Stakeholders and consumers are increasingly interested in the origin and traceability of raw materials. Raisio mainly uses plant-based raw materials purchased close to the company's production plants when possible.
As a significant specialist in grain-based products and animal feeding, Raisio has the desire and opportunity to build sustainable food chain. Responsible purchasing has an important bearing on the social and environmental effects of the raw material supply chain. It also ensures high-quality raw materials.
Transparency and traceability of raw material purchasing as well as responsible production of raw materials are seen as key aspects of responsibility at Raisio. Raisio's snack and confectionery sites have BRC certification requiring the ability to quickly trace the raw materials of products.
Raisio's purchases have social and environmental impacts worldwide. Therefore, Raisio introduced a project in 2015 to unify the ethical practices required from suppliers (Supplier Code of Conduct). In 2015, the ethical guidelines set forth detailed expectations for each supplier concerning, for example, environmental responsibility, work conditions in accordance with international regulations, prohibition of child and forced labour as well as anti-discrimination.
Raisio acquires only a small amount of raw materials, such as spices, from the so called risk countries. The company further reduced its purchases from risk countries during 2015.
Main raw materials
Raisio used almost 400,000,000 kg of raw materials to manufacture its products. All raw materials of Raisio's products are renewable. Grain, rapeseed, soy and sugar accounted for almost 90 per cent of all raw materials used by Raisio in 2015.
Raisio's most important raw material group is grain.
Raisio's most important raw material group is grain, used extensively in foods and in feeds. In Finland, Raisio purchased directly from farmers nearly 90 per cent of the grain used in 2015. Durum wheat used by the UK Cereal & Snack business is acquired mainly from Spain. Raisio acquires its grain mainly in the EU region, where the grain growing is governed by the EU's environmental regulations.
Other raw materials Raisio uses extensively are protein plants used in feeds, such as rapeseed and soy, used particularly in fish feeds. All the soy Raisio uses in its feeds is either RTRS or ProTerra certified soy. Of agricultural raw materials, Raisio also uses sugar in, for example, confectionery and biscuits.
In addition, Raisio has decided the procurement of palm oil and cocoa to require special attention since social and environmental issues related to their production attract wide interest. Palm oil used in Raisio's own branded products account for about one per cent and cocoa for below 0.5 per cent of all raw materials.
All the palm oil used in Raisio's foods has been responsible since 2014. In 2015, 80 per cent of the palm oil used in Raisio's foods was physically traceable (mass balance or segregated) and 20 per cent was Green Palm certified.
By 2018, only UTZ certified cocoa will be used in Raisio's snack products. At the moment, Raisio uses UTZ certified cocoa in the confectionery that the company manufactures for some brand partners.
Raisio makes products for its brand partners and for retailers' private labels, particularly in its confectionery business and UK-based snack sites. Raw materials used in the brand partners' products are procured in accordance with the specifications set by the partners. This is why the certification requirements defined in Raisio's responsibility programme apply to the company's own branded products only.
In fish feeds, Raisio uses fish oil and fish meal whose traceability is carefully ensured. Raisio only purchases fish oil and fish meal in the production of which no endangered species have been used. Thanks to Raisio's Hercules Opti feed innovation, some of the fish oil used in feeds has been replaced by rapeseed oil. Fish oil and fish meal account for about 1.5 per cent of all raw materials used by Raisio.
Main events in 2015
- Special attention is paid to the purchasing responsibility of raw material that Raisio has determined critical. Rapeseed, soy and sugar as well as palm oil and cocoa were determined as critical raw materials. Furthermore, responsible purchasing of grain, Raisio's most important raw material group, is continued.
- About five per cent of all raw materials were within an internationally recognised certification system, such as GreenPalm, RSPO, ProTerra, UTZ or Fairtrade.
- Raisio's businesses in Finland surveyed raw materials that are from the so called risk countries. Raisio transferred its purchasing of raw materials out of high-risk countries.
- Raisio started to prepare its Group-wide responsible purchasing policy. The Supplier Code of Conduct used in the Group's various businesses were reviewed. In 2016, a common Supplier Code of Conduct will be introduced in the Group.
- The use of palm oil was gradually abandoned at two Czech confectionery sites. Earlier, the sites used eleven raw materials containing palm oil. We found a replacement option for all of them.
- The UK confectionery sites abandoned the glazes and polishes containing palm oil.
Objectives for 2016-2018
- 100 per cent responsible purchasing in the company's most important raw materials, i.e. grains, rapeseed, soy and sugar.
- Raisio requires its suppliers to operate in accordance with the principles in the company's Supplier Code of Conduct.
- Suppliers complete the Supplier Self-Assessment Questionnaire at least every three years
- We continue to purchase ProTerra or RTRS certified soy.
- We use GMO-free raw materials.
- We use only responsible palm oil. The responsibility of palm oil used in foods will be improved by transferring to the use of physically traceable palm oil.
- We use only UTZ certified cocoa in our snack products.
- Our Brands Division in its entirety is a Sedex member.
- Reducing of our raw material purchases from high-risk countries.