Dairy Crest

1
Dairy Crest

• Our Corporate Vision Values
• We are proud of our links to the countryside, our
  dairy heritage and the part they play in everyday
  life.
• We want to earn the right to consumer's loyalty
  by providing healthy, enjoyable and convenient
  products.
• We aim to meet consumer's needs and go where this
  takes us.
• As we grow, we will look after our people and the
  communities where they work

2
Councils Served By Dairy Crest

• Walsall
• Wolverhampton
• Solihull
• Birmingham
• Dudley

3
Dairy Crest Depots

• Woodgate Valley
• West Brom
• Castle Vale
• Yardley
• Wolverhampton

4
Dairy Crest Supply Chain
The Milk Producer On farm environmental
sustainability

• DEFRA Sustainable Consumption and Production
• The Milk Roadmap
• Dairy Crest Contributed to development of Defra
  Milk Roadmap
• We are committed to meeting the targets in the
  published roadmap aimed at maintaining a
  sustainable UK dairy industry
• We will work with others in the supply chain to
  meet the targets

The Processor Milk/Cheese processing and
packing Distribution
The Retailer Storage Distribution
The Consumers Consumption
5
The Producers

• On farm milk
• Dairy Crest is committed to the supply of high
  quality, fresh British milk which we source from
  our 1500 direct supplying farmers across the UK
• Our relationship with our farmers is of great
  value to our business. We invest time and
  resources in order to ensuring that we work
  together with a successful partnership..
• In recognition of the high profile of the
  environmental effects of dairy farming, Dairy
  Crest provides its supplying farmers with access
  to an independent farm consultancy package, the
  White Gold Service. This service provides
  support and advice to help meet the requirements
  for farm assurance and increasing farm
  legislation.
• We aim at assisting farmers to reduce the on farm
  environmental footprint to ensure the long term
  sustainability of our milk supply.

6
Transport to the Dairy

• Transport to Dairy
• Supply is normally to Dairy nearest to the farm
• Dairies supplying in the Midlands
• Severnside Stroud milk (NRC), cream, fridge,
  milk powder
• Foston Derby milk (NRC)
• Nottingham milk (glass and NRC)
• Fenstanton Huntington (glass and NRC)
• Crudgington Butter Clover
• Milk is collected by tankers and if necessary is
  then transferred to larger bulk tankers to be
  transported to the Dairy to minimise road miles
• We are continually review the fleet of vehicles
  used to collect the milk and the engines for all
  new tankers will be at least Euro 4 and more
  often Euro 5

7
Processing Initiatives

• Carbon Reduction Strategy
• 10 energy savings from 2006/7 by 2009/10
• Strategic Carbon Review of DC processes and
  products
• Potential for use of low carbon technology under
  review
• Transport review
• Water Reduction strategy
• Federation House Commitment signatory
• 20 saving from 2007 usage levels by 2020
• Water reuse wherever technically possible
• Waste
• Aiming at zero waste to landfill by 2015
• Ensuring process wastes are recycled/re-used
  wherever possible
• Waste minimisation objectives at all production
  sites

8
Packaging

• Courtauld Commitment
• Signatory from Feb 2007
• No increase in consumer packaging from 2008
• Absolute reduction in consumer packaging by 2010
• Reduction of food waste
• Initiatives
• Recycling and use of recycled HDPE
• Dairy Crest led project to enable used of 10
  recycled HDPE in bottles launched in March 2007
• Working with Nampac and recyclers to ensure 10
  recycled HDPE in all bottles by 2010
• Glass current bottle 40 recycled glass
  investigating options to increase level.
• Frijj new PET bottle 30 recycled PET
• Resealable cheese packs introduced to reduce need
  for rewrapping

9
Storage Distribution

• Majority of processing site use ammonia as a
  refrigerant not HFCs
• R22 refrigerant to be replaced by 2010
• Vehicle monitoring systems in place to track fuel
  usage and encourage good driving
• Electric vehicles options being considered
• Euro V standard specification where possible to
  minimise emissions for engines
• Aim at maximum possible loading and efficient
  route planning
• Depots aim at separating all cardboard and
  plastic waste by September 2008

10
Consumer Use

• Healthy eating
• Dairy Crest is committed to the development of
  healthier products
• Worked with Sainsburys to launch 1 fat milk
• Lighter low fat spreads
• Resealable packs
• Prevents drying out
• Removes need for repacking
• Range of pack sizes should minimise waste
• Consumer packaging recyclable wherever possible

11
Potential Areas for improvement through working
with supply chain

• Love food hate waste
• Dairy Crest is a backers of WRAP campaign to
  reduce food waste
• Ensuring packaging design primary and secondary
  tertiary minimises waste
• Encourage purchase of size required
• Ordering systems need to ensure waste is
  minimised
• Recycling
• Working with waste processors to reprocess HDPE
• Need local government support to ensure
  collection of bottles
• Transport
• Delivery options food mile reduction
• Ordering

12
Roadmap Retailer targets

• All major multiple retailers should establish
  positive, direct (where appropriate)
  relationships with producers (farmers) and
  processors.  The objectives of these
  relationships are to improve transparency in the
  supply chain, communication and efficiency. 
  Agree initiatives to add value and support the
  delivery of the targets for producers and
  processors in the Roadmap.
• All major retailers should recognise the work of
  the Roadmap and, where possible, incorporate
  targets within their own Corporate Responsibility
  Targets covering points such as carbon emissions,
  reduction in energy use, reduction in water use
  and reduction in waste going to landfill (not an
  exhaustive list)
• All major retailers should consider the use of
  technological interventions to reduce CO2
  emissions associated with transport of liquid
  milk
• Retailers should support supply chain delivery of
  environmental benefits by reinforcing positive
  environmental messages for milk through product
  placement and point of sale information.
• Retailers should look to reduce emissions from
  existing retail stores including new
  refrigeration technology and interventions
• All major retailers should explore options to
  increase the amount of recyclate used, and
  encourage recyclability, in product packaging
  from a 2007 baseline to close the recycling loop.
  They should also invest in ways to recover
  materials from their customers to achieve this.
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