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National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Executive Summary National Foods as a producer of packaged food products, recognises the Packaging Covenant as a positive initiative towards responsible management of packaging waste in Australia. The National Foods Packaging Covenant 3 Year Action Plan commits the company to a pro-active program targeting the Packaging Covenant’s overarching goals. National Foods continues to integrate the principles of product stewardship and shared responsibility within the company’s risk management systems and environmental improvement plans. This Action Plan report documents National Foods’ progress over the 2007 Financial Year. National Foods Limited Packaging Covenant Committee National Foods Limited is committed to respecting and protecting the environment and this is one of the Company’s stated key values. As part of this commitment, the company was an early signatory to the National Packaging Covenant, a national initiative aimed at reducing the environmental impact of consumer goods packaging in the waste stream. The Packaging Covenant plans and activities have the full support and endorsement of the executive and senior management of National Foods Limited. Ashley Waugh Managing Director National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 National Foods National Foods Limited is one of Australia’s largest food companies with core activities in fresh dairy foods, milk, juice and specialty cheeses. National Foods was created in 1991, through the amalgamation of several dairy and food related businesses, all with brand names and histories dating back to the 1800’s. In May 2005 National Foods was purchased by the San Miguel Corporation and was de-listed from the Australian stock exchange. In June 2005 the business merged with Berri Ltd to form a new business with core business in dairy and juice. In May 2006, National Foods added to it’s extensive portfolio by the acquisition of the specialty cheese business Lactos Pty Ltd. Packaging Covenant Steering Committee National Foods has an established management committee to oversee the development and implementation of this plan. This committee brings together representatives from operations, technology and innovation, risk management and marketing. Contact Name for the National Packaging Covenant Meredith Banks National Environment Consultant National Foods 61 3 9234 4372 firstname.lastname@example.org National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Our Name, Our Brands National Foods manufactures and contract packs a large range of brands and products. BRANDS PRODUCTS Pura Whole Milk, Modified Milks Pura, King Island Dairy, South Cape Cream/ Cr am Fraiche Pura Classic, Farmers Union, Big M, Masters, Feelgood Flavoured Milks Yoplait, Farmers Union, King Island Dairy Yoghurts Yoplait Baby Children’s Yoghurts Yoplait Le Rice Rice Dairy Snacks YoGo, Petit Miam & Baby, Go-Gurt, Smackers Children’s Dairy Snacks Frûche, Frûche on Fruit, Frousse Adult Dairy Snacks Divine Classic, King Island Dairy Dairy Desserts King Island Dairy, South Cape, Australian Gold, Tasmanian Cheeses/Specialty Cheeses Heritage, Clover Creek, Farmers Union, Culinary Choice, Swissfields, Cheese of the World, Heidi Farm, Mersey Valley, Tilba, Timboon Farmhouse, Organic Cheese South Cape, Superior Gold Gourmet Foods Vitasoy Soy Milk/Rice Milk Australian Fresh, Daily Juice, Berri, Just Juice Fresh Chilled Juices/Long Life Juice Mildura Sunrise, Squeeze, Prima, Sunrise Fruit Drinks Kyneton Springs Mineral Water/Flavoured Mineral Waters National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Summit Water Sunny Boy Cordial Zooper Dooper, Quelch, Sunny Boy, Prima Water Ices Operating Locations and Distribution National Foods has production facilities and sales offices across Australia and employs over 3,500 people. All National Foods products are manufactured to precise quality standards in world class production facilities. The National Foods network consists of seven milk plants, five juice plants, six cheese plants, two dairy foods plants and a joint venture soy beverage plant. The majority of National Foods products are distributed and consumed within Australia; however, the company also exports milk, juice and fresh dairy products to the Asian region and cheese to many different parts of the world. National Foods products are distributed daily through a refrigerated network. National Foods commitment to the Environment National Foods is committed to protecting the environment and a reduction in the organisation’s environmental footprint. National Foods continually looks for ways in which it can reduce the impact of its operation on the environment, through working cooperatively with industry, government and the communities in which our plants and operations reside. The National Foods Environment Program as part of the Risk Program focuses upon 5 key areas; product loss, packaging waste, water reduction, energy reduction and waste water treatment/spill prevention. The Risk system brings together business continuity, quality, health, safety and National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 environment activities and focuses them under a uniform and integrated framework. We will continue to utilise our risk management system and its support tools to assist the business to operate well within the boundaries and at the same time continue to drive improvement. Progress National Foods have consistently sourced new ways in which the packaging it puts to market can be made more recyclable, its achievements since becoming a signatory in 2000 have included some of the following: • Light