1McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

McDonald’s Europe Flagship Farms

Wheat – Friedrich Haase, Latvia

The key initiatives on the farm are:

• FriedrichpurchasedlandinthisspecificareaofLatviabecauseofthelowagriculturallandvalues.Landpricesinthisregionhavebeenadverselyaffectedbylimitedfinancialinvestment,infra–structureandmanagementwhichhaveresultedinalossofsoilproductivityandqualitye.g.poorfielddrainagemaintenanceleadingtowaterloggedsoils.

• Tohelpimprovethesoilhealthandstructure,thefarmhasintroducedanumberofpracticestoincreasesoilorganicmatter(SOM)levelsandimprovethepositiveeffectthishasonseveralelementsofthesoil’sproperties,suchasnutrientcycling,biologicalactivityandwaterretention.CropresiduessuchascerealstrawandcovercropsareincorporatedintosoilstoincreasetheavailableorganicmaterialandcultivationsareundertakentominimiseSOMlosses

• Thefarmundertakesaregimeofregularsoiltestingforphosphate,potashandpHlevelswhicharerecordedondigitalfieldmaps.ThisdataprovidesthenecessaryinformationtothefertiliserspreaderwhichisfittedwithGPS(GlobalPositioningSystem),toallowvariableapplicationsratesacrossafieldtomeettargetedsoilnutrientlevels.Thissystemishelpingtoapplyinputsmorepreciselyandtohelpbalancethesoilnutrientprofilesacrosseachfield.

• Tooptimisenitrogenfertiliserapplicationswiththeaimofreducingquantitiesneededtomaintainyields,thefarmhasimplementedpracticesandtechnologywhichincludes:

• UsingtheN–sensortechnologywhichautomaticallyadjustsnitrogenapplicationsbasedon crop demands

• PlantingnitrogenfixingcropstoimprovesoilNlevels

• Triallingtheapplicationofnitrogenfixingbacteriatothesoil

• Generally,farmsinLatviaoperatethroughasystemofgraintradersandco–operativeswhichprovidebothgrainstorageanddryingfacilitiesandultimatelymarketthegrain.TooptimisethebusinessandfarmmanagementFriedrichhasinvestedin12,000tonnesofonfarmgrainstoragefacilitiesandagraindrier.Thishasalsoprovidedhimwiththeflexibilitytomarketandsellhisowngrainandtheopportunitytodevelopgraincontractswiththelocalmill.

• ThegraindrierspurchasedbytheFriedrichhavebeenspecificallyselectedtoutilisewoodchiptogeneratetheheatrequiredtodrythegrain.Thiswoodiscollectedandsourcedfromaroundthefarmandprovidesasustainableandrenewablesourceoffuelforgraindrying.

Introduction

FriedrichHaasemovedfromGermanytoLatviain2003andstartedhisfarmingoperationwith100hectaresofland.Thishassincegrownto4,100hectareswith24full–timeemployees.Herehedescribeshowgoodmanagementandstrategicinvestmentininfrastructure,technologyandstaff,hasallowedhimtogrowthebusinessandprovidedtheopportunitytoworkcollaborativelywithDobeleandTartuVeskiMills.

“ Therearemanybarriersandchallengestoestablishingandbuildingasuccessfulfarmingoperation,Friedrichhasachievedsomethingonlyafewwoulddaretoconsider.HemovedfromhisnativeGermanyandpurchased100hectaresoflandin2003,hehasbuiltthisovertheinterveningyearstomorethan4000hectares.Friedrichisclearlyagreatbusinessmanandfarmer,hecarespassionatelyaboutthefarmandthelocalenvironment.Hisgreatestachievementisthathehasoverseenanddriventhetransformationofpoorarablelandintoaproductiveandsustainablefarmingoperation.”

Karl Williams, Flagship Farms Programme Manager, FAI

2McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

Action Benefits

Summary of actions and benefits

ThetablebelowsummarisesthekeyareasofgoodpracticedisplayedbyFriedrichHaase,andthebenefits ( environmental / economic / ethical) thatarisefromtakingtheseactions.

