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Wales Food & Drink Conference

Cynhadledd Bwyd a Diod Cymru

#FoodDrinkConf

Welcome

Peter DaviesSustainable Futures Commissioner

#FoodDrinkConf

WelcomeHousekeeping

Fire Alarm

Phones

Facilities

Refreshments

Discuss, discuss, discuss

Energy Workshop

Food & Drink 2025

#FoodDrinkConf

Food & Drink 2025 -The Challenge

Richard SwannellDirector, Sustainable Food Systems

#FoodDrinkConf

Aspiration

Megatrends

Increased demand 50% by 2030 (IEA)

Energy

WaterIncreased demand

30% by 2030

(IFPRI)

FoodIncreased demand

50% by 2030

(FAO)

Climate Change

A ‘Perfect Storm’

Supply chain problem

Resource scarcity could become the new normal

Source: WWF-UK – UK Water Footprint – The impact of the UK’s food and fibre consumption on global water resources (August 2008)

Resource price instability

European manufacturing firms spend on average 40% of their costs on raw materials

European manufacturing firms spend on average 40% of their costs on raw materials

Source: Europe Innova (2012) Guide to resource efficiency in manufacturing

Raw materials are a key input

Approach

How?

re-inventing how we design, produce and sell products,

re-thinking how we use and consume products, and

re-defining what is possible through recycling and re-use.

Link to policy in Wales

Delivering Growth: An Action Plan for the Food and Drink Industry 2014 -2020

Innovation Wales The Wales We Want Towards Zero Waste – One

Wales: One Planet

The need to achieve sustainable economic growth forthe food and drink sector is the impetus behind all theactions listed…which are designed to be bothambitious and achievable. Supply chain collaborationand better communication will be supported and amore integrated supply chain which is resilient anduses resources efficiently will be an important goal.Government will need to make sure that thenecessary links between agriculture and food arerobust. This integration will be expanded morewidely. The need to improve health and nutrition forour people and to ensure that all have reliable accessto the food they need has also been central to thedevelopment of these actions. The actions identifiedsupport the farming, fishing, processing and retailersectors to create value for the consumer who needsconfidence in the integrity of the food system.

Action Plan Objectives

(Section 5.2)

Progress

2.9 Mt total waste reduced 8.2 Mt CO2e > £4 billion savings Courtauld Commitment 3 (CC3)

targeting 1.1 Mt more

Reduced avoidable household food waste by 21%

Conclusions

Challenges & Opportunities Resource efficient & circular economy Innovation, collaboration & implementation Wales well placed

A Step change is needed

Case Study – Princes Gate Smart & Efficient Investments

Endaf Edwards – Operations Director

#FoodDrinkConf

Overview 2011 Princes Gate Water bottled 42 million bottles utilizing

Diesel generators for power and buying in all pre-blown bottles

The power requirements in 2011 were in the region of 2,000,000kWh/Year (Diesel, Single Phase Electricity & LPG)

The estimated Carbon Foot Print for the 12 month period 1st

Jan 2010 to 1st Jan 2011 was 1,943t Co₂e and this equated to 75kg CO₂e per m³ of water production per annum – in relation to the size of business this seemed an awfully large figure and one which deserved some attention

2011 we entered into a partnership with The Carbon Trust Wales who independently checked our data and made recommendations for our strategy moving forward. Recommendations at that time included:– New LED lighting schemes– Variable Speed Oil Free Low Pressure Air Systems– Blow mould bottles on-site– Solar PV Array– Wind Turbines to assist with the power requirements of the site– 3 Phase Grid connection

We also commenced a ‘light weighting’ program for our bottles with the intention of using less plastic

Overview

4 Years Later We believe we have harnessed the natural power around our

site through our first project of erecting a Solar PV Array on our roof and secondly erecting two 500kW Wind Turbines

Simultaneously changing the neck finish on our bottles and moving to in-house blowing we have reduced the plastic content of our bottles by over 20% and we have data to prove that we have reduced our articulated vehicle movements into the factory by a whopping 900 vehicles in 2011 and approximately 1500 in 2014!

All lighting throughout our factory is now of an LED Energy Efficient Status

4 Years Later Low Pressure Air is delivered through new Variable Speed Oil

Free Compressors

We have moved the site to a 3 Phase grid connection which is also tied in to our Wind Turbine generation

We have increased our on-site recycling schemes and we have on-site compactors for plastic & cardboard

Results We have now reduced our Carbon Foot Print by a staggering

1,600tCO₂e – which in effect has rendered us a ‘Carbon Neutral Site’

Power requirements in the first two years actually dropped by 800,000kwh/year –

As a site we are now actually generating approximately 4,000,000kWh per annum

Results Recently created another 8 positions since we started this

journey in 2011

Due to our position in the industry and the savings we have made we continue to re-invest on our site and are currently installing ‘the most efficient & state of the art’ bottling line in the UK

We have re-designed our bottles and are changing the ‘neck’ finish for the 2nd time in 2 years – thus reducing more plastic in the bottle and caps

Started as 1810’neck’ currently 1881’neck’ will be 29/25’neck’

Leading the Way In our industry we sell over 14.5 billion litres of soft drinks

every year and 2.4 billion litres of this is bottled water - in the UK alone. As a nation we now drink more bottled water than fruit juices, wine or spirits!

