected for a $16,094 grant to install a solar array on the roof of the poultry houses. The array is expected to generate 36,300 kWh of electricity per year. 
Stokes Farms, LLP, of Chatfield, Minn., is receiving a $19,750 grant to install a 10 kW wind turbine. When operational, the project is expected to generate 30,000 kWh of electricity per year. 
Lakeview Biodiesel, LLC will use a $3.3 million loan guarantee to help acquire a Missouri biodiesel plant and make improvements to bring it online to produce enough biodiesel to run approximately 16,500 vehicles annually. 
In North Carolina, South Winston Farm, LLC is receiving a $4 million loan guarantee to finance a 7 megawatt solar array system that is expected to generate enough energy to power 994 households per year. 
Funding for the projects announced today is contingent upon the recipients meeting the terms of the grant or loan agreement. 
Here are two examples of how REAP has helped rural businesses: 
In 2014, Mt. Abram, a ski area in western Maine, finished installing an 803-panel solar photovoltaic system that was financed with a $235,000 REAP grant. Mt. Abram is the first solar-powered ski area in the state and the second-largest solar-powered ski area in the country. The solar array will generate 280,000 kWh in energy each year and meet about 70 percent of the resort’s power needs.

Agriculture Secretary Tom Vilsack visited Progress Solar in North Carolina in September 2014 to highlight a $3.4 million REAP loan guarantee the company received to install a solar array. Today, the 46-acre farm produces enough solar energy to power 540 average-sized homes each year.
Eligible agricultural producers and rural small businesses may use REAP funds to make energy efficiency improvements or install renewable energy systems, including solar, wind, renewable biomass (including anaerobic digesters), small hydroelectric, ocean energy, hydrogen, and geothermal. 
The next application deadline for REAP grants is November 2, 2015. USDA will issue a notice of available funding with more details on how to apply in the coming weeks. REAP was created by the 2008 Farm Bill and was reauthorized by the 2014 Farm Bill. 
Since the start of the Obama Administration, USDA has supported more than 9,600 renewable energy and energy efficiency projects nationwide through REAP. During this period, the Department has provided more than $291 million in grants and $327 million in loan guarantees to agricultural producers and rural small business owners. 
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. 
              
            
          
                      
              
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AGRIC AND FOOD : View Posts

WTO Members Secure “Historic” Nairobi Package for Africa and the World

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ConAgra Foods to Sell Private Label Operations to TreeHouse Foods

Land O’Lakes, Inc. and United Suppliers Complete First Step of Merger

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Coca-Cola Bottling Co. Consolidated, and Partners to Coordinate Efficient Operation of Production Assets

Global Food Companies Unite On Climate Action

Nestle Releases 2014 U.S. Creating Shared Value Report

Forest Service Chief Reviews Fire Season, Calls for Two-Part Solution to Fire Budget

PepsiCo Sustainability Initiatives Delivered More Than $375 Million in Estimated Cost Savings Since 2010

USDA Partners with EPA, Offers New Resources to Support Water Quality Trading

Fantastic Year For British Cherry Growers

European Union To Give Struggling Farmers €500m In Aid

Latest Hershey Learn to Grow Program to Benefit 8,000 Cocoa Farmers in Côte d’Ivoire

Nestle’s Half-Year 2015: Organic Growth of 4.5%, Full-Year Outlook Confirmed

WinField Partners with Fair Oaks Farms to Bring Modern Agriculture to Life

Golden Peanut and Tree Nuts Invests to Expand Peanut Oil Production

USDA Invests $63 Million to Support 264 Renewable Energy and Energy Efficiency Projects Nationwide

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