ATLANTIC PACIFIC FOODS PTY LTD - AUSTRALIAN PACKAGING COVENANT ACTION PLAN 2011-2016

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ATLANTIC PACIFIC FOODS PTY LTD - AUSTRALIAN PACKAGING COVENANT ACTION PLAN 2011-2016
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 ATLANTIC PACIFIC FOODS PTY LTD

AUSTRALIAN PACKAGING COVENANT

          ACTION PLAN

            2011-2016
ATLANTIC PACIFIC FOODS PTY LTD - AUSTRALIAN PACKAGING COVENANT ACTION PLAN 2011-2016
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COMPANY DETAILS                3

COMPANY PROFILE                4

POLICY                         4

STEWARDSHIP                    5

ACTION PLAN COMITTMENT         5

FUTURE DIRECTIONS              6

APF 2011 ACTION PLAN           7

                    COMPANY DETAILS
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Company Address and Manufacturing Address

ATLANTIC PACIFIC FOODS PTY LTD
21 GARDINERS STREET
RUTHERFORD NSW 2320
PHONE: 02 49391700

Management team

CHIEF EXECUTIVE OFFICER                TONY MONAGHAN

TECHNICAL & QUALITY MANAGER            JAMES NEWLANDS

FINANCIAL MANAGER                      DAVID MCMAHON

PLANT MANAGER                          PHILLIP ATKINS

APC COMPANY REPRESENTATIVE       JAMES NEWLANDS
                                 EMAIL: jnewlands@apfoods.com.au

                   COMPANY PROFILE
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Atlantic Pacific Foods is a privately owned food manufacturer. It is the leading supplier of
private label spreads and also bottled and drummed vegetable oils in the Australian
market, as well as producing its own brands “Harvest Award”.

Atlantic Pacific Foods employs 50 people and operates near
Newcastle, at Rutherford.

Atlantic Pacific Foods is a vertically integrated
manufacturer. Seed is taken from the farm and crushed in
the Seed Crushing Mill. Crude oil produced in the seed
crushing mill is then refined in the vegetable oil refinery.
Refined Bleached and deodorized vegetable oils are then
transferred to our bottling, drumming or Margarine spread
plant.

Drummed Oil is packed in Steel drums or bulk contains and
sold to retail and food service outlets throughout Australia,
as well as to other manufacturers.

Bottled oils are packed in PET bottles and sold to retail and food service outlets
throughout Australia, as well as to other manufacturers.

Margarine spreads are packed into Polypropylene tubs and lids and sold throughout retail
and food service outlets in Australia, as well as to other manufacturers.
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PRODUCT STEWARDSHIP

Atlantic Pacific Foods (APF) is committed to the Australian packaging covenant (APC)
and fulfilling its responsibilities for product stewardship.

AP Foods will work with suppliers and retailers to raise awareness of the APC, also to
move forward with more sustainable products and practices.

AP Foods will investigate ways to minimize packaging waste; this includes working with
packaging suppliers to use only recyclable products and labelling of packaging to educate
consumers about which packages are recyclable.

ACTION PLAN COMMITMENT
As a user of packaging materials for food products and as a large scale manufacturer of
products AP Foods is ideally situated to work with suppliers of packaging, ingredients and
overall incoming and outgoing goods to investigate ways of minimizing wastage, and
promoting use of recyclable and biodegradable materials.

When developing new products, AP Foods gives consideration to packaging design in
relation to recycling, reuse and disposal.
As shown in the action plan AP Foods, has done a full site wide audit on all incoming and
outgoing goods, along with all general waste and material usage on our site. The aim was
to identify every stream where packaging and waste is generated, and put in an action plan
to reduce, reuse and recycle as much of APF’s goods and reduce or minimize wastage
wherever possible.
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AP Foods will actively promote the principles of the Covenant in its negotiation with
suppliers. We will modify procurement policy where necessary to reflect the intent of, and
to support, the covenant.