We truly believe as a brand we are leading the way but are striving to get others to follow because the potential impact we could have as an industry is huge.

The positive impacts of our story has paid dividends for our environment but more importantly it has allowed us to increase our sustainability by reducing most of our costs and we believe by protecting the vital natural resources on which our industry relies, we also protect our future for the long term.

Resource efficiency from a retail perspective

Sara Jones Head of Policy & External Affairs -Welsh Retail Consortium

#FoodDrinkConf

What is the WRC?

• Lead trade association for Welsh retail industry

• Launched June 2012• Representing wide range of retailers.• Sister organisations – BRC, SRC, NIRC

What I will cover

• Focus on grocery retail• A Better Retailing Climate• Retail food waste figure• Courtauld Commitments• Waste and food waste• Other initiatives

A Better Retailing Climate• Voluntary initiative setting

out the collective environmental ambitions of retail.

• Started in 2008, initial targets ended in 2013 – all met.

• 2014 report announced a new set of targets and commitments to 2020. Progress report published January 2015.

ABRC – progress since 2005

Retail food waste figure• Published Jan 2015• 7 supermarkets (87.3%

of UK grocery retail)• 200,000 tonnes of food

waste in 2013, 1.3% of the UK total (15 mt)

• Need to work in partnership with supply chain + households.

Waste & food waste initiatives (1)

• Courtauld Commitment• Zero Waste to Landfill• Love food hate waste work with WRAP, including 10

Cities campaign in Cardiff (Sainsbury’s)• Development of food leftovers apps• Waste profiles for frequently purchased products – to

help understand where waste occurs and prioritise actions.

• Stores powered by food waste

Waste & food waste initiatives (2)

• Processes to ensure redistribution of surplus food.• Innovative packaging and storage advice to keep

food fresher for longer at home (e.g. Fresher for longer pilot at Co-operative food store in Porthcawl).

• Seasonal consumer recycling initiatives • Partnerships to enable the refurbishing or recycling

appliances and furniture.• Segregation of waste at store level before

backhauling it to distribution depots.

Other initiatives - absolute carbon• ABRC target: 25% reduction

in absolute carbon emissions by 2020 (against 2005 levels).

• Retailers are half way there – 13% reduction in absolute carbon emissions from stores and transport since 2005.

• 25-in-5 campaign

Sustainable production & consumption

• Recognition that main environmental impacts result from the production and consumption of products rather than at retail level.

• WRAP product sustainability forum and pathfinder projects – e.g. Co-op Food potato project and Boots/INCPEN unintended product residue.

• Supply chain water risk analysis• WRAP’s Sustainable Clothing Action Plan (SCAP)

and Electricals Sustainable Action Plan (esap)

Thank you!

• A Better Retailing Climate can be downloaded from brc.org.uk

• For more detailed information contact Alice Ellison (Environment Policy Adviser) [email protected]

[email protected]

Providing the focus for action and a vision for the future of food

Mark BarthelSpecial Advisor – Product Sustainability, WRAP

#FoodDrinkConf

Research & Evidence

Filling gaps in knowledge & driving action

Life Cycle Hotspots

Existing Initiatives

Key actors

Pathfinder activityReal world product improvement programmes (pilots, working groups, industry implementation)

Tackling hotspotsFocus on product category, cross-cutting and product system hotspots

Driving Collaborative Change Knowledge Base

On-line data & resourcesPriority ProductsFocusing on the products that matter

Measurement & Reporting

Building industry skills, capacity and capability on product sustainability

Work in international value chains supported by a growing international network of product sustainability initiatives

(See: www.product-sustainability.net)

