Sustainability Report 2019
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Costa Group
Holdings Limited
Sustainability
Report
2019
Contents 2 CEO Report 6 Sustainable Commercial Farming 9 Environment 16 Economic 19 People 26 Health and Safety 30 Community 36 Stakeholder Group Engagement 38 Data Assurance Costa Group Holdings Limited ABN 68 151 363 129
Costa is Australia’s
leading grower, packer
and marketer of premium
quality fresh fruit and
vegetables.
Costa Group Holdings Limited 1 Sustainability Report 2019
CEO Report
The past year reinforces in the company’s
mind that we are on the right track when
it comes to dealing with risk and being
relentless in identifying ways in which we
can continuously improve the environmental
and economic performance of the business.
This is our fifth sustainability report and it and resourcefulness that is a credit to them We continue to address the risks associated
covers the calendar year 2019. The report and our business. Our active and ongoing with climate change particularly those of a
includes all of our operations, which are involvement in the communities in which financial nature. Our solar farm located at
located in Australia, Morocco and China. we operate is a further positive reflection our newly expanded mushroom production
on our people, with so many of them getting facility in Monarto South Australia is now
The 2019 year proved to be a challenging directly involved in local community activities, operational. All of the electricity produced
one, particularly with respect to the impact whether it be organising fundraising for local by the solar panels is used on site and not
of weather events, most notably drought organisations or volunteering their time to only does it reduce our carbon emissions,
conditions which affected some of our farming help build fruit and vegetable gardens at it also serves to guard against the financial
locations, including our tomato glasshouses local schools. risk of disruptions to energy supply. The
and north coast New South Wales berry farms. need to manage such risk in other parts of
This has reinforced the need for our ongoing Improving our water use efficiency and our business has seen work commence on
commitment to the Sustainable Commercial security is a priority and will continue to be identifying other suitable farming locations
Farming objectives we established in 2018. over the coming months and years. It is crucial we have which can benefit from the use of
Progress in meeting these objectives has that we further refine our water use to achieve solar energy.
been steady and I am pleased to report they not only greater efficiencies in its application
are becoming ingrained in the Costa culture. to our crops, but also yield relative to usage. Biodiversity and nutritional inputs are two
Our business is committed to making our Projects commenced or undertaken in 2019 of our key sustainable commercial farming
operations sustainable so they can both included improved water monitoring on our principles. Our berry category has partnered
withstand environmental risk, including berry farms through the installation of water with the University of New England on the
unforeseen and extreme weather events, metres which will provide better insight Australian Government funded ‘Securing
and maximise opportunities with respect into the variability of water use between the Pollination for More Productive Agriculture’
to improving our economic efficiency and different berry varieties we grow, the use of project, aimed at optimising crop pollination.
profitability over the medium to long term. soil moisture probes in our avocado plantings Integrated pest management utilising
and the trialling of state of the art sensor beneficial insects as a way to reduce
Development of our people remains a technology in our raspberry crops, with initial chemical usage is being used in our avocado
key focus and they have not only risen to, results showing a 5% reduction in water category and reducing sediment and nutrient
but also met the challenges of the past usage and a 5% increase in yield. runoff into waterways is a key focus for our
12 months, demonstrating both a resilience banana farms.
Costa Group Holdings Limited 2 Sustainability Report 2019
Costa Group Holdings Limited 3 Sustainability Report 2019
Costa Group Holdings Limited 4 Sustainability Report 2019
CEO Report continued
Reducing waste throughout our supply chain The diversity and geographical spread of The past year reinforces in the company’s
is aimed at realising both environment and our workforce was also formally recognised mind that we are on the right track when
economic benefits. Our berry category is with our Board endorsing a company-wide it comes to dealing with risk and being
helping to turn plastic poly tunnel film into human rights policy which demonstrates our relentless in identifying ways in which we
pellets, which are used in the production commitment to respecting internationally can continuously improve the environmental
of new material. Through this project, recognised human rights and sets out and economic performance of the business.
240,000m3 of plastic was recycled in a year, our expectations for the conduct of our We remain committed to developing our
along with the rope and string used to erect employees and suppliers. Recognising such quantitative reporting on our progress in
the tunnels. Fresh produce packaging has rights is important to our ability to attract a these areas, this includes putting in place a
received considerable attention over recent workforce of the highest calibre and provides framework that supports such reporting and
times and although there are justifiable them with every opportunity to succeed and ensures the accuracy and legitimacy of any
reasons for the use of packaging for certain be rewarded for their efforts and contribution data that we do report.
fresh produce in order to maintain product to our success.
integrity and shelf life, more can be done Finally, I am pleased to announce the board
to use packaging which is sustainable. As it We are committed to treating all of our has considered the Taskforce on Climate
currently stands 100% of our punnets are workers fairly and not just those in our Related Financial Disclosures framework
manufactured from PET, which is completely direct employ. This means ethical sourcing and believes these set out a consistent and
recyclable and is the most recycled plastic through our supply chain and in particular coherent framework to allow our company
worldwide. In addition our berry punnets from our partner growers is a key focus, with to disclose our climate change risks to our
are constructed with 80% recycled PET (r pet). work commencing on better understanding stakeholders. This voluntary framework deals
We will continue to seek ways to increase this the social sustainability practices of our with governance, strategy, risk management
volume and Costa endorses the agreement partner growers and being satisfied they are and metrics and targets. Although some
by Australian state and federal Environment employing their workers lawfully and fairly reporting of climate-related information looks
Ministers that 100% of Australian packaging while also respecting their human rights. at the company’s past performance such as
be recyclable, compostable or reusable by Our Ethical Sourcing Programme is aimed at GHG emissions, climate-related reporting
2025 or earlier. achieving this by utilising the Supplier Ethical is also focused on a company’s future risks
Date Exchange Platform (Sedex), which is one and opportunities which may have financial
A priority for any agricultural company is to of the world’s leading ethical trade service implications in the short, medium- and
improve the production yield of its crops. providers. Through the Sedex platform we long-term. It is important for Costa to ensure
In 2019 the company initiated its ‘Closing the are working to assess our partner growers’ our strategy is aligned with future risks and
yield gap’ program, in which each produce management practices and work together opportunities. This is why the TCFD has been
category has been tasked with identifying with them to identify opportunities for identified as an appropriate framework for
and putting into practice actions which improvement and provide support and Costa to progressively incorporate over time,
will contribute to reducing gaps in yield for action where it is necessary. beginning in 2020.
