For many years, Barilla's sustainable farming project has been promoting the development of economically, environmentally and socially responsible agricultural practices, by designing numerous initiatives involving the Group's strategic supply chains and all other supply chains associated with potentially critical social and environmental considerations.

Year after year, Barilla has succeeded in increasing the share of responsibly farmed raw materials it purchases, in line with the principles laid down in the Barilla Code of Sustainable Agriculture.

Shares of responsibly purchased strategic raw materials 2016 vs. 2017

Shares of responsibly purchased strategic raw materials

Responsibly purchased raw materials

 

TOTAL TONNES
PURCHASED

TONNES SELECTED 
FROM RESPONSIBILITY 
MANAGED SUPPLY CHAINS

SHARE OF PURCHASES 
SELECTED FROM RESPONSIBILITY 
MANAGED SUPLLY CHAINS, 
OUT OF TOTAL PURCHASES

 

2016

2017

t, 

Strategic raw materials

Durum wheat

1,167,835

1,188,000

417,977

35%

Durum wheat semolina

215,000

334,000

203,000

61%

Common wheat

82,356

81,151

10,200

13%

Common wheat flour

363,941

368,331

141,931

39%

Rye

58,082

58,006

0

0%

Tomatoes

53,674

62,898

54,418

87%

Palm oil

18,249

154

154

100%

Sunflower oil

20,003

35,613

15,488

43%

Colza oil

5,998

8,030

0

0%

Eggs

23,691

24,668

23,144

94%

Raw materials from supply chains with critical social and environmental aspects

Sugar

1,005

1,063

1,063

100%

Cacao

11,455

12,265

1,411

12%

Beef

706

723

723

100%

Pork

1,960

2,024

2,024

100%

Chicken

0

16

0

0%

Wild-caught fish

87

73

73

100%

Animal fats

7,313

7,208

0

0%

Dairy products

9,951

9,002

0

0%

Total

2,040,302

2,192,661

866,312

40%

DURUM WHEAT: A STRATEGIC RAW MATERIAL FOR THE GROUP

Durum wheat is a strategic raw material for the Group. So to ensure that the quality of the durum wheat used in our products is never less than excellent, and to promote the development of the farms that produce it, the company has implemented projects aimed at promoting the responsible development of the supply chain in every country in which it operates. Barilla has taken special care, in this respect, to appreciate the local peculiarities of each country and to establish lasting partnerships with a variety of local partners.

DURUM WHEAT PURCHASED     

TOTAL TONNES
PURCHASED

TONNES PURCHASED
 FROM THE LOCAL MARKET

TONNES PURCHASED
UNDER CULTIVATION CONTRACTS

 

t.

t.

%

t.

%

Italy

756,000

671,000

89%

432,000

57%

Greece

65,000

62,000

95%

18,800

29%

Turkey

139,000

127,000

91%

-

-

North America

228,000

228,000

100%

-

-

Total

1,188,000

1,088,000

92%

450,800

38%

Durum wheat semolina   

 

TOTAL TONNES
PURCHASED

TONNES PURCHASED
FROM LOCAL MARKET

 

t.

t.

%

Italy

127,000

76,200

60%

North America

90,000

90,000

100%

Mexico

78,000

78,000

100%

Russia

34,000

34,000

100%

Total

329,000

278,200

85%

Italy

During the year, Barilla signed a new durum wheat purchasing agreement with suppliers in the Emilia Romagna, Marche, Puglia and Campania regions of Italy, and extended the duration of the contract to three years. The agreement stems from the Group's desire to enable the farms in its supply chain to achieve higher earnings and price stability, and to plan their equipment and resource requirements on a more secure basis, giving rise to major benefits in terms of the quality of the durum wheat they produce.

By entering into three-year contracts, furthermore, Barilla can enhance the involvement of farmers, and fast-track the sustainability paths it is promoting, by disseminating shared codes of practice and a decision-making support system, so as to provide farmers with practical support in their drive to reduce CO2 emissions, optimize their use of fertilizers and water resources.

432,000 tonnes of durum wheat were purchased under three-year cultivation contracts

In parallel with the adoption of these commercial contracts with farmers, since 2009 Barilla has been working with HORTA, a spin-off of the Catholic University of Piacenza, on the development and continuous improvement of sustainable farming practices, with the aid of two tools: the Decalogue and Granoduro.net®.

