Food & Beverage Industry News - May 2020

MAY 2020

Food waste:

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ith food and beverage being one of the critical industries that are to remain open during the COVID-19 pandemic, there are plenty of stories in this issue on how various sectors within the industry are coping.

However, our cover story this week is about another issue that has been gaining momentum over the past 18 months and that is food waste. Mark Barthel is a food waste specialist who works with Food Innovation Australia Limited (FIAL), and is a fan of the Roadmap For Reducing Australia’s Food Waste by Half by 2030 initiative.

Having come from the UK, he has seen food waste and carbon dioxide emissions decrease substantially over the past 10 years.

He believes Australia is quite a way behind Europe in this space, but he has a plethora of ideas on how we can catch up.

These ideas include looking at our cold food supply chain; tightening up contracts and making them more malleable; primary producers and how they deal with over supply; as well as retailers relaxing standards of what type of fruit and vegetables they will accept on the shelf.

Overall, he thinks it is possible for Australia to make huge inroads as long as the business and consumer sectors work together.

With more than seven million tonnes currently going to waste, it’s important that everybody start getting on the same page.

Stay safe and have a good month.

INSIDE Copyright Food & Beverage Industry News is owned by Prime Creative Media and published by John Murphy. All material in Food & Beverage Industry News is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published.

The opinions expressed in Food & Beverage Industry News are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated. © Copyright Prime Creative Media, 2019 Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

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www.foodmag.com.au | May 2020 | Food&Beverage Industry News 3

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NEWS

Aseptics seen as answer to processing line S liced bread, BBQ sauces, drinks – the portfolio of the food and beverage producer Spitz in Upper Austria is highly diversified. Demand for energy drinks, juices and ice tea is particularly high at present. Too high for the company’s only aseptic line, which at times was running in four shifts. Which is why the owners decided to upsize their filling capacities. Thanks to the performance of the existing wetaseptic technology, they opted once again for Krones – but this time for dry-aseptics featuring a Contipure AseptBloc DN. The new line began operation in August 2019, and is running in three shifts. In each shift, one employee looks after the aseptic block, one supervises the labeller and the

packer, and one is responsible for the palletising zone and supplying the line with new preforms.

Prior experience with Krones’ aseptics Although Spitz was already familiar with Krones’s aseptic technology, in terms of process technology the new line differs from the existing wet-aseptic variant – the Contipure AseptBloc DN sterilises the preform’s entire surface in dry mode, using gaseous hydrogen peroxide. “This enables us to do without a rinser, which means we’ve been able to significantly reduce our water consumption and also the amount of wastewater created in the production operation,” says a gratified Markus Kröpfel, technical director at Spitz. The

blow-moulder, filler and capper are in fully aseptic design and directly block-synchronised with each other.

This guarantees not only a compact layout but also a high level of microbiological process safety.

Currently, Spitz is mainly using this line to bottle different variants of ice tea at a rating of 24,000 containers per hour in up to six different bottle formats.

But by investing in the new aseptic line Spitz demonstrated farsighted receptiveness to new product groupings.

The Contipure AseptBloc DN will also be able to handle future innovative beverage types from the low-acid category.

“We most definitely believe that the trend is towards naturalness: meaning no preservatives and

as many natural ingredients as possible. There, aseptics are without a doubt the first choice, because that means we can bottle freshly brewed teas or still sports drinks, for example, to the very latest state of the art,” said Walter Scherb, who heads the company.

“At the same time, by investing in a new line we wanted to keep our options open for new product categories.

“Krones won us over with its Contipure AseptBloc. Now we are in a position to not only bottle pH-neutral beverages, but also to dose coconut or aloe vera into them, for example. This combination of a block-synchronised, dry-aseptic line with an option for also handling fruit-chunk products is unique in Europe.”

Aseptic technology is used on its drinks’ processing lines.

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 5

NEWS

Coles and Woolworths collaborate to guarantee grocery supply Coles and Woolworths are cooperating when it comes to consumers buying groceries.

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upermarket giants are coordinating to ensure consumers have reliable and fair access to groceries during the COVID-19 pandemic.

The Australian Competition and Consumer Commission (ACCC) granted interim authorisation that will allow supermarkets to coordinate with each other when working with manufacturers, suppliers, and transport and logistics providers.

The purpose of this is to ensure the supply and the fair and equitable distribution of fresh food, groceries, and other household items to Australian consumers, including those who are vulnerable or live in rural and remote areas.

This authorisation applies to Coles, Woolworths, Aldi and Metcash. It will also apply to any other grocery retailer wishing to participate. Grocery retailers, suppliers, manufacturers and transport groups can choose to opt

out of any arrangements.

Rod Sims, ACCC chair, said Australia’s supermarkets have experienced unprecedented demand for groceries in recent weeks, both in store and online, which has led to shortages of some products and disruption to delivery services.

“This is essentially due to unnecessary panic buying, and the logistics challenge this presents, rather than an underlying supply problem,” he said.

“We recognise and appreciate that individual supermarket chains have already taken a number of important steps to mitigate the many issues caused by panic buying, “We believe allowing these businesses to work together to discuss further solutions is appropriate and necessary at this time.”

The ACCC granted interim authorisation on Monday afternoon after receiving the application last Friday.

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The authorisation allows a range of coordinated activities but does not allow supermarkets to agree on retail prices for products.

Sims said the ACCC have worked “very swiftly” to consider this interim authorisation application, because of the urgency of the situation, and its impact on Australian consumers.

Coles is dedicating two Community Hour shopping periods per week to emergency services and healthcare workers, who are essential to protecting the community during the COVID-19 pandemic.

Coles is also spending an additional $1 million per week to extensively clean its stores and is in the early stages of rolling out our new Coles Online Priority Service and is looking to bring this service to as many vulnerable customers as possible.

On Tuesday 24 March, Woolworths has announced its committed to the installation of protective plexiglass

screens at the manned checkouts of each store across Australia in the coming weeks.

“Our stores remain open and we will continue to stand by the Australian community through this health crisis,” Claire Peters, Woolworths supermarkets managing director said on Tuesday.

The Department of Home Affairs has convened a Supermarket Taskforce, which meets regularly to resolve issues impacting supermarkets.

Representatives from government departments, supermarkets, the grocery supply chain and the ACCC are on the Taskforce.

The interim authorisation applies to agreements made as a result of Taskforce recommendations.

The ACCC will now seek feedback on the application. Details on how to make a submission are available on the ACCC’s public register along with a Statement of Reasons.

NEWS

Nominations open for Food & Beverage Industry Awards 2020

The Food & Beverage Industry Awards have new categories to enter.

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he food and beverage industry is stepping up to the challenge ahead, and once again food manufacturers are showing their leadership as food supply chains are stretched due to the COVID-19 pandemic.

More than ever, we feel it is

important to recognise the efforts of these essential manufacturing operations.

The 2020 Food & Beverage Industry Awards will run as a print and digital product, highlighting outstanding manufacturers, as well as their products and achievements.

Winners will be announced in the Food & Beverage Industry News newsletter and magazine.

Nominations are open until Friday 10 July 2020.

Nominate now in one of the

following categories: • Export Product of the Year • Start-Up of the Year • Innovative Technology Award • Safety Solution of the Year • Convenience Product of the Year • Retail Product of the Year • Foodservice Product of the Year • Locally Sourced Award • Food & Beverage Executive of the Year All food and beverage product finalists will automatically become eligible for the coveted Best of the Best award.

We’re looking forward to celebrating Australian and New Zealand manufacturing excellence, and seeing everyone in 2021 for an even bigger and better Awards night when we can come together to celebrate as an industry again.

For more information visit, www.foodmagazineawards.com.au

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www.foodmag.com.au | May 2020 | Food&Beverage Industry News 7

NEWS

Dairy to tread cautiously through COVID-19 challenge W

hile the local dairy industry has remained buoyant thanks to recent record-high milk prices and export returns, Rabobank’s Australian Dairy Seasonal Outlook warns caution as COVID-19 diminishes demand, and prices, globally.

The full impact of COVID-19 on the global dairy market remains unclear, however the report – titled A Global Storm is Coming – said the worst was yet to come.

Rabobank senior dairy analyst, Michael Harvey, said the “upward trajectory” milk prices enjoyed in late 2019 had now stalled, with prices falling in the first quarter of 2020 as the pandemic spreads and global dairy fundamentals deteriorate.

Based on this current global trend, Harvey warned a more cautious approach to southern export milk prices was necessary, particularly considering a global market down cycle similar to that of the global financial crisis was now very plausible.

As foodservice and hospitality industries wind back in the wake of

COVID-19, the report predicted a sizeable global demand slowdown was imminent, and that the current surge in consumer demand, as supermarket shelves are stripped bare, would be short-term.

“Around the world, in major dairy markets, demand will inevitably fall as unemployment rises and discretionary spending slows,” Harvey said.

“Spring flush in the northern hemisphere, where milk production had gradually gained pace, would also add to the supply and pricing pressure.

“We forecast modest growth through the spring flush, but, at a time when dairy demand is expected to be considerably weakened, this could have significant consequences on global pricing,” he said.

Under the worst-case scenario, demand would significantly weaken, inventories would build up across supply chains, and dairy commodity prices, particularly in Europe, could fall a further 10 to 15 per cent from April 2020 levels.

Under this scenario, the report

predicts the commodity farm gate milk price for 2020/21 across the southern export region may sit at 5.20/kgMS. Australian dairy farmers, however, could take comfort in the low Australian dollar boosting export returns and domestic market premiums flowing through to help bolster farm gate returns.

“The Australian dollar is likely to be lower than it was during the global financial crisis, an almost unprecedented fall that will be a game-changer for the Australian export sector, helping support farm gate returns in 2020/21 and proving key to preserving farm gate milk prices above breakeven levels,” he said.

Harvey said the ongoing battle for milk supply would ensure there were premiums above the commodity mix on offer in the market, with some dairy farm businesses insulated from the global market downturn thanks to contractual supply arrangements and/or exposure to domestic consumer markets.

He said Rabobank’s base case The full impact of COVID-19 on the dairy industry is unknown.

scenario for an annualised southern export milk price in 2020/21 stands at $5.70/kgMS. “For these farm businesses, it will take longer to reflect global price movements, while a branded consumer market will also provide a safely net during the 2020/21 season,” he said.

The current in-home consumption surge has also supported a shortterm boost, with retail price increases working their way through the value chain and reflected in farm gate milk prices. However, with the Australian economy headed towards recession, he said this demand would be short lived.

As a result of the current global market forces, Harvey said, more conservative opening prices from Australian dairy exporters were warranted, and that dairy farm businesses should budget accordingly.

At the farm gate, better seasonal conditions in 2020/21 would relieve feed costs, while elevated cull cow prices and a buoyant live export sector would also provide opportunity to support business margins.

“There’s been a period of lower margins, which we expect will continue through the coming season, so dairy farmers will need to carefully consider the financial merits of rebuilding equity versus major investments and/or expansion projects,” he said.

“However we do predict margin respite coming in the form of a return to growth in milk pools, better plant utilisation and signs of ‘peak competition’.”

The Australian milk pool was expected to close out the 2019/20 season at 8.4 billion litres, a 4.9 per cent drop on the previous year.

However, the report predicted strong growth in 2020/21, pending seasonal conditions, with a 4.3 per cent lift in national milk production forecast.

Harvey said the Australian dairy industry must equitably reverse the downward trajectory of milk production over a period of multiple seasons, with supply chain fine tuning along the way.

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 9

NEWS

Securing freight access for agricultural and fisheries exporters

AFMA levies will be waived for all Commonwealth fishers.

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new $110 million initiative will back Australia’s agricultural and fisheries sector by helping them export their high-quality produce into key overseas markets, with return flights bringing back vital medical supplies, medicines and equipment.

