www.zott.de/en
“GMO free animal products –
Experience of GMO free labelling
from the perspective of a dairy”
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Zott stands for
• Independent family-owned and family-runned business since 1926
• Clear commitment to its brand – a passion for innovation and progress
• Competence in Premium Quality products:
Yoghurt, Desserts, Kefir, Mozarella, Hard cheese, Processed cheese,
Natural products, Cream products, Coffee Cream, Drinks, Milk and
whey powder
• Added value
• Zott – one of the top 10 dairies in Germany
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
© Zott SE & Co. KG │2015
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Zott Management
Christine Weber
Executive Director
Chair of the Board of Management
Anton Hammer
Executive Director Finance & Service
(right)
Hervé Massot
Executive Director
Sales, Marketing & Production
(left)
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
© Zott SE & Co. KG │2015
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Zott
Zott Group
International Turnover – 2014 in total 953 million €
56,0%
44,0%
12 Global Locations – including 6 production facilities
Turnover Germany
Turnover International
At home all over the world
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
© Zott SE & Co. KG │2015
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Milk Processing
Zott Group
Total milk quantity
1.000
900
800
700
600
500
400
300
200
100
0
Milk quantity Germany
Milk quantity organic
Milk quantity Poland
Milk quantity Bosnia
in million kg
95
96
97
98
99
2000
01
02
03
04
05
06
07
08
09
10
11
12
13
14
7
36
47
51
61
90
105
131
145
153
158
147
136
177
182
184
4
21
19
3
6
7
10
12
14
15
397
412
416
475
509
540
512
520
646
535
601
642
663
657
653
706
715
725
734
754
397
412
416
475
516
576
559
571
587
625
706
773
808
812
817
860
861
918
951
977
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
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GMO Free since 2010
© Zott SE & Co. KG │2015
GMO Free since 2012
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
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“GMO free animal products –
Experience of GMO free labelling from the
perspective of a dairy”
Survey
• Drivers for decision GMO free
• Implementation and consequences
- Dairy farmers
- GM Analysis for feedstuff
- Dairy plant
• Challenges and important aspects
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
-7-
Drivers for decision GMO free
Enjoyment is in change…
Our requirement: Commitment to sustainability,
“Added value” has to be earned!
“FORSA” study in Germany for GMO free labelling
May 2011, Zott-initiated
Results: Customers Opinion for GM transparency
•
•
•
•
68 % feel badly informed
82 % favour labeling GMO free
75 % prefer products with this labeling
77 % accept higher price – do they ??
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
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Drivers for decision GMO free
Zott Policy of Sustainability
We take our corporate responsibility very seriously.
Our CR-approach is built on a strong base.
①
②
③
④
RAW MATERIALS – Milk Purchasing
PROCESSING & TRANSPORT
EMPLOYEES
SOCIAL RESPONSIBILITY
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
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Drivers for decision GMO free
Zott Policy of Sustainability
① RAW MATERIALS – Milk Purchasing
• GMO free dairy cattle feeding is
an important part concerning milk
• Milk has the biggest share of our
purchase of raw materials
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 10 -
Implementation & consequences due to the change
as part of the "Sustainable Livestock" program
in our milk catchment area since autumn 2009
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 11 -
Implementation and consequences
Dairy farmers – Dairy company
What is hidden behind a GMO free milk product?
• Milk produced out of non-GM feed
• All other ingredients GMO free
Legal Basis: EG-Gentechnik-Durchführungsgesetz (EGGenTDurchfG) § 3a,b
• Strict German regulation for labeling GMO free
• EU Regulation 1829/2003 and 1830/2003
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 12 -
Implementation and consequences
Dairy farmers
919
234
•
•
•
•
•
•
of
of
2.814
754
farmers
Mio. kg
GMO free milk
GMO free milk
Argumenting, coaching, convincing
Price premium (+ 1 €ct/l)
Inspection of farms and feedmills
Documentation effort
Zott list: recommended feedmills
PCR sampling for each feedstuff delivery
 spectrum:
from:
to:
© Zott SE & Co. KG │2015
“…immediately, with manageable costs feasible”
“…impossible!!”
