An Irish Co-operative Bio refinery - Process Customers

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An Irish Co-operative Bio refinery - Process Customers
An Irish Co-operative Bio refinery

      Farm         Process      Customers
An Irish Co-operative Bio refinery - Process Customers
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
An Irish Co-operative Bio refinery - Process Customers
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
An Irish Co-operative Bio refinery - Process Customers
INTRODUCTION

 Cooperative Structure
• 1,260 suppliers
• Milk is primary sourced from grass
• Return value to family farmers via
  strong milk price

                                       4
An Irish Co-operative Bio refinery - Process Customers
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
An Irish Co-operative Bio refinery - Process Customers
An Irish Co-operative Bio refinery - Process Customers
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.
An Irish Co-operative Bio refinery - Process Customers
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.
An Irish Co-operative Bio refinery - Process Customers
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.
An Irish Co-operative Bio refinery - Process Customers
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
THANK YOU –
QUESTIONS?
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