each hectare farmed and improving overall
financial returns on factors of production. Our significant footprint across regional and
These actions include further refining the rural locations means that our employees
application of nutrients to substrate and predominantly live and work in their local
in soil plants, and more accurate grading communities. It provides them with a unique
of produce before and after it has been insight into the particular needs of those Harry Debney
harvested. This is also supported by regular communities, including the importance of Managing Director and CEO
evaluation of critical task execution and how volunteering and providing both financial and Costa Group
that has impacted production volume, quality non-financial assistance to local organisations
and harvest efficiency. This program will be and initiatives. Whether this be helping to
ongoing, and it is something that we cannot build vegetable gardens for the local state
afford to stand still on if we are to remain school, sponsoring kids with special needs to
competitive and achieve the most efficient participate in a fishing tournament, fielding
return that we can on the capital we invest. a team in a soccer tournament in Yunnan
Province China, or donating funds in support
As we expand our operations internationally of mental health awareness, the importance
it is important that we consistently apply of Costa making not only a positive
the same high standards across our workforce. economic but also social contribution in the
To this end our 2019 reporting on key health communities in which we operate, is integral
and safety metrics includes those of our to our sustainability as a company and of
Moroccan operations for the first time as those local communities.
part of the overall group reporting. Other
important health and safety developments
during the past year in these locations
included defibrillators being deployed across
all of our China sites and the introduction
of an incentive system to reward safety
conscious staff. In Morocco, an employee
safety induction program was introduced
along with safety leadership training.
Costa Group Holdings Limited 5 Sustainability Report 2019
Sustainable Commercial Farming
Finding more sustainable ways to make fresh, Economic and People, which are 5. Biodiversity
healthy food available for everyone is one of underpinned by 10 Sustainable
the most critical issues of our times and we Commercial Farming Principles. We will prioritise the application of organic
believe that Costa has a vital role to play. and biological pest and disease control
The Pillars are interconnected reflecting their methods on our crops where practical and
Our challenge is balancing commercial fresh equal importance to successfully realising cost efficient. Where chemical applications
produce production with environmental our strategy. The Principles which underpin are used, these will be closely monitored
responsibility and affordability with quality, the Pillars serve as a clear statement and to measure ongoing efficacy of use and
so that healthy and nutritious food is available commitment to what we consider to be the to ensure compliance with maximum
to everyone for generations to come. fundamentals of Sustainable Commercial residue limits.
Farming and what we commit to do in
At Costa, we call this Sustainable Commercial these areas. Economic
Farming and we are proud to lead the way.
6. Production Yield
Sustainable Commercial
Sustainable Commercial Farming Principles We will continue to develop and embrace
agronomic technology and practices to
Farming Overarching increase crop yields for each hectare farmed,
Objective Environment including production which occurs out of the
soil. We will also seek to better understand
Costa has developed a Sustainable 1. Water use and security the variables in crop production via the use
Commercial Farming ‘Overarching Objective’ of advanced measurements and analytical
We will maintain a focus on reducing water
which broadly defines not only what we are tools to obtain improvements in
inputs per unit of crop output through
seeking to achieve but also acknowledges the agronomic practices.
efficiency of water use and ensuring water
environmental and social responsibilities that
security with a particular focus on water
go hand-in-hand with integrating Sustainable
capture and recycling. 7. Productivity and Efficiency
Commercial Farming into everything we do
at Costa. We will actively pursue investment that
2. Climate Change improves our productivity with a focus on
Our Sustainable Commercial Farming the development of harvest and post-harvest
We will continue to meet the challenges
Overarching Objective is stated as follows: automation initiatives to ensure long term
presented by climate change, using skills
and technology to adapt to changing cost efficiency and pricing competitiveness.
Costa has adopted a systematic and tailored
circumstances. This includes advancing the
Sustainable Commercial Farming strategy
adoption and continued enhancement of People
to ensure that we work for the long term to
protected cropping across our portfolio,
progressively improve the yield and quality
finding new technological solutions and 8. Workforce
of our healthy and nutritious products
exploring the use of renewable energy
whilst achieving a per unit reduction in crop
sources where practical to do so. The knowledge and application of our
production inputs.
sustainable farming practices is central
to the development and training of our
We accept our responsibility for the environment 3. Waste workforce. We also recognise they deserve a
and communities within which we farm
We recognise that waste in all forms presents workplace that respects and recognises their
and grow our crops whilst recognising that
challenges with respect to its reduction. basic human rights, is both safe and healthy,
innovation is required to enhance productivity,
This requires a multi-faceted approach promotes diversity and provides opportunity
reduce waste and adapt to challenges presented
that includes adopting practices to reduce for career advancement and training, while
by such issues as water security and climate
the impact on crop yield and quality loss, ensuring they are appropriately rewarded for
change, while continuing to supply product
stringent post-harvest time-temperature their efforts.
that is fundamental to the maintenance of
management to extend product life cycles,
a healthy and balanced lifestyle.
active management of production waste, 9. Community
seeking ways to reduce packaging waste and
Furthermore, we will regularly undertake We will build and maintain an active
removing or eliminating non and low value
reviews beyond our own farm footprint with involvement in supporting the social fabric
labour intensive activities.
our partner growers and encourage them to of the many regional and rural communities
be transparent about the challenges they in which we operate. Our footprint requires
face so that we can work with them to meet 4. Nutritional Inputs us to not only act and behave as a responsible
our standards. corporate citizen, but also work closely
We will carefully select and apply crop
nutritional elements and where practical with communities so they can benefit
Sustainable Commercial endeavour to use organic and biological crop
nutritional inputs. Care will also be taken to
both economically and socially from our
ongoing presence.
