Greening Processed Food Chains, Country Case Study – Sri Lanka

1. Greening Processed Food Chains, Country Case Study – Sri Lanka D.A.N. Dharmasena

2. Status of Food processing industry in Sri Lanka • Out of 6222 industries listed, 247 (4%) are Food Processing Industries (CEA, 2012) • Main food processing Industries in the country • Rice and rice based foods (rice, Flake, Noodles, rice flour) • Dairy processing • Meat processing (Chicken & Pork) • Bakery and biscuit products • Fresh Fruit and vegetables & processed Fruit & Vegies • Beverages • Nut based products: Cashew & Coconuts • Fish processing industries ( Dried fish & Fresh for export) • Breweries

3. Imported food products • If imported - food chain limits to transportation packaging distribution. • Eg: • Milk products ( 70 % of the national need) • Meat and fish (Canned fish) • fruit juices • Tomato sauce & ketchup

4. Current status of environmental impact from food processing industries 1.Rice production & Processing • 70% of people consumes parboiled rice • Paddy soaking effluent -high BOD (950-1300 mg/L) and COD (3540mg/L) (Senanayake et al., 2001) • Carbon foot print for rice production 5566.8 kg CO2/ha/yr (0.7/kg) (Awanthi and Navarathne, 2010)

5. 2. Coconut processing industry • Desiccated Coconut (DC) industry produce solid and liquid waste • Furnace produce CO2 - the flue gas • Wastewater : BOD: 2118-9569 mg/L Allowable limit 30 respectively (Abeygunawardane, n.d.) • Recently developed a virgin coconut oil recovery system from effluent & waste coconut-water based beverages and vinegar production • Research data are hardly found on carbon foot prints related to coconut processing

6. SME’s in Sri Lanka • 91% of companies in Sri Lanka are SMEs (world bank, 2011) • SMEs generate more than70 % GDP • Food & Beverage sector contributes about 10% of the GDP • The cost of production in food industry is increasing due to increasing cost of material, labour, energy and water. • Legal actions on Envt. Pollution on SME’s is a big issue!!

7. Issues need to be addressed on sustainability of food processing in SME’s • Inefficient usage of natural resources , raw materials, energy and water. (RESOURCE EFFICIENCY?) • Promotion of best practices of sustainable consumption and production • Non-compliance with International food safety standards.(HACCP, ISO 22000) • Practical difficulties in successful implementation of  sustainable policies in Sri Lanka.

8. Example case for SME issues: Rice milling industry – The largest in the country • >70% are SMEs, treating wastewater increases the COP in SME sector – cannot run their business • Technological advancements are needed to support SMEs! • Large-scale operators work on the concept of zero waste: • Thermal electricity from husk – no electricity cost, White ash for cement • Thermal power from solar energy and paddy husk • Biogas plants from effluent • Rice bran – bread making, animal feed, oil • Broken rice: flour & many other products

9. Rice Processing Small-Scale Large-scale

10. Initiatives taken by the different stakeholders to minimize environmental impact Sri Lanka’s contribution to global CO2 emission from fossil fuel 0.04% & Per capita – (0.65 t -2007) 0.2t -2012 • Most important policy measures taken to mitigate GHG emission • National environmental action plan (1998-2001) • Establishment of a National Council for Sustainable Devt. – Directly under the President of Sri Lanka • Haritha Lanka Action Plan (targeting up to 2013) (Ranasinghe, 2010) Air quality improvement + Annual Smoke test for vehicles

11. In the service sector, • Leadership in Energy and Environmental Design (LEEDS) • Greening Sri Lankan Hotels programme (Envt & Tourism) • Establishment of Sustainable Energy Authority (2007) “The energy sector plans -10% renewable energy by 2015” • In the Industrial sector, • Cleaner production & RECP – (NCPC & Universities) • Green building concept –Green rating – just started • Voluntary standards (eg- ISO 14001certification) • Establishment of National Green Reporting System -(Ministry of environment, 2011)

12. ‘National Green Reporting System’ - Screening committee (18 government, semi government, Statutory bodies) include: • Central Environment Authority (CEA)- Main regulatory body on environment issues • Sri Lankan Standards Institute (SLSI) • Industrial Technology Institute (ITI) • National Cleaner Production Centre (NCPC) • Industrial Development Board (IDB) • Export Development Board

13. The switch Asia programme, under the Ministry of Technology & Research - to reduce carbon foot prints ofIT, Ceramics and Organizations but no influence on the SMEs in the food sector Pressurizing Groups: • About 700 NGOs work on environmental issues • The few private TV channels; Sirasa, Derana, Swarnavahini, TNL and their FM radio channels • Community based societies

14. Salient issues and challenges in promoting greening the supply chain in processed food industry • Less attention on environmental issues in food processing Industry • Why? • Low profit margin • Therefore, frequently change the company ownership • Mitigation of environmental issues is an additional burden to the Industry • The export oriented industries are self motivated to maintain local environmental certifications (EPL) and additional environmental management certifications like ISO 14001

15. Solutions • Change mindset: creating the awareness and interest on the benefits of greening food chains through Resource Efficient Cleaner Production (RECP) • The government agencies could provide affordable financial facilities for the SMEs to implement greening strategies

16. Success story: OGM Food Product (pvt) Ltd (SME) Daily production: 3000kg rice flour Workforce: 10 Location: very close to a small town Problem:CEA rejected their EP license Due to Envt. Pollution complains: 1. Wastewater 2. Noise 3. Air pollution (Dust) A PG Student conducted a CP audit to assist them getting the EPL – Successful after greening! – Back to EPL! After a mass balance & Energy audit, greening was done

17. Issues identified & modifications done • 10kg of rice dust washed off with wastewater per day – added a pre-settling tank • Rice flour wastage due to carelessness of workers & using an inappropriate sieving machine – rewarding system, new machine(*) • Thermal inefficiency of flour roasting process using coconut shell as the fuel -stove improvement • The very high electrical power consumption of the inappropriate flour sieving machine -new machine (*) • Very high noise from sieving machine – Disappeared with new machine (*) • Very high dust loading in the area from the sieving machine - Disappeared with new machine (*)

18. Achievements • Waste Water quality improvement • Ambient Air Quality improvement • Reduction of noise • Reduction of CO2 emissions • Increase of profits

19. Table 1: Wastewater Analysis Report

20. Table 2 :Ambient air quality in the end

21. Outcome at a glance • Annual rice flour wastage prevented: 6405 kg –Rs. 586,000.00 (9351 kg CO2e) • Annual coconut shell fuel wastage prevented: 2460 kg –Rs. 16,000 (4674 kg CO2e) • Annual electricity wastage prevented: 6751 kWh – Rs. 80,132.00 (9273kg CO2e) • Total GHG emission reduced: 23.3 t CO2e/year • Approximate total money saved: 5259 $/year

22. What else you can imagine? Thank you