In addition, around $10 million in Australian Fisheries Management Authority (AFMA) levies will also be waived for all Commonwealth fishers, ensuring they do not have to pay Commonwealth levies for the remainder of 2020.

Deputy Prime Minister Michael McCormack said the International Freight Assistance Mechanism would help secure freight flights into Australia’s key export markets.

“This will help restore key freight routes for our farmers until commercial capacity can be restored again,” McCormack said. “We are doing everything possible to help our high-value agricultural and fisheries exporters get their produce on airplanes and into overseas markets.

“Everything we are doing as

a Government in response to this pandemic is focused on saving lives and saving livelihoods, and we know our agriculture industry is key to this.”

Federal Trade Minister, Simon Birmingham said the COVID-19 pandemic had led to major air freight shortages and had disrupted supply chains around the world.

“This temporary action will help Australian producers to protect the jobs of those who rely upon Australia’s export of safe, quality food into the world,” Birmingham said.

“Getting our export sector back on its feet is crucial to reduce job losses through the crisis and a critical part of the ultimate economic recovery. By getting flights off the ground, full of Australian produce, we’re supporting our farmers and fishers who have been hit hard by this crisis.”

Federal Agriculture Minister David Littleproud said this initiative would focus on high-demand agricultural and fisheries exports who have been hit hard by the COVID-19 crisis.

“We’re backing our farmers

10 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

by making sure they can get more of their high-quality product into overseas markets,” Littleproud said.

“The more agricultural exports we can secure, the more regional jobs we can protect.”

Assistant Minister for Forestry and Fisheries, Jonno Duniam, said the freight assistance and levy relief was a lifeline for Australian fishers.

“The fishing industry was one of the first hit when access to China was cut off in January, bringing many in the industry to their knees,” Assistant Minister Duniam said.

“Unlocking key international markets will get thousands of fishers, divers, deckhands and processors back on the job, and the levy relief will help to keep fishers financially afloat.

“Our seafood industry has been built on the back of some of the toughest and most resilient Australians, and this assistance will ensure that the sector can build a bridge to recovery.”

The International Freight Assistance Mechanism will initially focus on the key markets of China,

Japan, Hong Kong, Singapore and the UAE, with the four key departure hubs being Melbourne, Sydney, Brisbane and Perth.

It will be overseen by Michael Byrne, who has been appointed as the international freight coordinator general. Byrne has international logistics experience as managing director of Australia’s two largest logistics companies Toll Holdings and Linfox, plus as a non-executive director of Australia Post.

Byrne will work with Austrade to help establish arrangements with exporters, airlines, freight forwarders and industry bodies plus oversee the mechanism’s operations including advising the Government of destinations, freight selection and prioritisation.

The initiative is part of the Government’s $1 billion Relief and Recovery Fund to support regions, communities and industry sectors that have been disproportionately affected

by COVID-19, and is helping secure freight access for agricultural and fisheries exporters.

NEWS

Global packaging deals total $781 million in February 2020 T

otal packaging industry M&A deals in February 2020 worth $781.11 million were announced globally, according to GlobalData’s deals database.

The value marked a decrease of 38.1 per cent over the previous month and a drop of 43.3 per cent when compared with the last 12-month average, which stood at $1.38bn.

Comparing deals value in different regions of the globe, South and Central America held the top position, with total announced deals in the period worth $522.41 million.

At the country level, Brazil topped the list in terms of deal value at $522.41m.

In terms of volumes, North America emerged as the top region for packaging industry M&A deals globally, followed by Europe and then South and Central America.

Food packaging deals have decreased by 43.3 per cent compared to last year.

The top country in terms of M&A deals activity in February 2020 was the US with 11 deals, followed by the UK with three and France with three.

In 2020, as of the end of February 2020, packaging M&A deals worth $2.04bn were announced globally, marking an increase of 796.8 per cent year on year.

The top packaging industry M&A

deals in February 2020 are: The top three packaging industry M&A deals accounted for 100 per cent of the overall value during February 2020. The combined value of the top three packaging M&A deals stood at $781.11 million, against the overall value of $781.11 million recorded for the month.

The top three packaging industry

deals of February 2020 tracked by GlobalData were: • H&PC Brazil Participacoes’ $522.4 million acquisition of Santher Fabrica de Papel Santa Therezinha • T he $238 million asset transaction with Empire Packing Company, L.P by JBS USA • Supremex’s $20.7 million acquisition of Royal Envelope

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 11

NEWS

Gift a four-pack of beer to an essential services worker Craft breweries are offering four pack of beers to emergency workers.

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he Good Beer Co – a Brisbane-based social enterprise – has teamed up with independent craft breweries from across the country giving Aussies a chance to say thank you to essential services workers by gifting them a four pack of beer and leaving them a message of support.

‘A Good Beer Always Helps’ is a campaign to thank and send messages of support to everyone working behind the scenes and on the frontline to help the country through the COVID-19 pandemic.

The Good Beer Co Founder James Grugeon said, “The good people working in our essential services have always been there for us and right now they are who are keeping our country going. ‘A Good Beer Always Helps’ is about showing

them how much we appreciate them.

“There are so many essential workers on the front line – nurses, doctors, health administration, pharmacists, allied health, ward assistants and cleaners, police, fire and ambos, aged care facility and home care workers; school teachers; supermarket workers; and many other providing frontline services right now and they need to know we appreciate everything they are doing for us,” Grugeon said.

Australians who donate a fourpack to an essential services worker will also help a local independent craft brewery in the state where they live, many of whom are doing it tough right now after social distancing regulations meant they had to close their taprooms and bars.

The independent craft breweries

12 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

– all of whom share the same values and commitment to doing good with good beer include: Newstead Brewing (QLD), Sparkke (SA), Modus Operandi Brewing (NSW) Capital Brewing (ACT), Stomping Ground Brewing (Vic), Otherside Brewing (WA) and Van Diemen Brewing (Tas) and If People Don’t Drink Alcohol, South Australia’s first non-alcoholic craft beer company.

Sparkke co-founder Kari Allen said, “Sparkke is a for-purpose beer company, so when James approached us and asked us if we would like to be involved we jumped at the chance. To be able to say thank you in a tangible way to health workers is really important right now. Yes, we’re doing it tough at the moment – but being part of an effort to express

our gratitude to the people keeping us safe, is really good for our morale.

And of course, the sales support is just so valuable to us.”

‘A Good Beer Always Helps’ is also working with unions and other organisations that represent essential services workers to make sure the messages of gratitude – and a few beers – reach them.

“We’re asking Australians to show our essential services workers we love their work, by shouting them a good beer. It’s a win-win because we’ll also be supporting local independent craft breweries too,” Grugeon said.

“We hope everyone who can afford to will get behind A Good Beer Always Helps and help us to share the campaign so it’s a big success,” he added.

NEWS

ABB accelerates remote connectivity for customer operations D

uring the COVID-19 crisis, governments and companies are having to make difficult choices, balancing people’s safety with economic livelihood. ABB is committed to supporting both – protect people, while helping businesses to stay operational during these challenging times, according to Peter Terwiesch, president industrial automation, ABB. “Remote services and digital solutions can make a major contribution to keep people safe, production running, and critical supply chains and economic livelihood preserved,” he said.

As businesses are being directed to limit site work, the need remains to ensure that assets continue to operate across utilities, energy,

process, hybrid and maritime industries, safeguarding food processing, power generation, water management, tissue production, data centres and the transportation of goods.

ABB is working with customers to ensure the access to field operators and service engineers who cannot be on-site at this time, by delivering control room livestreams, operational insights, process data and plant key performance indicators to users sheltering at home.

To ensure continuous operations, customers can access a suite of ABB remote-enabled solutions, including remote condition monitoring of critical assets; augmented reality maintenance support; online tools

for training and spare parts stocking; and self-diagnoses that mitigate risk to assets, processes and security.

Many of these services are delivered to customers through ABB Ability Collaborative Operations, a suite of digitally enabled solutions and services, and its network of Collaborative Operations centres located around the globe. With 24/7 access, ABB domain experts and data scientists use digital technologies to help customers monitor assets, processes and risks; jointly derive insights from data; suggest mitigating actions; and provide critical remote assistance to help customers to keep production running.

Terwiesch continued: “We are

committed to support our customers to run their operations safely, to keep the lights on, keep people connected, and help us all to weather this storm, together.”

ABB is offering remote solutions for customers.

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www.foodmag.com.au | May 2020 | Food&Beverage Industry News 13

NEWS

Australian sugar sector remains firm despite coronavirus pandemic W

hile the OPEC oil fall out and coronavirus pandemic continue to impact global sugar markets, the Australian sector remains firm thanks to an increase in projected yields and strong export prospects. However, Rabobank’s latest global Sugar Quarterly warns there will be new challenges to navigate amidst this new environment.

In its Q1 report, the agricultural banking specialist said widespread rain across key cane- growing regions – up to 800mm recorded in parts of north-east Australia – had strengthened yield prospects for the incoming 2020 crush, however warned the risk of cyclones and floods still loomed.

Rabobank commodity analyst, Charles Clack, said the robust yield trajectory also had the potential to mitigate a decreased growing area over recent years.

“The domestic cane area fell by 11 per cent from 2017 to 2019, with Rabobank forecasting a stabilisation in area in 2020,” he said.

As such, assuming higher yearon-year (YOY) cane yields, the bank

forecasts the 2020 Australian cane crop at 31 million tonnes, suggesting 4.2 million to 4.3 million tonnes in raw sugar production.

While comparative to the 4.2 million tonnes produced in 2019, Clack said the figure still remained below the national five-year average.

He said the Australian industry could benefit from increased export opportunities, particularly in light of the severely decreased 2019/20 Thai cane crop, which is down 40 per cent due to diminishing cane area and drought.

This, Clack said, was forecast to contribute to a 6.7 million tonne global supply deficit in 2019/20, before a return to a small surplus in 2020/21.

“Raw sugar output in Thailand is set to reach just 8.6 million tonnes, versus 15.4 million tonnes last years, allowing exports to reach just six to seven million tonnes and maintaining Thai premiums,” he said.

“We expect demand for Australian sugar to improve in 2020 amid this cut in Thai supplies, particularly as Asian buyers such as Indonesia, who

Demand for Australian sugar is expected to increase this year.

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rely on Thai imports, look to origins further afield.”

Clack said a drought-led fall in Indonesian 2019/20 production, coupled with a growing appetite, could also benefit both Australian and Indian exporters.

The depreciation of the Australian dollar – with the AUD/USD now standing at 0.59, down from 0.69 year to date – could also bolster export opportunities, Clack said, and had so far, to an extent, insulated the local industry against the sharp fall in world sugar prices.

In February, Thailand’s low production drove ICE #11 Raw Sugar futures soaring above the 15USc/lb, yet Clack said the coronavirus threat, followed by Russia abandoning its oil supply pact with OPEC and dragging down oil prices, in turn saw sugar prices fall below 11USc/lb.

Clack said Brazil was one key sugar producer severely impacted by the Russian and Saudi Arabian oil fall out, and could potentially shift a significant volume of production from ethanol to sugar.

Low gasoline pump prices in

response to oil’s slump, coupled with a decreased demand for local fuel due to COVID-19 had resulted in Brazil’s ex-mill ethanol prices falling sharply.

“The bottom line is that millers’ ethanol revenues and margins in 2020 look very vulnerable in the face of weeks, if not months, of reduced demand plus the threat of persistently low oil prices, and a corresponding price decrease,” he said.

The global sugar price would continue to take its lead from the oil market in the coming weeks, and Clack said any average ethanol prices reaching above a sugar equivalent of 11USc/lb would encourage a swing towards sugar production over ethanol.