Farming Pillars and eliminate or reduce any migration of applied
Principles nutrients beyond our farm boundaries.
In order to realise our Overarching Objective,
we have established three Sustainable
Commercial Farming Pillars of Environment,
Costa Group Holdings Limited 6 Sustainability Report 2019
10. Health and Well Being Sustainable Commercial Farming Principles
We only grow healthy and nutritious
fresh food that is acknowledged
as being essential to maintaining a
healthy body and mind. We take great
pride in the fact nothing artificial is
Environment
added to our products after harvest
and sold fresh just as they are. 1. Water use and security
2. Climate change
3. Waste
Corporate Governance/ 4. Nutritional inputs
Board oversight 5. Biodiversity
Costa Group’s Board of Directors
oversees our sustainability
performance and those policies
relating to sustainability and progress
toward achieving our sustainable
commercial farming goals. The
Board works with our CEO and Economic People
Executive Leadership Team to review
and evaluate key performance 6. Production yield 8. Workforce
indicators and initiatives. The strategic 7. Productivity and efficiency 9. Community
management of sustainability is led 10. Health and wellbeing
by our CEO and Executive Leadership
Team, who develop and monitor
sustainability initiatives and projects,
policies and standards. The daily
management of our sustainable
commercial farming commitments
and implementation of objectives
is guided by all Costa business unit
leaders and their teams.
Costa Group Holdings Limited 7 Sustainability Report 2019
Costa Group Holdings Limited 8 Sustainability Report 2019
Environment
Water Ultrasonic treatment to being achieved. There has also been a range
of initiatives already undertaken during the
remove algae from water past year, including the increased use of
State-of-the-art sensors soil moisture probes, automated irrigation
Costa’s African Blue farms in Morocco are
reduce water usage based in two specific regions: Massa (Agadir practices to maximise efficiency and assist
Region) and Moulay Bousselham/Laaouamra in delivering increased crop and the use of
A trial project using state-of-the-art sensor
(Kenitra, Larache Region). Water is commonly mulch on those crop areas that experience
technology in our raspberry crops has
extracted from the ground (bores), with the hotter and drier conditions, thereby
resulted in an initial 5% reduction in
exception of the Baytar farm (Larache) where minimising evaporation and assisting
water usage and a 5% increase in yield.
water is sourced from irrigation channels and in protecting moisture around the roots
put through a reverse osmosis (RO) process of the trees and reducing the need to
Weigh-scale sensors have been installed in
prior to use on the crop. Floating algae was apply more water.
selected substrate systems at the Corindi
New South Wales berry farm to enable identified by the African Blue team as causing
more efficient irrigation scheduling. The filter clogging in the RO units. To deal with the
system works by measuring moisture on a problem an ultrasonic treatment was selected
continuous, real-time basis and transmitting for trial as an alternative to copper-based Improving water use
it to a fertigation unit where it can algaecides, using high frequency sound waves monitoring
automatically trigger irrigation cycles to attack the algal cells. Testing continues to
determine if there is a significant impact on The monitoring of water use on our
based on set parameters. berry farms is being improved with
reducing algal counts, raw water turbidity
and total organic carbon. the installation of new water meters.
The system provides more responsive These will provide better insight into
and consistent scheduling, resulting in the variability of water use between
significant water savings across the trial Review of Avocado different varieties and management
blocks equivalent to 200KL per hectare, per
year. Reduced water use has also resulted in irrigation practices methods to be evaluated in terms of
water use efficiency. More accurate
reduced fertiliser use and subsequent run-off, A review of all irrigation practices across our water use data also enables security
providing benefits for both plant health and avocado farms was commenced in 2019 in of supply to be evaluated for existing
the surrounding environment. order to determine what future investment crops and new developments.
and improvements may need to be made
to ensure maximum water efficiency use is
Water consumption by produce category
Avocados Berries Citrus Mushrooms
FY19 FY19 FY19 FY19
6,3221
Unit of measure (ML)
2,7252
Unit of measure (ML)
29,4873
Unit of measure (ML)
4173
Unit of measure (ML)
(FY18 – 6,610) (FY18 – 2,552) (FY18 – 22,300) (FY18 – 415)
Tomatoes International – Morocco International – China Total
FY19 FY19 FY19 FY19
590 5
Unit of measure (ML)
1,938
Unit of measure (ML)
689
Unit of measure (ML)
42,2686
Unit of measure (ML)
(FY18 – 521) (FY18 – Not Available) (FY18 – Not Available) (FY18 – 32,398)
1. Includes usage for banana production.
2. Increase was predominantly due to a larger production area (growth and redevelopments).
3. Includes for the first time the Colignan farm acquired in December 2018 and usage of 642ML for table grape production. Also reflective of higher amounts of water use in drought years
due to lower rainfall and particularly due to hotter conditions with greater evapotranspiration.
4. This figure excludes the use of recycled water and reflects increased production and compost on prior year.
5. Of this total, 200ML was recycled drain water. Increase was predominantly reflective of dry weather conditions.
6. For the first time this total reported figure includes water consumption for our operations in Morocco and China.
Costa Group Holdings Limited 9 Sustainability Report 2019Environment continued
Climate Change
Greenhouse Gas (GHG) Emissions
UNIT 2016-17 2017 – 18 2018-19*
Total Scope 1** & 2^ tonnes CO2-e 118,254 123,607 142,375
Scope 1 tonnes CO2-e 54,064 55,568 55,102
Scope 2 tonnes CO2-e 64,190 68,039 87,273
* Most recent reporting period for Australian operations only – National Greenhouse & Energy Reporting – s.19 Energy and Emissions Report.
** Scope 1 emissions include combustion of fossil fuels (e.g. natural gas, fuel oil, propane, etc.), combustion of fossil fuels (e.g. gasoline, diesel) used in the operation of vehicles
or other forms of mobile transportation and unintentional release of GHG from sources including refrigerant systems and natural gas distribution
^ Scope 2 emissions include Indirect GHG emissions from consumption of purchased electricity, heat or steam.
