Responsible sourcing

Transparent, efficient and responsible sourcing is a cornerstone of HKScan’s social responsibility efforts and the result of ongoing, consistent work. We provide consumers with products that can be traced all the way from farm to fork.

Local production supports a well-managed supply chain

HKScan primarily uses local meat sourced from long-term contract producers or HKScan’s own farms. All products sold under the HK®, Kariniemen® and Scan® brands are produced 100% from domestic meat. HKScan co-operates closely with its producers, who are offered advisory services related to issues such as feeding, animal welfare, production facility planning and business profitability.

Case

Responsibility is closely monitored among our contract producers. For example, HKScan’s Finnish pig contract farms are part of the ‘Laatuvastuu’ Quality Assurance programme, which is based on a health classification register (Sikava) maintained by Animal Health ETT, and is approved as a national quality system by the Finnish Food Safety Authority Evira. All the quality-assured farms take measures beyond legal requirements to ensure high standards of animal health and safety. The farms are audited by a veterinarian roughly once every quarter. Most of our Finnish cattle farms are already part of a corresponding health classification register (“Naseva”).

Our aim is to guarantee consumers the steady, cost-effective flow of products in all our production countries. Close and open communication between sales, the supply chain and animal procurement, as well as efficient utilization of forecasts, are critical factors in balancing supply and demand and maintaining business profitability and delivery security.

Supply chain responsibility continuously evaluated

The food industry uses large amounts of meat and other raw materials, energy, water, packaging materials and a variety of services. The procurement team thus has a significant impact on the sustainability, costs and efficiency of the Group. HKScan’s suppliers are evaluated regularly for product safety, quality, environmental performance, ethical business practice and other sourcing process criteria.

HKScan uses a supplier evaluation process to collate information concerning sourced raw materials, products and services. Social responsibility is among the issues charted in this process. Suppliers are additionally required to commit to HKScan’s ethical principles by signing the HKScan Supplier Guidelines.

HKScan uses imported meat to supplement its offering in product categories where locally produced meat is not available in sufficient quantities. Imported meat accounts for a few per cent of the Group’s needs. The origin and quality of imported meat is closely monitored. We co-operate only with slaughterhouses which have been audited to ensure compliance with quality standards.

Responsible soy and palm oil

The production of soy and palm oil potentially has significant environmental and social impacts in the local production environment. As one of Northern Europe’s major meat producers, HKScan’s commitment to using responsibly produced raw materials is a token of significant progress in preventing adverse impacts. To support the sustainable use of soy and palm oil, we are a member of the Roundtable on Responsible Soy (RTRS) as well as the Roundtable on Sustainable Palm Oil (RSPO).

Soy is used in animal feed for its good protein composition. HKScan is committed to using 100% responsibly produced soy by the end of 2018. Sweden already achieved this goal in 2015. In Denmark, responsibly produced soy accounted for 20 per cent of soymeal consumption in 2016. Finland will reach the goal in 2017, and Estonia by the end of 2018.

HKScan is reducing the use of soy in its chicken feed, for example, by using alternative high-protein feed grown in Nordic conditions. Moreover, food industry by-products, such as barley protein feed, can be utilized in pig feed, in which we also increasingly utilize local raw materials such as legumes and rapeseed (Read more: HKScan Agri magazine, only in Swedish). HKScan and its feed partners are continuously cooperating to develop and promote the use of domestic protein sources.

In 2016, HKScan’s indirect soy footprint (animal feed) was 146 thousand tonnes, and its direct soy footprint (products) was 0.4 thousand tonnes.

WWF conducted a survey on the use of responsibly produced soy in animal feed in 2016. The report covered meat, egg and milk producers in133 European companies, and the results were presented in the WWF Soy Scorecard. HKScan Sweden achieved the highest score within the meat production group with 22 points, the maximum being 24. HKScan Group took third place with 14 points.

HKScan uses only small amounts of palm oil in its production, but the company endeavours to ensure it is responsibly produced. HKScan is a supply chain associate member of the Roundtable on Sustainable Palm Oil, and its purchase volumes are relatively small. During 2016, the company examined the use of palm oil in its products together with its suppliers in order to define the exact amount of responsibly produced palm oil that is used. Most of the palm oil used in HKScan’s products has already been certified, and the percentage will be increased during 2017. The target is to only use RSPO certified palm oil, the palm oil is also substituted with other oils like rapeseed oil.