COVID-19 Further impacts of the coronavirus crisis on consumption were difficult to predict at this stage, Clack said, with Rabobank’s initial expectations indicating a large absence of global consumption growth in 2019/20 as industries including foodservice see diminished demand prospects.

“In the EU, for example, we foresee very little sugar consumption growth, due in part to the outbreak but more so the downtrend in sugar demand,” he said.

“Interestingly, the flattening demand in the EU, and globally, may be minimised by the assumption that people tend to eat more sugary and processed foods during hard economic times.”

In China – where low acreage and yields cut 2019/20 production by up to nine per cent YOY – the negative impacts of COVID-19 on logistics and labour, leading to a delayed planting, could further decrease 2020/21 output.

Logistics bottlenecks, particularly delays in ports and borders, were also expected global side effects. However, with a prioritisation by governments on the food and agri sector, Clack said food supply chain disruptions should be minimised.

NEWS

Industry body launched to promote uptake of fruit and vegetables A group of Australian health professionals and horticulture industry groups have teamed up to launch the Fruit & Vegetable Consortium, which brings together key organisations to collectively advocate for comprehensive action to address Australia’s complacency about eating fruits and vegetables.

While the Coronavirus pandemic impacts our daily lives, Australians continue to have a bountiful supply of fresh fruit and vegetables, which are a vital component to a wellbalanced diet, a strong immune system and a healthy lifestyle to combat the current pandemic and to prepare for the coming flu season.

The Fruit & Vegetable

Consortium was formed in response to the alarmingly low rates of fruit and vegetable consumption in Australia. Just half of Australian adults – and two thirds of children – have an adequate daily intake of fruit.

When it comes to vegetables, Australians fall short of the recommended daily intake, with just seven per cent of Australian adults and five per cent of children meeting the recommended guideline for daily vegetable intake.

The Fruit & Vegetable Consortium is collaborating to investigate options to increase fruit and vegetable consumption, including one project to develop a behaviour change program that

will work to increase vegetable consumption among Australians to improve their health and well-being.

The inaugural chair of the Consortium is Nutrition Australia, Vic CEO Lucinda Hancock, with other founding members including AUSVEG, the Cancer Council of Victoria, Heart Foundation, Deakin University Institute for Physical Activity and Nutrition, Melbourne Market, Stephanie Alexander Kitchen Garden Foundation, the Good Foundation, the Produce Marketing Association of Australia – New Zealand and VicHealth.

The consortium already has over 50 organisations that have pledged their support since launching to industry four weeks ago. Hancock

said that lifting fruit and vegetable consumption is not only a critical step to improving the nutrition and health of the general public, but also a sure safe way to reduce government expenditure.

“Diets rich in fruits and vegetables have been shown to protect against high blood pressure, obesity, heart disease, stroke, type 2 diabetes and some cancers,” said Hancock.

“The job of increasing fruit and vegetable consumption is too much for a single person or organisation.

This consortium was born out of a common imperative to increase fruit and vegetable consumption with the aim of improving health outcomes for Australians and their families.”

Australian Circular Recycling Martogg is an Australian, privately owned business, who has serviced the Australian and Regional Plastics industry since 1975.

In recent years, Martogg saw the need for a sustainable alternative to virgin PET for rigid packaging applications and in October 2016 commissioned the first of three Vacurema® lines, to produce food grade recycled PET. Martogg Group’s own brand of recycled PET, marPET®, is produced in Victoria using Vacurema® Technology. As demand for food-grade rPET is growing worldwide, Martogg have committed to expanding their capacity to support Australia’s packaging manufacturers. Martogg recently started up its second rPET processing line and will have added a third line by mid-2020, this will increase their total marPET® recycling capability to 23,000 tonnes per annum.

Martogg is committed to working with businesses and brands to achieve corporate sustainability targets, through supply of locally produced rPET, which is recognised globally for it its quality.

www.marpetaustralia.com.au

(03) 9791 5633

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 15

FOOD WASTE

Mapping ahead for Australia’s food waste future Food Innovation Australia Limited (FIAL) food waste specialist Mark Barthel talks to Food & Beverage Industry News on why getting on top of Australia’s food waste problem will be a win-win for everyone.

F

ood waste is an issue. It’s a massive issue. It’s something that everybody – from consumers and manufacturers through to primary producers – know about, and want to do something about, but never quite get around to fixing. Everybody can take their share of blame. People cook more than they should, picky eaters leave a lot on their plates, primary producers can cause a glut by overproducing certain crops, while retailers are too

fussy about the size and shape of perfectly edible fruit and vegetables.

With that in mind, FIAL was engaged by the Australian federal government to identify the way forward. The resulting “Roadmap For Reducing Australia’s Food Waste by Half by 2030” has now been released.

Before being appointed by FIAL, Barthel spent more than 10 years in the UK trying to help reduce that country’s food waste issues. And it has been successful.

“Just one example in the UK, with regard to the commitment there, has been with the whole grocery chain,” said Barthel. “It’s saved consumers and businesses $12bn over the first 10 years of activity. It has reduced greenhouse gas emissions incredibly efficiently. There was a 28 per cent reduction in food waste over that 10 years with 11 million tonnes of CO2 emissions saved. That is a phenomenal thing to be able to say.”

There are a range of issues that

need to be addressed, according to Barthel. The bad news is, Australia is behind the eight-ball compared to the UK and other European countries who, in some cases, have had plans in place for a decade. The good news is, that all of the problems that need addressing are solvable. What is obvious to Barthel and those who are trying to bring the roadmap to fruition is that there needs to be collaboration between all aspects of the industry. And this isn’t just a In the UK, food waste has been reduced by 28 per cent over 10 years.

16 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

FOOD WASTE

‘she’ll be right’ and pat each other on the back kind of partnerships. It needs to be a lot more transparent and tangible. Such as? Take contracts for example, said Barthel.

“The way that some contracts are constructed can be an issue, because often there are quite high penalties for partial non delivery,” he said.

“That sometimes drives oversupply without intentionally doing so because people are concerned around contract penalties and things like that.

So, they produce more food so there is no shortfall but that means there is leftover supply.”

And that oversupply leads to one of the biggest issues surrounding food waste and something that a lot of retailers are starting to address, is around the stringent standards they put on food, particularly fruit and vegetables.

“I do wonder what the impact of this is [throwing out good food because of their shape],” he said. “In an ideal world, you would like to think that consumers are becoming acceptable to vegetables they might not usually see in the supermarket and they want that product irrespective of what size or shape it is.

There is an opportunity to re-evaluate the cosmetic standards of produce between the primary producers and retailers.”

He gives a practical example of how a change can occur with regard to the humble potato. When he was in the UK, one of the projects he was involved with was to do with the potato value chain.

“We were working with one of the major retailers and we had a look at their quality statistics, which showed that they believed the optimum circumference of a potato was 45mm,” he said. “We said ‘Why 45mm?’ They said, ‘That’s the way it has always been’. Again, we said ‘Why?’ It took them a while to find out where the specification had come from and it was written in some time like 1978. There was no agronomic reason behind that circumference.

There was no consumer acceptability criteria there or anything.”

Barthel and his team decided to challenge the reasoning behind the standard.

“We thought, ‘What would happen if we reduced the circumference to 43mm?’ We thought consumers would not notice the change. But the farmer did. What the farmer saw was

Mark Barthel is optimistic Australian primary and secondary producers will embrace food waste initiatives.

"We thought, ‘What would happen if we reduced the circumference to 43mm?’

We thought consumers would not notice the change. But the farmer did. What the farmer saw was a five per cent increase in utilisation, which was close to $2,000 a hectare." a five per cent increase in utilisation, which was close to $2,000 a hectare.”

Barthel believes it is those sorts of aspirations where savings can be generated and there are some win-wins, not just for primary producers, but for retailers, too.

“We’re asking retailers to question some of the rationale behind these broader quality standards they have,” he said. “They haven’t really seen with their own eyes, themselves, the impact the standards are having on primary producers.”

And that impact can sometimes lead to a double negative whammy at the paddock.

“We see about 31 per cent of

food waste appearing in primary production in Australia, and that is about 2.27 million tonnes of food not harvested or ploughed back in,” he said. “And that is to do with economics as well as cosmetic quality standard. What seems to be happening is we have an over production in order for suppliers to hit the retailers perfect quality standard bell curve. And the overproduction itself then depresses the price and to a lot of farmers that means it is uneconomical to get that graded product out of the paddock.”

With the UK model, there were many shifts and changes throughout the past 10 years. That journey took

him to a place where supermarkets and hospitality companies tended to have very transactional relationships; very short-term contracts with suppliers.

“In some cases, there were longer, or rolling contracts, for staples like milk and bread and things like that,” he said. “There was a lot of confusion as to what was required from suppliers, as well as at the end of the chain with the supermarkets and convenience stores. What really brought it to a head was that we really moved from a short-term journey – getting away from transactional relationships – to a more strategic food supply relationships, which also meant we had much longer contracting arrangements in place.”

Barthel said it is now not unusual to have 5- or 10-year contracts in place in the UK. He thinks it will lead to long-term, streamlined relationships that will reduce waste. Short-term transactional relationships with suppliers means there is no real incentive for retailers to work differently.

Then there is what Barthel calls the tyranny of distance. A key to food waste reduction is also the ability to extend the shelf life of products.

However, that is compromised in Australia for a couple of reasons. A lot of the primary production is done in rural Australia, and being such a vast and sparsely populated continent means a couple of days in shelf life can be wasted in transit. And the transit itself is an issue, because as far as Barthel can see the country has virtually no cold storage chain. He was at a meeting when he brought up the term and got a surprising response.

“When I recently sat down with the Food Cold Chain Council it was very interesting,” he said. “I use the words ‘food cold chain’ in the meeting. The challenge I got back having used that term, with a few minor exceptions, was that there is no food cold chain in Australia. There is a supply chain that is intermittently humidity and temperature controlled.

That shocked me. I hadn’t really appreciated how underperforming the cold chain was. Then I got my hands on a draft study the Food Cold Chain Council was putting together. And the study talks about a quarter of the fruit and vegetables going into the food cold chain being wasted, which is close to $3bn worth of food.”

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 17

FOOD WASTE

Barthel said that to address some of these issues, there needs to be be what are called Sector Action Plans.

This is where certain aspects of food waste are targeted for attention and actions put in place to improve the situation in a particular sector.

“The first section action plan in the roadmap is to work with food rescue and relief as a sector because what we saw from a baseline study was that less than 50,000 tonnes of food is being rescued a year,” he said. “This is at a point in time where 7.4bn tonnes of food is being wasted.

We have to find a way to work with that sector so that we can increase the amount of food that is rescued and therefore not wasted. How do we mop up all that surplus food in the system and give it to the people who need it now?”

The second sector plan is to work with Refrigerants Australia and the Cold Chain Council, on how to improve the performance of Australia’s cold chain so more food can get to market before spoiling.

“How can we get the core temperature back before product is shipped? How can we maintain in-trailer temperature? We have to make sure the refrigeration equipment is being used effectively while the food is in transit,” said Barthel.

“The other thing in the cold chain is the human factor. We have to stop

Food rescue could be one place were food can be utlised before it rots.

"In designing a voluntary commitment program for Australia, we looked at 24 other countries that already have a voluntary commitment program to tackle food waste. Some of the results have been astounding." people leaving doors open on the back dock of a distribution centre as they deliver a frozen or chilled food order. It might take them 20 minutes on a 40˚C day to unload – you’ve just lost you required -18˚C to maintain that food in the space of 20 minutes because you have left the door open.”

Then there is the voluntary factor.

Voluntary commitments are just as important as legislation because

Fruit rotting on the ground are part of the seven million tonnes of food wasted every year in Australia.

18 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

it gives a sense of ownership and responsibility to all those involved.