Energy Consumption
UNIT 2016-17 2017-18 2018-19
Total Energy Consumption GJ 931,417 984,124 1,048.843
Total Energy Produced GJ - - -
Energy Consumed Net GJ 931,417 984,124 1,048,843
Solar powers up at Monarto The system is capable of generating around
mushroom farm
1,900 Kilowatts peak, with up to 13,319 Protected cropping
Kilowatt-hours of electricity having been
produced in total over a single day. This is
– Table Grapes
The solar electricity generation system
installed at the Monarto mushroom farm enough energy to power over 600 homes Costa has installed netting over our table
in South Australia, began full capacity and avoids around 9.4 tonnes of carbon grape crop in Mundubbera, Queensland,
generation in October 2019. There is a total dioxide being produced by conventional with 100% of the 100-hectare crop to be
of 5,096 solar panels installed on frames, power stations per day. All of the electricity completely covered by the end of 2020.
split over 38 high powered inverters feeding produced by the solar system is currently The main benefit of netting is the
through a step-up transformer to the 11,000 used on site. protection it provides from extreme
volt electrical supply system to the Monarto weather events, including hail and wind.
facility. The netting also reduces the threat of
pests, including birds damaging the
crop and therefore results in less product
wastage. Additional benefits of netting
include the creation of a micro climate
which increases sugar development and
yield improvement through increased
grape size.
Costa Group Holdings Limited 10 Sustainability Report 2019Waste Reducing product and
Recycling packaging packaging waste
War on waste waste from tomato Cardboard bulk mushroom boxes are pre
A local Tasmanian company Envorinex, has glasshouses folded for use at the start of every day at our
been collecting our berry tunnel plastic poly mushroom production facilities. This allows
film and turning it into pellets, which are used Costa’s tomato category is working the mushroom harvesters to pick and fill the
in the production of new material, such as with Australia’s biggest recycling boxes as productively as possible without
the plastic film used on construction sites. company, Visy to reduce our having to wait for them to be made up during
Through this project, 240,000m3 of plastic is cardboard waste. In 2019, from across the day. At the end of the day any surplus and
recycled each year, along with the rope and both tomato glasshouse sites in underweight folded boxes containing product
string used in the erection of the tunnels. In Guyra, New South Wales, a total of were being unfolded and thrown away due
addition, around 243,000 plastic bags which 1,620m3 of cardboard was collected to strict quality assurance requirements.
hold strawberry plants, are recycled through by Visy, with collections occurring on
a similar process. At our Corindi New South a weekly basis. This was creating a product and packaging
Wales berry farm, over 24 tonnes of tunnel waste problem which needed to be
plastic was recycled in 2019. addressed. The solution was to introduce
scales enabling the Harvesting Supervisor to
Our berry replanting operations generate weigh the boxes as the harvest progressed in
considerable volumes of used substrate order to provide a more accurate indication to
material. In Far North Queensland, around the harvester as to the box weight and what
300 tonnes of coir material used in substrate may need to be added in order to achieve
planting is being successfully recycled into a the required weight.
commercial compost material each year, using v ide
local company Shark Recycling. In addition, Please pro As a result, the number of underweight
around 20 truckloads of scrap steel have been image boxes has been reduced, saving on both
recycled. product and packaging, while ensuring
continued compliance with quality assurance
requirements.
Costa Group Holdings Limited 11 Sustainability Report 2019Environment continued
Australian Fresh Produce Costa along with all AFPA members waste. An example of this as demonstrated
recognises that consumers are concerned by the research is Costa’s use of punnets to
Alliance packaging research about the level and type of packaging that package berries. The research shows that the
In August 2019 the Australian Fresh Produce is used for fresh produce. What the research environmental impact of the waste generated
Alliance (AFPA) of which Costa is a founding demonstrated is there are real and practical from damaged, unsellable fruit actually
member, released research undertaken by reasons for using packaging for certain types outweighs the impact of utilising the punnet.
RMIT University and Empauer that shows of fresh produce.
fresh produce packaging can help mitigate The report also highlights the importance
the estimated $20 billion of food lost or An estimated 7.3 million tonnes of food of working to reduce packaging where
wasted in Australia every year. valued at $20 billion dollars is lost or wasted reasonably possible and identifying
every year in Australia, while rates of obesity packaging that provides greater
The research mapped the lifecycle of 10 are rising due to poor diet and low intake of opportunities for recycling.
fresh produce items both with and without fresh fruit and vegetables.
packaging. The results showed that the AFPA has also undertaken further research
benefits of packaging of fresh produce Consumers would benefit from a better on the behaviours of consumers in the home
include product protection, extension of shelf understanding as to why producers utilise post purchase and how they store fresh
life and the ability to communicate product particular packaging formats, whether it be produce in the home to maintain freshness
information which assists consumers. to ensure product integrity in the supply and shelf life and reduce waste.
chain, extend shelf life and/or reduce food
Costa Group Holdings Limited 12 Sustainability Report 2019Fresh Produce Packaging 2. Implementing the agreement by state and 4. Reducing the amount of packaging through
federal Environment Ministers in April 2018 the broader supply chain, and working toward
Position Statement that ‘100 per cent of Australian packaging be developing a circular economy for packaging
As a founding member of the Australian Fresh recyclable, compostable or reusable by 2025 (where current packaging is recycled into new
Produce Alliance (AFPA), Costa fully supports or earlier to cut down on the amount of waste packaging) including recycled content.
the Position Statement on Fresh Produce we produce’.
Packaging which was released publicly by a. More than 75% of Alliance members’ 5. Working with industry, suppliers, recyclers,
AFPA in September 2019. current retail packaging (by volume) is and retailers to deliver outcomes,
recyclable, compostable or reusable. and encouraging the development of
We recognise that waste in all forms presents its
(With PET as the prime material used in our environmentally sustainable packaging.
challenges and this requires a holistic approach.
consumer packaging, Costa has moved to
Therefore, the design and application of the
ensure that all labels and adhesives used on A copy of the full statement can be found at
packaging we use is also aimed at minimising
PET punnets and packs are 100% recyclable. http://www.freshproduce.org.au/
packaging waste.
