BEGA CHEESE LIMITED

AUSTRALIAN PACKAGING COVENANT

ACTION PLAN

July 2016 to June 2018 (2 years)

 CONTENTS
1.0 Executive Summary ............................................................................................................................ 3
2.0 Introduction ........................................................................................................................................ 4
3.0 Our Commitment to the Covenant..................................................................................................... 4
4.0 Company Information......................................................................................................................... 5
5.0 Brand Names ...................................................................................................................................... 7
6.0 Packaging Materials ............................................................................................................................ 7
7.0 Australian Packaging Covenant Contacts ........................................................................................... 7
8.0 Schedule of Packaging Reviews .......................................................................................................... 8
9.0 Glossary of terms ................................................................................................................................ 8
10.0 Action Plan Summary Table ................................................................................................................ 9

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 1.0 Executive Summary

Bega Cheese Limited continues to grow and improve our capability to deliver dairy products to the
world. The challenge of ensuring the sustainability of our business and protecting our environment is
a responsibility that is a priority for the management team.
Bega Cheese understands and acknowledges the principles of product stewardship and shared
responsibility as defined in the Covenant. We are committed to actions aimed at reducing the
environmental impact of the packaging used by our products without impacting delivered quality to
our customers.
Bega Cheese will continue to explore options to increase the recycle content of packaging and
implement options to redirect non-recyclable packaging from landfill to other opportunities. This
action plan has a greater focus on engagement with our suppliers to improve product stewardship
throughout the supply chain.
This plan covers activities across all sites in the Bega Cheese Group and includes actions for the
Strathmerton and Tatura sites in Victoria relating to domestic retail packaged products which are
captured in our commitments to the Australian Packaging Covenant.

Endorsement
The Bega Cheese Australian Packaging Covenant Action Plan is hereby approved.

Aidan Coleman
Chief Executive Officer
Bega Cheese Limited

Date: 30 June 2016

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 2.0 Introduction
Bega Cheese Limited has six manufacturing sites which are described in more detail in Section 4.0.
Packaging of retail products relevant to APC commitment mainly occur at the two sites in Bega NSW.
However, the systems under development will be applied across the Group to improve packaging
design and packaging use efficiency across the Group.
Bega Cheese sites in Strathmerton and Coburg in Victoria do not produce Bega Cheese owned
branded products for domestic sale so the activities at the sites do not come under Bega Cheese’s
covenant commitments. Tatura Milk Industries (a member of the Bega Cheese Group) - produces
butter under the Tatura brand that is sold worldwide including Australia. The Derrimut site packages
cans of infant formula products for export and domestic sale from dairy powder from the Tatura site
and was commissioning in 2014.
This action plan covers a 2 year period from July 2016 to June 2018.

3.0 Our Commitment to the Covenant

Bega Cheese has been a signatory of the National Packaging Covenant MK I since 2002.
 Action Plan, March 2002 – June 2003
 Report and Action Plan, July 2003 - June 2004
 Report and Action Plan, July 2004 - June 2005
 Report July 2004 - June 2005
 Report July 2006 – June 2007
 Report July 2007 – June 2008
 Report July 2008 – June 2009
 Action Plan, July 2009 – June 2010
 Action Plan, July 2010 - June 2012
 Report July 2010 – June 2011
 Report July 2011 – June 2012
 Report July 2012 – June 2013
 Report July 2013 – June 2014
 Action Plan, July 2012 – June 2014
 Report July 2014 - June 2015

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 4.0 Company Information
Bega Cheese Limited ...… The Great Australian Cheese Company…..
Background
Dairying started in the Bega Valley in the 1850s. In an
effort to improve their individual production and
marketing activities, local farmers banded together to
establish The Bega Co-operative Creamery Company on
July 15 1899.
Bega Cheese Limited now operates 6 sites, 2 in Bega
NSW and 4 in Victoria at Coburg, Strathmerton, Tatura
and Derrimut. Bega Cheese Limited merged with Tatura
Milk Industries at the end of 2012.
Strengthened by product diversity and expansion in
expertise, Bega Cheese is set to achieve its vision of
exporting an expanded product range to the world.
Bega Cheese’s mission is to make the best dairy
products in Australia, in the most hygienic manner using state-of-the-art equipment and techniques,
while still retaining the traditional properties and craft of our heritage.

Location, Turnover and Products

Bega Cheese has 6 sites, located in NSW and Victoria.
The total revenue of the Bega Cheese Group at the end of the 2014-2015 financial year was $1,113
million.

North Bega, NSW Approximately 750 employees, 2 sites

Dairy Products Unit

 Bulk cheddar
 Bulk whey and dairy powder
 Bulk, foodservice and retail
butter
 String cheese
 Natural Cheese sticks/portions
Process and Packaging Unit
 Produces retail and food service
products including:
 Individually wrapped processed
cheese slices
 Processed cheese slices
 Processed cheese cubes
 Natural cheese slices
 Natural cheese blocks
 Shredded and cubed cheese

Bega Cheese brands as well as others are contract packed at our manufacturing sites.

