Food Industry Group

Projects

The AMC's Food Industry Group has been productive in previous projects, such as initiating the writing, researching and implementation of 'Waste Minimisation' strategies - Manual is available on the AMC website.

Current projects being undertaken since mid 2004 are the following:

1. Environmental Sourcing
2. Plastic Pallets
3. Materials Design
4. Packaging Design

Every quarter, the AMC actively holds a 'Food Focus Meeting'. Senior Executives including Managing Directors, Operating Managers, Environmental Managers, Manufacturing Directors and Supply Chain Managers are invited to attend these meetings.
The intention of these meetings is to:
" Strengthen the rapport with industry on many of the project fronts
" Disseminate project outcomes, documentation and activities at an executive level
" Provide a forum where industry has the opportunity to highlight their common technological, practical or strategic concerns (for example, retailer - manufacturer relations and environmental responsibility)
" Allow industry to access a forum where they can speak with one voice and resolve problems by tackling them together and in seeking common solutions.
" Offer industry a chance to forge networks and working alliances

Please call the AMC on (02) 9209 4209 for a copy of the Food Focus Meeting Presentation held in mid 2005.

1. Environmental Sourcing Project

In general, the Environmental Sourcing process is designed to assist organisations in qualifying new sources of supply or in enhancing existing supplier relationships.

Environmental Sourcing refers to the process of buying products and services with reduced adverse effects on human health and the environment. Its aim are to support an organisation's environmental strategies and systems by reducing the environmental impacts and risks associated with the products manufactured and materials used within a company's processes and day-to-day operations.

Objectives can be achieved by accounting for a number of environmental factors that need to be integrated within a company's decision-making and operation processes involving the following four areas:
o General Business and Sustainability: covering the areas of company philosophy, policy and objectives.
o Legal & Compliance: ensuring the company is aware and compliant with all national and relevant international environmental regulatory issues and trends
o Management: covering programs and implementation for waste minimisation, education and training, Sourcing and environmental systems
o Products: considering the sustainable use of resources for individual products and services
The Environmental Sourcing (ES) Document provides an overview and includes the:
" Environmental Sourcing Policy
" Business Case
" Checklist / Survey

2. Plastic Pallets Project

This project aims to accelerate R&D and innovative activities within Australia's food industry through meeting strategic industry needs as identified in the Government's Action Agenda: The National Food Industry Strategy by replacing timber pallets with plastic pallets within the Food Industry.

It is estimated that approximately 9 million timber pallets are currently used by the nation's food industry. The disadvantages associated with timber pallets are great and cannot be avoided as stated below. They are detrimental to industry's prolonged sustainability, are an obstacle to the visions for 2007 held by the industry and government.

Wooden pallets are clearly a threat to Australia's Occupational Health and Safety (OH&S) Standards. They are a catalyst for:
- Food contamination by timber scraps, other fallen timber pieces, nails and splinters, creating an unsafe food practice.
- Odour absorption into domestic and exported food products -setting a poor example
- Inconsistent with our aim to increase our competitiveness and grip on the global market
- Product damage
- Damage to capital equipment (worth millions to renew and may have to be bought from overseas, require time and money to repair, and detracts from time spent on productivity)
- Time delays, breakdowns, cost of additional labour and equipment within the supply chain.

The AMC's plastic pallet project will lead to amendments to the Australian Pallet Standards (AS4068) and will set the benchmark for the functional and environmental applications of plastic pallets as a world class solution.

It will also involve major commercial benefits, derived from a technological breakthrough for which Australia will have the intellectual property rights reserved and have significant advantageous implications for Australia's:
- Economy and trade
- Direct and wider industry beneficiaries

This project will have a considerable impact in preserving the earth's natural resources, such as hardwood timber, for future generations.

Key stakeholders in the food industry are supporters of the National Packaging Covenant, Waste Minimization, Cleaner Production and other practices that involve a responsibility towards consumers on product integrity issues.

3. Materials Design Project

This project evolved out of a suggestion that we have an Innovation Forum every quarter and invite speakers, experts in the field of innovative materials, new packaging technologies and bio-products to present to the Food Industry Group Members.
Supplier representatives are asked to offer a description of their companies and their technologies. This provides project members with a greater knowledge and understanding of the diverse range of products available in the national and global marketplace and will help them in their future product/packaging design activities.

Innovation Forum I presentations were given by:
" Plantic Technologies (Melbourne)
" NatureWare (Sydney)
" Future Materials in conjunction with the University of South Australia: Ian Wark Research Institute (Adelaide).

Innovation Forum II presentations were given by:
" AMCOR R&D (Melbourne)
" AMC (Sydney)

For a copy of the one or more of the abovementioned presentations and/or Nestle's "Design for the Environment" Presentation, please contact the AMC on (02) 9209 4209.

4. Packaging Design Process Project

Backround
During brainstorming sessions in the course of introducing Environmental Purchasing in the Food Industry, it was agreed unanimously that the highest priority for all participating food manufacturers was to address the imminent changes in product packaging resulting from the need to adopt Shelf/Store Ready Packaging, as will be required by major retailers.

Further discussion led to some major issues including:
- What are the major retailers' requirements?
- Will such requirements incur major costs for food manufacturers?
- To what degree can new packaging be standardised across the Industry to avoid proliferation of packaging?
- How can food companies cooperate on these issues, and how can environmental outcomes be considered?
- How will the changes impact the Supply Chain?

At the request of the group a major customer (Woolworths) and a major supplier (Amcor) joined the Focus Group of 10 food manufacturing companies. The participation of the latter provided insight to other strategies and opened up access to considerable packaging expertise.

The AMC has the requisite expertise to facilitate a project of this type and has successfully obtained funding from the federal government to cover some of the costs. There are no additional costs to participating companies.

Scope and Objectives
The overall goal was agreed as "to achieve the aims of store-ready packaging in a way that optimizes packaging alternatives in the supply chain"; Specifically:
1. To achieve the objectives of retailers to minimise handling costs and maximize sales
2. To standardise packaging in order to minimise supply costs and adverse environmental impact
3. To avoid major costs to manufacturers such as having to invest in capital equipment, process or materials handling
4. To take advantage of the group's experience and expertise in the development of "best practice" solutions.

The IGD ECR Free Report on Retail Ready Packaging provides great insight into Store-Ready Packaging in the UK. Link for a copy: http://www.igd.com/CIR.asp?menuid=84&cirid=1654