Product & food chain sustainability focus: Courtauld 2025

Bananas Beef Bread & rolls Breakfast CerealsApples

ButterCakes, Pastries etc. Canned Meat Cat/dog food Cheese

CoffeeChocolate Deli-food

Dishwashing Products

Eggs

Lamb

Onions Pizza Pork Potato chips Potatoes Poultry

Pre-packed Sandwiches Ready Meals Rice Tea

Tomatoes

Introduction OpportunitiesHotspots HelpResources

Feedback

Top 51 products

Bath & Shower products Beer Biscuits

Canned Seafood

Canned Vegetables Carbonates

Cider & Perry Deodorant Dilutables

Dishwashing Products

Fish & seafood

Frozen vegetables

General cleaning products

Ice-cream & frozen desserts Juices

Laundry detergent

Milk & cream

Margarine Nappies

Processed Snacks Spirits

Sugar Confectionary

Toilet & kitchen Rolls

Wine Yogurts

Extends to top 50 products

Potatoes4th largest sales volume by product mass

Over 1,925 M tonnes a year

Potatoes4th largest sales volume by product mass

Over 1,925 M tonnes a year

Inputs & impactsAlmost 0.52MtCO2e GHGs

> 4177GJ energy input

> 142 065 million litres water footprint

Inputs & impactsAlmost 0.52MtCO2e GHGs

> 4177GJ energy input

> 142 065 million litres water footprint

Hotspots includeWhole Chain - Waste

Distribution - Materials

Agriculture - Water

Agriculture – GHG emissions

Hotspots includeWhole Chain - Waste

Distribution - Materials

Agriculture - Water

Agriculture – GHG emissions

Guidance materials10 highly relevant Reduction Opportunities.

5 Action Plans

5 Topic Guides

Guidance materials10 highly relevant Reduction Opportunities.

5 Action Plans

5 Topic Guides

Hotspots – Potatoes

Main outdoor crop in the UK - around 50% needing irrigation in summer (4,18).

Potatoes are commonly wasted in home; about 770,000t per year (14). Grading and packing losses can reach rates of up to 25% (14), which results in potatoes going to secondary markets for animal feed (19).

Energy for machinery and irrigation, fertiliser & pesticide use are a key source of emissions (3, 4, 10).

• The hotspots, left, can be used to target efforts –however actual performance will be dependent on the specifics of your supply chain.

• Numbers in brackets denote numbered reference in references slide.

• Evidence level: High - Well studied product type, good understanding of key issues.

• 6th largest food commodity globally, with the UK being 12th largest potato producer (4).

• Accounts for c. 45% - 55% of total water used irrigation. Main growing region - Eastern England –under water stress in dry summers (4).

• Some key variables that affect performance are explored on a later slide.

Notes

Notable primary & secondary hotspots

Depending on length of storage, impacts of climate control can be significant (5).

Different consumer cooking methods can double the life cycle energy use (1). Up to 75% of GHG emissions (9).

Peat sometimes used for conservation during long distance transport of imported potatoes (e.g. new potatoes) (9).

Introduction OpportunitiesHotspots Resources Help

Submit feedback

Reducing waste reduces resource consumption at all stages upstream

Variables affecting potato impactsCooking methodsPotatoes are low impact, so cooking is a major contributor to the footprint of potatoes. For oven baked potatoes it’s around 70% of the impact; 55% for everyday potatoes and 40% for new potatoes

Providing tips to reduce cooking times could reduce the consumer impact considerably,

this could include microwave cooking instructions on packs (1), cutting potatoes smaller anduse of a metal skewer to reduce cooking time.

Growing The yield of potatoes can vary significantly based on potato variety. For example, the yield per hectare for new potatoes is considerably lower than that of other varieties. Lower yield varieties will usually have a higher impact per kilogram of product than old

potatoes (13).The use of Nitrogen fertiliser during production is a significant source of GHG impacts in potato growing (5).

However, since the 1980’s the potato industry has significantly reduced the amounts of NPK fertilisers used by at least a third (Potatoes: A low impact crop?(ADAS 2011/12)). Potato production uses 45% - 55% of all water used to irrigate crops in the UK (4). The energy use required to deliver the irrigated water varies (from 1.6-3.5 kWh/mm water/ha) depending on delivery method (25).

WastePotatoes are among the most wasted foodstuffs in the UK – up to 40% of potatoes grown are not used (12). The amount of waste in the supply chain is low compared to that arising from households and generally the level of waste at any particular stage in the supply chain is around 1% to 3% (26). One major cause of this wastage is inappropriate storage methods causing unnecessary spoilage of the potatoes. Other causes are consumer demand for non-blemished potatoes, poor use of ‘leftovers’, field loss, mechanised harvest damage, weather damage (e.g. Maris Piper wet rot), incorrect in-store handling (26).

Local vs. imported potatoesImported potatoes have about twice the GHG impact per kg of their

local equivalents. This is mainly due to the need for chilled storage, transportation also contributes to this impact (13). In the UK, usually only new potatoes are imported, often out of season, but these make up a

minority of potato consumption in the UK (26).

StorageSome studies show storage as a hotspot for maincrop

potatoes which must be held in cold storage for up to half a year from harvest in Autumn through to the next cropping season. The need to store potatoes longer and to

maintain quality without the use of chemicals requires energy (24) and this can account for 17% of pre-consumer impacts (5). The industry is responding by innovative store improvements e.g. installation of inverters, photovoltaics and ground source refrigeration


Submit feedback


Submit feedback

Precision agricultureProduct sustainability opportunityA common definition of precision agriculture (PA) is the application of inputs at the right time, in the right place, in the right amount, from the right source, in the right manner (1). Key to PA is the realisation that while on a 1000ha farm in the U.S. PA might involve sophisticated informational systems and a suite of autopilots, PA on a 0.5ha farm in India may simply involve a team of highly skilled workers, and improved knowledge transfer. One report suggests that a 20% improvement in nutrient use efficiency by 2020 would reduce use of nitrogen fertilizer by 20 million tonnes annually. This in turn could produce a net saving worth around £110 billion per annum (4).

