An Irish Co-operative Bio refinery - Process Customers
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Carbery group overview Headquartered in Leading Global manufacturer of CORK, IRELAND Proteins Flavours Cheeses Founded Sales of Selling in over 53 (1965) Years ago €340m (2016) 50 International markets
Carbery Group Global Operations Russia Benelux Poland Balineen High Wycombe Bristol Germany Chicago Rochester France Cincinnati Italy Japan Spain/Portugal Greece Korea China UAE Taiwan Bangkok Vietnam Philippines Manufacturing, Technical & Indonesia Commercial Facility International Representatives Sao Paulo Dairy Joint Venture
INTRODUCTION Cooperative Structure • 1,260 suppliers • Milk is primary sourced from grass • Return value to family farmers via strong milk price 4
The Carbery Team Local Communities Vets Carbery Board Animal Health Co-Op Boards 1260 Ireland (AHI) Milk Suppliers Milking Machine Technician Co-Op Advisors Sports Teams Teagasc Carbery QA Team 250 Employees Bord Bia
Milestones – Dairy & Nutrition 1965 1976 1992 1996 Carbery Milk Products is The Carbery process is An important year in the Carbery, in conjunction formed: A partnership developed and bioethanol evolution of the company - with Ornua (formerly the between Carbery is produced in Ballineen. It becomes 100% owned by Irish Dairy Board), launches Creameries (four West Cork Carbery becomes one of the farmers of West Cork. Dubliner Irish cheese. dairy co-operatives) and the world’s first processors Express Dairies, UK. to install ultra-filtration technology to produce whey protein concentrates.
Milestones – Taste 1998 2002 2005 2006 Carbery makes their first Carbery acquires a flavour Synergy Flavours opens Acquisition of Vanlab , acquisition in the flavour company in Wauconda, Commercial and Technical Rochester, US with 100 industry, acquiring Synergy USA. Centre in Brazil. year old vanilla technology. Flavours, Twyford, UK. Opening of Innovation Centre in Cork.
Milestones – Dairy, Taste & Nutrition 2012 2008 2011 2016 2016 Carbery enters research Two further flavour Further investment in flavour Carbery continues to consortium, Food for companies acquired in the capabilities: advance scientific research, Health Ireland, as a key US: Sensus of Hamilton • Opening of a centre of excellence long term initiatives and founding industry partner. Ohio and Sethness in High Wycombe, UK including innovation with key Geenleaf of Chicago Illinois. state of the art sensory and institutes and universities, analytical facilities. developing next generation • Synergy relocates to new flavour taste and nutrition facility in Brazil. solutions. • Synergy opens a new flavour manufacturing facility in Thailand.
Carbery’s Bio refinery • Carbery pioneered the operation of an industrial-scale whey-to-ethanol plant in 1978. • The ground-breaking process was later adopted in New Zealand and by Muller in Germany and was known as the ‘Carbery Process’ • By introducing a ‘whey to ethanol’ plant, Carbery provided a solution to deal with the waste stream, whey permeate. • Plant currently produces about 10.5 million litres of bioethanol/annum.
Environmental Benefits of Whey Derived Bioethanol • Significant GHG emissions saving – 85% less carbon intensive than petrol • In Irish context it equates to avoided CO2 emissions of 16,321 tonnes of CO2 compared to standard petrol - very beneficial impact on Ireland meeting its 2020 transport targets • Indigenous locally sourced bioethanol with strong environmental benefits subscribing to strong sustainability credentials • Whey permeate is a waste with a very high BOD and is potentially a very polluting waste stream, Carbery process ensures cascading principles of wastes are adhered to
Sustainability – Key focus areas ENVIRONMENT MARKETPLACE WORKPLACE COMMUNITY Improving efficiencies and • Quality • Developing Employees • Community Development reducing our footprint: • Nutrition • Early Career Development - Social • Carbon • Responsible Sourcing • Respect & Dignity in - Sport • Water • Leading Irish Milk Price the workplace - Education • Waste • Health & Safety • Soil Nutrient Management • Resource Optimisation • Bio-diversity Programme • Animal Health and Welfare
Sustainability Ethos • As a co-operative owned Group, we pursue economic viability and social responsibility in everything we do. • Carbery supplies Grass Fed, Hormone Free, Sustainable Premium Dairy Ingredients to consumers across the globe every day. • Carbery sources from 1,260 local Irish dairy farms all certified and regulated by the Department of Agriculture
Carbery Greener Dairy Farms™ • In 2012 Carbery launched Greener Dairy Farms™ an innovative, dairy efficiency programme designed to measure, monitor and optimise resource allocation and best practice on farm. This will allow us to measure at an individual farm level 1. Carbon Footprint 2. Water Footprint 3. Energy Footprint • Ireland’s first for best practice
Carbery Greener Dairy Farms 2012-2018 WHAT DID WE ACHIEVE? WHAT’S NEXT? 2012 – Base Year 2013-2017 2018 • Took soil samples and identified soil nutrient levels • Reduced Carbon emissions • Completed Energy & Water Audits • Raised awareness on water use • CGDF roll out to further • Measured inputs monthly • Increased profitability 30 suppliers • Completed profit monitors • Reduced energy use • Measured carbon footprint • Educated on the importance of • Biodiversity Mapping sustainable dairy production • . Provided Expert Advice via Farm Walks & Meetings • Communicated results & improvements to all suppliers
All Farms Summary
CGDF Digital Stories – • https://carbery.com/digitalstorytelling/
Sustainable Dairy Assurance Scheme Accreditation • At Carbery, our suppliers* are accredited • This will allow us to measure at by the Sustainable Dairy Assurance an individual farm level Scheme (SDAS). 1. Carbon Footprint • The SDAS has been designed to assess and 2. Water Footprint record data to demonstrate the 3. Energy Footprint sustainability of Irish dairying in a • Identifying any potential low systematic way. Our aspiration is to have performing farms and promoting all of our suppliers fully certified by July best practise through our farm 2017 on the SDAS audited programme. advisers. • Farmer’s excellence is recognised through our annual awards.