GlobalGAP assuredCertification/ Assurance

Certifiesthatcriteriaformaintainingenvironmentalbestpracticearemet

Globallyrecognisedcertificationenhancesproductmarketability

Ensuresproductqualityandtraceabilitystandardsaremet

Strategic investment in grain drier and store

Business planning

Crop rotationsCrop Initiatives

Minimisesbuild–upofcrop–specificdiseasesandtheneedforapplicationof plant protection products

Growingcropslikebeansandavariedrotationincreasessoilnitrogencontentandimprovessoilquality,increasingwheatcropyields

Soil nutrient mapping and GPS application of inputs

GPScontrolledequipmentincreasestheapplicationaccuracyofinputs

Accurate and optimal application of inputs can reduce fuel and product use and lowerlabourrequirement,allprovidingcostreductions

Trialling the application of nitrogen fixing bacteria on the soil

Reduces the requirement for the application of synthetic fertiliser inputs

Theaimistoenhancewheatyieldsthroughincreasingbeneficialsoilbacteria thatincreasesnitrogenavailabilityforthecrop

Well timed cultivations control weed growth and prepare seedbeds

Mechanicaldestructionofweedslowerstheneedfor plant protection products

Minimalcultivationsforseedbedpreparationreducesfuelandlabourcostsover ploughing

Providesflexiblemanagementduringharvestandstorage

Enablesdirectcontractswithmillersandbuffersthebusinessfrommarket fluctuations

Ensuresthefarmisincontrolofgrainstorageconditionswhichhelps maintaingrainqualityandreducefoodsafetyrisks

Selling direct to Dobele and Tartu Veski Mills

Negotiationsonwheatpriceandqualityprovidesbenefitstobothfarmandmill

Contractsarebeingagreedwhichwillhelpimprovebudgetingandincome predictions

Cooperationwiththemillensuresthefarmisgrowingthebestvarietiesformilling

Providesinformationtothefarmaboutendconsumerandproductfeedback

Renewable energy

Graindriersarefuelledbywoodchipproducedfrommaterialssourcedonthe farm

Eliminatesexternalcostsofdryingandreducesrelianceonfossilfuelsandtheir associated costs

Grain dryer fuelled by woodchip

Improving soil organic matter levels

Soil health Can help reduce the quantity of fertiliser inputs required

Incorporatingcropresidueshelpsincreasethesoil’sorganicmattercontent andimprovesitsfertility,waterholdingcapacity,andstructurewhichbenefits cropgrowingconditions

Using Yara N–Sensor technology

Itsusehasoptimisednitrogenapplications,whicharenowappliedaccordingto aspecificcropdemandratherthanablanketapproach

Improvescombineefficiencyduetoamoreevencropatharvest

3McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

Maintenance of polder dams and drains

Ecosystem protection

Clearanceofweedsinthedrainagesystemisundertakenviamechanicalmeans ratherthanusingchemicalcontrolwhichprotectsthesurroundingecosystems

Controlwaterlevels,preventssoilsaturationandfloodingoffieldsandimproves growingconditions

Wild meadows and grasslands

Encouragesandimprovesthelocalbiodiversityonfarm

SupportsthebiodiversityandculturalvalueoftheneighbouringNationalPark

Employment contracts, health insurance and accommodation

Staff Goodworkenvironmentandconditionsimprovesstaffretentionandreduces employment costs

Individualstafffacilitiesprovidesstaffmemberswithpersonalspaceandthe opportunitytorelaxandsocialise

Insuranceisprovidedtoallstaffwhichisagreatemployeebenefit

“ Ialwayswantedtorunmyownfarm,butinGermanythiswasnotpossibleduetothecostofland.ThisiswhatledmetoLatviaandhereIsawthegreatopportunitiesavailable,Istartedwith100hectaresin2003andhavesinceinvestedinmorelandandthefarm’sinfrastructuretohelpbuildanddevelopasustainablefarmingbusinessofover4000hectares.Ihavelearntagreatdealandappreciatethebenefitofunderstandingandcollaboratingwithourcustomers.In2008weformedapartnershipwithTartuVeskimilltogrowwheatoncontractforthem;thishasbeenaverysuccessfulventureandbroughtusincontactwithMcDonald’s.

WhenwewereselectedtobecomeaMcDonald’sFlagshipFarmitwasaveryproudmomentasIfeelthisisrecognitionforthehardworkofmystaffandmeandthepartnershipwithDobeleandMcDonald’s.”