The "Barilla Decalogue for the Sustainable Cultivation of Durum Wheat" is a manual, shared with farmers, which sets out the most efficient and sustainable agricultural practices, and has been validated over the years by tests on field in different parts of Italy.

granoduro.net® is a support system for farmers, designed to help them with technical decisions, such as fertilization and disease prevention treatments, on the basis of meteorological data, soil characteristics, mathematical models and field observations.

Durum wheat purchased from farmers in Italy who use the granoduro.net system

 

TONNES OF WHEAT CULTIVATED
WITH THE SUPPORT OF granoduro.net

NUMBER OF FARMERS AND FARMS 
THAT USE granoduro.net

Northern Italy

91,675

593

Central Italy

104,938

768

Southern Italy

33,363

687

Total

229,976

2,048

Lastly, to develop synergies between different supply chains, Barilla has also launched a pilot project aimed at integrating the cultivation of durum wheat and sugar beet. During the year, thanks to a partnership with the Italian Beet Producers Cooperative (COPROB) and Italia Zuccheri, 31 sugar beet growers integrated their crops with durum wheat, cultivated in accordance with the Barilla principles of sustainable agriculture.

As a result, a total of 240,000 tonnes of more sustainably cultivated durum wheat were harvested in 2017, as against 190,000 tonnes in 2016.

240,000 tonnes of sustainable durum wheat was cultivated in 2017

BARILLA’S IMPORTS AND MAIN QUALITY PARAMETERS

Imports of durum wheat in Italy are carried out mainly for quantitative reasons, as the total production covers just 65/70% of the needs. Quite often the quality of national durum wheat is not sufficient and suitable for achieving the quality performance required for high quality Italian pasta. In particular, Barilla, while favoring national durum wheat, imports about 20-30% of its needs every year from European or extra-European countries depending on quality. Normally, high-protein grain is usually imported from France, Australia or the United States, to guarantee the quality performance demanded by our consumers. Over the years, depending on the quality and quantity of the Italian crop, we can also resort to imports from other countries such as Greece or Spain.

The protein content is the most important feature to define the quality of the grain as a high protein level, together with the quality of gluten, favors the keeping in cooking. In our purchases we try to maximize these features. The amber color of the grain determines the color of the dough and a low ash content allows to optimize the grinding process.

Touch on the image to zoom

 

Barilla’s Imports and Main Quality Parameters

Greece

In line with its work in Italy, Barilla continued its partnerships with various actors and agencies in Greece, for the sustainable development of the supply chain. In particular, we continued our partnership with the University of Thessaly, which gave rise to the formulation of new farming tools and techniques designed to reduce impact on natural resources.

The year also saw the completion of the test phase connected with the drafting of guidelines for sustainable durum wheat farming in Greece. The completion of field-testing led to the publication of 12 principles and to their dissemination in conjunction with the respective cultivation contracts and granoduro.net decision-making system. On the strength of this initiative, 218 farmers sowed the first 2,200 hectares of land in accordance with the new Barilla standards

15,000 tonnes of durum wheat were purchased through cultivation contracts 2,200 hectares were sown in accordance with Barilla sustainable agriculture guidelines

Turkey

Barilla launched two specific projects in Turkey. Firstly, the Group published and distributed the first version of its sustainable agriculture manual, in partnership with the Bahri Dağdaş International Agricultural Research Institute.

Secondly, Barilla formed a partnership with the Namik Kemal Institute in Thrace, with a view to implementing projects that help create a supply chain model in line with the models already developed in Italy and Greece.

Russia

Barilla's durum wheat supply chain in Russia is still in the early stages of development. To accelerate its progress, Barilla launched a study and monitoring project aimed at identifying the most efficient models of durum wheat cultivation in terms of agricultural yield and environmental sustainability. These tests are also intended to lay the foundations for drawing up a decalogue of sustainable agriculture for farmers in Russia's durum wheat supply chain.

North America

For many years, farmers in the American and Canadian durum wheat supply chain have been complementing their agricultural processes with technical decision-making support systems similar to the ones developed by Barilla in its European supply chains.

