Vilmorin & Cie - Annual report 2017-2018

ANNUAL REPORT Vilmorin & Cie 107 2017-2018 4 to this market evolution, Vilmorin Jardin has been marketing its first Vilmorin branded plants since spring 2018. 65 varieties of tomatoes, hot peppers, sweet peppers, eggplants, melons, etc., chosen for their ease of cultivation and resistance to disease, were available this launch year. 4.2.2. Ensuring that customers and consumers have accessible, safe and high-quality products Seed, which is Vilmorin & Cie’s core business, is the basis of all plant food production. It is therefore legitimate for the Company to strive, day after day, to adapt to the diverse food needs of consumers around the world. At the same time, offering safe and quality products is one of the group’s priority objectives. To insure a reliable level of traceability, from research to production and distribution, Vilmorin & Cie sets up quality management systems in compliance with the highest European and international standards. These tools are part of a continuous improvement process whose implementation and scope progress each year to achieve operational excellence. 4.2.2.1. Market products that meet the expectations of each customer worldwide Vilmorin & Cie’s objective is to best meet the needs of its farmer and grower customers, regardless of their geographical location and farming system. Vilmorin & Cie’s line-ups must offer seeds adapted to the needs of all forms of agriculture. Working on more than 60 crops, both vegetable and field seeds, the Company contributes to the diversity of production and seeks to offer genetic diversity adapted to the needs of each producer. Vilmorin & Cie works for large farms in Eastern Europe, North and South America, as well as smaller structures in Africa, Asia and the green belts of European cities. Vilmorin & Cie thus endorses the vision of the International Seed Federation (ISF) and pursues the objective of creating “a world in which all farmers have access to high-quality seeds, in order to contribute to sustainable agriculture and food security.” Vilmorin & Cie considers that genetic improvement and varietal creation are the basis for a sustainable intensification of agriculture aimed at producing more with fewer inputs (energy, plant treatment products, fertilizers, water, etc.). Indeed, genetic improvement, borne by the seed, combines a high return on investment for producers with a low impact on the environment. In order to offer varieties adapted to the expectations of its customers, Vilmorin & Cie integrates the needs of producers and the entire agri-food chain from the very beginning of its research programs, thanks to very close and permanent links between breeders* and local teams dedicated to product development or sales. For Vilmorin & Cie, proximity to markets is essential; it is reflected in particular in its organization in Business Units. Vilmorin & Cie is thus developing its presence as close as possible to markets through a network of local structures, either through the acquisition of seed companies already established or through the creation of new entities. For example, Vilmorin & Cie has invested over the past five years in: the acquisition of Tropdicorp (Vietnam, Vegetable Seeds), Seed Asia (Thailand, Field Seeds), Shamrock (United States, Vegetable Seeds) and Genica Research (United States, Vegetable Seeds), the purchase of stakes in SeedCo (East Africa, Field Seeds) and Canterra Seeds (Canada, Field Seeds) and the creation of new joint ventures through Prime SeedCo (East Africa, Vegetable Seeds), Limagrain Cereals Research Canada (Canada, Field Seeds) and Hengji Limagrain Seeds (China, Field Seeds), the creation of new facilities in Kenya, Peru and Jordan. 4.2.2.2. Quality management Internal management systems and external certifications guarantee the quality of the seeds sold by Vilmorin & Cie. In 2017-2018, 98% of the sales of companies with an industrial site were covered by a quality management system and, within the same scope, 85% of the sales benefited from quality certification such as ISO 9001, GSPP, NAL, etc. In addition, Vilmorin & Cie is covered throughout its scope by the “Excellence Through Stewardship (ETS)” certification, which demonstrates the responsible management of all its activities related to GMO* products, from research to distribution, through independent external audits of existing quality management systems. This information is presented in detail in the “Risk Factors” section on page 51. 4.2.3. Accompanying the evolution of different agricultural models for a more sustainable world Agronomic innovation aims to improve agricultural practices through the development of efficient and pragmatic solutions that are easy for farmers to use. By putting innovation at the service of farmers, agriculture will be more environmentally friendly, more productive and in line with societal expectations. Vilmorin & Cie's close relationship with its customers enables it to be attentive to the needs of producers, farmers and growers. In addition to high- performance products, it provides them with agronomic expertise, innovative tools and tailor-made support to enhance the full genetic potential of the seed. 4.2. Proposing innovative and responsible agri-food solutions Social, environmental and societal INFORMATION