REPLACING WAX BOXES IN THE U.S. POULTRY & FRESH PRODUCE INDUSTRIES

Transcription

1 REPLACING WAX BOXES IN THE U.S. POULTRY & FRESH PRODUCE INDUSTRIES

2 OUR COMMITMENT TO REPLACING WAX PACKAGING is to transition producers one phase at a time from unrecyclable wax packaging and to continue to work closely with industry and environmental organizations to shift the standard to sustainable packaging. Sustainability Context Update: In 2017, Interstate Resources, Inc. became DS Smith North America Paper & Packaging. INDEVCO Plastics, Inc. granted DS Smith North America Paper & Packaging the license to produce Greencoat wax replacement corrugated packaging in the USA. Interstate Container, member of Interstate Resources, Inc., has come to the forefront of the industry as a major supplier of wax replacement boxes. As viable eco-friendly alternatives like our Greencoat product have begun to compete, demand for wax boxes has experienced continuous decline. 1 The Fibre Box Association (FBA) set rigorous fiber recovery protocol for certification of recyclability and repulpability of recyclable alternatives. In 2015, for the first time, the Corrugated Packaging Alliance announced that industries transporting wet and iced products such as poultry, fresh produce and seafood shipped more recyclable coated boxes than boxes with traditional waxed coatings. 2 Retail and restaurant end users pay $50 million annually to dispose of up to 1.47 million tons of wax boxes in the U.S. 3-4 Companies can recycle wax-replacement boxes for a net industry benefit of cost savings and revenue generation of around $200 million annually and reduce America s annual carbon emissions by 4.5 million MTCO2E. 5 The continued challenge to replace wax boxes in established supply chains is to produce a quality product that competes in strength and water-resistance, while working hand-in-hand with retail and restaurant end users to mandate that processors and growers who do not have to dispose of the wax boxes deliver products in recyclable boxes. As a sustainable raw material, Greencoat has allowed end customers the ability to reduce landfilling and increase recycling, corresponding to UN Sustainable Development Goal SDG 12 (Target 12.5). 2

3 REPLACING WAX BOXES IN THE U.S. POULTRY & FRESH PRODUCE INDUSTRIES OUTCOMES Greencoat Segment & Market Expansion Cambridge, Maryland & Columbia, South Carolina Interstate Container increased production of Greencoat wax replacement boxes by over 35% in 2016, primarily serving the poultry processing and fresh produce industries. This increase, when recycled, equates to energy savings of 718,000 million BTUs, as well as reduction of greenhouse gas emissions by 40,500 metric tons of carbon equivalent and 148,700 metric tons of carbon dioxide equivalent.6 The recovery rate of old corrugated containers (OCC) in the U.S. is currently at 90%.7 Impact Supplied Greencoat waxreplacement packaging to 16 of the U.S. s 34 integrated poultry companies in 2016, including 4 of the top 10 processors Increased production of Greencoat by 35.5% from 39,137 tons in 2015 to 53,000 tons in 2016, which when recycled at the U.S. rate: Reduces energy use by 718,075 million BTUs, equivalent to the annual energy consumption of 6,478 households, 125,355 barrels of oil or 5.83 million gallons of gasoline Reduces greenhouse gas emissions by 40,574 metric tons of carbon equivalent (MTCE) and 148,770 metric tons of carbon dioxide equivalent (MTCO2E) Interstate Container s marketshare has grown to around 70% of the poultry industry s wax-replacement packaging volume and 18% of its overall packaging volume. In the largest broiler chicken industry in the world, U.S. processors produced nearly 8.8 billion broiler chickens, or 54.3 billion pounds liveweight, in A critical step processors take is commitment to progressive elimination of wax boxes and transition to Greencoat. In 2016, we decreased wax production by 33% as customers made good on that commitment. Interstate Container served four of the top 10 American poultry processors. Mountaire Farms began transitioning exclusively to Greencoat in 2010; Interstate Container worked with other top processors - House of Raeford, Koch Foods, and Perdue Farms to introduce and increase Greencoat in their box rooms. Reduced production of wax corrugated boxes by 33%, as customers transitioned to Greencoat 3

