Sustainable Sugarcane Production - · PDF filecondensed syrup to sugar mills in Rachaburi, ......

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Sustainable Sugarcane Production Dr. Manjunatha S Rao MD (R&D) Guangxi Nanning East Asia Sugar, CHINA Email: [email protected] 29 th September 2016, New Delhi India

Transcript of Sustainable Sugarcane Production - · PDF filecondensed syrup to sugar mills in Rachaburi, ......

Page 1: Sustainable Sugarcane Production - · PDF filecondensed syrup to sugar mills in Rachaburi, ... professionally managed, Sugarcane based diversified business groups 1.0 MITR ... Sustainable

Sustainable Sugarcane Production

Dr. Manjunatha S Rao

MD (R&D) Guangxi Nanning East Asia Sugar, CHINA

Email: [email protected]

29th

September 2016, New Delhi India

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1. Introduction to EAS /Mitr Phol Group

2. Sugarcane Sustainability, Bonsucro : Concepts Certification, Standards

3. Sustainability Journey at Mitr phol

4. Benefits of sustainability

5. New Bonsucro Strategy 2020

6. Key Drivers of success and Way forward

Topics

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Our journey began 60 years ago by producing and trading condensed syrup to sugar mills in Rachaburi, Thailand

One of the largest family owned, professionally managed, Sugarcane based diversified business groups

1.0 MITR PHOL Group

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Strive for

Leadership

Believe in

the Human

Dignity

Stand Tall in

Fairness

Be

Responsible for Society

Work Philosophy

“Creating Value for Better Life”

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Biomass Power

Ethanol

Sugar

Pulp & Paper

Innovation &

Research Center

Liquid Fertilizer Particle Board

Mitr Phol Value Chain

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Diversified products of our Value Chain

-Bioplastic -Cosmetics -Chemical -Pharma

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3 2

6

กลมน ำตำลมตรผล

Supanburi Singburi

Chaiyaphum Khon Khan

Kalasin Laos

Maesod

Angkor East-West Economic Corridors

Loei

Mitr Phol in Thailand & Laos

Under Investigation

Thailand Output: 2 m.tons a year

Laos Output: 60,000 tons a year

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East Asia Sugar Group, Guangxi China

China Output: 1.3 m.tons a year

• 6 mills with milling 80,000 TCD • R&D, refinery, Bioenergy &

Fertilizer units. • Stake in SCG Logistics & • Stake in Angel, yeast company

Sustainable Sugarcane Production & Processing Policy

We, at EAS are committed to adhere to and adopt sustainable sugarcane production and processing practices. The Policy will

address the upliftment of the Sugarcane Farming Community and the environment where we operate with special reference to

the social, economic and environmental aspects

We pledge to:

Obey the Chinese law.

Manage input, production and process efficiencies to enhance sustainability.

Actively manage biodiversity and ecosystem in which we operate

We will effectively communicate adoption of sustainable sugarcane cultivation and processing practices to enpower our

sugarcane farmers, employees and customers. We will strive to continually improve and sustain excellence in Sustainable

Sugarcane Production & Processing systems and Programs with measurable objectives and targets.

Jarueg Greethawee Chusak Vongkusolkit

President CEO

1993

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Mitr phol in Australia

Australia Output: 0.5 m. tons a year

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MITR PHOL Group at a Glance

- 4th Sugar producer in the world : 4.3 Million Tons / Year - 2nd Sugar Producer in China : 1.3 Million Tons / Year - 1st Bio Power Generation in Asia: 500 MW / Year - 1st Ethanol Producer in ASEAN: 380 Million Litre / Year - 1st Wood Substitution in Thailand: (Particle Board/MDF)

Sugar Business - 6 Mills in Thailand - 7 Mills in China - 1 Mill in Laos - 4 Mills in Australia

Bio Power Business - 6 plants in Thailand - 2 plant in China - 1 plant in Laos

Ethanol Business - 3 plants in Thailand - 1 J/V plant in Mae

Sod with Padaeng and Thai Oil

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2.0 Sugarcane Sustainability

SUGARCANE (Food, Fiber and Fuel)

• Biologically, Sugarcane, a C4 plant is one of the most efficient and highest biomass producing crop.

