The cost of being green in the food industry

| October 13th, 2009 - 2:07 pm

Actually very little, in fact under the guise of going green company’s are finding that it is making them big savings.

In the UK Marks and Spencer’s have been pushing hard to reduce their energy foot print, and have used this as an extra sell point for their stores in a highly competitive market. This had the usual impact of all the other major retailers following suit.

Surprisingly I haven’t seen the same transfer over the pond to North America yet, I think it will slowly happen but I doubt it will happen with such media frenzy.

As a Food Producer how does this affect you??

The principle is the less distance materials travel,the less weight a product has, the lower the packaging weight and the lower the energy cost to produce the lower the carbon foot print and cost.

If you want to do your bit for the environment as an extra sales pitch to your customers whilst reducing costs.

I suggest the following.

1. Reduce the Energy consumption.

  • In Offices remove every second light bulb
  • Have workers get into the habit of stopping production belts and machines when not in use.
  • “hissssss” Fix the broken air lines, that air means a compressor is using electricity.

2. Reduce the Weight of packaging

  • OK you’ve already reduced the gauge of both board and film to minimum levels if not this should be stage one.
  • With some redesign can your product be packaged a different way. i.e. move to sleeves or labels  instead of boxes,
  • Master Cases can the weight be reduced, open top cases, thinner gauge etc
  • Supplier packaging can your suppliers use less packaging on their products, possibly passing some of the savings onto you?

3. Travel less distance or spend less on diesel

  • Take a close look at your logistics, is it at its most optimum for diesel use?
  • Are your raw materials traveling miles to get to your site? if so is it cheaper to purchase locally

Cost Saving Potential

I’m not going to give you numbers, as it is different, depending on size, volume and potential.

But imagine, over a year your machines run 5% less, that’s a 5% saving on electricity and maintenance. Over a year you purchase 25% less packaging due to redesign. logistics, improved by 10% reducing fuel charges and offsetting those fuel increases.

In the current climate where financial competition is vital, costs of services continues to increase and public need for greener values in our company’s. Having a green agenda as part of your business is not a burden but something that can provide true benefit to your business.

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