“In other countries, voluntary commitments have worked incredibly well,” said Barthel. “In designing a voluntary commitment program for Australia, we looked at 24 other countries that already have a voluntary commitment program to tackle food waste. Some of the results have been astounding.”

According to Barthel, it is almost important to look at what methods are to be used to change peoples’ behaviour.

“That is what the Road Map is all about,” said Barthel “Behaviour change is hard. It takes a lot of time to get it right and to get moving.

Typically, when people throw away food – it’s an unconscious behaviour.

We don’t think about it. The first step you need to take is raise awareness of the issue. We are starting that, and businesses are now starting to realise how much food is being wasted.

He points to a recent survey of 5,300 households on attitudes on food waste in Australia by Fight Food Waste CRC. It asked those households what they thought was causing waste in the home and what could be done about it.

“We could see from the answers that there tends to be an understated amount of waste they are throwing out,” said Barthel. “What we could also see was that there was a substantial gap between stated behaviour and actual behaviour.

What that means is people throw out more food than they think they do.

The good news is that the study also showed the 76 per cent of Australian households are motivated to reduce food waste. And that is something that we can help both businesses and households can build on.” F

RECYCLING

Local PET supplier can help with new APCO targets According to recycling specialist Martogg, with the recycling content of packaging to be 50 per cent by 2025, having a local supplier will help those targets be met. Food & Beverage Industry News explains.

Martogg can offer 50/50 blends in its PET processing.

T

he Australian Packaging Covenant Organisation (APCO) has recently announced that the target of recycled content into food packaging will increase from 30 per cent to 50 per cent by 2025. Something that Martogg account manager, Ben McCulloch, thinks is good news for those that are already supplying recycled content to the industry.

“It’s wonderful news that shows our commitment as a country in working towards a circular recycling model of ‘make-use-reuse’ in place of the old linear approach of ‘make-usedispose’,” he said.

While Martogg Groups’ branded rPET, marPET, can be used at 100 per cent into many applications, the company understands that not all business and brands will be looking to move across to 100 per cent recycled content in their packaging.

The company also offers a range of material blends combining recycled/ virgin PET resin that are designed

to meet a nominated percentage of recycled content.

Given the targets of recycled content will increase to 50 per cent for 2025, Martogg can offer a 50/50 blend (recycled/virgin) material that will enable business and brands to reach this target, now.

When asked about the implementation of a CDS (Consumer Deposit Scheme) in Victoria, McCulloch said this kind of leadership is important if the set targets are going to be met.

“We commend the Victorian Government on its decision to implement a CDS in Victoria,” he said. “This is another big step forward that will be critical to improving and increasing our ability to recycle cleaner waste streams of single-use plastic packaging both in Victoria and nationally.”

Martogg is the sole producer/ supplier of rPET in Victoria and it is committed to businesses and brands in all sectors within the plastics industry.

“Many studies have been completed around the world that have analysed and compared the CO2 output generated from virgin PET and recycled PET,” said McCulloch.

“While these studies have been conducted in different countries, the common finding has been that CO2 output is drastically reduced through

the use of recycled PET as opposed to virgin PET; in some cases, up to 79 per cent. This takes in to account the entire lifecycle of the material, for example the collection of waste material, logistics, cleaning and finally reproduction of material.

“We cannot downplay just how important recycling plastic for reuse is to our environment, and it is vital that brand owners commit to recycled content sooner rather than later so that they establish their position in the market as active promoters of the circular economy that will help reduce greenhouse gas emissions by decreasing reliance on oil-derived virgin polymers for their packaging.”

There are many benefits to business and brands with local supply including having product that is easy to access, as well as having back-up service close at hand to help with any enquiries.

“We can supply marPET throughout Australia, which enables businesses to better manage their supply chain and inventory as opposed to importing resin and relying entirely on international supply availability and shipping in these uncertain COVID-19 times,” said McCulloch. F

The Vacurema process helps convert PET flakes into palletised resin.

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 19

CONSTRUCTION

The freezer design accommodates long- and short-term pallet storage in the baker’s new freezing. facility.

Patience wins through with freezer build Building an industrial freezer that meets the required construction standards is not as straightforward as some builds can be. Food & Beverage Industry News explains why.

B

uilding a commercial freezer is no easy task.

The amount of work and effort that goes into making sure all the specifications are met can be arduous. This is not lost on the team from Total Construction, a company that specialises in food and beverage builds.

In 2015, a baking company wanted to build a new freezer due to its business expanding and so began a consultation process with Total Construction’s Engineering Construction Group (ECG).

“We began talking with them five years ago about building a 500 sqm freezer on an adjoining site to its current plant,” said Rob Blythman, general manager for ECG. “The client makes par baked bakery products

"The Total Construction team worked with the client’s operations staff extensively through workshops and discussions to develop a profile of what the client needed by way of a freezer build and how this could be achieved with maximum efficiency at the lowest cost." for the café market and their point of difference is that each individual product has its own unique shape and look – the real homemade appearance.”

It was for this reason that the bakery needed to expand. With orders up, and the uniqueness of some of its products, space was at a premium.

The scope of the job was nothing new

20 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

to ECG, so they started to scope the project with the client.

“The Total Construction team worked with the client’s operations staff extensively through workshops and discussions to develop a profile of what the client needed by way of a freezer build and how this could be achieved with maximum efficiency at the lowest cost,” said Blythman.

Total Construction was up for the challenge, and presented four design options to the client. The point of the four different options was to provide a variety of possibilities when it came to costings. This would allow the bakery to enable the best process flow while maximising the pallet capacity of the facility.

“After much discussion on the cost, the client decided to go it alone and manage the construction with his own team,” said Blythman.

“As you can imagine, we were extremely disappointed to have missed out on doing the build.

However, we were quite philosophical about it too, as we well know, in the food and beverage market, this frequently happens. This is mainly due to many clients being privately

CONSTRUCTION

The roof line initially became an issue but Total Construction solved the problem and created more space for storage. owned medium-sized businesses that want to save money wherever they can. We respected the client’s decision and said if they needed any help at all to give us a call. Little did we know that a few years down the track we would get that call.”

Three years later Blythman was with some colleagues at a food and beverage trade show when they ran into the owner of the bakery. They talked about the state of the industry, but the discussion soon turned to the freezer project that had been on the cards back in 2015.

“It turned out the client was at his wit’s end with the project, as he had experienced nothing but trouble trying to get it started,” said Blythman. “To top it off, he had been pinged by council for conducting building works without approval.”

Blythman and the Total Construction team knew in the back of their minds that this kind of issue could come to the fore because Total Construction has had extensive experience in how councils work, due to being in continual contact with various councils on a weekly basis on many projects and fully understood what type of issues could arise going it alone. However, Total Construction wasn’t the type of company to bask in the misfortune of others, instead it saw an opportunity to help.

“Within a few weeks we had signed them up for design works, a DA submission and CM contract for the construction,” said Blythman.

The scope that the owner gave Total Construction was extensive.

It was to construct a new freezer in the neighbouring building with all council approvals completed; make sure there was access from the existing premises through to the neighbouring premises; make sure

there was a provision of an air lock ingress/egress in the new freezer; ensure that there was sufficient area allocated for the dispatch of receivables; provide a series of layout options for the freezer size and additional production locations; and makes sure that the freezer racking design could accommodate long-term and short-term pallet storage (400 pallets) within 500 sqm.

The biggest issue that needed solving was the final instruction in the scope – accommodating the pallet storage. Space was at a premium and they had to come up with a strategy to make sure it met the specifications. They did this using some lateral thinking.

“To maximise pallet space, we came up with a design that allowed

"To maximise pallet space, we came up with a design that allowed the freezer space to follow the existing building roof line." the freezer space to follow the existing building roof line to allow sufficient space for the required evaporators. This posed a problem of potential issues with the EPS panel ceiling joints not sealing properly due to the acute angles involved,” said Blythman.

“To counter the potential of icing of the joints, particular attention was given to the over sealing done on each joint to ensure no air would penetrate, so the freezer would not only function properly, but provide room for more

pallet space.”

In the end, the project was completed on time without a hitch and not only to the customer’s specifications but meeting all council and building standards.

“Needless to say, the client was impressed with the final build as were we,” ” said Blythman, “We found the project interesting from a build point of view – with regard to the acute angles – and the client ended up with a freezer that will help move the business forward.” F

The space maximised the pallet capacity of the facility.

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 21

PLANT AND MACHINERY

Bürkert partners with breweries who are ready to expand With an explosion of breweries in Australia over the past decade, having all the right gear to make the plant run smoothly is critical. Food & Beverage Industry News explains.

Bürkert’s team are experts at helping breweries set up processes that will help them produce a great brew.

I

f there is one thing that a brewery needs it is reliable field devices when it comes to measurement and control systems. Making beer is a fine art, and that is something that is not lost on fluid control system specialist Bürkert.

At a recent installation in Germany, Bürkert’s products were installed to help with the automation of a brewery.

It was an interesting case study on how modernising a brewery can not only help streamline processes, but also provides an insight on what it takes to upgrade plant and machinery.

Based in the German state of Bavaria, the pilot brewery of Weihenstephan’s research centre for brewery and food quality has existed in one form or another for centuries. In its current state, automated flowmeters,

process control valves, solenoid valves, pneumatic actuators and “smart” valve islands make manual adjustments of plant and machinery unnecessary. This not only saves time, but also enables monitoring of the recipes developed or tested here possible at any time. The control system is kept so simple that the master brewer can create, operate and modify recipes from a PC using an Excel spreadsheet.

Where beer is reinvented every day The pilot brewery enables the creation of pilot brews for all kinds of beer, fermented malt drinks and mixtures.

Pilot brews are prepared both in the name of research and on the basis of orders, ultimately resulting in drinks for consumption. This process

22 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

starts with the mashing, brewing and fermentation processes through to the testing of suitable yeasts, microorganisms, ripening processes and filtration capabilities.

The desire for greater process quality The pilot brewery has an output of 50 litres of wort and a capacity of nine fermentation tanks capable of holding 60 litres each. Beyond that, the brewhouse and the lautering process of the “mini brewery” are no different from those of a larger facility.

Until now, most things were adjusted manually. This applied to the control valves in the water intake for mashing and sparging, through to the control valves for the lautered wort and to the pump used to drain the

wort tank or to adjust the height of the rake arms. There was no scaling here and the rake motor always ran at the same speed.

To achieve a better basis for future research work, those responsible at the research centre decided it was time to modernise the plant automation.

However, the decision-makers felt it was important to be able to intervene in the system at any time, even after its modernisation.

The small brewery picked a competent partner that has developed multibrauplus, an automation solution specifically tailored to small and medium-sized breweries. Based on a Simatic S7 from Siemens and graphical visualisation, all the functions – from malt storage bins to fermentation cellar – could be

PLANT AND MACHINERY

automated. Despite this, the brewers were still left with sufficient leeway to take decisions, since Excel was deliberately chosen as the dialogue medium with the process control system.

The “programming” activities are limited to filling out a standard text list, which was then interpreted by the process control. The monitors, calculations and control functions included in the commands were managed by the process control alone.

From control valve to flowmeter However, process control alone does not make automation possible; since automatic control valves, flowmeters and pneumatic actuators are required to automate existing manual valves.

As a fluidic system expert, Bürkert, supplied and installed the required hardware for the fluidic systems, handled the installation of the wiring and hoses, and supported start-up.

The range of applied fluidic components covered the process control valve used for the steam needed to heat the mashing and wort tank, the temperature controller on the wort cooler, various flowmeters and a valve island mounted in the control cabinet that is used to control

"To achieve a better basis for future research work, those responsible at the research centre decided it was time to modernise the plant automation." all of the valves installed in the process. The height of the rake arms of the lauter tun was also adjusted automatically using a solenoid valve. The existing flap valves were overhauled and equipped with pneumatic actuators. Furthermore, there was also a brewing water storage tank in which the water could be precisely blended using a modular blending unit.