Material used in our punnets are also media-releases/reducingpackaging/
constructed with 80% recycled PET (r-PET).)
The five key things we commit to do to minimise
packaging waste are:
3. Removing any non-functional or surplus
1. Ensuring that the role of packaging is focused packaging by designing it for optimal
on providing consumers with freshly grown, efficiency to maintain product freshness and
healthy and nutritious food, and minimising maximising the availability of nutritious food.
food waste.
Costa Group Holdings Limited 13 Sustainability Report 2019Environment continued
Biodiversity Bumblebees as effective Integrated Pest Management
pollinators and nutritional program
Research aims to ensure
Costa is presently using bumblebees Our avocado category has commenced the
future bee health to pollinate our berry crops in China. use of Integrated Pest Management (IPM) and
Ensuring the health of native bees and Bumblebees are important pollinators, with a nutritional program to enhance soil biology.
honeybees and enhancing the pollination wings that beat 130 times or more per second.
of crops is the aim of a partnership between The beating of their wings combined with IPM involves the use of so-called beneficial
Costa and bee researchers at the University their large bodies vibrates flowers until they insects as a way to reduce chemical usage
of New England (UNE). release pollen, which is called buzz or sonic and increase biodiversity while growing
pollination. Bumblebees are also larger than premium fruit. Targeted crop timings for the
UNE and the team at Costa Berries in Corindi honey bees and generate more heat, allowing most effective use of IPM include flower bud
New South Wales are part of the collaborative them to work during cooler weather. development, bloom, fruitlet development,
‘Securing Pollination for More Productive fruit fill and harvest. Slashing of
Agriculture’ project that is investing more than Bumblebees also greatly improve pollination grass is avoided in the lead up to using IPM
$5 million to develop guidelines for effective of greenhouse crops (tomato, capsicum, in order to allow inter row weed and grass
pollinator management and stakeholder eggplant, berry fruit), in field crops growth with these areas acting as an insectary
adoption. (strawberry, blueberry, cranberry, kiwifruit, and providing an important source of pollen
zucchini, bean, eggplant) and in tree fruit for adult beneficial insects.
Senior Costa horticulturist Maurizio Rocchetti, (almond, apple, stone fruit, avocado).
notes that bees play a critical role in all The nutritional program involves the use
crop production and the ongoing research Bumblebees are used to pollinate crops of a blend of products from both synthetic
collaboration with UNE is vital to ensure bee in up to 40 countries across Europe, North and organic sources. The aim is to enhance
health. One activity conducted under the America, South America, Asia and China. soil biology by creating a more dynamic
project focused on optimising pollination for In Australia although bumblebees are environment and increasing biodiversity,
a range of crops including blueberries and endemic to Tasmania and have been present whilst maintaining soil quality and reducing
raspberries. in the wild for 25 years or more, the use of soil degradation. These inputs include kelp,
bumblebees to pollinate glasshouse and fish hydrolysate, molasses and fulvic and
Experimental work was undertaken which field crops in Tasmania and on the Australian humic acid.
involved observing flowers for a long period mainland is currently prohibited under the
of time and how many visits the different Commonwealth Environment Protection and The trial is to ascertain their impact and
pollinators would make to the flowers. The Biodiversity Conservation Act (EPBC) 1999. effectiveness before any widespread use is
project found there were on average 25-125 Costa supports the Federal Government’s adopted as the impact is not immediate, this
stingless bee colonies per hectare, each with proposed amendment to the Act which would is likely to continue over a number of years
thousands of forager bees. allow a trial to be conducted in Tasmania with in order to properly measure the benefits.
local bumblebees in order to test their efficacy
Other activities are looking at how to support as pollinators and any potential impact on the The IPM and nutritional programs are both
the bees and identify what type of flowers local environment. key to our goal of ensuring we are using
are needed to be introduced on the farm in the most efficacious biological products to
response to certain weather patterns, or when improve and protect biodiversity, including
there are no other flowers available. Blueberry plant health, reducing the use of insecticides
pollen also does not have a high protein Organic approach and pesticides, minimising the use of
synthetic nutritional inputs, optimising soil
content, which bees need for the brood. This to algae control structure and health and delivering maximum
means looking at providing some additional
pollen sources to attract bees and help In our Tasmanian berry operations, nutrition to our plants.
maintain strong hives. an organic approach to algae control
is being utilised through the use
The ‘Securing Pollination for More Productive of barley straw bales. The bales are
Agriculture’ project is supported by funding wrapped in shade cloth and placed
from the Australian Government Department in dams. As the bales decompose, a
of Agriculture as part of its Rural Research and natural algaecide is released which
Development for Profit program. inhibits the growth of algae across
the summer period. This improves
the water quality within the dam,
maintains the natural aquatic
ecosystems, reduces irrigation system
maintenance and improves plant
health – all without the need for
chemical treatments.
Costa Group Holdings Limited 14 Sustainability Report 2019Nutritional inputs
Reducing nutrient runoff
In 2019 the Queensland government
introduced legislation focusing on the
obligations of farmers with regards to
sediment and nutrient run off into waterways
and oceans on the coastline immediately
adjacent to the Great Barrier Reef. Costa has
been proactive in this area for a number
of years in order to reduce the impacts
of nutrient runoff from our banana farms
through the following initiatives:
• Laser levelling of all land before planting
to ensure runoff is measured and does not
lead to excessive erosion.
• Introduction of fertigation practices rather
than the spreading of granules. Fertigation
enables the application of more precise,
controlled and lower inputs.
• Overall reduction in nitrogen application
levels to well below industry application
levels and permitted regulatory levels.
In 2020 our banana category will be
working closely with both the Queensland
Departments of Agriculture, Forestry and
Fisheries and Major Projects to better
understand our environmental footprint
into the future. This will include conducting
commercial trials on the effect of different
nitrogen levels on banana plant growth and
bunch development (previous trials have
been in a research environment). In addition
to this we will undertake regular monitoring
of water runoff from the farm to assess the
levels of sediment and dissolved inorganic
nitrogen and ascertain which practices and
weather conditions may lead to changing
levels of these elements.
