Supply Chain
We purchased 27 percent of our resources from diverse businesses in calendar year 2020.
To exemplify our commitment to supply chain sustainability management, we require third-party food safety audits of all of our ingredient suppliers. In addition to the third-party food safety audits, in 2020 we conducted an additional 14 food safety supplemental audits. If suppliers are found to be noncompliant, appropriate action is taken — up to and including termination.
Hormel Foods values the long-standing relationships we have established with our suppliers. In fact, in calendar year 2020 only 5 percent of our purchases were from new suppliers. We are continually looking for ways to assess our current supplier relationships to ensure that environmental/social risks are addressed. In 2018, we completed a high-level water risk assessment of our top suppliers. In addition, we meet with our top suppliers annually to evaluate their initiatives and collaborate on projects to address key issues such as environmental and social risks. We also report our internal results through a third party for our customers.
Supplier Diversity Program
In addition to ensuring our suppliers comply with the food safety standards recognized by the Global Food Safety Initiative (GFSI), we make a concerted effort to give diverse companies such as small, women-owned, minority-owned and veteran-owned businesses the opportunity to supply quality products that meet our company’s growing business needs. As a result of our supplier diversity program, in calendar year 2020 we purchased 27 percent of our resources from diverse businesses (small businesses, women-owned businesses, minority-owned businesses and veteran-owned businesses). This percentage includes independent family-owned hog farms.