Sustainable Sugarcane Production - · PDF filecondensed syrup to sugar mills in Rachaburi, ......
Transcript of Sustainable Sugarcane Production - · PDF filecondensed syrup to sugar mills in Rachaburi, ......
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
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
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
Strive for
Leadership
Believe in
the Human
Dignity
Stand Tall in
Fairness
Be
Responsible for Society
Work Philosophy
“Creating Value for Better Life”
Biomass Power
Ethanol
Sugar
Pulp & Paper
Innovation &
Research Center
Liquid Fertilizer Particle Board
Mitr Phol Value Chain
Diversified products of our Value Chain
-Bioplastic -Cosmetics -Chemical -Pharma
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
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
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
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
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
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
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
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
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
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
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
The calculator
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
3.0 The Sustainability journey at Mitr Phol
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)
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
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
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
27
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
Farm internal audit and training
Interview farm workers
Interview the sub- contractor
Farm internal audit and Training
forest map
cane plot map
To demonstrated the sugarcane plot is not located in HCVs area
prepared land rights title
Legal compliance Audit
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
Employee training
Internal audit – Training
“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
34
Training & Workshop - Risk assessment & mitigation plan
Core criteria Risk assessment Work shop (OSHA 18001 standard)
Core criteria
Training PPE, safety & First Aid
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
Bonsucro audit Phukieo 2016
Opening meeting 19/04/2016
1. Overview of Mill activities 2. Internal management control system 3. Legal requirements
Day 1
Day 7 : Farm audit (Worker interview)
interview farm chief
first aid boxes
drinking water interview farm workers
fertilizer and chemical Recycle waste
Day 8-9 : Review of records
Pukieo mill of Mitr Phol
is the First Company in
Thailand to be
BONSCURO Certified
Proud of our Project Success
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
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.
• 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
In May 2016
World over – Bonsucro
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
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
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
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
Key Drivers ② R&D, Technology transfer & Data Management
Capacity building of the farmers
Key Drivers ③ Collaborations & Partnership -FSP
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 )
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
through Successful Sustainable Sugarcane Project
Thank you
Mitr phol is Proud to be part of Sugarcane sustainability in Asia
“Creating Value for Better Life”
Yield advantages in India and China