Through AP Foods Employee Induction Training we will highlight APC awareness to
staff, and Monthly staff meetings will focus on reducing a particular type of waste, to
increase productivity and reduce amount of packaging that ends up in landfill from our site
or our consumers.

As a supplier to the retail and food service industry, we will work closely with our major
customers to identify further opportunities through feedback, complaints and data to
reduce the environmental impact of packaging.

FUTURE DIRECTIONS
As shown in the action plan APF has targeted every stream in our business, and has set
some extreme goals to reduce APF’s impact on the environment.

The key focus will be to reduce, reuse and recycle as much packaging materials from
every step in our process, and general waste. As well as develop better and more easily
recycled or disposed products that we supply to our customers.

AP Foods also recognizes improvements need to be made to increase the use of recycled
packaging material in new products to help boost the market for recycled materials, which
is currently hindering the recycling process.

James Newlands
Technical and Quality Manager
Atlantic Pacific Foods Pty Ltd
21 Gardiners Rd,
Rutherford, NSW
jnelands@apfoods.com.au
02 4939 1700
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  2011 APF commitment Action plan per area and product to APC goals and KPI’s
  Goal 1: Packaging optimised to achieve resource efficiency and reduced environmental impact without compromising product quality and safety.
  Goal 2: The efficient collection and recycling of packaging
  Goal 3: Demonstrated commitment to product stewardship.

                                                                                                                  Respo                                                                                            Timeline
Area                   Action                                   Goal/KPI’s                                        nsibilit   Baseline Data                                             Target
                                                                                                                  y
Crushing               Meal by-product                          100% By-product sold back for livestock           JN,        Currently 100%                                            Maintain 100%               Ongoing
                                                                feed                                              MT
Maintenance            Introduce Recycling Bins                 100% of metal waste recycled                      JN,        Currently 0%                                              100%                        5 years
                                                                100% of Plastics waste recycled                   MT                                                                   (20% annually)
                                                                100% of Paper recycled
Water Treatment        Recycling Water                          Utilise treated water for use in grey water       JN,        Currently 0% of waste water is recycled                   reduce 100% of toilet       Decemb
Plant                                                           (toilet) systems                                  MT,                                                                  water by using grey water   er 2014
                                                                                                                  PA                                                                   recycled waste water
Refinery               Reduce, Return & Recycle Packaging            1.    25% reduction in packaging             JN,        Currently 5kg paper waste 0% recycled                     Meet KPI’s                  5 Years
                       from ingredients                              2.    50% return of empty packaging          MT,        260kg of plastic, 0% recycled or returned                 1. 5% per year
                                                                           to supplier.                           CF                                                                   2. 10% per year
                                                                     3. 100% Recycle of all other                                                                                      3. 20% per year
                                                                           packaging
                       Site Oil Waste                           100% By-product sold as feedstock or for          JN,        Currently 100%                                            Maintain 100%               Ongoing
                                                                biofuels                                          MT
Production             Reduce, Recycle, Return packaging            1. 25% reduction in packaging                 JN,        Currently receive 8.73MT of Cardboard (98% is currently   Meet KPI’s                  5 Years
Ingredients            (e.g. flavour drums can they be              2. 50% return of empty packaging              MT,        recycled).                                                1. 5% per year
                       returned to supplier or recycled)                 to supplier.                             CF         340kg metal, 0% is returned or recycled.                  2. 10% per year
                                                                    3. 100% Recycle of all other                             5.3MT of Plastic, 2% returned, 0% recycled.               3. 20% per year
                                                                         packaging