Insert banana photo
as attached
Costa Group Holdings Limited 15 Sustainability Report 2019Economic
Production Yield Comprising of web and mobile apps with
a core AI learning capacity, the platform
The VR harvest training tool will provide the
following benefits:
generates data and insights which enable
Closing the yield gap large-scale commercial growers such as Costa
• A training environment that mirrors the
harvesting operations of the mushroom
Improving the yield of our crops is to make better informed decisions around
farm, that doesn’t impact business output.
fundamental to our ability to remain resource allocation, irrigation, crop spraying,
competitive and to maximise economic fertigation and harvest and how this can be • Allow potential employees to fully
returns on our investment and for our used to improve yields. understand the job and skill requirements
shareholders. The ‘Closing the yield gap’ before committing to the role, allowing
project which began in 2019, places prospective harvesters to ‘try before
yield improvement at the forefront of our Productivity and they buy’.
sustainable commercial farming priorities. Efficiency • Aim to reduce worker turnover, workplace
injuries and food waste.
This means that ‘yield’ will no longer be
treated as a catch all measurement. The many Virtual picker technology • Ability to adapt the technology to other
factors and variables that go into determining horticultural crops.
yield are now being more closely scrutinised Costa and Melbourne Polytechnic have
• Formal recognition of the development
and measured across our crops. This includes, teamed up on a project to develop a virtual
of skills and knowledge.
but is not limited to establishing KPIs against reality (VR) harvest training tool with an initial
the following: focus on mushroom harvesting.
Costa and Melbourne Polytechnic
• Volume of crop by first grade, second acknowledge the valuable support of the
With a $1.6 million grant from the Victorian
grade etc. Victorian Government Department of
Government’s Workforce Training Innovation
• Volume of waste and by type, ie. split/ Fund, VR technology is being developed Education and Training in making this project
damaged, green, over ripe, soft, too small/ which will allow workers, trainees and trainers possible and commends the government
too big to experience what harvesting work is like in for focusing on developing employment
• Nutrition/fertiliser use the field and prior to commencing work. opportunities in the horticulture sector in
recognition of the valuable role it plays in
• Water use and quality
The labour intensive nature of mushroom the Victorian economy. The project is due for
• Pest and disease completion by the end of 2020.
harvesting makes it an excellent fit for the
• Timing of plantings development of technology to improve
worker training, skills and productivity,
• Picking/harvesting speeds – quantities
and quality both prior to commencing work and during
Energy and waste
• Packing speeds – quantities and quality employment. There is also the capacity efficiency measures
for multi-lingual delivery platforms, which
• Performance of specific crop areas (as is important given that many of Costa’s in mushrooms
opposed to just variety performance). mushroom workers have English as During 2019 Costa’s Mernda mushroom team
a second language. undertook two small but important projects
Importantly this is combined with focused on improving energy efficiency.
undertaking regular self-evaluation of our
critical task execution and how that impacts
production volume, quality and harvest Improving chilling efficiency
efficiency. From this we can then The cooling and chilling of the mushroom
better understand and prioritise investment growing rooms through the use of two chiller
in projects and resources which improve units was proving challenging on days over
yield and closing any gaps which impede 35 degrees, resulting in water having to be
maximising yield. sprayed on the chiller coil in order to maintain
coolness. This not only wasted water but was
An IT platform is also crucial to track the use also inefficient with respect to the chilling
of key inputs, crop health and climate impacts process and risked product wastage due to
and to better understand and manage the insufficient chilling on hot days. The solution
specific growing conditions that improve the was to replace the two chiller units with one
quantity and quality of our yields. large chiller, which not only reduced water
usage and was more energy efficient but
With this aim in mind, Costa has engaged a operated better on hot days (over 35 degrees)
leading Australian agtech company to provide thereby significantly reducing the risk of
microclimate weather predictions and yield crop loss and product waste on extreme
predictions to Costa berry farms located weather days.
across Australia.
Costa Group Holdings Limited 16 Sustainability Report 2019Reducing gas usage and cost Food Safety and Quality
Costa’s biggest mushroom farm
The sterilization of the used compost
located at Mernda in Victoria utilises
Management
utilised a steam line with an open end. As
four robots to undertake the packing Costa is acutely aware of its ethical and legal
a consequence, when the boiler injected
of our pre pack mushroom products. obligations to meet food safety and quality
steam into the used compost to sterilize it,
the pressure fluctuated to the point where compliance requirements and the associated
Considerable efficiencies have public safety, reputational and financial risks
the boiler was required to constantly operate
been achieved, helping to reduce of significant food safety incidents.
at 100% capacity. This resulted in a waste
labour inputs with a capacity to
of natural gas and increased cost. To fix this
pack 200 tonnes per week. Through Our Food Safety & Quality Team, consisting
problem, the maintenance team replaced the
proprietary technology the robots of senior specialist managers from all
open-end pump with a more precise injector
have also been modified to handle Costa categories completed the following
nozzle, allowing for the injection of steam at
plastic reusable crates. This has projects in 2019 as part of the continuous
a more stable and constant pressure, reducing
reduced the incidence of packaging improvement of our Food Safety and Quality
the volume of gas used and also a saving on
waste as previously cardboard Management system and culture.
gas expenditure.
cartons had been used in the packing
and handling process.
Robotic citrus and Foreign object control
mushroom packing standard
China Pilot Harvest With a number of well publicised incidents
Management System involving foreign object contamination of
fresh produce over the past 18 months,
project Costa has taken steps to ensure it is
prepared to deal with such risks through
Costa currently operates a customised Harvest
the development and application of
Management System (HMS) across its berry
a foreign object control standard.
and mushroom categories. The HMS tracks
real time harvest data by individual picker.
