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BWG Foods launches sustainability strategy; Brexit bites for meat industry with increased export costs
BWG Foods launches sustainability strategy
BWG Foods is to invest approximately €25m in an ambitious four-year sustainability strategy aimed at significantly reducing the environmental impact of its large-scale nationwide supply chain. As part of the new strategy, BWG Foods is switching to cleaner energies and has committed to installing renewable energy solutions across its operations. The Group has just completed the installation of almost 800 solar panels at its National Distribution Centre in Dublin, making it one of the largest installations of solar panels in Ireland. The installation, which takes up approximately 1,350 square metres of roof space, will have a generation capacity of 250KW, representing enough energy to power the equivalent of approximately 50 homes for a year. BWG Foods, working in partnership with its independent retailers, is also currently in the process of installing solar power units across a number of supermarket stores, including Eurospar in Kill, Co. Kildare, Eurospar Dungarvan, Co. Waterford, Eurospar Cobh, Co. Cork, and Eurospar Lucan, Co. Dublin. To date, nearly €1m has been invested in solar installations by the Group, with the average store installation costing approximately €60,000. The new sustainability strategy was developed as part of BWG Foods’ bid to secure Bord Bia’s Origin Green status, which it has now been awarded. A core component of the new strategy is to reduce the Group’s energy output and to increase energy efficiency across its entire distribution operation, which includes a 240,000 square feet National Distribution Centre, a nationwide network of 22 Value Centre and Cash and Carry branches, and one of the largest delivery fleets in the country that extends to approximately 120 vehicles, along with a number of companyowned retail stores and the Group’s head office. Overall, the Group plans to reduce its energy usage by over 10% across its entire operations by 2024. “Our commitment to sustainability is borne out of the desire to always do the right thing by our customers and our communities,” explained Joanne Mellon, Logistics Director, BWG Foods. “We value the importance of reducing our environmental footprint, contributing to healthier diets, and supporting local communities, and this sustainability strategy will enable us to make a significant and tangible positive impact. Our installation of 800 solar panels at our National Distribution Centre demonstrates our ambition to pursue meaningful initiatives that make a real difference.” BWG Foods is also investing in a new Fronius battery charging system for its extensive mechanical handling equipment (forklifts, pallet trucks, etc.) fleet that will reduce electrical output, thus reducing carbon emissions by 170 tonnes per annum. It will also invest €500,000 in a new fleet of mechanical handling equipment that boasts market leading energy efficiency technology. Over €2m is also to be invested in the continued rollout of LED lighting across the Group’s retail estate, having already invested €2.5m in energy efficient lighting. BWG Foods recently became the first FMCG company in Ireland to launch a fleet of new CNG (Compressed Natural Gas) and Biogas vehicles, in place of traditional diesel fuel. These vehicles significantly reduce the carbon intensity of BWG’s expansive distribution operation, generating CO2 savings of up to 22% per CNG truck, and 90% per biogas truck. Cleverly, BWG Foods contributes food waste from its distribution operations to produce biogas fuel for its new biogas vehicles, making this a circular solution. Through a variety of efficiency changes, BWG Foods is also reducing the number of kilometres travelled by approximately 12%, leading to an equivalent percentage reduction in carbon emissions. As part of its new sustainability strategy, BWG Foods also plans to significantly reduce its waste output, with targets of a 15% reduction at its National Distribution Centre and 10% at Group level. The Group has also set out a number of sustainable sourcing, health and nutrition, and community related targets.
Brexit bites for meat industry with increased export costs
MEAT processors and exporters are experiencing increases in export costs of up to 40% due to the loss of frictionless trade caused by Brexit. In a submission to the Joint Oireachtas Committee on Agriculture and the Marine, Meat Industry Ireland (MII) said the increased costs are due to new Customs and sanitary/phytosanitary (SPS) processes, delays and disruption in logistics and direct transport cost increases. Whilst the increase in direct sailings to Continental Europe has helped provide exporters with an alternative to the UK landbridge, MII says that it costs between €500 and €800 extra per truck to send exports to Continental Europe directly. In addition, where exporters are sending trucks to the UK, hauliers are facing difficulties filling their trucks for the return journey due to paperwork and logistical minefields, which means they are looking to increase the costs they charge per journey. MII also expressed concern about the range of further Brexit measures coming in between April and July. For example, from April 1, all products of animal origin will need to be accompanied by a veterinary certificate. This will require over 350,000 Export Health Certificates to be issued per annum, with serious potential to cause trade flow disruption and add more cost to exporting. Meat Industry Ireland Director Cormac Healy said: “All agencies and those in the food supply chain have done excellent work to maintain the flow of trade since Brexit kicked in on January 1, but just because tariff and quota free trade has continued doesn’t mean the changes imposed by Brexit aren’t wide ranging and costly. And we have serious concerns about the potential for disruption when new export certification arrangements come into effect in the UK from April 1.”
