Houstons Farm Tasmania

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Houstons Farm Tasmania
Carbon footprint strategy project experiences
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Who are we?

• Fully Integrated Grower and Processor of Baby
  Leaf Fresh Cut Salad products
• Member of the Australian Freshcut Salad Producers
  Forum
• Connecting with international companies such as
  Fresh Express (USA), Langmead Farms (UK), New
  Zealand
• Fresh cuts

First product in Houstons Farm Brand
Coles Supplier
Woolworths Supplier
34 SKUs supplying over 1400 Retail stores
nationally (excluding Western Australia)
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Where we are
Strelly
Cambridge
Daisy Banks
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Improvement focus

• Partnership with seed breeders
• Trialing in excess of 80 varieties per year
• Leading to Houstons Farm becoming the largest
  commercial producer, processor of Salanova Butter
  range in Australia.

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Water Resources

• Working closely with the local water authorities,
  Coal River Valley association the Tasmanian
  Government we have secured sufficient water to
  ensure our future needs.
• We are currently experiencing
• drought conditions in
• Southern Tasmania however
• because of our forward
• planning in securing
• water we have had no impact
• to our production volumes.

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Processing Facility

• Located on our Cambridge Farm.
• Over the past 4 years it has been expanded to
  accommodate our rapid growth improved to be a
  world class facility of 2000 square meters.

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Processing capability

• With the expansion of the factory investment in
  new washing packing equipment, gt5m in the last
  3 years.
• We process 363 days per year.
• We have 2 wash lines
• STIR wash line that is used to wash dry our
  flat leaf products the soft leaf Salanova
  Butter Range
• Centrifuge line for washing drying the
  remainder of our range.

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• Why are we focused on Carbon and Climate?

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Houstons Farm Coal River Valley
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Background

• Aware of Food miles concept from overseas since
  2004
• Monitored developments, however Initial industry
  reaction was an oversimplification language
  the consumer could understand.
• This has been overtaken in last 18 months with a
  more definite emphasis on carbon greenhouse gas
  and impacts from all activities on the
  environment.
• We consider that the market will require us to
  understand carbon (greenhouse gas) level and
  sustainability impacts prior to a Carbon
  Pollution Reduction Scheme (CPRS)

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Retailer influences
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Consumer influences

• Food Marketing Group (FMI), states that Food is
  the primary gateway to sustainability
  consciousness and sustainable behaviours.
• Tesco identified that Green consumerism will be
  a huge driver of innovation and product change in
  the food retail sector the biggest consumer
  trend of them all (FMI, 2007).

• There are growing expectations on business to
  help solve environmental and social issues from
  government, employees, customers, and the public
  broadly and how individual companies respond to
  these trends will influence their profitability
  and longevity (FMI, 2007).

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Why are we focused on Carbon and Climate?

• Fundamentally supports the culture of the
  business
• Early adopter of new technologies (water, soil,
  plant and equipment)
• Not just a study on carbon (greenhouse) gas, but
  includes an assessment of our current practices
  and possible mitigation strategies
• Fully understand the impact of our ALL of our
  activities (not just a food miles focus)

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Woolworths Fresh Food Grant

• Winning the Woolworths Fresh Food Grant gave
  Houstons Farm the confidence to turn our
  strategy into a project of National significance
  with Horticulture Australia Limited

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Project focus

• Focus on 3 core areas
• Agricultural practices
• Processing practices
• Supply chain management (maximising
• efficiencies within the supply chain DCs, FCLs
• Review from seed to supermarket DC

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Project breakdown

• 3 core phases
• Development of Houstons Farm tool and protocol
  document (including trial)
• Develop industry tool based on HF tool mid Feb
  09
• Road shows across Industry August 2009
  completion or earlier

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Project Strategies

• Early project challenges
• Research into appropriate project partners
• Understanding of the boundaries for the
  assessment
• Assessing current models available for
  applicability in use
• Some protocols have a high number of exclusions
• Building an assessment which does not incorporate
  a high level of assumptions
• Building a strategy which would be cost effective
  and meet our objectives
• We want to understand what it means to be carbon
  neutral, but our focus is on mitigating our
  emission factors