Other key resources & initiatives1. Precision agriculture: challenges and opportunities in a flat world – proceedings from the 19th World Congress of Soil Science2. The National Centre for Precision Farming – research platform for PA run by Harper Adams University3. Potential for information technologies to improve decision making – summary of PA technologies for the livestock sector4. Our Nutrient World – report framing the challenge of producing more food with less nutrient input5. Further precision farming links provided by Harper Adams University, including HGCA precision farming advice6. Centre for Precision Agriculture – UK forum, including case studies

Case study – Microdosing in Africa Case study – PepsiCo UK & i-cropPepsiCo UK have invested in i-cropand Cool Farm Tool as part of their 50 in 5 campaign.

By 2011, 70 of PepsiCo’s British suppliers had adopted the technologies. This has led to growers achieving a 7% reduction in carbon output and a 10% drop in water use.

Research carried out for the International Crops Research Institute for the Semi-Arid Tropics has led to the introduction of microdosing applied directly to plants using bottlecaps for measurement. This simple technique to apply the right amount of fertilizer has led to increases in yield of 44-120%, as well as income increases of 50-130%.

Hotspot


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Submit feedback

Reducing consumer food wasteProduct sustainability opportunityIn the UK, 7.2 million tonnes of food and drink is wasted every year, 4.4 million of which is avoidable. The average UK household currently spends £480 on wasted food every year, totalling £12 billion overall. WRAP reported a significant reduction between 2006/7 and 2010 (13%) (1) but a range of opportunities exist for retailers and manufacturers to help further reduce this waste, and deliver significant financial (for customers) and environmental benefits.

Other key resources & initiatives1. Household food waste resource listing – summary of WRAP partner resources to use to reduce household food and drink waste 2. Courtauld Commitments Phase Two Case Studies November 2012 – WRAP report providing a list of useful case studies3. Love Food Hate Waste partners site – wide range of resources available for partners to use free of charge4. New estimates for household food and drink waste in the UK – WRAP report providing food waste estimates for 2011 5. What retailers and brands are doing to help you reduce food waste – Love Food Hate Waste report

Raising awareness and enabling behaviour change

Case studies: Changes to productsChanges to products, packaging and labelling makes it easier for consumers to buy the right amount and use what they buy.• M&S were the first to introduce ‘freeze

before the date’ labelling, replacing ‘freeze on day of purchase’, giving consumers more flexibility to freeze what they may not eat in time.

• ‘Display until’ dates are being removed by many retailers and brands, reducing confusion and giving prominence to the important dates.

• ASDA launched new packaging for their extra special Royal Jersey potatoes that increases shelf life and reduces waste

A combination of large-scale campaigns and local engagement is an effective way to help consumers realise the benefits of throwing away less food, and giving them the tools and confidence to make small changes to the way they shop, store and cook food. Morrisons Great Taste Less Waste had regular articles in their magazine and on-line tips and advice, whilst Sainsbury’s Make your roast go further campaign provided its customers with leftover recipes designed to incorporate key ingredients from a roast. The Co-op regularly includes Love Food Hate Waste messages on till-screens, reaching millions of customers in store.

Hotspot


Submit feedback

Securing crop supply through whole crop purchasingAction Plan

The level of supply security and supply chain resilience are expected to fall in the short to medium term while price volatilitywill continue to increase due to global demand and climate change. Whole Crop Purchasing (WCP) is a practice that involves manufacturers or retailers buying an entire crop from producers and then incorporating below-sellable quality food to other parts of their supply chain. Buying the entire crop allows you to benefit from increased cost and supply control whilst at the same time providing a secure market for producers that can reduce overproduction, storage and other supply chain waste.

Resources1. The Future of Food and Farming – exploration of global food pressures between now and 20502. Fruit and vegetable resource maps – fresh fruit and vegetable waste or lost in the UK’s food supply chain3. Household food and drink waste in the UK – estimates of food waste from UK homes

Implementation ProcessThis Action Plan focuses on how to secure local and global supply of produce through a whole crop purchasing system.

Retailers should work closely with producers to establish the viability of implementation and potential savings. Waste levels in the field are often not well known or reported and can potentially produce a large saving if reduced.


Download Action Plan

Step 1 Step 2 Step 3 Step 4 Step 5

Retailer Identify key commodities

Develop resource maps

Engage suppliers in WCP discussions

Identify suitable subcontracting sorting/ packhouse partners

Trial with select producers

Producer Engage in partnership discussions with major retail customers

Develop logistics plan with partners

Trial relationship with one crop

Hotspot

Getting maximum value from its potato crop can save The Co-operative Group up to £600,000 a year

Introduction

A WRAP supported ‘whole chain pathfinder project’ has examined potato production in The Co-operative Group from farm to shelf. The project found that significant value is lost along the supply chain and demonstrated where and how fewer resources can be used to deliver better commercial and environmental outcomes.