weighting of milk containers has continued saving 100 tonnes materials used per year. National Foods now have the lightest HDPE container on the market; • Replacement of PS 1 litre yoghurt container with PP 1 litre reusable and recyclable container; • Light weighting and board grade changes of cardboard in excess of 85 tonnes per year; • Elimination of foil from combi bloc packaging and replacement with non foil lined combi bloc packaging, therefore enhancing the recycling opportunity for this material; It is envisaged that this project will result in a further saving of 84 tonne across 2007/2008 reporting year; • Incorporating 15% recycled content into milk crates saving 80 tonne on average per annum; • Continued to incorporate a Packaging Environmental Assessment in all new product development projects; • Moving from 40 micron to 25 micron shrink wrap on all 6 x 250ml combi packaging across South Australia and Queensland with a move to integrate into New South Wales. Through this project National Foods have made a saving of 19 tonne per annum with a view to increasing this to 28 tonne per annum with the introduction of this project within New South Wales. • In total National Foods during the 2006-2007 produced a 400 tonne saving in material usage as a result of changes in design to packaging. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 National Foods continued to deliver environmental improvements in the area of packaging as committed under its original three year action plan. The information below provides a detailed account for our F07 progress against our 3 year Action Plan. Progress against our actions has been recorded as: C= completed O= ongoing PC= partially complete NC= not completed Packaging Design Action Measure Timing Progress Progress 1a. Complete an environmental Record of KPI data Annual Review O Environmental assessments amended assessment for all new products in for new packaging to record KPI data. compliance with National Foods and the Environmental Code of Practice for Packaging. 2. 15% Recycled content in all milk Increased recycled March 2007 PC Project commenced in May 2006 crates – introduction of recycled content of involving the standardisation of crate National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Action Measure Timing Progress Progress content into Victorian crates. Victorian crates – and recycled content. Placed on hold estimated 28 tonne in July 2006 and is expected to be re- reduction in plastic. initiated in late 2007. 3. Improve reliability & consistency Reduce packaging April 2007 PC Alternative backup supplier sourced of form fill seal packaging waste on form fill as priority to completion of trials on operations. seal production materials used. Project was re- lines. Completed initiated late 2007. assessments on reduced sheet thickness. 4. Optimise Milk/Juice packaging and Trial completed, June 2007 PC Business case completed during early handling to reduce the incidence of findings reported. 2007. leakers and finished product waste Leak proof cap has been designed for - Trial alternative packaging 2 and 3 litre milk containers and will designs. be implemented mid 2008. 5. Research alternative materials with Development of Annual Review O 1 kg polystyrene container changed to Australian and Overseas suppliers database on polypropylene alternative which will to reduce the use of non-recyclable qualities and costs result in improved recovery of this materials. of alternative container for post consumer recycling National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Action Measure Timing Progress Progress • Current preform PS & PP materials. as reported last year. cups Assessment of (juice/milk) feasible recyclable Container is recyclable and it is • PVC & Mixed Plastics. materials and understood through discussions with determination of selected recyclers nationally that this action regarding material is being recovered. policies for use. National Foods has continued to review the use of PVC in its packaging and has reduced its usage by approximately 12 tonnes over, the past twelve months through the switch from 2 litre PVC bottles to 2 litre HDPE bottles. 6. Review of packaging designs to Database Annual Review PC During March 2007 a project to identify opportunities to improve developed on change closures on juice bottles to post consumer recyclability. qualities and costs reduce the number of material types of alternative used, commenced. Work continues to materials. be undertaken on this project with a view to reporting progress during National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Action Measure Timing Progress Progress 2007-2008. Review alternatives to PVC shrink Assessment of Alternatives to PVC shrink sleeve sleeves and other packaging known feasible recyclable labels have been reviewed over the to have components that are materials and past twelve months. It is intended that incompatible with the recycling determine action National Foods will continue to work process. regarding policies with its packaging suppliers and the of use. recycling industry around alternatives to PVC. 7. Review juice packaging for further 300ml & 1.5 L May 2007 C Light weighting trials have been light weighting opportunities. bottle light completed: • Target 15% weight weighting reduction-300ml. complete. 1.5L – Completed resulting in a 13 • Target 10% weight Implement weight tonne per annum saving. reduction -1.5L reduction opportunities. 