Friedrich Haase

4McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

FriedrichgrewuponthefamilyfarmintheregionofGöttingen,centralGermany.Afterleavingthearmyin1998FriedrichundertookhisstudiesinforestryandagricultureattheUniversitiesofFreiburg,GöttingenandBerlinandgainedexperienceworkingonfarmsthroughoutGermanyandEurope.

AtthetimeFriedrichfinishedhisstudies,reunificationofEasternandWesternGermanyhadtakenplace,whichmeantthatmuchoftheavailablefarmlandhadalreadybeenacquired.FriedrichchosetolookfurtherafieldforopportunitiestostarthisownbusinessandpurchasedthefarminLatviain2003with102hectaresofland.Overtimethefarmhasgrowntocover4,100hectaresandthebusinessnowemploysateamof24full–timestaff.Thelandincludes1000hectaresofforestand2,650hectaresofarableland.Thefarmgrowsoats,winterandspringwheat,withcerealsaccountingfo50%ofthecropsgrownonthefarm.Theremainderofthelandisplantedwithoilseedrapeandbeans.Threehundredhectaresisalsoreservedasnaturalhabitatstosupportlocalwildlife.

Friedrich, what attracted you to this specific area of Latvia?

Havingexperienceddifferentarablesystems,IwaslookingforanareawhereIcoulddevelopasustainablearablebusiness.WhenwefirstlookedinLatviatherewereveryfewfarmsintheMadonaregion(situatedinEasternLatvia)andalargeproportionofthefieldswereeithernotinproductionorwereinpoorcondition.Therefore,thelandwasrelativelyinexpensiveandthisgaveustheopportunitytoestablishthebusinessandexpandaswehavegrown.

Therearesomebigchallengestofarminghere,butit’saverybeautifularea;we’reborderedbytheTeiciNationalPark,alargetundrawithforestandmanylakes,includingtheLuban,whichisthelargestlakeinLatvia.

You mentioned the challenges of farming in this region, what are they?

Ourmainchallengesarewatermanagementanddrainagealongwithsoilhealth.Thisregionisquiteflatandlowlyingandcombinedwiththeareasheavyrainfallmeansthelandrequiresagood,wellmaintaineddrainagesystemtocontrolwaterlevels.Also,soilqualityispoorbecausemuchofthelandwasnotinaproductivestate,orwaspoorlymaintainedwhenitwaspurchased,weareworkinghardtoimprovesoilhealth.Thesehavebeenourbiggestchallengestodate.

Background

5McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

How do you maintain the drainage systems on the farm?

Wehaveintroducedmanagementpractices to maintain the polder dams and drainagenetworks,whichhelpimprovefieldconditionsandavoidthefieldsandsoilbecomingsaturatedandwaterlogged.We are careful to ensure that this managementdoesnotimpactthewaterecosystemsintheareaandwetakecaretomonitorwaterlevelsonthelandanddirectourmanagementpracticesaccordingly.Itisveryimportanttoregularlyclean out and clear the ditches and waterwaystoensuretheyareoperatingeffectively;periodicallywehavetorenewsomeoftheoldSoviet–eradrainagesystems.We’ve

investedinnewtractormountedbrushcuttingequipmenttohelpcleartheweedsandbushesthatgrownearthedrainageditchesandrivers.Thisensuresthewaterwaysremainunobstructed,allowingthewatertoflowmoreeffectively.Theaimofthisistoensurethelanddoesn’tbecomesaturatedorwaterloggedasthisimpactsourabilitytofarmthelandsustainably.

Thelargerpiecesofclearedbrushandwoodfromtheditchesandwaterways,alongwithotherwoodclearedfromaroundthefarmarecollected and dried on farm. We then hire a local contractor to come tothefarmandchipallthisintowoodchip.Wethenburnthewoodchipinourbiomassgraindrierstoprovidetheheatweneedtodrythegraintotherequiredmoisturecontentsoitcanbestoredonfarm.

Therefore,throughthemanagementoftheditchesandwaterwaysweareabletomaintainthefarm’sdrainagesystemwhilstutilisingthewastewoodtoprovideuswitharenewableandsustainableenergysource.

What technologies have you introduced to address some of the soil fertility issues?