4 The fresh produce industry, as well, is a leading user of corrugated packaging. Demand for U.S. produce packaging is forecast to increase 3.2% per year from $5.1 to $6 billion in Given initial resistance from the market, Interstate Container concentrated on developing a quality product that did not skid or open, in order to gain traction with growers and packers in the Southeast and Mid-Atlantic. As part of Global Green USA s awareness program, Interstate Container has engaged with Coalition for Resource Recovery (CORR) partners in initial pilot projects to demonstrate the viability of wax replacement boxes for the fresh produce industry. 10 Timeline 2004 Interstate Container conducts initial trials using FDA/USDA-approved edible hydrogenated triglycerides as alternative to paraffin wax Interstate Container increases production trials of approved tallow as alternative on non-poultry wax boxes. Hurricane Katrina in August ceases flow of wax from CITGO and the Gulf coast region; prices continue to rise after shipments resume Mountaire Farms begins extensive trial evaluations of tallow impregnated/ curtain-coated wax boxes for ice pack. Wax suppliers begin force feeding of paraffin/soybean blend Mountaire approves 100% transition from paraffin wax for impregnation to edible tallow, the first poultry company in the U.S. to do so. FBA approves recyclability / repulpability of full impregnation-only sheet with tallow in November CITGO announces closing of all wax operations in April; wax pricing escalation continues. Mountaire Farms transitions 100% of all export packaging to recyclable packaging by removing curtain-coated wax and using impregnated-only packaging 2009 FBA approves Greencoat for fully recyclable / repulpable wax alternative. Mountaire Farms trials various packages of Greencoat for analysis Mountaire transitions the largest poultry processing operation in the U.S. (Lumber Bridge, NC) to Greencoat 100% recyclable, wax-free packaging Interstate Container opens a second Greencoat plant in Columbia, SC Interstate Container launches Greencoat packaging for Fresh Produce growers and packers Interstate Container ships over 8 million Greencoat boxes per month. 4

5 ASSOCIATION LEADERSHIP Pete Bugas, Global Director of Greencoat, Interstate Container Leadership Maryland Lifetime Member Maryland Comptroller Business Advisory Council Member National Chicken Council Marketing Committee Member United Way of the Lower Eastern Shore Executive Board Member Jeff Cormier, National Sales & Marketing Manager, Interstate Container Global Green USA Executive Committee Member ASSOCIATION MEMBERSHIPS Fresh Produce Produce Marketing Association (PMA) Southeast Produce Council Protein Alabama Poultry & Egg Association Delmarva Poultry Industry, Inc. Food Marketing Institute (FMI) Georgia Poultry Federation Louisiana Poultry Federation Mississippi Poultry Association National Chicken Council National Poultry & Food Distributors Association (NPFDA) North American Meat Institute (NAMI) North Carolina Poultry Federation Ohio Poultry Association Tennessee Poultry Association The Poultry Federation U.S. Poultry & Egg Association Seafood Southeastern Fisheries Association Member of 5

6 References 1 American Fuel and Petroleum Manufacturers. Wax facts. 2 Corrugated Packaging Alliance (2015, October 13). Recyclable alternative coatings for corrugated packaging now outpace wax coatings. 3 Elemental Impact. (2015, December 13). Transport Packaging: shifting from trash to valuable material. Zero waste in action. 4 Global Green USA Coalition for Resource Recovery. Wholesale packaging. Our goal. programs_wholesale_packaging.php 5 Packaging Revolution (2015, January 11). Greencoat corrugated boxes target 1.45 million ton waxed cardboard waste. 6 Computed using the United States Environmental Protection Agency Waste Reduction Model (WARM). 7 American Forest & Paper Association (AF&PA). Recovery & Use of Old Corrugated Containers (OCC) United States Department of Agriculture (USDA) National Agricultural Statistics Service. (2017, April). Poultry - Production and Value 2016 Summary PoulProdVa pdf 9 Freedonia Group. (2015, August). Produce packaging: Demand and sales forecasts, market share, market size, market leaders Global Green USA. (2015, September 15). Cabbage just got greener. Turning waste into assets: Global Green USA works with national grocer and key supplier to save money and reduce GHG. Emissions 6