Valve island as an automation system The entire pneumatic system was controlled by a valve island. This was directly installed and shipped in a stainless steel, hygienically designed control cabinet with the stainlesssteel control AirLINE Quick base plate to save space.

The stainless-steel control cabinet was well suited to the small pilot brewery. All of the valves also had a P-channel shut-off mechanism, which meant they could be switched out even while the machine was in operation without shutting it down.

A worthwhile investment For the pilot brewery, the investment in cutting-edge automation technology has paid off. A high degree of reproducibility and traceability was simple with this solution, as data acquisition was integrated into the control system. Product-specific information could be displayed graphically along with other measured values. Thanks to the partnership, the system was prepared for start-up quickly and easily.

With Australian breweries sprouting up at a rate of almost one every two months, it is important to know that these types of upgrades are also available for small- to mediumsized Australian breweries. Bürkert’s Pacific sales manager, Tom Kirby, has been with the company for 16 years and he said the company is geared up to help breweries upgrade. And he knows it’s not just about the field devices supplied.

“We try and design a support and an automation package that caters for a small to large applications or

requirements,” he said. “The key for an individual brewery is to directly align our solution to their particular business model that is, using their longer-term vision to define what their requirements should be, while still maintaining their unique identity and their own personal craftsmanship.”

Plant reliability helps provide uniformity and consistency for each and every batch.

“What needs to be taken into consideration is the dedication to their brand, their brew and varieties that they are trying to produce, making sure you get the same consistency in taste – batch after batch,” said Kirby.

“I also think it is a situation where it comes down to the marketability of the product. You want to be able to show that what you are doing with your product is a bit special.”

Kirby is also clear on how he sees the relationship between his company and potential clients.

“Bürkert is solution orientated, with those businesses ready to automate their processes,” he said.

“Bürkert’s approach is to look beyond a single project with a client. It is partnership for us. We believe in a joint venture approach in identifying the correct solution needed, customised to each application. That’s what makes Bürkert unique.” F

Reliability of field devices is key to any new brewery.

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 23

THOUGHT LEADERSHIP

Remote troubleshooting solving problems VEGA has found a way to support customers during trying circumstances.

Food & Beverage Industry News explains.

W

hen there are troubled times within an industry, it’s nice to know that help is at hand if things start to go wrong.

With an unprecedented lockdown within Australia’s borders, there are still essential services that have to work through the COVID-19 pandemic. Alongside emergency services, food and beverage processing and manufacturing is vital in keeping Australians fed and watered.

A key to keeping manufacturing moving is making sure plant and machinery is in tip-top shape, and if there are issues, they are solved quickly and easily.

VEGA is one company that has been supplying Germanmanufactured, high-quality products to the food and beverage industry for a long time. Like most companies, they are adapting to the new climate pretty quickly and have people

on the ground in most states and territories.

“We’ve got three in Western Australia, one that covers South Australia and the Northern Territory, three in Queensland, five – including two service guys – in New South Wales, and two in Victoria,” said VEGA service manager, John Coulton. “I support them by phone and also Zoom video and remote support if need be. Internationally, we have a 24-hour hotline and if a call comes to my mobile during Australian daylight hours, or if there are issues interstate, I will discuss with the BDM and work out an action plan taking into consideration travel restrictions in the present environment.”

VEGA is using a few strategies to help clients when it comes to troubleshooting. While it is ideal to be on the ground, with lockdown laws in place, other methods have

been adopted.

“We’ve got everybody on Zoom, so that is our main way to support the industry in terms of our service and sales team to help with any issues remotely,” said Alex Mazor, VEGA’s marketing manager. “We are available to help customers with product settings, adjustments and diagnostics. Also, we’re remotely assisting our customers by being able to access VEGA software platforms such as PACTware using a remote function via IOS, Android and PC devices, so that helps them with any set up, product demo or backend configurations.

“Our service and sales team have a wealth of experience and utilising Zoom for them as been really central, especially when it comes to reassuring our customers that it is business as usual for VEGA.” Coulton gives a practical example of how this assistance works in for

VEGA has plenty of stock during these challenging times.

24 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

VEGA has many strategies to help client’s troubleshoot issues. both VEGA and the client.

“We have a bagging company that is a client who bought two new radars from us and they tried to set them up themselves but didn’t have much success,” he said. “So, the client set up the PACTware software package, and sent us some echo curves and that helped tell us what the issue was.”

PACTware is utilised similarly to a depth sounder in a boat. It gives users a graphical representation of what the radar can help them see, said Coulton.

“He was in the Riverina, so we connected to his computer via Team Viewer, and we saw what was happening albeit on a smaller scale.

We got drawings of the silo, so we knew what we were looking at. As you would expect the bagging system had a big taper, so it wasn’t a straight forward job. It took us two days to help set up the two different silos – we did one during one morning and the next one after that. We told the client what he needed to do in

THOUGHT LEADERSHIP

"Our service and sales team have a wealth of experience and utilising Zoom for them as been really central, especially when it comes to reassuring our customers that it is business as usual for VEGA." terms of aiming the radar – which is similar to aiming a torch and seeing where you shine it – and fixed the problem. We were seeing it live even though we were not there. With our experience, we were able to fix it.”

Another example of support with the same software package comes with what VEGA calls a service recording. The customer does not have to understand what the issue is or to look at it. All they have to do is connect it up to the sensor, which starts recording all the data – such as the parameters, echo curves, trends and an event model – and they can email that information to Coulton.

“I’ll take it home and a have

a look at it and help them fix the issue,” he said. “If it was something like the bagging issue, it might be that it is playing up where they’re filling it, and they need to do several changes to fix it. While he is doing these changes, I’m looking at it at the same time as him and helping him solve the problem. I treat it like it is a training exercise for them, as well as fixing the problem.”

VEGA Tools App One piece of technology that the company is utilising is the VEGA tools app, which can be used on either an iPhone/iPad or Android mobile phone.

“In the old days there were two

ways of setting up an instrument – either pressing a button on the top or a laptop. Now its Bluetooth, so the customer can pull out their iPhone or iPad or android device, and use the VEGA tools app. They don’t need a laptop anymore,” said Coulton. “I was up at a mine in the Pilbara for a couple of weeks doing a training course. We did an exercise where the foreman decided to invite some of the young technicians who utilise a device, we call a hockey puck, which is connected to their phones via Bluetooth. They put it the puck on the sensor and put the information onto their iPhone and they sent me a screen shot of the problem. As with this exercise and in real instances, nine times out of ten we can fix the issue if we can see what the issue is. It gives clients another tool to fix a problem.”

With Zoom, VEGA has gone a little bit further. The customer can have their phone on them, start the VEGA tools app, have all the settings ready, and can have a Zoom meeting and can show Coulton

the problem that has occurred via mirroring.

“John can mirror his phone with Zoom and diagnose the problem,” said Mazor. “It takes screen shots to the next level. The customer can see what is happening and so can John and can diagnose or change settings that way remotely. The sales team can work in tandem doing the same.

It really just takes troubleshooting and support to the whole next level.

You can screen share to the service team using any IOS or Android and PC devices. That is going to be really critical and we are utilising the technology as much as we can to reassure customers that we are there for them.”

VEGA is also doing product demonstrations live through Zoom, setting up a scenario where the company can go through the product with clients.

While the circumstances in which they work might have changed, the amount of support the company offers has not. F

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 25

FOOD PROCESSING

A better way of ingredient loading When cereal maker Hubbards needed to up output on its production line, it turned to powder and granule handling specialist Floveyor. Here’s why.

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ormed 30 years ago by former Auckland mayor Dick Hubbard, cereal maker Hubbards’ mission is to ‘make good food then make a difference’. It is New Zealand’s largest independently owned maker and supplier of breakfast cereals and has made the equivalent of three billion bowls of muesli and cereal since that time.

Hubbards is the number one brand in muesli within New Zealand and has specific expertise in muesli, granola, gluten-free, extruded, flaked, popped and puffed cereals.

As Hubbards continued their success and demand increased for its breakfast cereals, it became apparent that the company needed to invest in process equipment to increase output and gain efficiencies.

Floveyor, an Australian company specialising in powder and granule handling within the food and beverage industry, was approached to review the company’s processes, raw ingredients movements, hygiene requirements, and factory layouts in order to propose a suitable upgrade solution.

Floveyor software helps make sure the equipment is running smoothly.

The challenge Hubbards required a system to load and weigh dry ingredients from a range of sources including bulk bags, small, hand-tipped bags and plastic bins with minor additives into a batch mixer.

With over 40 ingredients used within various cereal products the system had to be versatile enough to handle a myriad of powders and

granules, many of which were friable in nature. This meant they required a gentle yet efficient method of loading without being affected by the differences of each ingredient.

Before approaching Floveyor, the operation of loading raw ingredients into the batch mixer was labour intensive. It involved high forklift traffic, manually lifting flexible intermediate bulk containers (FIBCs) directly into the mixer via a platform gate, and having operators working at heights to load minor ingredients, which in turn involved multiple pallet movements per batch.

What were the key elements driving change?

Floveyor products help improve safety in food processing factories.

26 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

As demand for Hubbards cereals increased, there became greater opportunity to improve its existing methods of processing the products.

The successful solution had to offer several improvements. These included: • removing the need for operators to work at heights; • improving safety and minimising manual handling; • reducing and localising forklift movements and traffic while handling FIBCs; • improving operator safety and time required for forklift operators;

• integrating the solution with the existing batch mixer, platform and loading area and fit within the roof clearance restrictions; • removing human error from the weighing and loading of ingredients into the blends, which in turn would reduce unnecessary waste and improve batch consistency; • improving ingredient feeding at rates of between 120-150kgs/min to fit within required batching loading times; • providing guarantees on the system’s cleanliness, hygienic design and CIP processes to ensure food safety when changing over from gluten to non-gluten products and mitigating any crosscontamination risks; • ensuring prompt return on investment to allow commercial viability of the project and ensure profitability; and • the design also needed to allow for the future addition of a second mixer when demand required.

“The system needed to be able to elevate the product,” said Hubbards’ operations manager Mike Rogers. “It needed to be able to convey product that is dust and as fragile as a cornflake, and as stock as a Cocopop (sugar dust). It needed to move up to nine tonnes per hour of product

FOOD PROCESSING

with densities ranging from 130 g/L through to 600 g/L. The system needed to be easily cleanable and quick changeover, potentially with cost-effective change parts so that any significant cleaning can be done offline. This had been a problem here for some time.”

Floveyor is a third-generation family business that designs, manufactures and supports materials handling solutions for powders and granules. Many businesses associate Floveyor as the original inventors of the Aero-Mechanical Conveyor (AMC) from 1958, also commonly known as the Floveyor.

Today, Floveyor is an original manufacturer of powder and granule handling equipment and solutions, servicing more than 50 countries and partnering with many OEMs as an integral provider to high-end applications everywhere.

Floveyor focuses on the design, engineering, and manufacturing of core equipment required to move powders and granules throughout the production process. It often reaches and supports its end users via geographically localised engineering companies, distributors, or OEM solution providers. Hubbard’s had an existing AMC on site and was familiar with the basic conveyor.

However, Hubbards was unaware of the greater portfolio and variety of equipment and services that Floveyor provided. Floveyor was consulted on Hubbard’s behalf by a local New Zealand OEM, Mercer Stainless, regarding the ongoing ingredient loading headache Hubbards was experiencing on site and for which it needed a solution.

Finally, Floveyor had to know what time or commercial constraints the company was working under.

bag massaging paddles to promote material flow and minimise any residue left in the empty FIBCs.