Wefirststartedsoilsamplingandtestingthenutrientcontentofoursoilsin2005,weemployedanumberoflocalagronomiststotakethesamplesandrecordedtheresultsmanually.Inspring2012weintroduceddigitalsoilnutrientmapping.ThisbegantobuildupaGPSmapofthefarmusingsoilnutrientsamplestakeneverythreehectares.Fromthiswe’veseenthatsoilnutrientlevelsvaryconsiderablyacrossmostofthefields.Evenwithinonefieldthevariationcanbesizeable.We’renowusingthisdatatotargetandadjustfertilisertreatmentsacrossthefields.TheinformationisremotelyenteredintoaGPSguidancesystemonthefertilizerspreadersothattheapplicationrateisautomaticallyadjustedinresponsetothedatafromthedigitalsoilmaps.

Assoilqualityispoor,weneedtooptimisefertiliserapplicationsacrossthefarmtoensurecropyieldsaremaximized.Byoptimisingourfertiliserapplicationswecanreducetheriskofnutrientlossesintothesurroundingenvironmentandthisincreasesthereturnoninvestmentforanexpensiveinput.

“We’veinvestedinnewcuttingequipmenttoensurewaterwaysremainunobstructed.Thisreducesthe need for chemical sprays and provides a fuel sourceforourgraindrier”

6McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

What benefits has the targeted application of nutrients delivered to the business?

We’renowapplyingnutrientsinresponsetothecropsneeds,whichhelpstooptimisecropgrowth.UsingthesoilnutrientmapsandGPStechnologyhassavedusaround10–15%onfertilizercostsandwearealsousinglessfuel.It’salsohelpedincreasetheefficiencyofthespreaderandreducedtheworkloadforus,helpingtofreeuptimeforothertasks.Withlargescalefarmingoperationslikeours,precisionagricultureisakeyinvestmentarea.

WehavealsoinvestedinaYaraNSensor,thisdeviceisfittedtothecabofthetractorandanalysesthecrops’lightreflectanceasitdrivesthroughthefield.Thiscalculatesthenitrogenrequirementsandisabletomakereal–timeadjustmentstotheapplicationrateensuringoptimumnitrogenapplicationrateforthat area.

What other practices have you introduced to try and improve soil health & fertility?

Soilqualityintheareaisquitepoorandwhenwetestedsoilorganicmatterlevelsonfarmtheywerearound1.8%,thereforewe’recarefulnottoremoveanyorganicmaterialfromthefields,exceptthegrainitself.DuringharvestallcerealstrawischoppedandleftonthefieldwhichprovidesasourceoforganicmaterialtohelpincreaseSOMlevels.WeknowthatincreasingSOMlevelswilltakealongtime,butimprovingthisiskeytoahealthysoilandsustainablefarming.Theaddedbenefitofincorporatingthecerealstrawisthelevelofpotashandphosphatethatarereturnedtothesoil(seeTable1).

Table 1. Examplenutrientcontent(Kg/t)offresh–weightstraw

Phosphate kg P2O5/t

Potash kg K2O/t

Magnesiumkg MgO/t

Winter wheat/barleystraw

1.2 9.5 1.3*

Springwheat/barleystraw

1.5 12.5 1.2*

Source: HGCA (http://www.hgca.com/media/183781/is05_nutrient_content_in_cereal_straw.pdf)

Wegrowwheattwiceinafour–yearrotationalongwithbeansandoilseedrape,increasingthenumbercropswithintherotationhelpstoincreasesoilfertilityandquality.Growingbeansalsohelpsto

aerateandimprovesoilstructureandincreasenitrogencontentthroughnitrogen–fixingbacteria(Rhizobia)ontheplantsroots.Thecroprotationalsohelpstodecreasethelevelofcropdiseasesbyreducingtheoccurrenceofrootpathogensandpreventingabuildupofresistancetoplantprotectionproducts.We’recurrentlyplantingaround40%ofthelandtobeansandoilseedrapeatanyonetime,butaimtoincreasethisto45–50%ofthetotalgrowingareatofurtherimprovesoilfertilityandhelpmanagecropdiseasesandweedcontrol.

GPStechnologyhassaved us around 10–15%onnitrogeninput costs

EU Soils Report classifies soil organic matter as follows. Friedrich’s land is low at 1.8%OM, which makes improving the soil organic matter a priority for his business.

Source:EUROPAhttp://eusoils.jrc.ec.europa.eu/ESDB_Archive/eusoils_docs/other/ESF_OM7.pdf

Soil Organic Matter Level

High >10.2%

Medium 3.4–10.2%

Low 1.7–3.4%

Verylow <1.7%

7McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

Wearetrialingtheapplicationofbeneficialbacteriatothesoilhopingtoincreasesoilfertilitythroughtheirabilitytofixatmosphericnitrogen,whichcouldhelpwithotherprocessesoccurringwithinthesoilsuchasthebreakdownanddecompositionofplantmaterial.