Key opportunities include:

A focus on maximising pack-out rates (as well as yield) so that more of the harvested crop is available for sale to consumers;

Less electricity can be used in storage without impacting quality, saving emissions and cost;

Less water could be used to grow the crops; Reductions in material usage can be achieved by rationalising

packaging and staff training; Transport costs, fuel and emissions can be reduced; Effective supply chain collaboration, for example through order

timing and promotional planning, can save significant costs.

page 1

Introduction

Pack-out Rates Water & Electricity and Materials

Transport and Collaboration

‘Value’ lost in the potato supply chain – (based on 50,000t packed):

£250K £200K £3.5m >£0.5m

Designing in Sustainability with Sainsbury’s: a demonstration project

A new generation of sustainable products by design

80% of the environmental impacts of today’s products and services are determined at the early stages of product development and design. We worked with Sainsbury’s own-brand product development team – and selected suppliers - to develop a process and supporting toolkit to systematically embed sustainability into their product development process. This means that:

• Sustainability is considered from the outset of new product development

• Sustainability becomes considered in all new products developed –using our replicable toolkit to become part of ‘normal’ product development

• In time, sustainability can become an innovation platform that drives ideas, innovations and new product development

page 1

Summary

Integrating sustainability

Three supplier pilot projects

Results and conclusions

“I believe the secret to delivering sustainable new product development is to make sustainability not something new, separate or additional but part of every day working. To do this we have embedded the new tools into the current process and ways of working, with some exciting results so far

“

Susi Richards, Head of Product Development, Sainsbury’s

bIntegrating sustainability

Three supplier pilot projects Results and

conclusionsSummary

“By implementing just one innovationidentified in this project, to reducemicrowave times by 1 min for all 1 millionmeals we make for Sainsbury’s each day,we could power our factory for a wholeweek”

Oscar Meyer: case study

Environmental benchmarking, another tool within our kit, highlighted opportunities around cooking times from Sainsbury’s own-brand products, when directly compared with competitors.

Several opportunities emerged for both oven and microwave cooking that could be simply implemented on the range Oscar Meyer produces for Sainsbury’s.

Kieran Foody, Sustainability Manager, Oscar Meyer

Matthew Walker: case study

The pilot project with Matthew Walker highlighted several ‘environmental ‘hotspots’ for their product category:

• SOURCING OF INGREDIENTS: where 5-7 high impact ingredients make up 70-80% of the total products footprint

• FOOD WASTE: a large percentage of products sold go unconsumed, ending up being wasted by consumers

Innovating with SustainabilityUnderstanding a product’s sustainability impacts can trigger product developers to ask the right questions. The above insights gleaned from the toolkit, presented Matthew Walker with real opportunities to improve and innovate their product, including:• Reformulation: can the product be formulated to

rebalance or substitute those high impacting ingredients without losing product quality or taste?

• Sourcing sustainably: can Matthew Walker tackle high impact ingredients through a comprehensive sustainable sourcing programme for these manageable ingredients?

• Portion sizes: can Matthew Walker reduce product wastage by providing consumers with different portioning or size options or improved storage instructions?

3. Agriculture: a focus for food system innovationAgriculture will become a key area oftechnological innovation in the comingdecade. This will impact upon all areas of theproduction system and be driven by a desireby industry and policy‐makers to reduceproduction costs (through increased resourceefficiency), boost agricultural output andadapt to a changing climate.

Likely areas of innovation include the use ofadvanced monitoring and data systems toincrease input efficiencies and anticipateproduction risks (e.g. adverse weather andpests). Some emerging approaches will alsochallenge established models of foodproduction through the use of entirely novelsystems e.g. aquaponics, vertical farming.

Challenges for agri‐tech:

Ensuring new technologies do not result in unintended consequences or other risks

Ensuring uptake in farming sectors that are difficult to influence e.g. livestock

Reduction in rural jobs through increased mechanisation

More knowledge exchange, research and training needed to support change

How should legislative environment evolve to enable uptake of new technologies that present new opportunities but also risks

Future of agri‐tech in the UK:

• Better use of data:• Monitoring performance, weather

forecasting, predicting harvest times, modelling plant and animal disease, decision support for innovation

• Satellite & aerial technologies:• GPS, drones, precision agriculture and

remote sensing. Significant production increases are possible for many crops. Approaches enable highly targettedmanagement

• New production methods & locations• Indoor farming, urban/peri‐urban

farming, vertical farming, aquaponics, new harvesting/grading technologies

• Supporting extension services by industry and governments

• Other agri‐tech:• Plant breeding, genetic techniques,

precision livestock feeding

“Data will transform the way we do business”

‐ Judith Batchelar, Director of Sainsbury's Brand

talks about the biggest impact to agriculture in the next 10 years at Sainsbury’s farming conference

“As we look at the world adding another couple billion people in the next 25 to 30 years ... farmers around the world will have to meet production challenges with some constraints. With the challenges of weather becoming more erratic and more volatile, we see an opportunity to start incorporating more information into farmers' decisions. Kerry PreeteMonsanto Executive VP of Strategy

Monsanto recently purchased The Climate Corporation for c. $1bn. The company uses machine learning to predict the weather and other essential elements for agribusiness. The acquisition signals a broader interest in the use of ‘big data’ for risk management in agriculture.