• Geographically, It has a large global reach and cultivated in more than 100 countries across developed and developing countries and many in rural communities covering small holder farmers

• Economically, the by products or the value added products of Sugarcane (ethanol, energy, bio plastics, bio chemicals, functional foods, particle boards, paper etc.,) have played a major role in diversification.

• Socially, sugarcane and its value chain creates employment,

• Commercially, a most important traded agricultural commodity

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Diagram after Adams, W. M. (2006). “The Future of Sustainability: Re-thinking Environment and Development in the 21st Century”.

Social impact

Economic success

Environmental Impact

Sustainability

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Bonsucro is:

A multi-stakeholder organisation

which

fosters the sustainability of the sugarcane sector

through

a metric-based certification scheme

and

by supporting continuous improvement for members.

What is Bonsucro?

If you don’t measure it you can’t Manage it

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The Production Standard applies to the mill and its sugarcane-supplying areas.

1

Obey the law

2

Respect human rights & labour standards

3

Manage input, production & processi efficiencies to

enhance sustainability

4

Actively manage biodiversity and

ecosystem services

5

Continuously improve key areas of the business

Production Standards The Standard aims to promote measureable standards in key environmental & social impacts of sugarcane production & processing while recognizing the need for economic viability

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Principle CRITERIA INDICATOR

P 1. Obey the Law 1 1

2 3

P 2. Respect Human Rights and Labour Standards

1 4

2 7

3 4

4 1

P 3. Manage Input, Production & Processing Efficiencies to Enhance Sustainability

1 5

2 3

P 4. Actively Manage Biodiversity & Ecosystem Services

1 6

P 5. Continuously Improve Key Areas of the Business

1 1

2 5

3 2

4 3

5 3

6 1

7 1

8 2

9 1

5 18 53

Bonsucro Production Standard

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Principle CRITERIA INDICATOR Standard

P 1. Obey the Law

1.1 To comply 1.1.1 national laws and international conventions

Yes

1.2 To demonstrate clear title to land 1.2.1 The right to use the land Yes

P 2. Respect

Human Rights and Labour Standards

2.1 To comply child labour, forced labour, discrimination and freedom of association and the right to collective bargaining

2.1.1 Minimum age of workers 18/15 hazard/Non

2.1.2 Absence of forced labour Ye s

2.1.4 right to form & join trade unions Ye s

2.3 safe and healthy working

2.3.1 Lost time accident <45 / million hrs

2.3.2 health and safety risks mitigation of risk

Ye s

2.3.3 Appropriate protective equipment Ye s 2.3.5 Availability safe drinking water Yes

Production Standard Simplified

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Principle CRITERIA INDICATOR Standard

P 3. Manage Input,

Production and Processing

Efficiencies to Enhance

Sustainability

3.1 To monitor efficiency 3.1.1 Sugarcane yield Irr-85 Supli-65 Rainfed 45/tc/ha /y

3.2 To monitor global warming emissions

3.2.1 Global warming burden < 40 kg CO2eq/t sugar

P 4. Actively Manage Biodiversity and

Ecosystem Services

4.1 To assess impacts of sugarcane enterprises on

biodiversity and ecosystems services

4.1.2 % of areas HCV- January 2008

0%

4.1.3 Existence EIMP (Env. Management).

>90

4.1.5 Fertilizer as per soil or leaf analysis

Yes

4.1.7 Herbicides & pesticides per hectare

< 5 kg ai/ha/y

Production Standard Simplified

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Principle CRITERIA INDICATOR Standard

P 5. Continuously Improve

Key Areas of the

Business

5.1 training workers 5.1.1 Training expense / worker > 1%

5.2 improve soil &water 5.2.1 water per unit of sugar

Farm < 130 Mill, <20 for sugar only

3 % Ground cover crop residues >20 %

5.2.4 Soil mechanically tilled (% area cane)

<20 %

5.3 Improve quality of sugarcane and products from the sugar mill.

5.3.1 recoverable sugar content of cane

> 10%

5.4 To promote energy efficiency 5.4.2 Energy used in cane transport <50 MJ/t cane

5.6 To foster RD&E 5.6.1 RD&E cost % of sales >0.5 %

5.9 promote economic sustainability.

5.9.1 Value added / tonne cane > 2 $/t cane

Production Standard Simplified

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The calculator

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Why Bonsucro or Sustainability Certification

1. Keeping in view the Global warming, sustainable cultivation of crops has been recognized by many organizations in many crops.

