Agricultural Practices at AUSTRIA JUICE in Focus

Jörg Schultz, R & D Process and Technology Project Manager at AUSTRIA JUICE, reports in an interview about projects to improve agricultural practices in Hungary and Poland - and about the international commitment to sustainability aspects.

What role does sustainability play today in the food and beverage industry?

A very big one! The food and beverage industry is increasingly focusing on sustainability aspects. The raw material is getting more and more in the focus and manufacturers and customers want to be able to trace back to the origin, where the product comes from. The customers also want to know whether the contract partners can live well and long-term on the cooperation with the manufacturers.

AUSTRIA JUICE currently operates two Integrated Plantation projects with contract cultivation abroad - one in Hungary and one in Poland. What was the trigger for this commitment?

AUSTRIA JUICE’s consideration of environmental, social and economic aspects begins with the sourcing of agricultural raw materials and extends across the wider value chain. Therefore, in 2000 we decided to start a first Integrated Plantation project in Hungary. In 2007, the second project in Poland followed.

Why did you choose Hungary?

Currently, we operate five production sites in Hungary and are very well connected. At that time, we recognized a need for support because many farmers had given up their farms due to an absence of customers and they did not make economic progress. In addition, many were not networked with each other. In addition, the conditions for growing apple trees in Hungary are ideal. The same thing happened later in Poland.

Which strategy did you pursue?

In the development of the project we cooperated with research institutes in Germany and Hungary. Together with experts, we selected the best apple tree varieties that suited the soil conditions and started the cultivation together with the Hungarian apple farmers.

How does the collaboration work and how do the farmers benefit from it?

At the beginning of the project, we pre-financed the trees from a regional nursery in Hungary for the farmers. Resistant apple varieties were selected that require about 60 percent less pesticides. This allows farmers to reduce costs while also reducing pesticide use and thereby addressing relevant consumer expectations.

How does the cooperation with the farmers look like?

We contract the farmers over the long term and guarantee delivery acceptance. We also hold a variety of training courses for farmers, such as how to farm fields efficiently, how to properly service machines, how to properly store chemicals, how to produce documentation, etc. This is intended to contribute to the quality and stability of crop yields. There are our own consultants who are always available for our farmers. After this project, which was a win-win situation for both - us and the farmers, we implemented the same concept in Poland in 2007.

How can these projects help reduce environmental impacts?

Through the targeted selection of resistant apple varieties, pesticide use can be reduced. Lower pesticide use also means fewer associated environmental impacts. In terms of water, we look at each other locally, which type of irrigation makes sense, since rains are less.

Both projects account for 18 percent of the apples processed by Austria Juice worldwide. Is an expansion planned?

The share is steadily increasing. Going forward, we will continue to focus on agricultural projects that take environmental and social aspects into account. Our aim is to identify developments at an early stage and actively help shape them. Our credo: act rather than react.

How successful is the concept today?

It was not until 2017 that we had the system verified by the Sustainable Agriculture Initiative (SAI). There was a questionnaire with 112 questions covering the three areas of sustainability – economically, ecological and social. In this audit, the project was rated on average silver and gold.

These are great achievements!

Even more important than this assessment is the cooperation with the farmers, and that we develop together.

AGRANA, of which AUSTRIA JUICE is part, has been an active member of the Sustainable Agriculture Initiative (SAI) since 2014. It offers industrial refiners helpful tools to evaluate and document environmental and social criteria in the agricultural supply chain. How do you contribute to this?