Case studies

Volatility & variability

Data‐enabled technology

Health & sustainability

Trend relevance

5. Food factory automation: The 3rd industrial revolution

Challenges for factories of the future:

• Lack of suitably skilled staff for new high‐tech factories: traditionally a sector with low wages and a high turnover.

• Capital needed to deploy the best technologies that are appropriate, with a good return on investment, at a time when prices and economic performance is low.

What will Factories of the Future look like?

• Zero‐waste: e.g. use of reverse osmosis in Nestlé factory is making its post‐process water cleaner than its input water

• Ultra‐hygienic: Increased automation means less contamination risk from personnel

• Continuous: Steady state production with very little downtime and a lower production footprint

• Flexible: Modular production systems that can quickly shift from one product to another depending on changing demand

• Data‐enabled: Tracking technologies (e.g. RFID) and sensors will be used to monitor production

• Eco‐efficient: Lean approach with attention to energy technology solutions, e.g. renewables, AD

• Smaller factories: Production of small amounts of diverse products closer to consumer

• Nano‐technology: Less variability in taste due to very precise dosing of ingredients

• Quick development: Factories can be developed much faster (a new food factory can now be delivered in 6‐8 months instead of 18‐24 months)

The rise of automation and robotic technologyis the key story in food manufacturing.Adopting principles of ‘lean production’ ‐pioneered by Toyota – could lead to highstandards of eco‐efficiency. Combined withnew verified standards (e.g. ISO) and pervasiveIT systems for monitoring, manufacturing willenter into the third industrial revolution.Automation will mean mean a change in theworkforce needed in food manufacturing, withhigher skill levels and new working conditionsand expectations entering the sector.

Case study: British BakelsBritish Bakels is a manufacturer and supplierof quality ingredients to the bakery,confectionary and food service sectors.Bakels invested £1.7m in new technologies,such as near infrared technology to ensurehigh raw material standards, a weightsystem for traceability and new software forproduct line efficiency.

Its investments enable its factories toprocess many different recipes and mixeswith as little downtime as possible. Byseparating processes for filling, blending andpacking using intermediate bulk containersprocedures can take place simultaneously.

This smarter line of work has reduceddowntime due to cleaning from 22 to 6%and has increased capacity overall. Bakels istherefore able to offer an enhanced productrange, better flexibility of pack sizes andhigher quality assurance.

“A £1.7 million investment against a challenging market landscape: A tumble mixing system, small packaging formats equipment, NIR technology, a weight system for supply chain tracability, a £500,000 Baking Centre for staff and customer training and a concept development suite. A 40% drop in primary energy use, a 30% drop in carbon foot print, leading to zero deliveries to landfill.”

‐ Greg WoodheadProduct Development manager

Lean manufacturing: Creating one piece flow work cell can result in:




Trend relevance

18. Internet of Things: an explosion in web connectivity

Challenges to be addressed:

• Changing workforce: Technology will rapidly replace some roles within businesses as increased automation is possible. The new workforce will need to be technologically savvy and able to maintain and manage these new tools.

• Privacy and/or security: The promise of this technology is based on open, standards‐based data exchange so all devices can connect automatically. This will lead to higher vulnerability to inappropriate access to private information and cyber attacks.

Potential opportunities:

• Agriculture: increased efficiency• Precision agriculture, with sensor information

on inputs e.g. pesticides, fertilizer and water• Remote control farm machinery (e.g. tractors)

• Transport and manufacture: real‐time control and feedback system

• Near zero waste through continuous manufacturing

• Real time factory monitoring from any location (e.g. mobile app alerts for variances)

• Improvement in product traceability

• Retail: intelligent forecasting• Smart kitchens linked into retail ordering

systems for automatic ordering• Insight into customer behaviour and product

usage

• Consumer: increased food engagement• Home delivery shopping increased through the

use of apps linked to retailer inventory systems and smart logistics routes.

• Increase in home meals as new technologies make cooking easier and more accessible.

The internet has led to the development of‘smarter’ products and machinesthroughout the food system, from farm tokitchen.

New technologies automate, control(remotely) and provide real timeinformation on a range of conditional states(e.g. on/off, heating, product availability)with feedback systems to enable the smartmanagement of resources in optimalconditions.

