Seasoning the supply chain correctly: sustainability in the spice industry

Why sustainability is so important in the spice industry.

Whether you are a sustainability manager in the food industry or simply appreciate good food, you know that the right ingredients make all the difference. However, this should not only apply to the products, but also to the supply chains. After all, the spice industry is confronted with a variety of environmental and social challenges. This is where the project “Sustainability clustering of spices” comes in, which was carried out by the ZNU - Center for Sustainable Leadership at Witten/Herdecke University under the direction of Julius Wenzig. The project was supported by Dr. Ulrike Eberle as Senior Advisor and was funded by the Adalbert Raps Foundation. The aim of the project was to identify ways and strategies for more sustainable supply chains in the spice sector and to develop practical solutions for SMEs. This resulted in two studies and a 6-part workshop format, which you can find in our media library.

Our findings: What really constitutes sustainable supply chain management

In the project, we examined existing initiatives and analyzed the specific challenges of the spice industry. This showed that sustainability labels often do not have the hoped-for positive impact on the conditions of local producers. Many studies show that the differences between certified and non-certified products in social, ecological and economic aspects are small. Although organic labels have positive effects on biodiversity and energy consumption, they alone are not enough to make the entire supply chain sustainable. Although they have a positive effect on organic substances and energy requirements, the effect on eutrophication and acidification potential, land consumption and climate change remains limited. So what can you do to increase sustainability in your spice supply chain?

Direct cooperation with suppliers: Don't rely on certificates and labels alone. Actively approach your suppliers and develop sustainable solutions together. A good example is Nedspice, which has implemented training programs in India and Vietnam to reduce pesticide use and improve soil quality. The key here is closed-loop supply chain management, which focuses on direct partnerships and full transparency along the entire supply chain. This is an evolution from open supply chain management, where collaboration often takes place with the most important first tier suppliers. It is also often limited to a supplier assessment. Open supply chain management only leads to greater sustainability if the most important suppliers have a differentiated and effective sustainability management system and, in turn, involve their suppliers in the development (Wilhelm et al., 2016).

Participation in multi-stakeholder initiatives: Initiatives such as the “Sustainable Spices Initiative (SSI)” and the “National Sustainable Spice Program (NSSP)” in India offer valuable platforms for developing sustainable solutions together with other stakeholders. Here you can not only benefit from the experience of others, but also pool your efforts and act more effectively.

Implement a systematic sustainability management system: The ZNU standard “Sustainable Business” offers a structured way to achieve your sustainability goals. Companies such as Ritter Sport use this externally certifiable management process to make their supply chains more sustainable and at the same time more competitive. Also make sure that your suppliers have established a functioning sustainability management system.

How we pack spices into clusters and why this is important for you.

In the second step of our project, we categorized spices into different clusters according to their specific challenges. What does that mean for you? Quite simply, each spice comes with its own sustainability issues, so you need tailored solutions.

Nutmeg - sustainability in agroforestry Let's take nutmeg. It is mainly grown in monocultures, which increases the use of fertilizers and pesticides. But there is another way: agroforestry, in which nutmeg is grown together with other plants, promotes biodiversity and reduces the need for chemicals. Sounds complicated? But it's not. With the right partners and a clear strategy, you can also implement such approaches in your supply chain.

Pepper - the black gold with sustainability problems Pepper, the “black gold”, is an indispensable ingredient in every kitchen. But did you know that pepper cultivation is often associated with considerable environmental problems? High pesticide use and water shortages are just two of the challenges. But there are solutions: Companies we have studied are using integrated pest management and water-saving irrigation techniques - and with great success. These measures could also make the difference for your company.

Identifying the hot spots: Where is the fire really burning in the spice industry?

In our project, we not only analyzed the existing initiatives and labels, but also took a detailed look at the so-called sustainability hot spots in the spice industry. These hot spots are critical points in the value chain that harbor significant environmental or social risks. By identifying these hot spots, companies can take more targeted and effective measures to make their supply chains more sustainable.

For example, the analysis showed that the use of pesticides in Capsicum production, particularly in China and India, is a serious problem. These pesticides can have a negative impact on the environment and the health of local people. In pepper production in Vietnam, India and Malaysia, the improper use of fertilizers is a major hot spot that can lead to the leaching of nutrients and pollution of water bodies.

Workshops: Learning how to do it

We know that theory is all well and good, but it also needs to be put into practice. That's why, together with the Adalbert Raps Foundation, we have developed a series of workshops that contain concrete options for action and industry experience on how to make your supply chain management of spices and other plant-based raw materials more sustainable.

Topics of the workshops:

Land and soil (from 25.09.2023) - What does sustainable land and soil use look like and how can land use changes and deforestation be avoided?

Water (from 02.11.2023) - How can water use be organized according to availability and how can water quality be maintained?

Pollution (from 12.12.2023) - Which inputs along the supply chains pollute the environment and how can these be reduced and avoided?

Climate (dated 30.01.2024) - Which processes along the supply chain have a negative impact on the climate and what are effective approaches and measures to reduce greenhouse gases?

Human rights (from 27.02.2024) - How can human rights be effectively safeguarded and where do violations occur along the supply chain?

Supply chain management (from 14.03.2024) - How can companies effectively influence their supply chains and work together with their suppliers?