Environmental and Socio-Economic Impacts of Milk Production in Canada
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1 Environmental and Socio-Economic Impacts of Milk Production in Canada Status update and perspective FIL-IDF Conference, Montreal, March 22th 2011 Édouard Clément, Eng., M.Sc.A Quantis Prof. Jean-Pierre Revéret, PhD, - CIRAIG/AGECO Une unité de recherche du
2 Overview Introduction and background Review of the IDF guide to standard LCA methodology for the dairy sector The US Milk LCA project The Canadian Milk environmental and social LCA project Conclusion 2
3 About the CIRAIG and Quantis Multidisciplinary world-renowned research centre 135+ professors, researchers and students 10 universities, 7 Chairs, 5 research units Member of the UNEP/SETAC Life Cycle Initiative Numerous collaborations (Canada, USA, Europe) 150+ applied research projects (industry and gov.) Official spin-off: Quantis Offices in Paris, Lausanne, Montreal and Boston Expertise: Carbon and Water footprint LCA Company-based LCA and sustainability dashboard Ecodesign Environmental communication 3
4 About the Groupe AGECO Founded in 2000 as a spin-off from Laval University (Quebec) Specialising in Agricultural and Environmental Economics and socioeconomic analysis, surveys and data collection More than 300 reports and studies for Provincial and Federal Ministries and Agencies, Producer groups and Federations, Agribusiness Industry, Banking Sector and Public Utilities 4
5 Environmental Impacts of Milk Climate Change 2.05 kg CO2e per kg of milk consumed Land Use More People Demanding More Calories Water Use Only 0.01% is available as clean and freswater Scarcity and quality Eutrophication, Acidification, Human Toxicity and Ecotoxicity 5
6 Resources (energy and raw materials) LCA-based environmental footprint Life Cycle System Life Cycle Inventory Life Cycle Impact Assessment* Resource acquisition Manufacturing Transport/ Distribution Use Phase End of life management Extraction and emissions to air, water and soil NOx Crude oil Iron ore Phosphates CO2 Irrigation water Turbined water Impact categories Human toxicity Respiratory effects Ionizing radiation Ozone layer depletion Photochemical oxidation Aquatic ecotoxicity Terrestrial ecotoxicity Acidification Eutrophication Terrestrial acidification Terrestrial nitrification Land occupation Mineral Extraction Non-renewable energy Climate change Water (withdrawal) Water (turbined) Damage categories (indicators) Human health Ecosystem quality Resource consumption Climate change Water impact
7 Initiatives from the Private Sector
8 The IDF Guide to Standard LCA for the Dairy Sector Guide has been developed at the request of the 56 IDF Member Countries (86% of the word milk production) Rational: the wide range of figure resulting from differing methodologies and data is leading to inconsistencies: confusion and contradiction The solution: develop clear guidance on functional unit, boundaries, change of land use, co product, etc. Based on existing knowledge and standards Focus on GHG emissions only Objectives: Support the production of consistent and comparable carbon footprint figures Enable the evaluation of dairy product on a consistent basis 8
9 Strengths and perspective on the IDF Standard Very prescriptive in allocation rules between co products for feed production, milk/meat production, dairy co products, alternative manure usage and energy production. Very prescriptive on certain key recent developments in GHG accounting such as carbon sequestration in soils and land use change. Sector specific guideline: more precise than the current GHG protocol development Future update of the Standard should include other LCA indicators as well as social and socio economic one 9
10 US Milk LCA project: status update An initial carbon footprint study was carried out with the University of Arkansas Applied Sustainability Center, focusing exclusively on greenhouse gas (GHG) emissions and impacts: commissioned by Dairy Management inc. The current study complements this by carrying out a full Life Cycle Assessment, covering a wide range of other environmental impact categories. It also include a Life Cycle Costing (U. of Michigan) focused on evaluating the potential costs or cost savings associated with different potential measures to reduce environmental impacts. Goal and scope: full LCA of fluid milk (as well as screening associated with Life Cycle Costing) FU and Carbon footprint based on IDF Guidelines Data collection: U of Michigan, U of Arkansas Regionalization of impacts at the state level: Water use: Quantis Human health and ecosystems: U of Michigan Land use: CIRAIG 10
11 US Milk LCA project: status update Functional unit: one gallon of milk consumed by a U.S. consumer (at home) Separate scenarios for 2% fat milk and whole milk (accounting for fatcorrected milk approach) Life cycle: raw material extraction; energy extraction, pre combustion and combustion; fertilizer and pesticide production; agricultural operations and direct field emissions; delivery, distribution and refrigeration; and product loss through the supply chain. Jun. 10 jan. 11 Jun. 11 Sept. 1 1 Project Launch Intermediary report (pilot farm results, description of methodology, supporting calculations Methodology paper in peer reviewed international journal Full Simapro database with all unit processes assembled Second paper in peer reviewed international journal presenting overall LCA of fluid milk Tool II: Simplified Excel tool enabling individuals to calculate their own performance 11