2. In sugar, a number of institutions like Nestle, Unilever, Coke, Danone, Mars, Pepsi, Coke, Mondelez, Kellogg’s, Associated British Foods, plc., Bacardi and Ferrero have committed to sourcing sustainable sugar by 2020 (in many 100 % )

3. This certification gives the competitive edge in producing sustainable sugar.

4. Till 2020, we hope to supply sustainably Certified sugar and improve our competitive edge

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3.0 The Sustainability journey at Mitr Phol

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Sustainability initiatives at Mitr phol

1. Establishment of Research and Development for cane varieties, production technology, disease and pest management and improved productivity (20 years ago)

2. Farmer training & Cane Extension for technology transfer

3. Creation of SIMS (Sugarcane Information Management system) for

data management.

4. Quality standards (ISO Food safety etc)

5. Production and distribution of bio control agents

6. Soil laboratory to test the soil and need based fertilizer

7. Diversification and value addition continuously

8. CSR activates to support our farmers (since inception)

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Bonsucro Preparation

Farm Mill Chain of Custody

1. 100 % Core criteria

2. 80-100 % individual indicators

Company owned

farm area

MPPK Pacific sugar

Unit of Certification : MPPK

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system management

GMP Factory law compliance

Quality management system

ISO 9001 FSSC 22000 ISO/IEC 17025 HALAL KOSHER

Environment/safety

ISO 14001 ISO 18001 TLS 8001

Sustainability

CSR Customers requirement standard

BONSUCRO

1.0

2.0

3.0

4.0

Management standards

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Farm preparation for Bonsucro Certification

Legal

compliance

Land use

change

evaluation

Data

gathering

Action

plan and

investment

Internal

audit

External

audit

2

3

4

5

6

7 Initial

engagement

1

Pre- survey cane database/Identifying Gaps

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Internal pre-assessment

OUTPUT SUMMARY : Agriculture 2556/57 2557/58 2558/2559

Compliance with core criteria: NOT COMPLIANT NOT COMPLIANT COMPLIANT

Individual indicator compliance: 73.20% NOT COMPLIANT 76.92% NOT COMPLIANT 97.37 % COMPLIANT

Result : NOT COMPLIANT NOT COMPLIANT COMPLIANT

Started MitrPhol ModernFarm

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Farm internal audit and training

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Interview farm workers

Interview the sub- contractor

Farm internal audit and Training

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forest map

cane plot map

To demonstrated the sugarcane plot is not located in HCVs area

prepared land rights title

Legal compliance Audit

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Internal audit - labor law compliance

1. Age of workers

2. Work hours

3. Labour wage

4. work contract

Core criteria

Labour standard

Labour policy and Worker benefits

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Employee training

Internal audit – Training

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“EIMP” Training and workshop

Core criteria Issues of Environmental Impact and Management Plan; EIMP

1. Ecosystems

2 Biodiversity

3 Soil

4 Water

5 Air

6 Noise

7 Burnt cane

8 Climate change

9 Chemicals

10 Fertilizers

EIMP Work shop ตามหลก ISO 18001

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Training & Workshop - Risk assessment & mitigation plan

Core criteria Risk assessment Work shop (OSHA 18001 standard)

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Core criteria

Training PPE, safety & First Aid

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Fertilzer and chemical use

1. Soil sampling and analyzed

2. Soil management and fertilizer recommendation

3. Fertilizer management by recommendation

4. Produced cane with the MitrPhol ModernFarm principles

Core criteria

Water potability Analysis

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Bonsucro audit Phukieo 2016

Opening meeting 19/04/2016

1. Overview of Mill activities 2. Internal management control system 3. Legal requirements

Day 1

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Day 7 : Farm audit (Worker interview)

interview farm chief

first aid boxes

drinking water interview farm workers

fertilizer and chemical Recycle waste

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Day 8-9 : Review of records

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Pukieo mill of Mitr Phol

is the First Company in

Thailand to be

BONSCURO Certified

Proud of our Project Success

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4.0 Benefits - Social

• Empowering the farmers /employees– • No bonded labour / child labour at the farm level. • Minimum wages and working time at the farm/mill ensured. • Potable water for farm labourers through farmers • Safe working environment for farm labourers and factory

employees – First Aid boxes, training on First Aid, use of PPEs. • Grievances Committee to address the grievances of Contract

Labour and Women labour, dispute resolution mechanisms. • Reduced number of accidents

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Benefits – Environment

In Thailand, during 2000, Borer outbreak Yield loss (320,000 ton) worth 6.4 m$

No burning of Cane and Trash. Saving of Water through Drip, Trash Shredding, and Inter

cropping which also reduced the weeds and improves soil fertility . Bio Control Agents No pesticide, increased yields, reduced losses . Judicious use of fertilizer based on Soil test :. Optimum use of Fuel, Water & Power at factory and farm level. Recycling of water from Cane, Press Mud, byproducts.