In the farming regions of North America, the Group continued its partnerships with research bodies and local partners in 2017, with a view to enhancing the agronomic knowledge of farmers and developing new sustainable farming techniques

In conjunction with the University of North Dakota, Barilla sponsored the publication of a comprehensive and authoritative agronomic guide covering the most innovative farming techniques for the cultivation of durum wheat.After two years of field-testing, this guide was made available online for the benefit of all durum wheat farmers in the Country.

In conjunction with the University of North Dakota, Barilla sponsored the publication of a comprehensive and authoritative agronomic guide covering the most innovative farming techniques for the cultivation of durum wheat. After two years of field-testing, this guide was made available online for the benefit of all durum wheat farmers in the Country.

Lastly, in Montana, Barilla supported the application of a digital platform called Agrible across the durum wheat supply chain. The platform provides farmers with real-time crop data and helps them apply the most efficient and sustainable farming practices.

Common wheat
COMMON WHEAT

Common wheat flour is a key ingredient of Barilla's bakery products, which are produced mainly in Italy and France. The Group is supporting the development of a responsible supply chain in both countries, and encouraging the mills that produce flour for Barilla to adopt responsible production practices

In France, Barilla buys wheat flour exclusively from mills that manage their supply chains in their entirety, and are capable of providing a detailed analysis of the product life cycle of each crop.

In Italy, the Group conducted an LCA analysis, involving all the mills in Barilla's national common wheat flour supply chain, with a view to identifying the main areas for improvement in terms of sustainable development. In conjunction with HORTA, moreover, Barilla compiled a guide to the sustainable cultivation of common wheat, and made it available to farmers in the supply chain.

common wheat

   

 

TOTAL TONNES
PURCHASED

TONNES PURCHASED
FROM THE LOCAL MARKET

 

t.

t.

%

Italy

79,231

43,656

55%

Sweden

1,920

1,920

100%

Total

81,151

45,576

56%

common wheat flour

   

 

TOTAL TONNES
PURCHASED

TONNES PURCHASED
FROM THE LOCAL MARKET 

 

t.

t.

%

Italy

218,832

74,841

34%

France

122,699

122,541

100%

Germany

6,822

6,822

100%

Sveden

12,410

12,410

100%

Russia

7,568

7,568

100%

Total

368,331

224,182

61%

RYE
RYE

Rye is the core ingredient of crispbread, which is mainly produced in Sweden and Germany. Barilla's rye supply chain has a great environmental profile for two main reasons: firstly, rye farming does not require intensive use of water, fertilizers and other production inputs; and secondly, sustainable farming practices, in terms of yields and environmental integrity, are long-established in Germany and Sweden. Furthermore, Barilla undertakes to buy 100% of its rye supplies locally, unless adverse weather conditions make it necessary to source part of its requirement from other countries.

RYE AND RYE FLOUR

   

 

TOTAL TONNES
PURCHASED

TONNES PURCHASED
FROM THE LOCAL MARKET

 

t.

t.

%

Sweden

35,238

34,780

99%

Germany

21,813

21,813

100%

Italy

276

0

0%

France

394

0

0%

Russia

285

285

100%

Total

58,006

56,593

98%

TOMATOES
TOMATOES

In Italy and the United States, the main countries in which Barilla uses tomato for the production of ready sauces, the Group is committed to purchasing 100% of its raw materials locally, and to promoting initiatives for the sustainable development of the supply chains, in line with the Barilla Code of Sustainable Agriculture.

In Italy, Barilla buys most of its tomatoes from farms on the Pianura Padana that use mechanical harvesting techniques. In 2015, moreover, Barilla made a commitment to purchase tomatoes from producers holding Global G.A.P. certification, which testifies to their adherence to responsible, sustainable farming practices. As a result of its ongoing commitment on this front, Barilla purchased 84% of the tomatoes used in Italy from G.A.P. Global certified producers in 2017.

In the United States, the tomatoes purchased and processed by LiDestri on behalf of Barilla, are sourced from Californian producers who use mechanical harvesting methods. California's tomato processing industry, moreover, has strong cooperative links with farmers. Making use of these links, Barilla was able to conduct a Life Cycle Assessment in 2017, focusing on the harvests of the past decade. The study revealed a continuous reduction, over the years, in the use of water resources and the emission of greenhouse gases, in line with the criteria laid down in the Barilla Code of Sustainable Agriculture.

