Page 6 - Food&Drink August 2022 magazine

NEWS
Circular boost from Pact, Woolies
A strategic partnership between Pact Group and Woolworths Group will see Pact manufacture and supply recycled packaging for products in Woolworths’ own brand range. There are more than 2000 products in the portfolio.
Pact has already made substantial investment in several plastic recycling facilities, and a commitment to creating what CEO and MD Sanjay Dayal refers to as a “truly local circular economy for plastics”. Developing end markets and finding buyers for the recycled plastic it manufactures is key to supporting this investment.
For Woolworths Group, while reducing plastics use across its packaging is a driver (it has already removed more than 5800 tonnes of virgin single-use plastic and packaging from its own brand range in FY22), the retailer recognises that packaging plays a vital role in maintaining product quality and food safety, and where it is required for this purpose, using recycled plastic in its packaging is thus the best option. Sourcing the recycled material locally, and in so doing supporting a local circular economy, aligns with its sustainability goals.
Dayal said: “We know that consumers and businesses are increasingly demanding recycled and recyclable plastic packaging and Pact is working with committed partners like Woolworths Group to drive that change. Plastic packaging that is designed effectively, that is recyclable and recycled properly in Australia, can be used again and again.”
Woolworths Group managing director of Format&NetworkDevelopment,Rob McCartney, who oversees Woolworths 360 – the business’ sustainability innovation engine responsible for the development of the
partnership – said: “As Australia’s largest retailer we have a responsibility to make the products our customers put in their shopping baskets better for the environment.
“Across the scale of our range, the real challenge is sourcing quality recycled material in the volumes we need and ensuring it’s coming from within Australia to support the development of our local circular economy and avoid shipping emissions.”
Woolworths also plans to scale up the use of Pact’s reusable plastic produce crates over the next three years, from around 50 million to 80 millioncratesayear.
According to Pact, the crates, which are used to transport and store fresh produce, are designed to be used more than 140 times before
being recycled, in contrast to a cardboard box which is single use.
The company said using the reusable plastic crates will cut the need for 40 million single-use cardboard boxes per annum.
Projections provided by Pact estimate the Pact-Woolworths partnership could see 18,000 tonnes of newly made plastic replaced with locally produced recycled plastic each year. That would see an estimated decrease in carbon emissions by almost 25,000 tonnes (equivalent to planting more than 37,000 trees) and a saving of almost 500 Olympic swimming pools-worthofwaterannually. ✷
(L-R) Pact CEO & MD Sanjay Dayal, NSW Environment Minister James Griffin, and Woolworths executive Rob McCartney.
China tariffs still hurting wine exports
WINE Australia (WA) says while the latest wine export report shows a sizeable fall in value and volume due to ongoing tariffs in mainland China, there are encouraging signs in other markets.
The FY22 report found exports fell 19 per cent in value and 10 per cent in volume in the year, with the market now worth $2.09 billion.
The falls were not unexpected, WA said, with high tariffs imposed by China in 2020 still causing significant reductions in exports to mainland China. WA said it expected that to stay a major influence on exports until late 2022.
WA manager Market Insights, Peter Bailey, said the operating environment for exporters had been extremely challenging with the Chinese tariffs,
ongoing pandemic impacts – including severe shipping delays and increased freight costs – and rising inflation, business costs, and interest rates.
But there were some encouraging signs.
“When mainland China is excluded from the data, exports increased by five per cent to $2.06 billion, an increase of $105 million – the highest value since FY10.
“This is despite volume declining by three per cent to 619 million litres. The value growth for these markets was driven by a nine per cent increase in average value to $3.32 free on board (FOB) per litre,” he said.
Key contributors to value growth were Singapore, the US, Malaysia, Thailand, India, and New Zealand. ✷
6 | Food&Drink business | August 2022 | www.foodanddrinkbusiness.com.au