Post on 31-Mar-2015
transcript
Milling – Global trends presentation
Site / company name and logo here
Presenter/s names hereThis is an AgriFood Skills Australia Ltd project developed in partnership with Energetics Pty Ltd and funded by the Australian Government under the Clean Energy and Other Skills Package
Context – resource use and cost at this site (from Baseline tool)
Energy Cost Tonne CO2 -e
$58,934
$439,058$3,084
$25,161
$755,148$8,317
Financial Year 2012 Energy Usage, Resources Cost and GHG Emissions
Natural Gas Electricity
Boilers (Process heating); 57755.32; 69%
Pressing; 7233.408; 9%Milling; 4151.3472; 5%
Cooling; 3989.6064; 5%
Materials han-dling; 3369.6; 4%
Lighting; 1976.832; 2%
Other (incl ad-min);
1459.54456; 2%
Domestic hot wa-ter; 1178.68; 1%
Air compressor; 1100; 1%
Mixing; 1050.192; 1%
Filtering; 830.26944; 1%
Animal Feed Mill energy balance (GJ/y)
Pressing; 7233.408; 29%
Milling; 4151.3472; 16%
Cooling; 3989.6064; 16%
Materials handling; 3369.6; 13%
Lighting; 1976.832; 8%
Other (incl admin); 1459.54456; 6%
Air compressor; 1100; 4%
Mixing; 1050.192; 4% Filtering; 830.26944; 3%
Electrical Balance (GJ/y)
Domestic hot water; 1178.68; 2%
Boilers (Process heating); 57755.32; 98%
Natural Gas Balance (GJ/y)
Global trends for the Milling sector
Ecosytem interactions
Biophysical limits
The ecosystem
Society
Technology
Encroachment on biophysical limits
Anthropogenic stressors
• Population increases
• Urbanisation increases
Water systems
Energy systems
Service provision / product
Interactionbetween water, energy and waste systems
Environmental stressors
• Climate change
• Resource use
•Land use
Wastesystems
© Energetics Pty Ltd , Holt et al
Major trends in the Milling Sector
• Growth– Modest growth influenced by population growth– Industrial use shows steady consumption to modest decline
• Market– Changing consumer trends– Continued strong exporter– Consolidation of mills to larger capacity
Major trends in the Milling Sector
• Health– Increased demand for perceived healthy products = typically lower
processing needs to produce multi-grain / wholemeal breads
• Energy, Sustainability Compliance & Labelling– Energy Efficiency Opportunities, NGER– ISO 50001 Energy Management System– Carbon Disclosure Project/ Global Reporting Initiative
Market dominance by retailers
Drivers for action by business
• Cost– Rising for energy, water, carbon
• Competitiveness– Tighter margins, ‘green’ differentiation
• Compliance– Increasing regulatory burden as Governments
seek to overcome market failures to act• Community expectation
– brand reputation• Customer
– Supply chain pressures
Redefining Business Success
• Not just financial measures• Engagement of a broader range
of stakeholders• Mutual understanding of needs• Understanding how your
business will fit into a new business paradigm
Economic
Social
Environmental
e.g. Redefining the value chain
Tim
efra
me
of t
hink
ing
Compliant
Reactive
Proactive
Innovator
Now
Long
-Ter
m
Sophistication of thinking about sustainability impacts
Low High
Denial
Industry development is driven by relative impacts of:• Government Policy
• Industry Innovation • Social Conscience
Organisations will develop at different speeds and early movers will create sustainable competitive advantage
Sustainability maturity model
Australian trends, policy and legislation
Australian Energy Trends
• The cost of energy in Australia has been at a significant discount with respect to the rest of the world for the past decades. This is changing for a range of reasons including:– Carbon pricing mechanism has pushed energy prices up from July 2012– Water shortages has limited capacity of some large centralised
electricity generation stations • Tarong & Swanbank in QLD limited to 50% in 2007-2008
– LNG exports are causing natural gas prices to rise to world market levels– Underinvestment in electricity networks
• Significant increases in grid electricity out to 2020• Possibilities for distributed generation?
– Increasing scarcity and rising cost of petroleum– Increased renewable energy targets (MRET)
• Land use decisions• Competition by biofuel for arable land
© 2013 Energetics Pty Ltd and AgriFood Skills Australia. All rights reserved.
SFMCA Energy Survey 2012 Project Report
The average electricity use, irrespective of whether manufacturing mash or pellets, was
25.2kwhrs/tonne of feed manufactured.
