Achieving Sustainable Farming Practices

Prioritising Sustainability in Agricultural Practices

Loacker’s sustainable vision rests on five core pillars:

1) A sustainable supply chain with programs dedicated to strategic raw materials that, along with the pursuit of the highest quality and control of the supply chain, place more sustainable practices and beneficial agreements for farmers at the centre.

2) Climate neutrality aims to reduce greenhouse gas emissions on-site and across logistics.

3) Sustainable packaging by pursuing two main goals: expand recyclability thanks to mono-material packaging and eliminate unnecessary packaging;

4) Responsibility towards people fostering a corporate culture based on inclusivity, providing a healthy and safe workplace and promoting personal and professional development.

5) Mindful Indulgence with products and initiatives that favour awareness-raising about a healthier way of life and well-being.

Our sustainable supply chain programs have been created to ensure the security and quality of supply against global dynamics of increasing uncertainty, including climate change. These needs are accompanied by a commitment to minimise environmental impact through more sustainable agricultural practices. These programs, which include social and environmental projects, first targeted our strategic raw materials (hazelnut, milk, cocoa and vanilla) intending to later expand to other supply chains. We are currently reviewing our sustainable procurement program to align with the standards that will be required by the European Corporate Sustainability Due Diligence Directive, developing an internal risk management system capable of identifying the main risks along the value chain and taking measures to prevent them. In this direction, In February 2023, the company along with Spinlife, Padua University spin-off, and UniSMART - University of Padua Foundation - developed a ‘Sustainability Evaluation Tool’. It wanted to implement a selection process mirroring its values by assessing supplier sustainability. Suppliers take a survey and are assessed against benchmarks using a scientific method.

Share Insights into the Current Agricultural Practices Implemented to Reduce Environmental Impact and Lower CO2 Emissions

Hazelnuts are one of the company’s strategic ingredients.  Since Loacker’s foundation, they have been 100 percent grown in Italy and roasted in-house. In 2011, to guarantee and increase supply security, product quality and traceability, Loacker created the ‘Italian Hazelnut Orchards’ program, an example of the company’s commitment towards achieving a sustainable supply chain. After conducting feasibility studies, in 2014 Loacker decided to plant its orchards and establish a supply contract project with local farmers. To this day, the company has planted around 275 hectares of hazel trees in its owned estates of Corte Migliorina (Orbetello) and Tenuta Collelungo (Roccastrada).

While, through direct contracts with 83 local farmers from Veneto, Umbria, Tuscany and Marche 1,200 hectares of hazelnut trees were planted.

To achieve good results in terms of sustainable farming practices, it is essential to have control over the entire supply chain as much as possible.

Loacker signed multi-annual collaboration agreements with these farms and provided them with ad-hoc services, certified plant nurseries, and local companies to offer: knowledge; concessional financing; technical support when planting the hazel trees (supply certified plants from licensed nurseries, preparing the ground, preparing the infrastructure, and planting the trees); long-term contracts guaranteeing direct purchase based on existing market prices upon moment of purchase.

BMS MicroNutrients’ EcoMethod in 2019 was one important achievement towards making Loacker’s Italian Hazelnut Orchards program sustainable. The Belgian company is a leader in foliar fertilisation for crops and cultures, and it measured Loacker has reduced CO2 emissions by 91.34 percent in Corte Migliorina e Collelungo compared to traditional fertilisation method following the official crop protocol (Disciplinare di Produzione Integrata Emilia Romagna - Lazio).

By using foliar fertilisation, it can avoid using traditional fertilisers and their resulting dispersal in groundwater. Since then, Loacker has met its goal of reducing emissions year on year, by supplementing these methods with fertigation methods that reduce the use of tractors in the fields.

The estates are also working on reaching energy independence through photovoltaic systems (50 kWp at Corte Migliorina and 75 kWp at Collelungo Estate) and saving water by, for example, employing subsurface drip irrigation systems. Water management is computerised and involves sector-by-sector water distribution according to demand. Moisture sensors installed in the field enable constant monitoring of soil moisture content to avoid waste.

In addition, the wafer specialist has built storage basins to collect water throughout the year, using groundwater as little as possible. Through this system, 4,000-5,000 cubic meters of water are collected in small storage basins throughout the year. In winter, the water is pumped into a larger storage basin by a photovoltaic system and then used to feed plants with drip irrigation.

Loacker favours the use of natural techniques. It avoids chemical herbicides to maintain the soil’s health. For example, the Bonifiche Ferraresi estate, Loacker’s partner in hazelnut cultivation, in Cortona stands out because the trees were planted far apart from each other. The ‘empty’ space is used to grow lucerne and clover: they anchor nitrogen into the ground, thus providing a natural system to feed the soil with nutrients. Moreover, the buds are left on the ground and they are turned into mulch to improve the soil and increase the amount of superficial organic carbon.

Specific Environmental Considerations in Agriculture

In the European Union, an increasing number of chemical active substances are being removed from the list of usable plant protection products. We are attempting, wherever possible, to substitute these substances through biostimulants for plant strengthening and stronger prevention. More practical research in the field of biostimulants is necessary to find effective substances for respective crops, cultivation areas, and growing conditions.

Advice to Professionals Working In Other Companies Regarding Essential Practices to Minimise Environmental Impact and Carbon Emissions

To achieve good results in terms of sustainable farming practices, it is essential to have control over the entire supply chain as much as possible. We work very closely with our producers, and for our strategic raw materials, our experts develop agronomic protocols that must be adhered to by the producers. Additionally, producers are visited and trained periodically to achieve the best possible outcome and to monitor sustainable farming practices.