TOMATOES

   

 

TOTAL TONNES
PURCHASED

TONNES PURCHASED
FROM THE LOCAL MARKET

 

t.

t.

%

Italy

52,998

52,998

100%

North America

9,900

9,900

100%

Total

62,898

62,898

100%

VEGETABLE OILS
VEGETABLE OILS

Barilla uses vegetable oils for the production of numerous recipes. More specifically, the Group uses sunflower oil, colza oil and soybean oil.

With regard to sunflower oil, which is used mainly in Italy, the Group encourages the cultivation of sunflowers in rotation with durum wheat. Barilla has implemented numerous projects with farmers in this area, to establish the best farming practices for the cultivation of sunflowers, in accordance with the principles of the Barilla Code of Sustainable Agriculture. Barilla is also committed to purchasing sunflower oil from producers certified to CSQA standard DTP 112 or to ISCC standards, which guarantee sustainable production in environmental, economic and social terms, or which operate in accordance with HORTA's girasole.net platform. 43% of the sunflower oil currently purchased by Barilla is sourced from producers who meet these criteria

In Italy, Barilla also uses soybean oil in its recipes, which it procures entirely from producers who meet the requirements of CSQA standard DTP 112.

With regard to colza oil, which is especially widely used in France, Barilla is engaged in various projects, in conjunction with suppliers, to establish how to apply the Group's principles of sustainable agriculture.

vegetaBLE OILS

 

TOTAL TONNES
PURCHASED

TONNES PURCHASED
FROM THE LOCAL MARKET

 

t.

t.

%

Sunflower oil

35,606

5,388

15%

Colza oil

8,030

3,594

45%

Total

43,636

8,982

21%

Supply chains associated with potentially critical social considerations

The Group's overall procurement system includes supply chains associated with potentially critical social considerations.

With particular reference to its supply chains for cocoa, cane sugar and free gifts and promotional items, Barilla has identified potentially critical issues relating to the use of child labor and abuse of human rights.

The company therefore makes its purchases of these products exclusively from suppliers holding certifications issued by independent bodies specializing in the verification of compliance with international ethical and social standards. For example, Barilla requires all its suppliers of promotional gifts to hold SA 8000 certification, and its suppliers of cane sugar to hold SMETA or Bonsucro certification.

The Group also requires these suppliers to subscribe to the international Sedex platform, which is checked every quarter, in order to ensure rigorous compliance with the social and ethical standards that the Group strives to uphold. Lastly, the supplier's acceptance of the Barilla Code of Ethics is a binding requirement of all supply contracts.

 

2017

Suppliers deemed to be at potential risk of human rights violations (n.)

97

Suppliers subject to the risk of human rights violation, which hold independent third-party certifications or audit reports on compliance with ethical and social standards (n.)

84

Share of suppliers that hold independent third-party certifications or audit reports on compliance with ethical and social standards (%)

87%

Cacao

ICocoa is one of the Group's raw materials associated with potentially critical social and human rights considerations.

Through its Pan di Stelle brand, the Barilla Group has therefore embarked on a cooperation program with its main supplier, Barry Callebaut, and its Cocoa Horizon Foundation, with a view to supporting the cocoa supply chain in Africa. Over the course of the year, under the Pan di Stelle brand, this partnership spawned a project entitled A dream called cocoa, through which the Group undertakes to provide practical support for the Foundation in Ghana and Côte d'Ivoire.

The aim of the Foundation's projects is to improve the living conditions of cocoa farming communities by means of training courses, school-age educational support programs, initiatives aimed at reinforcing the role of women, and campaigns to protect children and health.

As a further step to protect the sustainability of the supply chain, the Barilla Group only sources cocoa from suppliers registered with the World Cocoa Foundation, a non-profit organization committed to fostering the responsible development of the industry.

12% of Barilla's cocoa supplies are procured in collaboration with the Cocoa Horizon foundation

Cane sugar

In view of the geographical areas in which it is produced, Barilla has also identified possible critical issues of a social nature relating to the sourcing of cane sugar. Barilla is committed to supporting the development of sustainable purchasing projects in partnership with major suppliers, and to setting ethical and environmental standards.

Barilla now buys cane sugar exclusively from SMETA (Sedex Members Ethical Trade Audit) or Bonsucro certified suppliers.

100% of Barilla's cane sugar suppliers are certified to SMETA standards