Wearealsocurrentlyworkingwithacompany to help monitor and improve the micro–element levels in thesoilwiththeaimtoincreasecropproductivity and quality.

How is seedbed preparation undertaken?

Conventionalmethodsofpreparingthesoilbyploughingburyalloftheresidualcropresiduesandweedseeds,butitdisruptsthesoilstructure and on our land can lead tosoilerosionbywindandwater.Inorder to protect the soil structure, welimittheuseofconventionalploughingtoonceeveryfouryearsand employ several alternative methodstoprepareseedbedsandreduceweedgrowth.Ploughingisalsoatimeconsumingandafuelintensiveoperationtoundertake,soreducingtheneedtodothisisimportantforustopractice.

Ourseedbedpreparationdependsonvariousfactors,includingthepreviouscropandweatherconditions.Aftergrowingoilrapeseedorbeans,wegenerallycultivateanddrillinasingleoperationorwemaycultivatethesoilwithasetofdiscspriortodrilling.Theresidualplantmaterialisnotproblematicforwheatgrowthandiseasilyincorporatedintothesoil.

Whenwedrilloursecondwheatsintherotationitisusefultopassovertheseedbedtwicewiththediscstoensurethatthestrawiswellincorporatedintothesoilanddoesnottransferdiseasetotheemergingwheatplants.Inthiscase,wecandiscimmediatelyafterharvestingwhichencouragesweedseedtogerminateandthenjustpriortodrillingwecultivateoncemoretomechanicallydestroyanygrowth.Thathelpsustoreducetheamountofplantprotectionproducts(PPPs)requiredtocontrolweedgrowthintheemergingcrop.

Whentheweatheristoowetorwehavelimitedresources(labour,timeorrisingfueluse),thiscanaffectourseedbedpreparation.Inthesecaseswecanspreadtheseedwithourfertiliserspreaderfollowedbyasinglepassofthediscstocovertheseedandaeratethesoilforrootdevelopment.

Usinglegumesasapre–orbreak–crophasbeenshowntoincreasetheyieldofcerealcropsbetween15–25%overcontinuouscerealplanting,evenwhenfertilizerisapplied for optimum yield

Source: Peoples et al., (2009) The contribution of nitrogen–fixing legumes to the productivity of agricultural systems. Symbiosis 48: 1–17

8McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

How have these practices improved wheat production on the farm?

OuraverageyieldsinthefirstcoupleofyearsfarminginLatviawerearoundfourtonnesofwinterwheatandonetonneofspringwheat.Ouraverageyieldsin2012were6.7tonnesofwinterwheatand5tonnesofspringwheat.Inthefuture,we’rehopingtoharvestbetween7and8tonnesofwinterandmorethan6tonnesofspringwheat.Sowearepleasedwiththeresultsandthisshowstheeffortweareputtingintomanagingthefarmispayingoff.

Thequalityofourharvestedwheatisalsoimproving;wehaveseengoodproteinquantityandquality(ZelenyIndex)andgraindensity(hectoliters)whicharesuitableforflourmaking.

What other investments have you made on the farm?

InLatviamostcerealfarmsoperateaspartofacooperative,sellingintoacentralstorethatcontrolstheintake,dryingandsubsequentsaleofthegrain.In2008,weinstalledaSaatotulibatchdrierfordryingourownharvestedgrain,havingourowngraindrierhasgivenusmoreflexibilityinthewhenandwhattoharvest.Thesystemisfullyautomatedtoloadandoperateandrequiresminimalinputintermsoflabour.Thedrierisfueledbywoodchipwhichismadefromthewoodsourcedfromclearingthewaterwaysaroundthefarm.Thisisquiteacostsavingasthefossilfuelequivalentisaroundseventimesmoreexpensivethanwoodchip.

In2012wealsoinvestedinnewgrainstoragefacilitieswithaholdingcapacityof12,000tonnesandhasallowedustoexpandthefarmandbusinessaccordingly.Storinggraingivesustheopportunitytotailoroursalesinresponsetothemarket.Beingmoreindependentisimportantforus,asthefarmislocatedfarfromgoodtransportationroutesandindustrialprocessingareassohavingsomeflexibilityinourgrainmarketingiskeytoourbusinessstrategy.