Key areas covered under the standard include:
The HMS can be operated out in the field
with limited or no internet connection. • Identification of potential sources of foreign
Data is stored in a local database and object contamination.
reported back to Costa once it connects • Preventative measures to avoid, eliminate
to a 3G or 4G service. or minimize the risk of foreign object
contamination.
Geospatial mapping has been added as a • Use of foreign object detection equipment
new interactive feature to the HMS for the and systems.
Robotic packing technology has been
Berry category, providing a real-time view and
installed in Costa’s citrus packhouse at • Monitoring and verification activities.
reporting of location crop yield, quality and
Renmark in the South Australian Riverland.
berry weight and visibility on harvest crew • Management and investigation of foreign
The productivity benefits were immediate,
location, activity and performance. object contamination incidents and
with packing efficiency increasing to 60 bins
near misses.
per hour compared to the previous 40 bins
In Morocco, HMS will be used over the • Established roles responsible for key actions
per hour. In addition, another eight lane
2019/20 season to capture harvest and decisions to ensure that this standard
spectrim sorting line has been installed to
performance. All of the African Blue farms is correctly implemented.
handle the additional volume.
have been Geo Mapped, with 10 years of
• Training.
historical yield performance loaded for
The Renmark packhouse sorts and packs up • Metrics and Verification – KPIs have
analysis into the HMS. Harvest and team
to 40,000 tonnes per year and the robots been identified and will be used to drive
statistics will be loaded into the HMS on a
are stacking circa 13 cartons per minute. continuous improvement.
daily basis, and the forecasting functionality
Although the robotic packaging has reduced
used to better plan and track forecasts against • Recall and Withdrawal standard and
the need for labour, those roles have been
actual performance. supporting documentation.
utilised elsewhere in the packhouse to deal
with the increased volume.
In late 2019 the Costa IT team completed
a pilot HMS project for Costa’s China berry
It has also resulted in a reduction in waste,
growing operations. Engagement with local
as the robots are more precise in their
workers was overwhelmingly positive, with
handling of the produce thereby resulting
key staff taking the lead on implementation.
in less product being dropped or spilled
The aim is to rollout the HMS in the 2020/21
on the ground.
China season, with the benefits of the
HMS clearly demonstrated during the pilot,
including greater efficiency both in the field
and administration, improved accuracy, ease
of operation, access by management to live
data and greater product traceability.
Costa Group Holdings Limited 17 Sustainability Report 2019Economic continued
Review of recall and • Incident Support guides: to provide The system is cloud based, enabling live
support during the assessment of data connections through the supply chain
withdrawal program microbiological, chemical, foreign object allowing any highlighted concerns to be
While Costa’s focus is always on prevention contamination, net weight / count error, managed quickly, which drives consistency
of incidents that can lead to a recall or labelling error incidents and determining and quality.
withdrawal of a product, we must also the required actions and escalation paths.
be prepared for such an event. Having in • Food recall process checklist – outlining all Greenlight™ QC also has a reporting
place a robust plan, with easy to follow steps that must be taken if an issue arises function which allows for benchmarking and
documentation, training our staff and that has been escalated to the Recall team provides deep dive analysis helping to drive
testing the system through mock recall and (i.e. has the potential to result in a recall) improvement to agronomic and post-harvest
withdrawal simulations are all designed to controls. It is used to report throughout
• Food withdrawal process checklist outlining
help prepare our business and minimise the the supply chain at various critical control
all steps that must be taken if an issue
impact of such an event. points. This includes in-line and weight
arises that has been escalated to the
checks to provide immediate adjustment
Withdrawal team (i.e. has the potential
In 2019, a review of our recall and withdrawal when required in response to defects and
to result in a withdrawal)
program was conducted resulting in overall specification management during
the implementation of revised and new the packing process. There are also dispatch
checks to ensure finished pallets are delivered
standards, which apply to all Costa sites Rollout of Greenlight QC
nationally, including: according to specifications with temperature
system across Avocado loggers inserted to evaluate the transport
• Recall & Withdrawal Management standard:
outlining the process and requirements in
category packing facilities. cold chain on every load, and shelf life checks
to evaluate the robust integrity of the fruit
relation to assessment of a food safety and The implementation of the Greenlight™ QC and the outcome of its post-harvest journey.
quality incident, escalation of an incident, (quality control) system and standardisation
convening the recall or withdrawal team, of QC inspections across all of our avocado The Greenlight™ system is also critical when
use of relevant documentation as part packing facilities has driven consistency and managing our Lovacado brand, under which
of a recall or withdrawal, traceability accuracy, allowing the avocado category to we sell our premium Hass and Shepard
and mock simulations. implement best practice in quality control. avocados, with our own farm production
providing enhanced customer experience
and consistent quality.
Costa Group Holdings Limited 18 Sustainability Report 2019People
CY 19 Key Data
Costa Core Values
Female
43%
Determination 16.5% 8,986 Male
We act decisively with a 57%
sense of urgency.
% of all manager Full Time Equivalent Workforce gender
promotions were awarded Workers composition
Passion to female employees
We challenge the status quo
with energy and enthusiasm.
Accountability 1,546 86 28.6%
We focus on outcomes and
deliver on commitments.
Of 1,546 appointments Number of different of all non-manager
made, 43.5% were female nationalities promotions were
Sincerity employees awarded to women.
We act boldly in an open,
honest and responsible
manner. 2019 people stats
Respect 48% 51.9%
of our agronomists are female, with of employees who resigned
We treat others as we expect the majority of new agronomist were women and 48.1%
to be treated in attitude, hires also being females. were men.
communication and
personal safety.
100% 85%
of all women and all men of our workforce was covered
who utilised parental leave by an enterprise (certified)
The seasonal nature of the returned to work. agreement in 2018.
Costa business necessitates
that our direct and indirect
employee numbers will vary
during the course of the year FTE’s
and in CY2019 our workforce Title Hours FTE
comprised 8,986 full time Costa Group 18, 993, 450 8,986
equivalent workers. Australia 9, 102, 137 4,606
This number includes African Blue 1, 935, 799 3,400
our Morocco and China
China 7, 955, 514 980
employees.