“[It will enable] us to enhance supply chain management solutions by intelligently connecting people, processes, data and things via devices and sensors... This deeper intelligence can come to life in many different ways when it comes to supply chain data and intelligence – from automation of the manufacturing process to improved visibility within the warehouse” Udaya Shankar

President and Head of Internet of Things, Xchanging

Temperature sensitive crops can have significantly different shelf life dependent upon their transport and storage supply chain resulting in ‘best before’ dates having an actual variability range between 10 – 97%.

To reduce waste Ingersoll‐Rand Climate Control and the University of Florida piloted a new technology using transport data and pallet monitoring sensors to track the specific temperature history of strawberries in setting the ‘best before’ date.

The project proved that using this type of intelligent networking of sensors and vehicles resulted in a constant variability of 25% at a cost of less than 10% of the savings from reducing food waste in store.




Trend relevanceStrawberry waste case study

PSF Knowledge Base

Please contact: Elaine [email protected]

Thank you for your attention

www.wrap.org.uk/[email protected]

Q & A

#FoodDrinkConf

Coffee Break

#FoodDrinkConf

Resource Efficiency

#FoodDrinkConf

Helping Food & Drink companies make the most of ‘Lean’

Mark BarthelSpecial Advisor – Product Sustainability, WRAP

#FoodDrinkConf

Agenda

What is ‘Lean’ and how can it help?

Case study – Greencore sandwiches

W.A.S.T.E – WRAP’S take on Lean

Guidance and tools from WRAP

What is ‘lean manufacturing’?

Collaborative Value Chain approach drives out waste

WRAP guidance on Lean

W.A.S.T.E problem solving discipline

Further guidance and tools from WRAP Revamped web pages for food and drink

manufacturers & retailers W.A.S.T.E. guide and tip sheets Product Life research & recommendations Coming soon:

– Guide for drinks manufacturers on reducing product waste (case studies from Britvic and Carlsberg)

– Case studies: Sainsbury’s apple supply chain waste hotspots, Greencore sandwich project and W.A.S.T.E project on pies.

Case StudySA Brain and Co Ltd

Bill DobsonHead Brewer

#FoodDrinkConf

SA Brain & Co. Established 1882 by Samuel Arthur Brain

Independent Family Owned Regional Cardiff based brewery Over 250 pubs/hotels and

46 Coffee#1 shops Brewery producing circa 400k

brls of own and contract production

Cask and Keg packaging on site Bottle and can contract packed

Beer Industry Perspective

Recognising that beer production involves significant amounts of energy, water and potential waste production the beer industry has worked to improve its environmental footprint for a number of years

WRAP Carbon Trust BBPA

UK Brewing IndustryEnergy Efficiency and Carbon Emissions 1990-2013Source BBPA Brewing Green Report 2014

UK Brewing IndustryWater Consumption1990-2013Source BBPA Brewing Green Report 2014

Activities within SA Brain

Brewery Energy Reduction• 60 to 40 kwh per hl 2009 to 2014• Driven by an action plan drawn up with Carbon

Trust• Steam raising and condensate recovery• Air Compressor replacement• Refigeration plant management• Energy efficient pumps, lighting etc

Activities within SA Brain

Brewery Water Reduction• Water ratio to 5.6 to 4.4 2009 to 2014

• Process Efficiency• Projects – Hot Water• CIP plant improvements• Staff Awareness and KPI targets

Activities within SA BrainPackaging and Supply Chain Waste• Switch to lightweight bottle (400g to 300g)• Reduction in secondary packaging trays/cartons• Increased packs per pallet eg bottles 105 to 140

cases per pallet• Consolidation of storage and distribution of

smallpack products

Activities within SA BrainBrewery Waste and recycling • 5000 te brewery spent grain co-product• Spent Yeast as co-product – not waste• 75% production in Stainless steel returnable

casks and kegs• Raw material/chemical supply – reduce/reuse• Cardboard, wood, plastic, food waste, mixed

waste, metal recycling on site

Activities within SA BrainThe Future?• Focus in our retail estate on energy efficiency,

waste and recycling• Continue work with industry partners and adopt

best practice where possible• Continue to challenge ourselves to improve

Business Support

Huw LloydBusiness Account Manager

#FoodDrinkConf

Objective of the HTFD reviewTo help companies reduce waste, boost resource efficiency and profitability.18 companies approached in food sectorVaried from cheese manufacturers to food

processing, and manufacture on large scaleBenefits £4k-£380kFocus on reducing waste but also the true

cost.

Process…review

Used independent sector consultants Reviewed all aspects of waste generated

on site-waste audit, report, actions Ongoing support in having capital grant

available Resource Efficient Wales (REW) now

available

‘No man is an island..entire of itself’

Key findings Waste cannot be considered as

something ‘independent’ and discrete Should be the responsibility of a

department/person Be explicit in costs Should have targets and objectives Review equipment, supply chain.

Where WRAP Cymru can help

Quantify the costs Set up the audit process Promote Good practice Resource Efficient Wales (REW)

What is Resource Efficient Wales?