In2012thefarmachievedananveragewheatyieldof6.7tonnes/hectare.ThiscomparestotheaverageLatvianwheatyieldin2012of4.3tonnesperhectare(FAO Stat 2014)

“Installingourowngraindrierandstoregivesusflexibilityandallowsustoadjustsalesinresponsetochangesinmarketprice”

9McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

What are the challenges of marketing and selling your grain in Latvia?

Inthepastwesoldourgraintothenearestcompanythatwouldprocess,storeandmarketit.However,itwasexpensiveandweincurredalotofcosts,fordrying,cleaningandstorage,therewerealsodifficultieswithtransportandthedeliveryofgrainintotheprocessor.Ultimatelythecontractswereunsustainableandwehadtofindanalternative.Now,becausewehaveinvestedinourowndryingandstoragefacilitieswecandealdirectlywiththebuyers,givingusthefreedomtochooseourpartnersourselves.I’velearnedsincefarminginLatviatheimportanceofchoosingpartnersthatsuityourbusinessneeds.In2004wedevelopedthe‘Agrikula’brandtomarketourrawmaterialsandtheaimistogrowqualitywheatformillingsoweareabletosellintothepremiummarket.

In2008weformedapartnershipwithDobeleDzirnavnieks,oneofthelargestgrainmillingandprocessingcompanieswithtradeinbothnationalandinternationalmarkets.WecontractasetnumberofhectarestoDobeleMillandworkwiththemtogrowthemostsuitablevarietyforthemarket.Lastyearweproduced3,800tonnesofwheatforDobelewithaproteincontentofupto17%.Wearealsogrowing125hectaresofoatsoncontractforthemillwhichisdestinedforhumanconsumptionandweareachievinganaverageyieldof4.6tonnes/hectare.Nextyearwehopetoagainsellthembetween6,000to7,000tonnesofcereals.

What benefits has this partnering delivered to the business?

WesendthebestqualitygraintoDobeleDzirnavnieksandTartuVeskimills,astheirphilosophyandapproachtobusinesssuitours.Theyoperatetoahighstandardandhavealong–termbusinessplan,soasaresulttheypayahigherpremiumforgoodqualitygrain.Theyalsoprovideuswithimportantinformationaboutthequalityofourwheatandwhereourproductisdestinedfor,allowingustogettoknowthefinalcustomerandwhatgrainvarietiesaremostsuitable.Wehaveagoodpartnershipandworktogethertocontinuouslyimproveourrelationship.

Do you think it’s important to know who the end customer for your wheat is?

Althoughit’slessimportantfinanciallytoknowwhotheendcustomeris,formepersonallyitmeansalottoknowtheendresultofthefoodweworkhardtoproduce.Itgivesmeagoodfeelingandreducestheenormousamountofanonymitytoknowmoreorlesswhowillbethelastclientintheline–knowingthatMcDonald’saresellingbunsmadewithourgraingivesmeagreatsenseofpride.Ialsothinkit’simportantforMcDonald’scustomerstobeabletolearnmoreabouttheentirefoodchain,fromtheprimaryproducerallthewaytotheMcDonald’srestaurantthey’reeatingin.

“Dealingdirectlywithbuyersallowsusthefreedom to allocate the bestgraintospecificbuyersthatprovidethebestreturns”

10McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

How do you ensure the quality demands of your customers are addressed?

In2011wereceivedapprovalthroughtheBQMfarmassuranceschemeandin2012wewereapprovedundertheGlobalGAPassurancescheme.Wereceiveanannualauditthatcoversstandardsoffoodsafety,workerwelfare,environmentalmanagementandgoodpracticethroughoutallstagesofcropproduction.Theauditshavehelpedtoengagethefarmstaffinbestpracticeandfocusonkeyareasofimprovementthathavebeenidentified.Forexamplewetakeasampleofeverybatchofgraincomingintothestoreandrecordsaremaintainedforthepurposesoftraceability.WeseeGlobalGAPasbeinganimportantpartofthebusiness,whichinturnenhancesthemarketabilityofourproduct.

How do you protect the farm’s natural habitats?