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 Strathmerton, VIC Approximately 300 employees

Processed cheddar cheese products

 Individually wrapped processed
cheese slices
 Processed cheese slices
 Canned processed cheese
 Natural cheese slices
 Natural cheese blocks
 Shredded cheese
 Processed cheese blocks
 Processed cheese sticks, strips,
triangles, and spreads

Tatura, VIC Approximately 350 employees

Milk powder products

 Full cream & skim
 Milk protein concentrates
 Infant formula
 Blended powders
Cream cheese products
 Bulk medium/high fat & retail
tubs/swirls
Butter products
 Bulk & retail
 Nutritionals
 Lactoferrin

Coburg, VIC Approximately 40 employees

Cheese products
 Cheddar
 Mozzarella
Liquid whey products
 Whey Protein Concentrate
 Permeate

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 Derrimut, VIC Approximately 20 employees

 Canned Infant Formula powder

products

5.0 Brand Names

Bega Cheese owns the following brands:
 Bega
 Dairymont
 Royal Victoria (export only)
 Melbourne (export only)
 Tatura
(butter produced by Tatura Milk Industries)

6.0 Packaging Materials

Bega Cheese uses the following packaging materials and formats for Bega branded, domestic retail
products:
 Cardboard: cartons
 Plastic:
 Product Wrap Recycling symbol (7) other (multi-layer barrier film)
 Product Wrap Recycling symbol (5) BOPP (Biaxially Orientated Polypropylene)
 Shrink Wrap Recycling symbol (4) LDPE (Low Density Polyethylene)
 Clam shells Recycling symbol (3) PVC – Bega, PPU
 Parchment paper Recycling symbol (7) other (multi-layer barrier)
 Foil wrap Recycling symbol (7) other (multi-layer barrier)

7.0 Australian Packaging Covenant Contacts

Contact: Report prepared by:
Neil Rosier Niki Eder
Health, Safety and Environment Manager EMS Co-ordinator

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 Bega Cheese Limited Bega Cheese Limited
664 Lorimer St PO Box 123
Port Melbourne, VIC 3207 Bega, NSW 2550
Phone: +61 3 9251 2711 Phone: +61 2 6491 7777
Email: neil.rosier@begacheese.com.au Email: niki.eder@begacheese.com.au

8.0 Schedule of Packaging Reviews

Actions 1/1, 1/3, 1/4, 1/5 of the action summary
Table 1 identifies reviews for existing and new packaging respectively.

9.0 Glossary of terms

APC Australian Packaging Covenant
PD Product development department
KPI Key performance indicator

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 10.0 Action Plan Summary Table

Table 1 summarises actions that Bega Cheese will undertake to achieve covenant performance goals and key performance indicators. Actions are identified by
two numbers separated by a slash, for example 1/3. The first number is the covenant’s KPI number, the second number is Bega Cheese’s action number.
Specific actions such as ‘reducing board thickness for cartons’ are not listed as they are identified during existing and new packaging reviews. Action 6/1
implements review actions once identified and is ongoing.

Table 1 Action Table

Target or
Covenant performance
Covenant KPI’s Bega Cheese Limited action Baseline performance Responsibility Due date
goals
goal/measure
1. Design KPI 1:
1/1 Review new Bega Branded New packaging not Review outcomes Product Development June annually
Optimise packaging to Proportion of packaging at Bega against reviewed documented Manager Bega / Paula
achieve resource efficiency signatories in the sustainable packaging guidelines Maranhao
and reduce environmental supply chain
impact without implementing the SPG 1/2 Replace B flute Visy board with Board weight for Reduced board weight Product Development June 2017
compromising product for design or R flute board for Stringer and Stick B flute for R flute Manager Bega / Paula
quality and safety procurement of products Maranhao
packaging
1/3 Review Perfect Italiano cartons New packaging not Review outcomes Product Development June 2018
against the sustainable packaging reviewed documented Manager Bega / Paula
guidelines Maranhao

1/4 Review packaging for new slice New packaging not Review outcomes Product Development June 2017
and shred lines reviewed documented Manager Bega / Paula
Maranhao

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 Target or
Covenant performance
Covenant KPI’s Bega Cheese Limited action Baseline performance Responsibility Due date
goals
goal/measure

1/5 Review labels against Existing packaging Review outcomes Product Development June 2018
sustainable packaging guidelines not reviewed documented Manager Bega/ Paula
Maranhao

1/6 Change Clam shells and label Clam shells made Review outcomes Product Development June 18
material to PET so both items can be from PVC documented Manager Bega / Paula
recycled together without Maranhao
separation. Improves recyclability

1/7 Review reduction of waste from New slice line not Review outcomes Product Development June 2017
new slice line packing equipment reviewed documented Manager Bega / Paula
Maranhao