300mL- Repeat trials have been completed and were unsuccessful at this point in time. 8. Review opportunities for the Supplier capability June 2007 PC Review of board grade on all outer National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Action Measure Timing Progress Progress introduction of recycled content in determined and cartons was completed during all fibre board (primary packaging trial commenced. June/July 2006.This review identified boxes & sleeves). a number of opportunities to integrate recycled content into primary packaging boxes and sleeves. With regard to outer cartons, cartons currently supplied to National Foods contain up to 95% recycled content. 9. Investigate opportunities to reduce Opportunities to December 2007. C Removal of wad induction seal (foil) the number of packaging reduce packaging and replacement with double seal on components- removal of wad components juice bottles will result in reduced induction seal. actioned. number of components (reduced risk of litter) and reduced quantity of packaging. The first change was actioned in November 2006 and a reduction of 37 tonnes of packaging was achieved as a result. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Action Measure Timing Progress Progress This project has been put on hold pending further investigation with the National Foods engineering team. Production Action Measure Timing Progress 1. Incorporate best practice waste Higher efficiencies Ongoing O New milk carton filling machines at 5 efficiency into design for all new in all new filling sites have resulted in improved filling equipment. machines compared efficiencies as indicated last year. to current operations. National Foods have now switched from 40 to 25 micron shrink wrap across QLD and SA sites and are intending to implement this change in 2008 in NSW after trials were successful in early 2007. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Trials of leak resistant caps were undertaken with the view to implementing these on all 2 & 3litre milk containers. The trials have been successful and changes will be implemented from mid 2008. As a direct result of this project the total packaging weight has been reduced and thus produced an overall saving of 16 tonne per annum just with the use of the new caps. 2. Review change over procedures Review completed January 2007 O Change over procedures and machine and machine set up to identify opportunities set up has been reviewed. opportunities for waste reduction – identified at all March 2007 all manufacturing sites. sites. Actions In process packaging waste continues incorporated into to be monitored. site improvement plans. Reduction in site in-process packaging waste. 3. Monitor quantities of finished Records of weekly January 2007 PC Packaged product losses monitored by National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 product waste and identify finished product all sites. Annual review still opportunities for reduction at all waste incorporated demonstrates a need for further manufacturing sites. into site improvements. improvement plans. Product loss records now incorporated into site reporting. 4. Review process for the Process revised and December 2006 PC Improvements in the management of product deletions responsibilities for minimisation/recovery of packaging and packaging write offs to controlling materials that are deleted consistently minimise waste. packaging waste being reviewed. during deletions understood. The cost of recycling obsolete packaging is incorporated into all National Foods projects. 5. Request contract packer to review Contract packers January 2007. PC Contract packers have supplied data operations to identify packaging contacted and to National Foods on packaging types waste reduction opportunities. review completed. and quantities. A number of suppliers have been identified as not being signatories to the National Packaging Covenant. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 This is to be actioned during 2007/2008. 6. Review the use of export standard Optimise the use of March 2007. PC National Foods are continuing to packaging in local production. export quality review this option. (heavier weight) packaging, minimal use in domestic market. Distribution Action Measure Timing Progress 1. Use stretch tape equipment in place Stretch tape May 2006 PC Stretch tape incorporated into of stretch film for new or implementation National Foods Morwell operation. replacement pallet wrapping incorporated into operations. site improvement plans. • Review sites that box product and determine Expected 75% opportunity and likely reduction in film dates for changeover. usage for each site National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 • Implement according to making change. review outcomes. 2. Review palletisation configurations Completed review June 2007. PC Palletisation optimisation has been to determine optimum transport of palletisation reviewed and implemented. Trialling and distribution conditions all sites. configurations and began utilising the palletisation of implementation of truncate bottles across Daily Juice, identified Cordials and generic brands. Based opportunities. upon the success of this project the intent is to rollout to all sites. 3. Evaluate current delivery formats Review of delivery December 2007 PC Chemical delivery formats review with suppliers and operations to formats completed completed in 2006. Some sites remain identify improvement and identified with pallecons at this point in time. A opportunities. opportunities select few sites have gone to implemented. bulk/tanker caustic delivery system. 4. Complete business case for loose Reduction in the use June 2007. PC Business case completed for SA and stacked milk crates at milk sites. of stretch wrap for NSW. Changes implemented in NSW distribution of loose have resulted in a material saving of stacked milk crates approximately 30 tonnes. Project due to be implemented within QLD sites late 2008. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Wholesaling & Retailing Action Measure Timing Progress 1. Complete environmental Environmental Ongoing O Life Cycle Assessment completed for assessments in consultation with impacts of comparison of packaging formats for retailers regarding future packaging comparative milk distribution- crates and outer formats (e.g. shelf ready) distribution cartons during 2006. packaging formats National Foods will continue to are known. incorporate these findings into the development of future distribution plans. Recycling, Reprocessing & Disposal Action Measure Timing Progress 1. Seek improved polystyrene Increase recovery February 2007 PC Morwell waste service has been recycling for manufacturing sites of polystyrene for reviewed to include greater recovery including: recycling from of polystyrene packaging with current • Recovery of formed cup manufacturing sites contractor. National Foods will (>10%) continue to review options for National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 waste and packaging in increased recovery of this material. contact with product; • Opportunities to supply plastic waste to diesel fuel operations. 2. Participate and support a Evidence of Annual Review O National Foods currently participate coordinated approach to litter- participation in in the Australian Food & Grocery support and facilitate the litter forum Council, Sustainability Committee establishment of an industry forum and are reviewing membership of the for this purpose through the Packaging Stewardship Forum of the Australian Food & Grocery Council Australian Food & Grocery Council. (AFGC). 3. Review tender process and waste Improved accuracy June 2007. PC All National Foods sites currently service agreements to target of reported waste report on the level of packaging waste improved recycling services. quantities. and product waste to both recycling Include the provision of measured and sent to landfill. All National waste quantities as a service Improved recovery Foods sites undertake reviews to requirement. of factory improve waste reduction including packaging waste. factory packaging waste as part of performance improvement. 4. Implement green office program at Increased provision June 2007. PC All National Foods offices currently National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 all National Foods sites. and use of recycling have access to Green Office. It is facilities intended with the National Foods Head Office move from Pura House to 15 sites Docklands that a full Green Offie program will be implemented with All sites this move in late 2008. Communication & Education Action Measure Timing Progress 1. Improve labelling and provision of Annual Review O Currently National Foods beverage information to consumers about packaging displays appropriate recycling, litter and disposal. recycling and litter reduction messages. National Foods will look to review the placement of such messages on all dairy containers over the next twelve months. 4. Maintain internal communication Intranet, email Annual Review O National Foods website updated to program posting of National incorporate the release of National Foods Packaging Packaging Covenant Action Plans and Covenant Report reports. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Incorporate All National Foods staff are kept up to Packaging date on National Packaging Covenant Covenant actions achievements both via the National into site Foods internal web portal as well as improvement plan, articles within the National Foods completion of internal newsletter. progress reports, circulation of steering committee minutes. Induction and training program developed. 5. Maintain external communication Revision to Annual Review National Foods National Packaging program website, posting of O Covenant Action Plan and reports are Packaging posted to the National Foods website Covenant report. annually. Public presentation. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Market Development & Research Action Measure Timing Progress 1. Support and actively participate in Opportunities for Quarterly Review C National Foods Limited have been the development of feasible polystyrene post active participants in the Plastics and process and market polystyrene consumer recycling Chemicals Industry Association recycling in Australia known understood (PACIA), National Packaging and communicated. Covenant funded study and trials into the post consumer recovery of polystyrene and polypropylene. Both trials have to date indicated that there is the ability to channel larger quantities through the recycling system thus reducing the cost to recover such materials in the longer term. The report also highlights the fact that many recyclers are beginning to provide kerbside recycling services that allow for the recycling of plastics 1-7. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 2. Support recycling markets by Incorporated into Ongoing O National Foods have continued to implementing a Buy Green service level support the purchasing of green purchasing policy. agreement where products. A standard tender template meets business was drafted during 2006 and all requirement. service level templates were reviewed. 