Thelocalenvironmentisveryimportant,forexamplethenationalparkbringsecologicalandculturalvaluetotheareaandthemanylakesintheparksupportbothmarketandrecreationalfishing.Weencouragelocalbiodiversitybykeepingsomeofthefarmaswildmeadowsandecologicalgrasslandsthatwecutonceperyeartoencouragelocalflora,insects and small mammals to the area.

11McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

How do you maintain staff retention and improve their skills?

Intotalwehave24fulltimeemployeesonthefarmandduringthebusyharvestingseasonweemployseveralpart–timestaff.Theworkonthefarmcanbedemandingand hard, therefore it’s important to create asupportiveworkingenvironment,bothsociallyandfinancially.Withintheteam,peopleworkwelltogether,althoughit’simportanttoprovidefacilitieswheretheyhavetheirownspace,sohavingprivateaccommodationtorelaxinisinvaluablefortheteamtocooperateandworkwelltogether.

Weprovidestafftoiletsandwashroomsaswellasasaunaonsite.Workingclothesandinsurancearealsoprovided.Someofthestaffhavebeenworkingwithmeformanyyearsandtheyliketheatmosphereandthesecuresocialandfinancialsituationprovidedbythebusiness.

WherepossibleIencourageandsupportmystafftogainmoreskillsandagriculturalknowledge,ofcourseitisalsoinmyowninterestthattheirknowledgeisalwaysuptodate.Similarly,weofferworkexperienceduringharvesttolocalstudentswhichprovidesthemwithvaluableexperienceaboutthefarmingindustry.Thestudentsareabletolearnfromtheteamhereandareabletocontributetothedailyoperationofthefarm.

Forthevariousmachinerywehave,manyofourstaffhavebeentrainedandhavespecificlicencesfordrivingthemachines.Whenwehavebriefingsfromthemachinerydealersaboutusingmachinesthenallthestaffattendtolearnandaskquestions.IvisitasmanyexhibitionsaspossibleandalwaystakeasmanystaffwithmeasIcansothattheycansharetheexperience.

What future developments are you planning for the farm?

Ourplansforthefuturearefocusedupondevelopingnewareasofcultivation,controllingweedgrowthandimprovingsoilquality.Forexample,incorporatingagreaterproportionofleguminouscropsintothecroprotationwillimprovesoilfertilityandreduceourfertilizerrequirements.We’realsolookingtoimproveefficiencyoffertilizerinputthroughcombinedapplicationofliquidnitrogenandherbicide.

“We strive for a supportive environment; sociallyandfinanciallyandwehavelongstandingstaffwhostaybecausetheylikethesecurityandatmosphere”

12McDonald’s Europe Flagship Farms Friedrich Hasse, Latvia 23/11/2014 www.flagshipfarms.eu

Appendix – Good Practice Matrix for Friedrich Haase

Ethical (acceptable practices)

Animal health & welfarei Nutritionii Medication&growthpromotersiiiGeneticselectionivAnimalcloningv Husbandryvi TransportviiSlaughter

Human health & welfarei Employeehealth&welfareii Food safety

Business ethics & supplier relationships

Rural landscape preservation

Environment (protecting the planet)

Economics (long–term economic viability)

Climate changei Greenhousegasemissionsii Energyefficiency &renewables

Natural resources – soili Soilfertility&healthii Soilerosion,desertification &salinisation

iiiSoilcontamination

Sufficient high quality productioni Producerincomesecurity &accesstomarket

ii AgriculturalinputcostsiiiCrop&livestockdisease

Natural resources – wateri Water pollutionii Waterusageefficiency

Natural resources – airi Air emissions

Agrotechnologyi Agrochemicalusageii Bioconcentration&persistentorganicpollutants

iiiGeneticallymodifiedorganisms

Community investmenti Localemployment&sourcingii Supportforcommunityprogrammes

Ecosystem protectioni HighConservationValueLand(HCVL)

ii Habitat&speciespreservation

Wastei Productionwasteii HazardouswasteiiiWastetolandfill

ThefollowingmatrixhasbeendevelopedbyMcDonald’stohelpassessthesustainabilityoftheagriculturalproductionwithinthesupplychain.Flagshipfarmshavebeenidentifiedthatdemonstratebestpracticeinoneormoreofthe17keyareasinthematrix,whilstalsooperatingtogeneralhighagriculturalstandardsinallotherareas.

A inthematrixbelowindicatesgoodpracticesdemonstratedinthiscasestudy.