Margarine                                                                                                         JN,            1.   Current Weight based on standard                 1. 5% reduction per year    -5
Cartons Suppliers           1.   Decrease cardboard weight           1.   25% reduction in cartons                MT,                 carton/board 5.48g per 10cm2                     2. Increase to 100%         years
(Visy/Amcor)                2.   Increase recycled content                weight                                  PA,            2.   Currently 95% Cartons are from recycled          3. Maintain 100%            -2
                            3.   Recycle waste                       2.   Increase recycled content to            SC’s           3.   Currently 100% of waste Cardboard recycled       4. +25% increase per        years
                            4.   Highlight labelling on                   100%                                                   4.   Currently only 1 in 10 cartons have recycle         year                     -
                                 packaging that it is                3.   Recycle 100% of waste                                       symbol.                                          5. Reduce total volume      ongoin
                                 recyclable                          4.   Add large recycle label on all                         5.   Annual total volume (2010) was 1.166 Million        by 25%                   g
                            5.   Layer pads                               cartons (100%).                                             units                                                                        -4
                                                                     5.   Reduce the number of layer                                                                                                               years
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                                                                      pads by 25%                                         1.     -500g Round = 18.3g                                1. Reduce weights by        -2
                                                                                                                                 -1kg Round = 32.2g                                    10%                      years
                                                                                                                               -500g IML = 30.7g                                    2. Convert more than
                                                                 1.   10% reduction in plastic                                 -500g Rect = 18.9g                                      50% of current round
Tubs Suppliers          1.   Thickness of Tubs                        weights                                             2.                                                           packaging to rectangle
                        2.   Consider change of                  2.   50% conversion to more space                        •     500g Round 80% of product                              or IML shape (up to
                             packaging design from round              efficient packaging                                      = 1080 cm3 per unit =                                   20% more efficient),
                             to square or rectangle to fit       3.   15% conversion from current                              1160m3 per month (for                                   Target 10% per year
                             more in a carton                         PP plastic used to alternate                             Average 1 Million units per                          3. 15% conversion over 5
                        3.   Biodegradable/Waxed                      recyclable or biodegradable                              month round)                                            years 0% 1 year, 2%      -2
                             Cardboard/P.E.T. tubs                    form.                                               •     500g IML 14% of product = 996 cm3 per unit=            year 2, 5% year 3,       years
                        4.   Recycle waste                       4.   50% increase on recycling                                 154m3 (for Average 160000 units per month              9% year 4, 15% year
                        5.   Highlight labelling on                   wasted product                                            IML Rectangle)                                         5.
                             packaging that it is                5.   100% alert to                                       •     500g Rect 6% of product =               938         4. 10% per year             -5
                             recyclable                               informing/highlighting to                                 cm3 per unit = 71m3 (for Average 75000 units        5. 20% increase per year    years
                                                                      customer of recyclability                                 per month Rectangle)
                                                                                                                          3.    Currently 100% use PP                               0% year 1
                        Implement Biodegradable and/or       50% conversion to a recyclable or                            4.    Currently 0% of wasted PP product is recycled       5% year 2,
Paper Cover Slips (in   recyclable slips                     biodegradable slip                                           5.    Currently 20% of Packaging alerts consumers         10% year 3
tubs)                                                                                                                           to recycle                                          20% year 4
                                                                                                                                                                                    50% year 5
                                                                                                                     Currently the Waxed paper is not recyclable, but will
                                                                                                                     slowly biodegrade.

                                                                                                                                                                                                                -5
                                                                                                                                                                                                                years

                                                                                                                                                                                                                -5
                                                                                                                                                                                                                years
                                                                                                                                                                                                                -5
                                                                                                                                                                                                                years