4. Understand the impact of National Evidence of regular Quarterly Review. O National Foods has continued to Foods packaging in recycling review with ACOR. maintain contact with relevant process streams. Monitor impact Australian recyclers to ensure that its by maintaining regular contact packaging can be accepted into the with the Australian Council of recycling stream. Recyclers (ACOR). Other Action Measure Timing Progress 2. Update packaging specifications – Updated packaging Annual Review O Packaging specifications are reviewed document data from environmental specification annually. Templates were modified assessments (recycled content, records. during 2006/2007 as part of the National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 packaging weight per kg/product review of the National Foods NPD etc, recyclability). process to include status changes on recyclability and recycled content. 3. Improve accuracy and automation Incorporated into December 2006 Annual With the acquisition of a number of of packaging covenant baseline design of any new Review businesses within the last two years, data collation and reporting. IT data National Foods have been reviewing management the different business systems system. currently in place. It is intended over the next six months to combine these into one system and therefore have the ability to track with greater accuracy data from across the business divisions for the purpose of reporting under the National Packaging Covenant. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Data Performance 2006-2007 Quantity of Packaging Used (kg) per tonne of product sold 36.5 Primary Packaging onto Australian Market Only Material Type Packaging Item % Total Approx Usage 2006-2007 High Density Polyethylene (HDPE) Milk, Juice & Cream Bottles 18.6 Liquid Paper Board Milk & Juice Cartons 17.5 Liquid Paper Board UHT UHT Milk & Juice Cartons Included in above PET Milk & Juice Bottles 17.2 Polystyrene Yoghurt & Desert Cups 5.1 Composite Materials Labels, lidding & Cheese wraps 4.6 National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Polypropylene (PP) Cream, Desert Packs & Juice Bottles 3.5 Low Density Polyethylene (LDPE) Bottle Caps & Bottle Sleeves 2.1 Glass Juice Bottles & Cheese Jars 1.8 Cardboard Inner product sleeves 1.2 Aluminium Foil lids 0.6 Mixed Plastic Cheese Bags & Film 0.5 PVC Cup lids, Cordial Bottles & Shrink 0.5 Sleeves Steel/Tin Plate Jar & Bottle lids 0.05 Other (Wax, Wood, Cloth, Polyester) Cheese packaging 0.1 National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Secondary Packaging Material Type Packaging Item % Total Usage 2006-2007 Cardboard Outer Cartons 26.8 Tertiary Packaging Material Type Packaging Item % Total Usage 2006-2007 Polyethylene Plastic (4) Pallet Stretch Wrap 0.1 National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Recyclability of Our Packaging Performance 2006-2007 Recyclable 84% Non Recyclable Packaging 16% * NB The percentage of recyclable packaging has decreased since 2005, this is the result of changes within product mix and consumer preference. Polystyrene used in many National Foods dairy products remains the single largest ‘non-recyclable’ material. During 2006 National Foods undertook a program to replace polystyrene with polypropylene in 1kg yoghurt containers. Whilst polypropylene is classified as non recyclable under the National Packaging Covenant, it is more readily collected at kerbside than polystyrene. Non-Recyclable Packaging Material Type Tonnes Packaging Item Comments Polystyrene (PS) 1804 Cups & Overlids (yoghurt, Many kerbside recycling services across Australia are creams & desserts) currently capturing polystyrene. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Composite Materials 1647 Labels, bottle safety seals, Composite materials are largely used for specific cheese wraps. component purposes such as tamper evident seals. It is not feasible to recycle composite materials. Polypropylene (PP) 1272 Cream & Dessert Cups Many kerbside recycling services across Australia are currently capturing polypropylene for recycling. Low Density Polyethylene 754 Bottle lids and stretch film LDPE is currently not widely collected via kerbside (LDPE) recycling systems in Australia. However quantities are being captured in large quantities and being recycled within certain areas. Aluminium 204 Foil lids (yoghurt, cream & Packaging material is recyclable however the format desserts) makes it impractical for collection and sorting. Mixed plastic 163 All cheese bags & film, There is currently no process available for mixed water ice tubes, labels and plastics type packaging within Australia. cask bags No post consumer recycling process is offered for these Other (Wax, Balsa, Wood, 42 Cheese packaging materials, format remains unsuitable for recovery. National Foods Limited - National Packaging Covenant – Action Plan Report 2006-2007 Cloth, Steel) % Recycled Content Due to food safety standard requirements all primary packaging is currently manufactured from virgin material. However the majority of cardboard cartons supplied to National Foods contain up to 95% recycled content. Across 2006 and 2007 National Foods continued to purchase milk crates that contain up to 15% recycled content. National Foods have been and are currently exploring opportunities around the introduction of recycled content into HDPE milk bottles. Solid Waste Recycling on National Foods sites Materials recycled on National Foods sites include, cardboard, paper, LDPE (stretch film), HDPE, PET (bottles) and dairy tubs. All National Foods sites currently have access to recycling services with the exception of King Island. Accuracy of reported weights continues to be an issue at all National Foods sites as waste is measured as a volume and is not converted to a mass. During 2006/2007 National Foods disposed of approximately 16,050 tonnes of solid waste (excluding food/organic waste) of which approximately 3,650 (23%) tonnes was recycled and approximately 12,400 (77%) tonne was sent to landfill.
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