Making the solution work

Formulation System

Mercer had identified early in the process that the Floveyor AMC should be the right solution to transfer the ingredients as Hubbards needed to isolate nuts and other allergens on some of the products, while cleanability was paramount.

Hubbards had several bucket elevators upstream in the process and was having a lot of issues preventing contamination.

The other process needs were also addressed. An Industrial F3 Floveyor AMC was specified based on its capacities and materials to be transferred. With upwards of 15,000kg/hr throughputs, utilising a 1.5kW drive, the conveyor was better in power efficiency compared to a pneumatic system. It also meant less particle damage, far lower operating costs and the ability to handle any variations within the variety of ingredients. The 76mm system was designed with a vertical then horizontal run, which meant it was within the ceiling height restrictions above the mixer.

A FIBC bulk bag unloader, suitable for loading with a forklift, allowed the bags to be dropped into the support frame, freeing up the forklift during unloading. The FIBC frame was supplied with

To manage the variable batch needs and differing ingredient weights required, the FIBC unloader was supplied with load cells for a loss-inweight system, paired with a short 150mm-diameter dosing screw feeder that allowed controlled feeding of ingredients into the Floveyor AMC within 1 per cent accuracy.

A touchscreen HMI control panel was mounted to the system to allow the QA team to program each batch loading profile and edit, as necessary.

The HMI then allowed operators a simple recipe selection prompt screen, removing any variation in ingredient ratios. The system had visual light tower linked to the PLC, notifying operators if a FIBC needed replacing or attention was needed.

Manual bag tip station Within every batch there was several ingredients that required manually bag tipping into the system. A rip and tip station was provided at ground level allowing operators to feed minor ingredients into the batch based on pre-weighed containers or allocated pallets with the relevant pre-counted number of bagged ingredients. This process was independent of the loss-in-weight system while loading into the single

F3 Floveyor AMC. Due to the high conveying capacity of the Floveyor AMC both minor ingredients and loss-in-weight ingredients could be added at the same time. All of which was full assembled, prewired and dry commissioned offsite by Floveyor.

It was then flat packed for modular export transport and supplied with all the necessary resources so Hubbards could be self-sustainable and not require proprietary knowledge to install, commission or maintain its new equipment. Direct objectives of the project were achieved in addition to the benefits and feedback from operations on site. These included the reduction of manpower with only one or two workers now needed in the area. The new system didn’t require product pallets to be lifted at height and manual handling of heavy bags.

It also largely reduced forklift traffic in the area. The simple and hygienic design was well suited to Hubbards’ products, and also helped reduce cleaning requirements.

Rogers described the AMC’s simple, hygienic design as ‘awesome’ and very well suited to Hubbards’ products. There would be a good pay-back on the units with ease of cleaning compared to other bucket elevators onsite.

“I was also impressed by the depth and quality of the documentation from electrical drawings to the installation instructions and user manuals,” said Rogers. F Floveyor AMCs helped streamline Hubbards’ manufacturing processes.

Getting a grip In order to work out and propose the right solution for Hubbard’s, several factors were considered and explored as part of the discovery process. First, it was important to study the site constraints, hazards or clean zones, vehicle movements, existing equipment, and operator access locations. Then it was necessary to understanding the raw materials and ingredients and their different properties, as well as Hubbard’s process requirements, batch times and the accuracy of the outputs. It was also important to understand cleaning and validation procedures and also the current pain points Hubbards was going through. www.foodmag.com.au | May 2020 | Food&Beverage Industry News 27

SOFTWARE

Software grows with herb expansion When a fledgling company started to grow, it knew its inventory software needed to handle the increase in output. Food & Beverage Industry News looks at the solution it found.

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tarting a business from scratch can be daunting. Especially when you accidentally fall into it. That’s what happened with Renae Colbert, who along with her husband Chris, started up medicinal herb business Herbal Connection six years ago.

Coming from a corporate background, Colbert wasn’t totally green to the nuances of B2B enterprise, but she was to herbs and their medicinal properties. How she came into the business was not due to a life-long ambition to be a connoisseur of herbal remedies.

There was a much more practical motive.

“The reason I got into herbs was

because I had a medical condition that I struggled to have traditional practitioners diagnose and help me manage,” she said. “I went looking for alternatives to try and fix that problem on my own, and in doing so I found relief in natural medicines. I credit my naturopath with getting my health back on track. I couldn’t have done that without medicinal herbs. I had such a life transformation that I knew I had to do something with it.

I just knew there were so many other people that could benefit from the products.”

Initially, Colbert had designs on blending her own teas and a range of other products, but quickly realised that the wholesale side, and to a

"It needed to have the ability to grow with us and have the function and features that we were going to need down the track. "

Unleashed is designed to track everything going in and out of the warehouse.

28 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

lesser degree processing, were the skill sets that she and her husband could best utilise. Six years later they now employ five full-time staff and the business keeps on growing. As with any growth, it’s important that the business side of the enterprise runs smoothly. Colbert even knew right at the beginning inventory software was a key ingredient to making Herbal Connection a business that wouldn’t cause any unnecessary issues. Thus Colbert invested in Unleashed Software.

“We were a small business, but because of where we had come from, our understanding of warehousing and what we wanted the business to be and what we wanted it to grow into, we knew we needed a robust inventory software solution,” she said. “It needed to have the ability to grow with us and have the function and features that we were going to need down the track. This is what Unleashed gave us. While we didn’t need them all of its functions at the beginning, it was great because we could start off small and then have Unleashed grow with us.”

And the aforementioned ability of the software’s features to expand as the company grew turned out to be fortuitous because the company has done exactly that.

“We had no inventory management system when we first got started and we only had maybe 150-200 SKUs,” said Colbert. “We

now have in excess of 500. The business has quadrupled over that time, so it was great that we had the software which was easy to set up and use. Any time there is an update, it’s easy to update.

It integrates with all of our other software, such as the eCommerce platform we run for our online presence. It also integrates with our accounting software. We made a decision right from the get-go that we were only going to use a product that spoke to everything else. I needed it to be easy.”

Being the owner of a small business means that Colbert has to wear many different hats. The last one she wanted to have was that of being an IT manager.

“I needed to know it was plug and play and it was going to work,” she said. “It’s very intuitive. If you know your way around a computer, it’s easy to figure out.”

There are a couple of features that are her favourites, including the ordering function, and it also helps out with the customised processing Herbal Connection does for certain clients.

“I find the reordering my inventory reports as one of my favourite features,” she said. “I

SOFTWARE

couldn’t run the business without that ability. It’s easy. I do it once a week. I put purchase orders to my suppliers, and it is done.

“We also do production for clients. We are a certified organic producer and we have a lot of clients that want us to do their custom tea blends for them. Those blends are built into the Unleashed system and we find that particularly useful.”

Being certified organic is an important part of Colbert’s business, however not all of Herbal Connection’s products have the certification. Again, this is where Unleashed comes into play and saves the business a lot of time.

“The software gives us the ability to differentiate between what’s a certified organic product and what isn’t so when it comes to audits and things like that,” she said, “it’s easy for us to track the certified organic product coming into the warehouse and its movement through the warehouse.

“It also tells us if a product has got different blends; what order has it got added to – we get to track it all coming in and all going back out again.”

The medicinal herb market continues to be a growing space,

Unleashed inventory software assists Herbal Connection with its reordering process.

according to Colbert. More people are becoming aware of what it means to take care of themselves and what they need to do to put their own health in their own hands.

“More people are coming to that realisation that they have to do

Unleashed software allows Herbal Connection to differentiate between its organic and non-organic tea blends.

something about it,” she said. “This particular situation – COVID-19 – only highlights that for people. We find we’ve had an uplift in business as a result of this because they are looking for things to help boost their immunity. They’re looking for things

"The software gives us the ability to differentiate between what’s a certified organic product and what isn’t so when it comes to audits and things like that it’s easy for us to track the certified organic product coming into the warehouse and its movement through the warehouse." that will help support their families and keep them healthy.”

And it helps that they have an inventory software that can keep up with the increasing demand and can adapt to the company’s needs.

“As long as you have your inventory levels set up, it’s really a case of clicking the supplier, run the report and reorder. It can be that simple,” she said. “We’re all over this software. There is not one part of that software that we don’t use.” F

Herbal Connections helps customers blend various teas. www.foodmag.com.au | May 2020 | Food&Beverage Industry News 29

CONSUMER

GS1 Australia supports industry to pivot in time of crisis There are moments in time where we are tested. For some, it is a time to lend a hand and for others to accept support. We are living in one of those times and the food and beverage industry are working together to help combat the COVID-19 crisis. Food & Beverage Industry News explains.

A

s early as March this year, Australian governments recognised mounting pressure on supply chains to meet the surge in demand for personal protective equipment (PPE). As national infection rates accelerated, the NSW Premier Gladys Berejiklian

said it best when she gave a run down on what was needed to make sure Australia got through the crisis as best it could in terms of PPE gear. “The world is running short on hand sanitiser, hand wash, soap, gloves, cleaning products, protective clothing, masks, eye wear and paper

Distilleries took up the call to produce sanitisers.

30 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

products.” It was an industry call to arms.

The food and beverage industry wasted no time. Entrepreneurs and business leaders across the country rose to the challenge.

These included the likes of former Australian cricketer Shane Warne’s gin distillery situated in Western Australia, through to stalwart Tasmanian whisky makers at Lark Distilling Co. promptly setting about pivoting their production lines to address the shortage of essential PPE products.

In early April 2020, GS1 Australia launched a program to provide Australian companies who were re-tooling to meet the national need for PPE, with supporting services at no charge.

This includes membership, identification numbers for barcodes, assistance in creating and testing new barcodes, and access to national registries to enable their quick transition into the new market. Over 30 companies registered in the first 24 hours.

One of the firms GS1 Australia has been able to assist through the program is Lark Distilling Co., manufacturers of world famous ‘Lark’ branded whisky, who took decisive action in response to the demand for PPE products in Tasmanian hospitals.

“As soon as the COVID-19 crisis hit we made a very fast decision to pivot into sanitiser production, with the express aim of alleviating the shortage for frontline medical and emergency services,” said Dan Knight, head of hospitality at Lark Distilling Co. “However, once we began production we were overwhelmed with enquiries from people and businesses across the entire state.

The world was scrambling to find

"As soon as the COVID-19 crisis hit, we made a very fast decision to pivot into sanitiser production, with the express aim of alleviating the shortage for frontline medical and emergency services,"

sanitiser, but being on an island, that is cut off from the mainland, our supply shortage was even more pressing.

“After our first batch of sanitiser, we set the goal of ensuring the continuous supply of World Health Organisation-approved sanitiser to all of Tasmania, for the length of the crisis and beyond. The challenge has been to ensure the supply of raw materials and packaging, and it has taken the collective resources of an entire community to make this happen.

“I am forever grateful to our suppliers and organisations like GS1 for their support, and I am in awe of what we have been able to achieve in such a short time, by working as one in the face of a common threat.”

“We want to ensure that new suppliers to the health industry who are re-tooling to manufacture PPE products get express but comprehensive support for the duration of the COVID-19 crisis in Australia,” said Maria Palazzolo, GS1 Australia’s chief executive officer and executive director.

“Our priority right now is to support the sector that is supporting our community,” F

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PACKAGING

Packaging technologies boosting shelf life of essentials Sealed Air has long been a leader in cutting edge packaging technologies. Food & Beverage Industry News looks at why some of these technologies are important now more than ever.

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aking food last longer on the shelf has taken on an even more important role due to the effects of the COVID-19 pandemic outbreak. As we abide to self-distancing measures, it means a lot of people – especially the elderly and those more vulnerable to the virus – don’t want to go out as much, including going shopping for food.