Costa Group Holdings Limited 19 Sustainability Report 2019People continued
Costa People Pillars
Source Grow Prosper
Costa values underpin the We cultivate a holistic learning We recognise, reward and
selection and engagement approach encompassing celebrate success.
of the right person for the personal, technical and
right role. experiential development. We foster a culture of
mutual commitment to the
Costa brand attracts the Performance feedback drives success of Costa and it’s
best workforce, industry continuous improvement. communities.
leaders, thought leaders and
emerging leaders. We leverage our talent and Our People demonstrate
capability to benefit the agility and innovation to
Our domestic and business and our people. deliver in challenging and
international network new environments.
introduces a pipeline of high We nurture and inspire
calibre and diverse people. excellence in people, passion
and performance.
Costa Group Holdings Limited 20 Sustainability Report 2019Our people
As a values driven company
we put our people first
through our core values
of passion, respect,
sincerity, determination
and accountability. We
recognise that they deserve
a workplace that is safe
and healthy, provides them
with every opportunity to
succeed, and rewards effort
for their contribution to our Andrew Hu Tabitha Collins
success. Finance Manager Human Resources Manager
International segment China Tomato category
Andrew commenced employment with the Through her determination and passion
Costa Awards Costa China operation in June 2016 and in the field of human resources, Tabitha has
The development of our key talent is of has consistently demonstrated high levels been an inspiration for other employees while
critical importance to the future success of determination and professionalism. The demonstrating a high level of commitment to
of our organisation, and the Adrian Costa work that Andrew and his team produce is the Costa core values.
Scholarships and other major Costa awards always of a high standard, including building
including the CEO Awards support this key the financial function from scratch, working Tabitha has worked to improve the Costa
objective. remotely from the core finance team in onboarding and recruitment functions,
Australia, and navigating the complexities through introducing software to automate
of aligning the requirements of an Australian processes and remove the need for the
Costa Awards publicly listed company with the regulations double handling of information by the
– Adrian Costa Scholarships and practices of China. business units and payroll office. This has
Eligibility for an Adrian Costa Scholarship resulted in a number of strategic efficiencies
is open to all Costa employees, regardless Andrew’s input, direction, experience and which align with our key business objectives.
of their position in the organisation. commitment have contributed in a significant
way to the growth of Costa’s China operations, Tabitha has also been a key supporter
Individuals demonstrating the key Costa coupled with a detailed understanding and of the Costa Careers Portal Project and
values of determination and passion in respect for the requirements of a foreign through excellent communication skills and
their respective duties are nominated for company and its staff operating in China. responsiveness to the needs of the tomato
consideration. If successful, they are given category workforce, successfully negotiated
a valuable opportunity to pursue a wide range Costa is extremely fortunate to have an a four-year enterprise agreement for the
of personal or professional development individual of Andrew’s calibre working for the Tomato category.
activities that not only benefits the individual company in China, he is a highly valued team
but also contributes to the growth of the player and a deserved recipient of an Adrian The integrity that Tabitha displays in
Costa business. Costa scholarship. everything she does makes her a role model
to her colleagues and an employee who
exhibits the behaviour of someone befitting
an Adrian Costa scholarship award recipient.
Costa Group Holdings Limited 21 Sustainability Report 2019People continued
Aziz El Kahlaoui CEO Awards
Chief Operating Officer People First Innovation
International segment – Morocco
Aziz has worked for Costa’s African Blue
business since its inception in 2007 and
has been the driving force in developing
significant greenfield farming operations
across the northern regions of Morocco
and in the south at Agadir.
Managing a large horticultural operation, Aziz
supports the broad functions of the business
including finance and financial management,
harvest and postharvest management
practices, new farming and project
development and government liaison.
Operating in an at times difficult landscape,
Aziz has met challenging time frames and
established a number of farms through never
losing sight of the end result.
Aziz genuinely enjoys his role and is Elizabeth Byleveld
passionate about achieving positive results,
Wayne Smith
through leading from the front and working Operations Manager Cadet Grower
tirelessly in the pursuit of excellence. His
Citrus Category Mushroom Category
willingness to always contribute to the
improvement and growth of the African Blue Wayne is from our citrus business and was Elizabeth was the recipient of our CEO
business was fittingly recognised with him the winner of our CEO Award for People award for Innovation. Joining the mushroom
receiving an Adrian Costa scholarship. First. Wayne began his horticultural career in category in Western Australia at the
1995 as a trainee farm hand at Yandilla Park beginning of 2017 as a cadet grower under
South Australia, quickly progressing through our Mushroom Grower Cadetship programme,
supervisory and management positions and Elizabeth identified the need for simplicity
being appointed Operations Manager at and efficiency in moving from a paper-based
Kangara Farm in 2013. system to an electronic system in the collation
of key growing room data.
Wayne performs his role on this 800-hectare
farm with skill, dedication and efficiency. Despite initial frustrations, Elizabeth
He is directly responsible for all machinery persevered working closely with her manager
operations, including maintenance of a and the growing room team, in which she
large fleet of farm vehicles and he manages patiently edited and re-edited formats to
the daily work schedules of the fulltime ensure the accurate digital collection of
staff, a role which of itself requires great data. As a result of her hard work, Elizabeth
organising skill, flexibility, patience and developed electronic door charts or E-Charts,
persistence. Dealing on a daily basis with as a means of eliminating the requirement for
numerous service providers, suppliers and the use of labour intensive paper door charts.
contractors requires Wayne to have excellent
communication skills and his ability to Elizabeth took complete ownership of
communicate with a diverse range of people the project putting in the time to create
from different backgrounds and nationalities a functioning platform and working
is a major asset for our business. productively with her colleagues to resolve
issues, and most importantly venturing into
Wayne takes great pride in leading his team a whole new arena by moving mushroom
and is constantly supporting them to ensure growing from ‘out of the dark’ and into the
they realise their full potential. All of these digital age.
attributes which encompass the five Costa
core values made Wayne a worthy winner
of the CEO’s Award for People First.
Costa Group Holdings Limited 22 Sustainability Report 2019You can also read