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 13 -
Implementation and consequences
Changeover scenario
e.g. 01.01.2015
Conventional
dairy farming
e.g. 01.02.2015
Joining the program
non-GM feedstuff
e.g. 01.05.2015
Start feeding with
non-GM feedstuff
GMO-free Milk
Conventional
feeding
Running down the
conventional feed stuff
Legal conversion period
3 months
Separate milk
collection
Minimum time for changing: 9 – 10 months
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 14 -
Implementation and consequences
Analysis for non-GM feedstuff
Problem:
• Specified* non-GM feed not always suitable (> 0,9% GMO)
 Rejection of feed batches
Solution:
• Dialogue with feedmills
• Selection of feedmills – recommended feedmills
• Standardized interpretation of PCR analysis
• PCR sampling for each feedstuff delivery at the farmplace
 Pressure on the feed industry – protection for milk producers
and the dairy
*no need for labeling according Regulations (EU) 1829/2003, 1830/2003
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 15 -
Implementation and consequences
Way of the feed samples
transport of the samples to the dairy
recording the samples in a database
selection of the samples for testing
warehouse
© Zott SE & Co. KG │2015
Testing Lab
Genetic ID - Augsburg
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
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Implementation and consequences
Analysis for non-GM feedstuff
feed sample
< 0,1 % GMO
0,1 – 0,9 % GMO
No measure
Info to the dairy
farmer and the
feedmill
© Zott SE & Co. KG │2015
> 0,9 % GMO
1. Info to the dairy farmer
2. Rejection of feed batches
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 17 -
Implementation and consequences
Partial Success – the feed industry is cooperative
• more and more feed plants in southern Germany change to 100%
non GM raw material
• less problems with the rejection of GMO positive feed batches
 sometimes…
• decrease of GM positve feedstuff samples
 but from time to time striking feed samples results…
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 18 -
Implementation and consequences
Effects within the dairy
• Additional “milk logistic“: collecting, transport, processing
- different types of milk (conventional milk – GMO free milk)
- training for the truck drivers
- Unloading Management
(CIP – milk collecting – milk transport – unloading – CIP)
- Investments in software and hardware: over € 3 million
• Certification GMO free by Intertek according to EGGenTDurchfG: EGGentechnik-Durchführungsgesetz (2008), including feed
• own labeling
• Authorized by national VLOG for labeling
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 19 -
Challenges and important aspects
Labeling GMO free
Zottarella brand  implemented entire sale
– understanding problems in some sales regions
– GMO free labeling is unfamiliar to consumers
 need for explanation
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 20 -
Challenges and important aspects
Labeling GMO free
PCR Analysis of feedstuff for
dairy cows:
Different Interpretation and
discussion of analytical results
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 21 -
With 76% market share Private Labels clearly
dominate the German Mozzarella market
Mozzarella-Brands in Germany
(Sales Marketshare in %, without private labels)
20,2%
24,8%
Mozzarella-Brands in Germany
GOLDSTEIG
(Sales marketshare in %, with private labels)
1,2%
GALBANI
5,0%
VALGRANDE
5,8%
GOLDSTEIG
23,1%
21,0%
6,2%
ZOTTARELLA
EIGENMARKEN
5,5%
GALBANI
SONSTIGE
26,1%
Quelle: AC Nielsen LEH+DM, Marktanteile Absatz konv., 2014 excl. PL
VALGRANDE
76,4%
ZOTTARELLA
SONSTIGE
Quelle: AC Nielsen 2014
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 22 -
Positve market growth in 2014
 the key growth driver :
The price conscious consumer is less willing to pay a premium for: GMO free
MOZZARELLA MARKT
1.724
PRIVATE LABEL
ZOTTARELLA
1.429
96
* Source: AC Nielsen, Sales/tons, Jan.-Dec. 2013 vs. 2014
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 23 -
With more than 76% market share Private Label
continue to dominate the Mozzarella market
Long term Volume sales development
70.000
key mozzarella brands Germany
60.000
50.000
40.000
4.292
3.030
3.767
3.329
4.150
2.934
3.726
3.313
3.459
2.950
2.952
2.698
3,1%
30.000
20.000
38.497
45.227
46.657
2013
2014
Obvious growth
of the private
labels!
17,4%
10.000
2012
Private Label
Quelle: Nielsen, LEH+DM, Absatz konv in 1000
© Zott SE & Co. KG │2015
Galbani
Valgrande
Zottarella
Sonstige
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
- 24 -
Challenges and important aspects
Current discussions / Situation in Germany
• The food retail drives the sustainability debate!
 Dairy products from GM-free Feeding: Mass market or niche?
 Consumers in Germany are unwillig to accept a price rise for the
additional benefit GMO free.
• Research and policy: debate on local protein plants!
• Research: Demand for GM-free and sustainable protein feed requires
research and development funds for plant breeding, consulting and testing
that are not present.
• What about the availability of Non-GMO feed at a sectoral change in the
animal food production?
© Zott SE & Co. KG │2015
How to maintain GMO-free agriculture in Europe
April 16th, 2015
ZOTT SE & Co.KG
Johannes Hegenberger
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Thank you very much
for your attention.
© Zott SE & Co KG 2015
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