                                                                                                                                                                                                                -5
                                                                                                                                                                                                                years
Palletising             1.   Maximize pallet                     1.   10% reduction in wasted pallet         JN,          1. Data not available on current % space                  1. Increase pallet stacks   -5 years
                             configurations with carton               space, optimize pallet stacks to       MT,                utilization, but will aim to fit more cartons per        by 10% over 5 years.
                             dimensions                               allow more cartons per pallet.         SC’s,              pallet. Current pallet configs are         -500g         2% per year.
                        2.   Pallet wrap alternative e.g.        2.   50% conversion to a                    JB                 Round = 48 cartons per pallet (cpp)                 2.
                             biodegradable or recycled                recycled/biodegradable plastic                            -1kg Round = 40 cpp                                 10% year 1
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                       plastic                                                                                          -500g IML = 48 cpp                                     25% year 2,
                                                                                                                        -500g Rect = 72 cpp                                    50% year 3
                                                                                                                   2.     Current plastic wrap is 100% recycled and is         50+% year 4 & 5
                                                                                                                          made from polyethylene.
Bottling          1.   Reduce bottle weights                1.   10% reduction in bottle weights        JN,        1.     Current bottle weights are              1L = 43.3g   1. Reduce weights by          2 years
                  2.   Optimise bottle design to fit        2.   10% introduction of more               MT,               2L rectangle = 73.8g                   2L square =        10%
                       into smaller volume                       space efficient designs                PA,               71.8g                                                2.   Reduce neck space to
                  3.   Maximize pallet                      3.   10% reduction in wasted pallet         SC’s       2.     Current 1L bottles are square, and current 2L             achieve 10%              5 years
                       configurations with carton                space, optimize pallet stacks to                         bottles are square or rectangle shaped, current
                       dimensions                                allow more cartons per pallet                            designs are efficient. But have large narrow
                                                                                                                                                                               3.   Increase pallet stacks
                                                                                                                                                                                    to meet targets
                  4.   P.E.T. recycling bins                4.   Introduce a Plastic PET recycle                          necks (8cm for square and 13cm for rectangle)                                      1 year
                  5.   Increase awareness of                     bin for all bottles that are                             which could be reduced.                              4.   Year 1 25% Year 2
                       cartons recyclability                     dropped or damaged to recycle                     3.     Data not available on current % space                     50% Year 3 80%
                  6.   Decrease cardboard weight                 80%.                                                     utilization, but will aim to fit more cartons per    5.   25% per year             3 years
                  7.   Highlight labelling on               5.   Alert customs further that the                           pallet. Current pallet configs are                   6.   50% increase per year
                       packaging that it is                      bottles can be recycled 100%                             -1L = 52 cartons per pallet (cpp)                    7.   Reduce weights over
                       recyclable on both cartons &         6.   Add large recycle label on all                           -2L Rectangle = 54 cpp                                    time 5% per year         4 years
                       bottles                                   cartons (100%).                                        -2L Square = 60 cpp                                                                  2 years
                                                            7.   25% reduction in cartons                          4.     Currently 0% of dropped and damaged bottles
                                                                 weight                                                   are recycled                                                                       5 years
                                                                                                                   5.     Currently all (100%) bottles have PET recycle
                                                                                                                          embossed, but 0% have further awareness
                                                                                                                          (logo) on the bottle labels
                                                                                                                   6.     Currently 0% of cartons have recycle symbol
                                                                                                                          added
                                                                                                                   7.     Current Weight based on standard
                                                                                                                          carton/board 5.54g per 10cm2

Drumming          1.   Thickness of metal used in           1.   25% reduction in metal                 JN,        1.    Current metal drum weight is 1.36kg                         1.Reduce by 10%         5 years
                       drums                                     thickness                              MT,        2.    Current drums are all cylinders (28cm                         year 3. Reduce
                  2.   Shape of drums round to              2.   40% conversion to more space           PA,              diameter x 36cm height = 0.0221m3) but take                   by 25% year 5.
                       square                                    efficient packaging                    SC’s             up a rectangle volume 0.0282m3, so 22%                   2. Introduce
                  3.   Change of packaging bag in           3.   Review other types of                                   wasted volume.                                                rectangle or          5 years
                       box or recyclable plastic                 packaging for biodegradable or                    3.    Currently all steel drums with PP cap                         square drum
                                                                 more easily recyclable                                                                                                10% year 2,
                                                                                                                                                                                       10% per year
                                                                                                                                                                                       thereafter
Lunchroom /   Add Recycling Bins for staff             80% recycled or all general waste that is        JN,    Currently 0% of general waste is recycled                       50% year 1, 10% per year      5 years
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Offices             throughout site lunch rooms and   recyclable by segregation, by introducing    MT                                               thereafter
                    offices for                       bins for all the different waste types.
                                     - Plastics/PET
                                     - Aluminium
                                     - Paper
                                     - Waste
                                     - Glass