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Pitt and Sherry

• Coverage GHG (CO2-e) only but covers all
  emissions related to the operation, split into
  Kyoto protocol
• Scope 1 - energy directly used in activities
• Scope 2 indirect emission but used on site
  (purchased electricity, heat or steam )
• Scope 3 all other emissions including purchases
  from other companies
• Inclusions
• Supplies
• Energy sources and GHG generators
• Storage and delivery of materials
• From input to distribution centre on mainland
• Amortised capital GHG content in plant, equipment
  and buildings
• Soil valued as neutral
• Fertiliser valued with current science
• Exclusions
• Distribution centre to retail outlet transport

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Pitt and Sherry

• Manufacturers
• Specific verified studies initiated by
  manufacturers
• Journals
• Scientific Journals where specific model numbers
  or production mode is identified
• Central databases
• National Greenhouse Accounts Factors (Department
  of Climate Change)
• Australian Greenhouse office
• SimaPro
• Extensive LCA analysis software with embedded up
  to date Australian and international databases
• First principle calculations
• Calculation using the materials and assemblies
  that actually go into construction

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Project developments

• Built an international reference group
  incorporating
• DPI Queensland
• NZ Landcare Research
• Meat and Livestock Australia
• Australian Farm Institute
• UK Carbon Food Network
• NZ Freshcuts
• UTAS thesis - policies and procedures which
  change at Houstons Farm as a result of adopting
  climate change management practices.

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Carbon Calculation tool

• Copy of Generic Model v5 lettuce only 2 (2).xls

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What else have we done

• We have undertaken a full energy and water
  resource audit.
• We are developing methods at our Business
  Management level to ensure we undertake
  cost/benefit/benefit on all decisions,
  particularly strategic
• Undertaking research on
• Packaging efficiencies (film technology)
• Soil Health Project (cost benefit/benefit)
• Field efficiencies (soil conditioners, equipment,
  cultivation)

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What else have we done

• In October 2008 we presented our work to date to
  a Horticulture Australia Vegetable industry
  workshop (scientists, DPIWE, Farmers).
• Does the vegetable industry need a carbon
  (greenhouse gas) calculation tool?
• yes
• In December 2008 the vegetable industry chose to
  leverage from the Houstons Farm work and we
  worked with Horticulture Australia to develop a
  tender brief for the completion of the project
  NATIONALLY across the vegetable industry.
• In addition other sectors outside the vegetable
  industry are looking to leverage from our work
  and connect to our tool

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Environmental footprint tool

• First phase tool will be developed further
• Simple interface for input by businesses
• Will include the capacity to allow for off-sets
• Easy to understand interpretative document
  referencing where to go to get further
  information
• Tool capable of receiving new research parameters
  
• When suppliers are carbon neutral then tool can
  cater for this

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What else are we doing?

• In April 2009, presented findings to National
  Departments of Primary Industry meeting (Market
  Access committee).
• Considering environmental assurance roll out
  within Australia to ensure we remain at the
  forefront of uptake
• Invited to join the steering committee
  established by Horticulture Australia to review
  the full range of environmental management
  systems for equivalence
• Participating in a series of white papers to
  promote our project and focus

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What else have we done - expansion

• Higher diesel costs, carbon costs altered
  transport regulations will have a significant
  impact on our ability to service our Northern
  markets.
• As a result we have made a strategic decision to
  complement our Tasmanian operation by commencing
  production of our Salads from a 2nd, new,
  facility in Queensland.
• This facility will be operational by June this
  year

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Communication summary

• Awareness for policy makers - must maintain pace
  with market drivers. Exporters and retailers
  already coming to terms with carbon long before
  carbon pollution reduction scheme (CPRS) impacts.
• Working to ensure that there are minimal
  systems/methods in place to avoid confusion
• Raising awareness to ensure that strategies for
  consumer awareness (ie carbon neutral, carbon
  number, and/or environmental sustainability)
  avoid creating consumer confusion.
• Mitigation goes to what we are trying to
  achieve
• this can be delivered with the right focus.

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