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• Yield Improvements (Quality) . • Improved yield and recovery –better income to farmers and millers. • Conversion of Press Mud to value added Bio Compost for supply to

farmers to increase Organic Carbon content. • Process Efficiencies for new technologies in the Mill • Increased farm income due to optimum use of fertilizer and input • Reduced losses by use of bio control agents higher returns

Benefits - Economic

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In May 2016

World over – Bonsucro

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Our contribution to the world

At present, there are 8 countries including India (EID Parry) & Thailand (Mitr phol) have Certified mills and are part of the 4.43% of global sugarcane under sustainable cultivation

Production certificates 56

Hectares of certified surface sugarcane 1,052,576.08

Percentage global sugarcane surface 4.43%

Tonnes of certified sugarcane production 64,328,493

Percentage global sugarcane production 3.87%

Tonnes of certified sugar produced 4,571,662

Percentage of total sugar produced 2.92%

Cubic metres of certified ethanol produced 2,835,219

Certified production in BRA, AUS, HND, IND, GTM, THA, DOM

To search

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Bonsucro is a industry change platform. Bonsucro manages the most credible global standard for sustainable sugarcane production. Bonsucro uses the standard to

INFORM Best Practices : An active network of members and experts IMPROVE Performance: Driving performance improvement INSPIRE Change : Fostering partnerships and collaboration

5.0 New Bonsucro Strategy 2020 Inform | Improve | Inspire

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Strategy 2020 –Bonsucro will focus on

1. Assured Production: Global programs and implementation partnerships accelerate certification for producers (Four global programs support producers, partners & invest in collaborations )

2. Assured Supply Chains: A pre-competitive space for buyers and traders to promote and develop assured supply chains (increased assurance and increased investment)

3. Assured Origins: Support the change priorities for industry, government and civil society in cane growing regions(Develop local programs, Identify global resources, technology and investment to support these efforts

To accelerate change focus on : Accelerated certification, Scheme endorsements, productivity & professionalism and small holder Impact

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6.0 Key Drivers ① Leadership, commitment & Resources

• The commitment of the Management plays a critical factor and leadership push which is required to work out strategy.

• The ability to foresee the advantages of Sustainability • Dedicated resource allocation as an investment for future • Project Management (Core Committee and Working Committee to

work out the strategy). • Sustainability and system changes to meet the requirements

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Key Drivers ② R&D, Technology transfer & Data Management

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Capacity building of the farmers

Key Drivers ③ Collaborations & Partnership -FSP

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④ Way Forward / Road map for India

Formation of a Consortium/Association • To take this (Success) expand to other mills in India. • Bringing together all stake holders including policy makers, millers,

donors, civic societies, R&D centers, farmers and end users to set up a road map

• Coordinate with the Asia regional Director of Bonsucro • Possibly exchange ideas with regional players

This is the right Forum

ISMA

Indian Sustainable Sugar Consortium (ISSC or ISSA )

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Sustainability Road map at Mitr Phol (in Thailand & China)

year area

(Hectares)

Number of certificates

Certified Sugarcane volume (ton)

Certified Sugar Volume (ton)

% of total sugarcane

2016 1800 1 71,017 7,620 0.39

2017 9200 2 (2*) 573,000 42,975 3.16

2018 21160 3 (1*) 1,323,000 99,225 7.30

2019 39,000 4 (1*) 2,433,000 182,475 13.42

2020 60,000 5 (1*) 3,753,000 281,475 20.69

2021 83,500 6 5,735,000 430,125 31.62

*Additional EAS sugar mills in China

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through Successful Sustainable Sugarcane Project

Thank you

Mitr phol is Proud to be part of Sugarcane sustainability in Asia

“Creating Value for Better Life”

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Yield advantages in India and China