Supply Chain Update: Environmental Policies and Domestic Policies Are Significant Influencers

December 3rd 2018 Comments

Silva’s international quality control team continues their dedicated efforts in management of the beginning stages of our supply chain. Here are some highlights of their recent activity:

Silva’s agronomy team in China has been busy with fall harvest and field preparation for our spring crops. Our work in China is spread across eight provinces. We continue to develop strategic partnerships with growers and dehydration locations, currently with over 1,000 acres under our management. Our partnerships follow Silva guidelines for good agricultural practices and long-term sustainability, so our agricultural team spends most of their time with our growers supporting these efforts and ensuring compliance with our established standards.

Over the last two months, our team in China has been working on multiple specific projects—such as verification of enzyme deactivation through the blanching process with our root crops, the reduction of naturally occurring levels of methanol in root crops due to natural degradation of material, as well as foreign material root cause analysis and prevention programs. We have also been bringing our food safety principles to individual partners. As we previously reported, we bring our Chinese supply partners together at least once a year for a food safety and quality workshop. This year we are bringing our workshop to individual partners. This allows for a broader reach for our raw material vendor quality programs, as we can meet with the entire quality and production teams of our partners in their own environment. This also allows Silva, together with our raw-material locations, to develop suitable action plans, addressing any deficiencies in the programs we ask these locations to follow.

A final notable activity in China are the environmental policies that continue to transform the landscape for the dehydration industry. There are continued efforts to reduce the environmental impact for two vital areas in the drying of products: water and energy. Treatment of waste water through a facility-based system is now more common than having no treatment. There is also continued efforts at both national and local levels in China to quickly move away from small scale use of coal as the main energy source. Various efforts are being pursued such as upgrades to more environmentally friendly high capacity coal fueled boilers, new systems using natural gas, and large-scale projects with public production, and distribution of energy sources. Silva fully supports these efforts specific to our supply chain. Our team contributes to sustainable development of the areas where we farm and dry our ingredients, with active involvement from our procurement and technical teams.

Globally, we remain very active, especially considering current U.S. domestic policies that do not favor China as a growing source country. Our procurement team, together with the help of our quality team, is driving a focused agenda of continued supply chain diversification. Silva is currently deepening our cooperation with partners in Uzbekistan, Hungary, Mexico, Chile, Egypt, and Kenya. Some of these projects are currently in very early stages while others are fully developed and an integrated part of our supply chain. Our customers should remain confident that Silva, with our leading position in the market and long history as a high quality ingredient partner, is utilizing all of our resources to provide you with cost competitive solutions to your ingredient needs as the quality of our products and your brand security is our absolute priority.