Gas is 0.18GJ/tonne. Mash feed excluded, 0.23GJ/tonne of pelleted feed.
The average total energy use is 0.26GJ/tonne of manufactured feed.
http://www.sfmca.com.au/info_centre/documents/464/SFMCA%20Energy%20Survey%20Report%202012.pdf
Energy programs / initiatives
ImprovingEnergy Efficiency
ReducingGreenhouse Gas &Carbon Emissions
IncreasingRenewable Energy
EEOEnergy Efficiency Opportunity Act
Voluntary Greenhouse reduction programs
NGERNational Greenhouse & Energy Reporting Act
RETRenewable energy targets (Large
RES and Small RES)
Voluntary Green Power
Carbon Price and TradingState Energy Efficiency programs
e.g. VEET, ESS, EREP, Sustainability Advantage, ESAP, SESP
State renewable energy targets
Clean Energy Future initiatives for Business – e.g. Clean Technology Food and Foundries Investment Program
Efficiency to underpin carbon abatement to 2020
Energy efficiency is forecast by the International Energy Agency to be the major source of carbon reductions out to 2020 in industrialised countries
McKinsey’s MAC analysis agrees
McKinsey’s analysis shows energy efficiency to be among the most cost effective carbon abatement measures
Australian Water Trends
• Cost increasing – across Australia– Melbourne increase by an average of 20%– Sydney Water increase by 25-34% by 2012 – Queensland – 30% increase of bulk water
• Water - yet to reflect true cost of provision• Businesses
– Water cost increasing but let’s face it - water cost insignificant– True cost
• Future trends– Move to scarcity pricing models– Diversity of water supplies and carbon prices will increase cost– Invest into infrastructure - $30 billion dollars over next ten years
Water programs / initiatives
ImprovingWater Efficiency Water Management Alternate Water Supplies
EREPEnvironment and Resource
Efficiency Plans
Catchment planningMurray-Darling Basin plans
Irrigation & water licensingextraction, storage
Water re-use / recycling
Harvesting
Water trading schemes
WSAPWater Savings Action Plan
WaterMAPWater Efficiency Plans
Sustainability AdvantageNSW voluntary program
Desalination
WEMPSWater Efficiency Management
Plans
National Water Initiative ($12 bn)
Water discharge quality e.g. EPA license requirements and/or run-off
Stormwater managementFlow attenuation, mitigation
Strategic planning
Where do you want to be?
• What is important to you?• Where do you want to be?• How does the global situation impact you?• Are you prepared?
Strategy development process
Current status Program development
External trends (environmental scanning)
Contextualising:Internal impactsExisting business plans and initiatives
Strategic GuidelinesPoliciesPlansPrograms
Risks and opportunitiesBusiness goalsDevelopment of strategic questions
Potential status
Identify business initiatives & plans
• Identify your current initiatives that your business is doing / planning that align with economic, social and environmental performance goals– List business initiatives– Map onto Venn diagram– Where do they fit?(provides basis for understanding business approach,
defining your current approach, and starting to highlight ‘gaps’ in your systems that you may want to close)
Economic
Social
Environmental
For example
Water / energy efficiency target
Staff newsletter
EBIT target
Production volume increase
Master plan process
Parental leave policies
Recycle packaging
Automation of pH sampling of
wastewater stream
Social Committee initiatives
Community clean up
campaignsGreen skills
developmentGHG reporting
Economic
Social
Environmental
Tim
efra
me
of t
hink
ing
Compliant
Reactive
Proactive
Innovator
Now
Long
-Ter
m
Sophistication of thinking about climate change impacts
Low High
Denial
Industry development is driven by relative impacts of:• Government Policy
• Industry Innovation • Social Conscience
Organisations will develop at different speeds and early movers will create sustainable competitive advantage
Given these plans, where are you placed on climate / carbon?
Tim
efra
me
of t
hink
ing
Compliant
Reactive
Proactive
Innovator
Now
Long
-Ter
m
Sophistication of thinking about climate change impacts
Low High
Denial
Industry development is driven by relative impacts of:• Government Policy
• Industry Innovation • Social Conscience
Organisations will develop at different speeds and early movers will create sustainable competitive advantage
Where do you want to be positioned in the future?
Consolidating the trends and your plans and position….
• The previous activities define the endpoints for:– Business maturity
• This defines where you want to be against your competitors– Positioning
• This defines how you want to achieve your goals
– Combining your review of trends, assessment of your plans, position and desired future positioning, you are now in a position to assess your risks and opportunities for getting there, and to develop your vision and guiding principles for your strategy development.