1/8 Review downgrading of carton Existing paper Documented review Product Development June 2018
paper grade and implement gauge specification findings and reduced Manager, Bega/ Paula (report progress
improvements if feasible gauge if feasible Maranhao; Group annually)
Supply Chain Manager
/ Adel Salman

1/9 Review and optimise carton Existing carton Documented review Product Development June 2018
size. Implement improvements if specification findings and optimised Manager, Bega/ Paula (report progress
feasible cartons if feasible Maranhao; Group annually)
Supply Chain Manager
/ Adel Salman

1/10 Review biodegradable PLA for Existing clamshells Documented review Product Development June 2018
clamshells material findings and Manager, Bega/ Paula (report progress
specification biodegradable shells if Maranhao; Group annually)
feasible Supply Chain Manager
/ Adel Salman

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 Target or
Covenant performance
Covenant KPI’s Bega Cheese Limited action Baseline performance Responsibility Due date
goals
goal/measure

1/11 Review down gauging top web Existing top web Documented review Product Development Jun-17
of string, sticks and portions and specification findings and down Manager, Bega/ Paula
implement improvements if feasible gauged web if feasible Maranhao; Group
Supply Chain Manager
/ Adel Salman

1/12 Review down gauging Currently overwrap Documented review Product Development Jun-18
overwrap film for stringers and isn't recyclable due findings and overwrap Manager, Bega/ Paula
sticks and changing to to barrier layers is down gauged and Maranhao; Group
polypropylene for recycling. recyclable if feasible Supply Chain Manager
Implement improvements if feasible / Adel Salman
2. Recycling KPI 2:
Covenant goal only, Bega Cheese N/A N/A N/A N/A
The efficient collection and National recycling rate not required to act
recycling of packaging
KPI 3: 3/1 Review non-recycled wastes for Waste audit Implement actions EMS Coordinator/ Niki June 2018
reuse or recycling options to divert report or waste to from waste audit Eder (report progress
Proportion of
waste from landfill landfill intensity report or reduce annually)
signatories with on-
FY 16 waste to landfill
site recovery systems
intensity
for recycling used
3/2 Review options for recycling Audit report or A report of options to EMS Coordinator/ Niki June 2018
packaging
waste product film currently going waste to landfill redirect film from Eder (report progress
to landfill intensity FY 16 landfill or reduce annually)
waste to landfill
intensity

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 Target or
Covenant performance
Covenant KPI’s Bega Cheese Limited action Baseline performance Responsibility Due date
goals
goal/measure
KPI 4: 4/1 Review procurement Number of Increase the number Group Supply Chain June 2018
Proportion of categories for options to use purchased items of purchased items Manager / Adel (report progress
signatories with a recycled materials. made from made from recycled Salman annually)
policy to buy recycled materials or the
products made from materials. recycle content of
recycled packaging Recycle content packaging
of current
packaging
KPI 5: Covenant goal only, Bega Cheese N/A N/A N/A N/A
Additional tonnes of not required to act
material reprocessed
in primary and
secondary markets as
a result of covenant-
funded projects
3. Product KPI 6: 6/1 Implement improvements Review Improvements Product Development As needed for new
Stewardship * identified by packaging reviews recommendations implemented and Manager Bega / Paula packaging
Proportion of
documented Maranhao (report progress
A demonstrated signatories that have
annually)
commitment to product formal processes for
6/2 Engage with supply chain and Opportunities not Minutes of Product Development June 2018
stewardship by the supply working with others to
implement improvement implemented Engagement Meetings Manager, Bega / (report progress
chain and other signatories improve design and
opportunities or improvement Paula Maranhao; annually)
recycling of packaging.
implemented Group Supply Chain
Manager / Adel
Salman

KPI 7: 7/1 Monitor recycling performance Percent recycle Increase recycled Health, Safety and June 2018
Proportion of for the Processing and Packaging waste of total waste as a percentage Environment Manager (report progress
signatories Unit and seek opportunities to solid waste FY 16 of total solid waste in / Neil Rosier; Ridge St annually)
demonstrating other increase FY 18 by 1 to 5% Site Manager / Leon
product stewardship Garner
outcomes.
* Product Stewardship is the ethic of shared responsibility for the impact of products on the environment throughout their lifecycle

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 Target or
Covenant performance
Covenant KPI’s Bega Cheese Limited action Baseline performance Responsibility Due date
goals
goal/measure
KPI 8: 8/1 Review litter generation at the To be developed Qualitative and EMS Coordinator /Niki June 2017
Ridge Street site and develop a (established at quantitative measure Eder
Reduction in the
baseline. review) established
number of packaging
8/2 Review litter generation at From 8/1 10% reduction EMS Coordinator /Niki June 2017
items in the litter
Ridge Street site and develop compared to baseline Eder
stream
actions to address litter to reduce
local litter stream
8/3 Opportunities to reduce the Not considered Review outcomes Product Development
June 2018
number of items will be considered yet documented Manager Bega / Paula
during packaging reviews Maranhao (ongoing for
existing packaging,
as needed for new
packaging)
report progress
annually

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