At the cutting edge of making longer shelf life possible – especially of meat products – is Sealed Air. The company has a range of packaging such as the Cryovac brand Darfresh vacuum skin packaging, which is designed to protect and make products last longer on the shelf, all while keeping food waste to a minimum.

greater product access and reduced waste, while hermetic seals and tamper evidence ensures food safety.

The tray design ensures robustness throughout the supply and distribution chain. It is these qualities that make plastic a good option when it comes to packaging food. Plastic packaging sometimes gets on the wrong side of environmentalists, but it is one of the best products to use when packing foodstuffs, according to Coles’ senior structural packaging technologist Graeme Hawkes. Not only that, said the Adelaide-based Hawkes, plastic offers other properties that other packaging just doesn’t have.

“Plastic is the only product that you can recycle back to their original content base and recycle in a never

"While packaging plays its role in product protection and shelf life, this can quickly come undone if temperature control across cold chain distribution channels are compromised."

Kevin Taylor, Sealed Air’s portfolio manager – trays, films APAC has more than 25 years’ experience in the packaging industry and said that Sealed Air is working with food processors and retailers to make the shelf life longer for these products.

“Processing, packing and distribution can consume three days of the available shelf life, even more for nationwide distribution,” he said.

“For retailers, maximising shelf life means a greater merchandising period, less food waste and profit erosion. The likes of our Cryovac brand Modified Atmosphere Packaging (MAP) formats have the capability of extending shelf life by up to 13 days, but this can be doubled via formats such as Cryovac brand Darfresh vacuum skin packaging” Extended shelf life also means

ending loop. Nothing else in the world will do that – not glass, not metals. They lose integrity every time you recycle,” he said. “Another thing is, I’ve studied all sorts of different packaging for meat over the years, and the barrier properties of plastics can’t be beaten. The only way you could beat it is if you buy an animal that day and slaughter it, take it home, and use it within two or three days. That is the only way plastic can be beaten.

“The supply chain and packaging requirements we use now, are 10 times more important than they were 40 years ago. But we want it to be the same as it was 40 years. Consumers don’t see it that way. They go, ‘I want this, and I want that, and I don’t want plastic’. Realistically, without plastic, you haven’t got a product.”

Beyond shelf life, temperature

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control across the cold chain is critical for food safety. One such technology is Sealed Air’s TempGuard.

“While packaging plays its role in product protection and shelf life, this can come undone if temperature control across cold chain distribution channels are compromised,” said Taylor. “As we see a rise in more meal home deliveries, temperature assurance is essential to ensure product safety and solutions like TempGuard ensure temperature control for up to 48 hours.”

As well as shelf life and being a barrier to unwanted germs and other nasties entering the food chain, manufacturers like Sealed Air are well aware of the peripheral concerns surrounding packaging.

“Our 2025 Plastics Pledge is really driving our research and development efforts,” said Alan Adams, Sealed Air’s sustainability director, APAC. “Beyond shelf life and product safety attributes of Cryovac packaging solutions, the sustainable packaging guidelines underpin all packaging solutions. This means they’re designed for efficiency across the supply chain.

But it starts with being resource savvy, such as ensuring they are light weight and space efficient. It’s about design that enables processors to maximise throughput all while yielding less processing packaging waste and food waste.

“End of life is a key design consideration. For example, Cryovac MAP polypropylene trays are fully curbside recyclable and comprise 8 per cent post-industrial recycled content. TempGuard comprises 80 per cent recycled content and is fully curbside recyclable.”

“Solutions like HydroLoQ go beyond ‘reduce’ because the tray cell design has product purge elements, eliminating the need for the 750 million absorbent pads used across ANZ’s fresh protein space each

year,” said Adams.

Plastics also have other areas where research is making headway.

Hawkes said in the 30 plus years he has been involved with plastics,

PACKAGING

the biggest change he has seen is in the lightweighting, which is due to consumers wanting less plastic and manufacturers wanting to reduce costs. But is a plastic still doing its job if there is less of it covering a product?

“It depends on the polymers,” said Hawkes. “You have polymers that are good at being an oxygen barrier and you have some that are really good – manufacturers put an active barrier inside the polymers themselves that absorb residual oxygen to keep the freshness.

“There are some really fantastic technologies around some of the barrier properties around plastics.

Thicker doesn’t always mean better.

Thicker just means heavier which makes it better for a MRF. It doesn’t mean that it is going to be better for the product inside it.”

In the current climate surrounding COVID-19, these plastic barriers are important. Taylor is also aware of issues around getting food to market quickly, and also that Sealed Air is learning lessons as supply chain issues unfold.

“Supply chain reliability is crucial especially when we need to respond quickly to unprecedented supply volumes. A rapid response means a local response,” he said. “Think about the mince beef situation. When

consumers hit the panic button, it affects the entire supply chain and without packaging, our food supply chain is compromised. Our Cryovac trays are locally produced in Tullamarine, Victoria so we’ve been able to react quickly and ramp up supply to our customers and interstate warehouses for next day delivery.

“While local supply chains are crucial, so is collaboration. We’ve worked closely with our customers and retail partners to ensure we are putting packaging resources into the appropriate areas to ensure we fulfil product demand.

“It’s a real example of the industry working in collaboration

– all while keeping employees and communities safe.

“Mince trays have been our single biggest growth area. Minced beef is a high turner over product anyhow but panic buying saw tray volumes increase four-fold. We need to ensure we are prepared for the next thing and there will be lessons learned for the entire food industry, in particular, local supply. Kudos to front line workers and to all involved in Australia’s food supply chain. The provision of safe food and continued nutrition during this time is paramount and through strong collaboration and in a true Aussie spirit, we are ‘getting on with it’.” F Plastic coverings provide an effective barrier for on-the-shelf meat.

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 33

The true role of packaging comes to light in the midst of the COVID-19 The Australian Institute of Packaging executive director Nerida Kelton talks to experts about packaging’s role in a COVID-19 world.

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n the haze of pandemic conversations swirling around everyone’s heads, one topic that has global significance is food security and integrity. The Australian Institute of Packaging (AIP) invited experts from different areas of the packaging industry to provide their views on the important role that packaging plays in times like these.

In part one of this two-part feature, Michael Dossor MAIP, group general manager, Result Group; Dr Carol Kilcullen-Lawrence, FAIP, CPP sustainability specialist, UPM Raflatac; Alan Adams MAIP, sustainability director APAC, Sealed Air; Professor Pierre Pienaar FAIP, CPP, education director – Australian Institute of Packaging (AIP) and president – World Packaging Organisation (WPO); and Keith Chessell FAIP, APCO board member all bring different views to this discussion on COVID-19 and how it will affect the packaging industry.

With the world turned upside down due to the COVID-19 pandemic, consumers are now realising that packaging plays an integral role in food safety.

Do you think that this pandemic might help show packaging for its true purpose and perhaps even in a different light from recent times?

Michael Dossor: One hundred per cent it will, particularly in fresh produce. Although a lot of information about unpackaged produce – fruit and vegetables specifically – has been published and research has shown it not to be impacted, a consumer being faced with a choice of packed or unpacked is subconsciously selecting packaged products. The responsibility we have as an industry is to ensure

we are still doing all we can to make sure this packaging fits with APCO goals for a circular economy. There are many ways to develop packaging in this space that can go to kerbside collection. I hope as an industry, we use this time to keep that a primary focus. The industry, brand owners and major retailers have an even greater responsibility right now.

contamination are now attractive.

The safety of reusable containers and bags is now in question. Placing the onus on cleanliness and eliminating contamination in the hands of consumers will deliver varying levels of safety. Efficient and effective packaging delivering products safely – the primary role of packaging – is back in focus.

Carol Kilcullen-Lawrence: The essential aspect of food packaging is really in the spotlight – shoppers are seeking to ensure that the food they purchase is less likely to have come into contact with COVID-19 and a protective layer of packaging is now desirable compared to loose produce that has been handled. While I believe this shift of focus from so called “excessive packaging” to “essential packaging” is understandable, we should not lose sight of the opportunity to engage with the consumer and the instructions supplied by the Australasian Recycling Label are doing just that.

Pierre Pienaar: Indeed, we have been turned upside down. I await with interest to see how the impact of the pandemic will change or influence the food buying habits of consumers.

Consumers’ needs have always driven the look of food packaging. The battle in the immediate future will be between extended shelf-life items and fresh produce; with fresh produce perceived as proving a threat to the consumers’ health. Yes, consumers will expect safe food packaging.

Whether their attitude towards the status of packaging being the “bad boy” changes or now, I am not convinced. I am hoping the pandemic, as well as ongoing education, will bring about a greater sense of responsibility within consumers for their own actions. In many countries around the world, and probably more in developed countries, we are seeing an uptake in meal kit subscription and home delivery services. Some countries tell me this service is busier than ever; leading to increased employment opportunities and greater demand for packaging that can cope with such a service.

Alan Adams: Yes, safety and availability are now primary concerns which is a different focus on packaging from a consumer’s perspective than of late. With COVID we believe that most consumers are looking at the retail shopping experience with a new focus on food safety. Contamination, handling in store, protection during transit and the unwrapping, safety of products arriving at home are all now being considered when in the past many consumers took these for granted. These concerns previously did not form part of the decision-making process for so many. Hermetically sealed packaging is now extremely attractive, plastics that enables us to see products but protects them from

34 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

Keith Chessell: Consumers have certainly become very aware during the COVID pandemic of the range of health issues around hand washing, cleaning surfaces and close contact with people. This awareness has

Consumers want food packaging that offers integrity and safety.

changed consumers thinking about their view of packaging and especially the plastics packaging, especially when it comes to food purchasing decisions.

Everyday COVID requirement changes have accelerated this understanding, like reusable coffee cups reverting to single-use cups, single-use bags replacing reusable shopping bags and the enormous quantity of single-use items of gloves, masks, clothing that are used once and then disposed (where and how hasn’t been disclosed by the authorities). Although I am sure consumers understand the important role that packaging plays in protecting and preserving the freshness of the food products from the farm, through manufacturing/processing plants, to the store and to kitchen cupboard/ refrigerator, the environment concerns have been pushing that understanding into the back of the minds. Will this changed attitude revert when we return to “normal” or “new normal”? I believe this will very much depend on ensuring future packaging design assists the consumer to recognise the protecting and preserving benefits and also assist them to know there are recycling, reuse options that will reduce and hopefully eliminate packaging ending up in the rubbish bin.

How important is the role that packaging plays in food safety and food integrity?

Dossor: Packaging plays a massive role; not only in food safety and

quality, freshness of the food products from the farm through every stage to the consumer. But packaging is also recognised today for the important benefits it provides of extending shelf life, reducing food spoilage and waste. It provides important information on ingredient, nutritional, storage and recipes, as well as the convenience (portion control, easy opening, ready meals) that consumers are now requiring.

The packaging industry is playing such an important role at the moment during this pandemic. What changes are you seeing to the industry? Are you seeing shortage in materials and packaging? What else can be done to help the industry at this moment?

food integrity, but more so in food waste. Consumers are looking to minimise their trips to retail outlets for obvious reasons. Giving them a package that enables both food safety and integrity, as well as functions like reseal or reclose with tamper evidence and less plastic, is where we at Result are focusing our energies.

These style solutions are available right now, they don’t require large capital investment and tick all these boxes - as well as fit within APCO guidelines.

Kilcullen-Lawrence: Packaging plays a hugely important role in food safety and integrity. In the current climate however, I am still cautious about the virus potentially being on the surface of the packaging, particularly as it has been shown that it can survive for several days on non-porous surfaces. I have been combating this risk in a number of ways, including discarding some outer packaging layers before putting food in the pantry or fridge.

Adams: Vital! Packaging is the vehicle that ensures the consumer receives the product in the manner in which the producer intended.