  APF’s APC SUPPLIER KPI SUMMERY & REVIEW
  APF realize that they must also not only focus on their own products and process, but put some further pressure on their suppliers to ensure the entire supply chain
  is in line with APF’s and APC’s expected commitments. So APF will be issuing every supplier an annual “Sustainability Packaging Quiz” (See appendix 1) as part
  of their annual QA and food safety procedures. All suppliers will then be reviewed and assessed. All current suppliers must achieve a minimum score of 50%, with
  a minimum 5% increase every year to minimum of 75% within 5 years. Any new suppliers must meet the 75% target initially. If any supplier does not achieve the
  minimum requirements APF will source the product from an alternate supply that can.

  The scoring system for the QUIZ is
  3 points per question for a yes, currently supply/do 100%
  2 points per question for a yes, currently supply 0%
  1 point per question for a yes, they can, but not currently supplied

     Covenant performance                               Actions                                    Responsibility   Baseline           Target                    Timeline/
        goals and KPIs                                                                                                data
                                                                                                                                         or                      milestones
                                                                                                                                 performance goal                 (MM/YY)
   Goal 1. Design – optimise packaging to achieve resource efficiency and reduce environmental impact without compromising product quality and safety
   Target: 70% of Covenant signatories with documented policies and procedures for evaluating and procuring packaging using the SPG or equivalent
   Target: 70% of Covenant signatories assessing 100% of new packaging and 50% of existing packaging against the guidelines
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KPI 1 Proportion of
signatories in the supply      As part of the annual Sustainable packaging quiz APF will be             QA   Not Begun   CURRENT SUPPLIERS                            Yearly progress
chain implementing the SPG     issuing to their suppliers, it will include a question asking what            Yet                                                      and then
                               level of their supply chain implements the SPG for design                                 Assessed annually. Min 50% year 1
for design or procurement of                                                                                 0%                                                       5 Years for overall
packaging                      and/or procurement of their packaging.                                                    Min 5% increase per year to Min 75% within   achievement
                                                                                                                         5 years
                                                                                                                         NEW SUPPLIERS: Min 75%
Goal 2. Recycling – the efficient collection and recycling of packaging