Origin Green achievements EMISSIONS WASTE WATER ENERGY RAW (per unit of equivalent tonnes (per unit product output) (per unit production) (per unit of equivalent of production) tonnes of production) MATERIALS (per unit production) COD LANDFILL Reduce Carbon Emissions from Reduce COD loading Reduce energy use from base • Establish animal health & 2010-2016 base year 2010 by to effluent plant year 2010 by welfare initiatives on TARGET from base year 2010 supplier farms • Johnes control programme by 50% 3.5% to over 250 participants by 14% -7.5% -9% end of 2015. 2016 DATA 2017 Data (comparisons to 2016)
Human Resources – Key Focus Areas • Extensive Work Placement/Internship Programme with universities / colleges Talent Management • • • Graduate Development Programme Leadership Development Programme Succession Planning & Talent Review Processes • Ongoing Training & Development Programmes We strive to create a workplace environment that encourages employee engagement via • Clarity on role and career path Employee Engagement • • Recognition of contribution Excellence in internal communication • Protect the health and safety of our employees by complying with best practise systems and standards. • Continuously grow our talent through training and development Strategic Skills programmes and provide a variety of opportunities for career progression and continuous improvement. • Evolving business strategies creates a requirement to upskill current employees and recruit for key new roles.
Carbery in the Community Carbery is committed to supporting the local community in a variety of sporting, social and educational projects such as: • Sponsorship of local sports teams and social events • Carbery Divisional Gaelic Football team • SCAR adventure race - €35K for local charities • A Taste of West Cork Food Festival • Storytellers of Ireland Festival • Upgrade of playground amenities for children • Support rural ecosystem projects which preserve and enhance the natural habitat. E.g. Working with the local angling association, redeveloping a key section of the river which now supports tourism in the region • Carbery also works with “Business in the Community”: an educational initiative to encourage and better prepare students progressing to higher education.
Carbery Tree Project 1270 suppliers • The Carbery Tree Project was the first scheme of its kind in Ireland carried out in conjunction with South Western Forestry. 45000 trees • Every Farmer Member planted Native Irish Trees (Oak, Birch, Rowan and whitethorn) as a carbon offsetting measure, and 850MT also to increase biodiversity on of Carbon saved p.a. farms.
€2,000 presented to Local Charity as a result of landfill diversion • Carbery recently delivered on its Green 50 pledge by diverting 15% less waste to landfill, achieving an actual total weight reduction of 22.5 metric tonnes compared to 2015 levels. • Green 50 is a not-for-profit initiative whose mission is to raise money for charities through the promotion of green practices. The ‘Jeep for Jason’ West Cork Rapid Response was the selected charity, and Carbery donated a €2,000 cheque from their waste savings initiative. • In doing so, Carbery became the first Irish company to fulfill its Green 50 pledge The new jeep is called “Spioraid Iarthair Chorcaí” – The Spirit of West Cork!!
Sustainability is Key Focus at Carbery • Carbery won the Excellence in Sustainability award at the Agribusiness awards 2017 (2nd year running) and Green Energy award 2018 & Green Food and Beverage Award 2016 in recognition for outstanding achievements in the following areas: • Exceeding Origin Green sustainability targets ahead of schedule • Looking after farmer shareholders – strong cooperative ethos • Unique Dairy Farmer Efficiency Program - CGDF • Carbery Tree Project • Energy Management • Community Engagement • Initiatives such as Green 50 waste reduction programme
Carbery’s Sustainability Ambition • Sustainability team and steering committee established for Carbery Group • Inaugural CSR report for the group to be published in 2018 • Developing Zero carbon roadmap for the group • Ballineen site will be procuring 100% renewable electricity from mid 2018 • Significant ambition in Origin Green phase 2, including • Commitment to source 100% of our raw materials from suppliers with recognised sustainability certifications by 2021 • Reduce/recycle water use rate per product output by 15% from 2016 levels • Reduce site carbon emissions by 13.5% compared to 2016 baseline
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