12 US Milk LCA project: status update Dairy producer survey 2 batches of 5,000 survey mailed through Dairy Cooperatives Total of 536 dairy farmers responded Beta-tested on 4 farms following extensive discussion with industry/ academics. Co ops farm to processor transportation data (~210,000 round trips) 50 fluid milk processing plants provided data for 2007 (represent 25% of total fluid milk processed in the United States during 2007) 12
13 Supply chain contribution to carbon footprint of US milk (2007) 2.05 kg CO2e per kg of milk consumed 13
14 Environmental and Socio-Economic LCA of Milk in Canada A joint venture project of CIRAIG, Quantis and Groupe AGECO Objectives: To provide a comprehensive assessment of the Canadian milk production sector in respect to sustainability To comprehensively define the environmental and socio economic impact profile over the whole life cycle of the Canadian milk production sector; To identify potential areas for further focus in improving the dairy sector sustainability; To provide the overall framework and the building blocks to support comparison/benchmark of similar competitive products; To assess the opportunities arising from the carbon market and from the potential payment for Ecological Goods and Services for DFC and the Canadian dairy sector. 14
15 Unique Project Innovation Creation of a regionalized life cycle inventory database of the milk chain in Canada; Development of a set of comprehensive impact indicators (beyond CO2) for the milk sector being regionalized to the Canadian context including: Carbon footprint Water footprint Land use Eutrophication, Acidification, Human toxicology and Ecotoxicology Alignment with international initiative in term of LCI Datasets and LCA Methodologies; Realisation of the first socio economic LCA of the milk in Canada; Carbon Market and Payment for Environmental Services Opportunities. Easy to use footprinting tool to enable individual farm assessment and benchmark 15
16 System boundaries DFC LCA project Sampling = 220 farms C Dairy processing LCA guidelines are being developed (FDTA/Canadian Agricultural Adaptation Program (CAAP) 16
17 Life Cycle Raw materials (optional) 1 kg of fat and protein corrected milk Raw materials (optional) 17
18 Timeline and milestones: environmental LCA Q3 Q4 Q1 Q2 Q3 Q4 Q1 Project Launch Primary Data Collection Goal & Scope revision Preliminary LCA results Additional data collection Data gapping LCA modelling and analysis Additional CF development (CIRAIG) Integration of additional CF Integration of models and emissions from other cluster research groups Development of a footprinting tool and report preparation Final result delivery 18
19 Social and socio-economic LCA To measure and quantify the socio-economic footprint of the Canadian milk Inventory of relationship at each lifestage Assement of associated impacts (working conditions, economic benefits, cohabitation, etc.) 19
20 Framework Environmental LCA ISO Methodology Social and Socio economic LCA UNEP Guidelines on SLCA Impact categories Human health (toxicity, respiratory effect, smog, ) Ecosystem quality (land use, eutrophication, acidification, land use, ) Climate change (GHG Emissions) Resources (primary non renewable energy) Human rights (wealth repartition, union rights, workers rights, ) Working condition (forced labour, child labour, salaries, etc.) Health and Safety (workers health and safety, community health) Governance (revenues sharing, corruption, etc.) Socio-economic benefits (job creation, image, etc.) Cultural heritage 20
21 SLCA and Corporate social Responsibility For the first time in the Milk and Milk processing sector A complete picture of social and socio-economic dimensions along the milk production and the food sector Benchmark for future comparisons Identification of social hot spots Identification and prioritization of corrective actions Tool for dialogue with stakeholders Bring a whole new perspective concerning the environmental LCA 21
22 Timeline and milestones Exhaustive review of the Canadian milk stakeholders and actors Completed Identification of socio-economic impact indicators Litterature review (on-going) Expert panel and focus group (spring 2011) Data collection at farm (fall 2011) Result compilation and analysis (winter 2011) 22
23 Expected Benefits Scientific and rigorous way to address sustainability issues ; Better understanding of the milk value chain environmental performance; Identification of hot-spots ; Measure to reduce (GHG and the overall footprint); Pinpoint where major improvements can be made; Obtain a basis for comparison or benchmark with competing products or markets (or even internal comparison); Economic and social benefits for DFC members; Transparent means of communication to internal and external stakeholders ; 23
24 Conclusions Numerous drivers justify the need to better understand and measure the Canadian milk environmental and social footprint; IDF Guidelines to LCA in the milk sector are relevant, robust and useful: Support the production of consistent and comparable carbon footprint figures Enable the evaluation of dairy product on a consistent basis In addition to providing to DFC members good data for benchmark, communication and improvement purpose, the project will lead to potential socio-economic benefits for the Dairy industry by: Identifying and quantifying potential energy efficiency gain at the farm level and in the overall life cycle; Assessing opportunities and commercial potential arising from the carbon market and the payment of ecological services; Quantifying the overall socio-economic benefits of the sector; Life cycle costing is out of this project scope, but could be easily done at a later stage. 24
25 Thank you! Edouard Clement, Eng., MScA Prof. Jean-Pierre Revéret, PhD
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