The core function of packaging is to protect and preserve product and to prevent damage of all types – including physical, contamination or interference. Packaging also plays a key role in authenticity. Take vacuum

packaged meat as an example; the packaging is vital to ensure the safe and quality eating experience is delivered. Products like Darfresh vacuum packaging seals the meat in with intimate contact delivering extended shelf life by as much as 28 days, prevents any contamination and still allows the customer to “feel” and see the meat.

Pienaar: It would appear that Covid19 will be directly affecting each of us positively or negatively, or both, for at least the next six to 12 months, if not much longer. What we may need to focus on is the packaging of fresh foods for supermarkets.

Consumers will become sceptical about any food not wrapped, especially foods where the skin is usually consumed, such as fruit and vegetables. Packaging remains integral in the delivery of safe food.

The so-called “Farmers Market” concept may suffer somewhat, initially, until they too take on board the safety element that packaging offers the consumer. Our challenge will be to strike the balance between possible additional packaging requirements in response to the impact of the pandemic while still considering the sustainable, demands from the same consumer.

Chessell: As mentioned previously, packaging has a critical role in protecting and preserving the

Dossor: Short answers is yes, increased volumes at a retail level with classic food service products being in such massive demand based on isolation closures. Having partners companies in Germany, Spain, UK and North America, Result Group is keeping close to see the trends it is facing.

Typically, what is happening overseas is also happening in Australia. Lead times are being pushed out, as order in volumes are upwards of 200 per cent.

Our challenge is to maintain supply of products with increased volumes for all retail based FMCG on the up. Result’s approach has been to increase our volume holding as quickly as possible to ensure we support our customers.

We cannot let customers down and that has meant additional investment in stock which is critical to the success of the current state of our supply chains in Australia.

Kilcullen-Lawrence: The importance of securing supply chains is critical as we navigate through the increased demand for packaging. Packaging that is manufactured in Australia has been desirable, to ramp up production to keep supermarket shelves topped up. I am noticing that panic buying is still a problem for some food lines.

Adams: The big impacts are staff safety and site security along with managing surge demand. Security of supply has risen sharply as a key concern up and down the supply chain.

Having Australian production sites and international operations Sealed Air has managed very well keeping up supply even when demand for some

lines jumped by more than 200 per cent. We have implemented a “Fortress mentality” at our production sites. We have put in place a range of measures to protect our staff and sites and there is a strong feeling of sense of duty to support the food and e-commerce industries who rely on us. There is a great feeling throughout the whole supply chain that we pull together in this time of crisis.

Pienaar: More than ever, packaging is playing an important role in the industry. Across the world, I am being told that all the essential related aspects of industry are busier than ever, packaging being one. Both in flexible and rigid plastics, factories are running 24/7 producing packaging components of some sort. One factory in India told me that they have no capacity for any development work as all hands are on deck producing around the clock. At this stage, customers of the converting industry can help by not placing orders for non-essential goods, until they can get on top of the demand. We, the end customer, need to understand and accept the status for now.

Chessell: It has been amazing to see the innovation and initiatives that many companies have undertaken to change production facilities to meet the additional medical and cleansing demands required to meet COVID requirements. Materials and packaging shortages have been initially impacted due to panic buying. It has been impressive to see the rapid response by producers and manufacturers to rapidly respond to this demand.

Manufacturers and producers who are sourcing the packaging raw materials from overseas, have been immediately impacted by China’s shutdown and then the flow on to countries around the world plus the closing down of most international transport arrangements.

The federal and state government support of our manufacturing industry has been an important step in keeping industry working and enabling the restarting of those impact industries after COVID. This includes the support programs via the JobKeeper Payment, assistance with energy bills, mandatory code of conduct for commercial tenancies to support smalland medium-sized enterprises (SMEs) and International Freight Assistance Mechanism. F

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 35

AFGC

Why the food and beverage industry is vital during COVID-19 The AFGC’s acting CEO Dr Geoffrey Annison, explains why the strength of the food sector will help Australia get through the COVID-19 pandemic.

T

he global spread of COVID-19 has been unprecedented. Its impact on economies has been more profound than any other crisis in recent history. And its ramifications on the freedoms we take for granted swift and paralysing.

But in this uncertain time one thing is assured – that Australia’s food and grocery manufacturing sector will continue to operate, keeping the nation fed.

The food and grocery manufacturing sector – including the whole food and grocery supply chain,

36 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

from the inputs that go into making the products, workers on the factory floor, packaging and maintenance providers, and logistics networks – is an essential service in Australia. All components, inputs and services are vital to keep the sector functioning to provide consumers with the products

they need.

In towns and cities right across the country, food and grocery manufacturing sites are literally operating 24-hours-a-day, seven-daysa-week, to make sure supply continues to flow. The logistics, cost and human capital involved are tremendous,

AFGC

The AFGC sector is vital if Australian is to make it through the COVID-19 crisis. but the sector’s reaction has been extraordinary. Businesses have faced the challenges head on and, despite the difficulties, have continued to produce the high-quality products Australians know and love.

The Australian Food and Grocery Council (AFGC) has welcomed assurances provided by Prime Minister Scott Morrison and Agriculture Minister David Littleproud that the sector is essential and must continue to operate. This should provide businesses with the confidence and reassurance to continue production in this time of uncertainty. This also means that, while some states have closed their borders for non-essential travel, this will not impact food and grocery freight services.

But, as we all know, this is not business as usual. Businesses need to ensure they have sufficient and appropriate measures in place to mitigate COVID-19 exposure and infection. Businesses must review their practices and put in place strict protocols regarding hygiene and social distancing.

As an essential service, it is important food and grocery manufacturers take necessary measures to mitigate the impact of COVID-19 outbreak on their workforce, to ensure the ingoing production and the supply of goods.

Therefore, it is vital essential processing plants have continuity plans in place so operations can continue relatively unhindered in the event of a COVID-19 case on site.

By developing and implementing an appropriate plan, and with good record keeping, companies can protect businesses by reducing the likelihood of COVID-19 transmission to their workforce.

The Federal Government, as well as its state and territory counterparts, has moved swiftly and decisively to help cushion the economic blow of COVID-19 to Australian businesses and the community more broadly. This has come in the form of extensive – and unprecedented – economic stimulus packages to help keep people in jobs and businesses in operation.The establishment of the Federal Government’s Coronavirus Business Liaison Unit in Treasury builds on existing efforts to support confidence, employment and business continuity. The unit will engage with peak business groups such as the AFGC on systemic issues relating to COVID-19 to ensure these are being addressed. It will also be a source of information for business groups on the Australian Government’s response to COVID19 and the actions that agencies are taking to support business at this difficult time. This will allow information to be disseminated quickly and effectively across the business community. The Federal Government has also created a National COVID-19 Coordination Commission (NCCC) to coordinate advice on actions to anticipate and mitigate the economic and social effects of the global coronavirus pandemic. It is designed to provide comprehensive advice to reduce impacts of the virus and help plot

The AFGC sector continues to produce high-quality food.

"The Australian Food and Grocery Council (AFGC) has welcomed assurances provided

by Prime Minister Scott Morrison and Agriculture Minister David Littleproud that the sector is essential and must continue to operate. " a path to recovery. The NCCC will work collaboratively across privateto-private and public-to-private networks to unlock resources, break bottlenecks and fix problems so Australian families, businesses and communities are supported.

During this time, the primary focus of the AFGC remains advocating for our sector. We are working with all levels of government and other stakeholders, taking part in key forums to provide information on challenges our sector is facing and also seek insights and assurances from government.

The AFGC is represented on the Food and Grocery Sector Group (FGSG) of the Federal Government’s Trusted Information Sharing Network (TISN), which is designed to prioritise and protect the integrity of ‘critical infrastructure’ across six sector groups. During this time, the groups have been very active, providing key information to government that has helped keep the supply chain running.

In Australia we are lucky because most of what we consume is grown and produced here. Nationally, we produce enough food to feed 75 million people – that is enough to

feed our entire population three times over. We have a very safe, reliable and efficient food supply chain from the farm gate to the manufacturer and on to the retailer.

While international supply chain interruptions are being experienced in the current environment, the AFGC is working with key stakeholders, including suppliers and government, to ensure these are mitigated as much as possible.

Their impact at the consumer level is anticipated to be negligible and the re-opening of China for business is a silver lining at this difficult time.

The great unknown in all of this is that we simply do not know how long social isolation measures to control the spread of COVID-19 will stay in place. There is no silver bullet, nor a crystal ball. But the commitment of the food and grocery manufacturing sector to provide Australians with the essentials will be a constant, even if it means changing the way we work.

At the other end of this, Australia’s food and grocery manufacturing sector will be stronger, illustrating that no matter what the crisis, our supply chain does not simply cope – it thrives. F

www.foodmag.com.au | May 2020 | Food&Beverage Industry News 37

NEW PRODUCTS

Dual 316SS cabinet coolers EXAIR’s new Dual 316 Stainless Steel Cabinet Cooler Systems with ETC (Electronic Temperature Control) keep electrical enclosures cool with -7°C air while maintaining the NEMA 4X (IP66) rating of the enclosure and removing the heat that could adversely affect the internal components.

The wear, corrosion and oxidation resistance of type 316 stainless steel assures long life and maintenance free operation within food, medical, pharmaceutical, chemical and other harsh environments. Cooling capacities up to 5,600 Btu/hr. are ideal for larger enclosures and heat loads.

The digital ETC provides precise temperature control for your electrical enclosure that is constantly being monitored by a quick response thermocouple. It joins EXAIR’s complete line of NEMA 12, 4 and 4X Cabinet Cooler systems which are available from 275 through 5,600 Btu/Hr. They are available in aluminium, 303SS and 316SS materials. EXAIR offers Hazardous Location Cabinet Coolers with UL classified listing for enclosures within classified areas in need of cooling. The broad line also includes nonhazardous purge models, high temperature models, continuous operation and thermostat-controlled models.

Dual 316 stainless-steel cabinet coolers are available with cooling capacities of 3,400 up to 5,600 Btu/hr. All cabinet cooler systems are UL listed and CE compliant.

Applications include cooling control panels used in food processing, pharmaceutical, foundries, chemical processing and other corrosive locations.

Compressed Air Australia (08) 8983 3999 www.caasafety.com

Winmate’s Stainless B Series display Backplane Systems Technology has released Winmate’s Stainless B series display with push buttons.

This unit is available in sizes ranging from 10.1-inch to 21.5-inch, designed to be a factory automation control terminal that improves production efficiency in applications that call for high sanitary standard, especially in food, beverage, and chemical industries.

The display features SUS316 stainless-steel housing to withstand harsh chemicals without corroding over time. With full IP65 water and dust-proof compliance, the B series survives overall splashing conditions that can occur.

The display’s push buttons bring control and indication directly to the work area, which helps to eliminate wasted movement while at the same time increasing the productivity of the work station and the people who work there.

In addition, the physical buttons provide an intuitive and quick way when it comes to critical tasks, such as when an emergency shutdown is required.

In terms of machine integration, these types of push-button devices are easy to install and wire, and therefore are also straightforward for understanding the function and use.

On average, the wiring time is saved by over 60 per cent, and the installation cost is reduced by more than 30 per cent, according to the local distributor.

Features include: • projected capacitive multi-touch screen; • true Ffat, easy-to-clean front surface;

38 Food&Beverage Industry News | May 2020 | www.foodmag.com.au

• IP65 waterproof enclosure, good corrosion resistance; • SUS304 and AISI304; • stainless steel for food and chemical industries • supports VESA mount; • r otary switch adjust different touch mode for hand/rain/glove application; and • emergency and flat buttons for automation device control.

Backplane Systems Technology (02) 9457 6400 www.backplane.com.au

INATIONS M O N

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