KPI 3 Proportion of
signatories with on-site       As part of the annual Sustainable packaging quiz APF will be             QA   Not Begun   CURRENT SUPPLIERS                            Yearly progress
recovery systems for           issuing to their suppliers, it will include a question regarding              Yet                                                      and then
                               what level of recovery systems are in place for packaging and                             Assessed annually. Min 50% year 1
recycling used packaging                                                                                     0%                                                       5 Years for overall
                               what proportion is recycled.                                                              Min 5% increase per year to Min 75% within   achievement
                                                                                                                         5 years
                                                                                                                         NEW SUPPLIERS: Min 75%
KPI 4 Proportion of
signatories with a policy to   As part of the annual Sustainable packaging quiz APF will be             QA   Not Begun   CURRENT SUPPLIERS                            Yearly progress
buy products made from         issuing to their suppliers, it will include a question regarding              Yet                                                      and then
                               what level of their supplied products are currently recycled,                             Assessed annually. Min 50% year 1
recycled packaging                                                                                           0%                                                       5 Years for overall
                               and what is the maximum achievable level that could be                                    Min 5% increase per year to Min 75% within
                               recycled.                                                                                                                              achievement
                                                                                                                         5 years
                                                                                                                         NEW SUPPLIERS: Min 75%
Goal 3. Product stewardship – a demonstrated commitment to product stewardship by the supply chain and other signatories
KPI 6 Proportion of            As part of the annual Sustainable packaging quiz APF will be             QA   Not Begun   CURRENT SUPPLIERS                            Yearly progress
signatories that have formal   issuing to their suppliers, it will include a question asking if they         Yet                                                      and then
processes for working with     have a formal process to improve designs and recycling of the                             Assessed annually. Min 50% year 1
others to improve design and   packaging..                                                                   0%                                                       5 Years for overall
                                                                                                                         Min 5% increase per year to Min 75% within   achievement
recycling of packaging                                                                                                   5 years
                                                                                                                         NEW SUPPLIERS: Min 75%
KPI 7 Proportion of
signatories demonstrating      As part of the annual Sustainable packaging quiz APF will be             QA   Not Begun   CURRENT SUPPLIERS                            Yearly progress
other product stewardship      issuing to their suppliers, it will include a question asking if they         Yet                                                      and then
                               have a formal process to improve designs and recycling of the                             Assessed annually. Min 50% year 1
outcomes                                                                                                     0%                                                       5 Years for overall
                               packaging..                                                                               Min 5% increase per year to Min 75% within   achievement
                                                                                                                         5 years
                                                                                                                         NEW SUPPLIERS: Min 75%
KPI 8 Reduction in the
number of packaging items      As part of the annual Sustainable packaging quiz APF will be             QA   Not Begun   CURRENT SUPPLIERS                            Yearly progress
in litter                      issuing to their suppliers, it will include a question asking if they         Yet                                                      and then
                               can reduce the number of total packaging uses, and what                                   Assessed annually. Min 50% year 1
                               proportion they can reduce form litter                                        0%                                                       5 Years for overall
                                                                                                                         Min 5% increase per year to Min 75% within   achievement
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     5 years
     NEW SUPPLIERS: Min 75%
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                          ATLANTIC PACIFIC FOODS FORMS REGISTER DOCUMENT

          APPENDIX 1: APF SUSTAINABLE PACKAGING SUPPLIERS QUIZ

     As part of APF’s commitment to Australian Packaging Covenant and to help us and our suppliers
     reduce, reuse and recycle all incoming and our outgoing goods please answer the following.

                                                                           Answer Yes, Do/Can,        APF SCORE
                                                                            and % if applicable       DO NOT FILL IN
Are you part of the APC (Australian Packaging covenant)?
Do you (or can you) supply “Fit-for-Purpose” packaging?
Packaging should be designed to meet market and consumer needs,
while minimising net impact in a cost-effective way.
Do you (or can you) supply “efficiently resourced” packaging?
Packaging should be designed to minimise the use of materials and
other resources without compromising product quality and safety.
Do you (or can you) supply “low material impact” packaging?
Packaging should be designed to minimize the environmental and
social impact of materials and components.
Do you (or can you) supply “recoverable” packaging?
Packaging should be designed to maximize its potential for recovery
and recycling.
Do you have your own “on site” recovery systems for recycling
used packaging?
Do you (or can you) supply packaging made from
recycled packaging?
Do you currently work towards improving your design
and recyclability of packaging?
Do you currently undertake any product stewardship
initiatives?
Do you currently have any processes in place which
minimize wasted packaging, or reduce the overall number
of items which end up a landfill (Reduce, Reuse or Recycle)?

     To assist APF further please indicate if there are any actions, processes or future potential products
     you may have in place (or are working towards) which may help APF to achieve more sustainable
     products:

     …………………………………………………………………………………………………………

     …………………………………………………………………………………………………………

     …………………………………………………………………………………………………………

     …………………………………………………………………………………………………………

     …………………………………………………………………………………………………………

     Company __________________ Name ________________ Sign _____________ Date _________
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