• Welsh Government service• Single point of contact to help people

and organisations to save on energy and water and to reduce and re-use waste

What is resource efficiency?

• Reducing the amount of energy, water and raw materials you use, and wasteyou produce

• Saving you money• Future-proofing• New markets

What’s in it for me?

• Identify how you could save• Workshops and online tools• Expert advice and guidance• Signpost to funding/other support• No cost to most businesses

How can we help?• Resource Efficient Wales Client

Manager Service for Business• Delivered by WRAP Cymru and Carbon

Trust on behalf of the Welsh Government

• Any business in Wales can apply

How can I access support?

• Talk to your WRAP Cymru contact• Complete an expression of interest• Call Business Wales on 03000 6 03000• Email [email protected]• www.business.wales.gov.uk/efficiency-wales

Wales, Sultanas and Environmental Impacts“The Devil is in the Detail”

David LloydDirector, Food Industry Centre

#FoodDrinkConf

Food Waste Images

350 images for food factory waste on Google - none a true reflection of the problem

Wales, Sultanas and Environmental Impacts

“The Devil is in the Detail”

The Process• Follow the product process

• Create a live risk assessment model for environmental impact

• Use all expertise to ensure legal compliance and food safety is maintained

Legal Requirements of Declared Weight

• Average Weight must be met.• Tolerable Negative Error (TNE) pre defined.• T1 – T2: maximum 2.5%.• Less than T2 – zero%.• Sampling frequency is important.• Standard Deviation of Production Runs important.• Understand the controls necessary or product

recall and fines.

Case Study: Fruit Based Cake –Somewhere in Wales

• Fruit cake 18% giveaway

• 50kg waste (reject product) per 2 hours of running

• Losses (in excess of £50k per year)

EnvironmentalOutputs

• Local Environment – increased BOD and COD as well as solids reading in effluent treatment and rise in associated costs.

• Global Environment – 5000 sultana miles per year saved for one ingredient in one product

• 2015-2020 – 25,000 sultana miles

Environmental Outputs

• Reduced fuel usage (18% less product weight).

• Positive impact on carbon footprint.

• Next 5 years the Food Centres proposal reviews 300 - 400 Welsh food products.

Sustainable Development Charter

Natalie ReesCynnal Cymru

#FoodDrinkConf

The Sustainable Development Charter encourages and enables organisations in Wales to become more sustainable – to make decisions that produce the best long-term outcomes for themselves and for the future of Wales.

The Sustainable Development Charter is Wales’ highest profile commitment to sustainable development. Signing the Charter is a voluntary commitment aimed at improving the economic, social and environmental well-being of Wales.

Over 275 pioneering organisations have demonstrated their commitment to sustainable development by signing the Charter and are creating momentum for positive change.

About the Charter

Signatories 2014/15

Number of Signatories by financial year:

In 2014/15 there have been to date (Feb) 80 new signatories bringing the total number of signatories to 276.

Private Sector

Public Sector

VoluntarySector

Signatories 2014/15

Location of Signatories December 2014

Our signatories hail from across Wales & England…

2015 Charter Challenges

This year we are asking organisations who have signed the Charter to provide us with evidence that can be used to assist the Public Sector in preparation for the Well-being of Future Generations (Wales) Bill.

At the core of the Well-being of Future Generations (Wales) Bill are a set of five governance approaches, which set-out how public bodies and Public Service Boards should work going forward. These could have an important role to play in introducing common principles to the operations of the public sector bodies and others, and helping to deliver more integrated solutions.


The Governance Approaches:

• Long Term• Integration• Collaboration• Involvement• Prevention


We have identified through analysis of evidence sent to us in 2014/15 that organisations who have signed the Charter are not always reporting in an integrated way and whilst they are doing good things, they do not make the link between social, environmental, economic and cultural factors there is also information missing in terms of the Welsh impact.

We suggest that organisations look at the goals listed below – to effectively report on your how sustainable you are, you should be able to show how you are using these approaches effectively.


The Goals as of Feb 27th 2015:

• A Prosperous Wales.• A resilient Wales. • A healthier Wales. • A more equal Wales. • A Wales of cohesive communities. • A Wales of vibrant culture and thriving Welsh

language. • A globally responsible Wales.


We would like signatories to share with us examples of how they are working in a way that incorporates the governance approaches, or adopt one or more of the approaches as a way of working for this coming year and report back to us on your experiences.


We will help you:

• Report clinics for those who wish to improve their SD Report/Policy/Strategy or those who have not submitted this yet

• Shared Learning sessions for groups who wish to work collaboratively

• Online resources and toolkits developed from last years activities

• An online forum so that you can speak to other signatories

Diolch…Thank you…

www.siarter-dc.net

www.sd-charter.net

@sd_charter

Q & ADiscussionClosing Remarks

#FoodDrinkConf

Lunch & Networking

Followed by Energy Workshop

#FoodDrinkConf

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