When unexpected problems occur in the food industry, it sometimes results in large-scale destruction of products. In a fire at the distribution center, huge numbers of pallets of FrieslandCampina butter products suffered smoke and water damage.
These products were no longer fit for consumption and had to be destroyed quickly, with high rising costs and millions of kilograms of CO2 emissions as possible consequences. FrieslandCampina asked Milgro for help.
In this inspiring case study, we show how butter products were given a completely new purpose thanks to a well-oiled collaboration between all parties involved.
The challenges: processing damaged butter products
The damaged butter products had to be processed under extreme time pressure in the most efficient and sustainable way possible. This posed several challenges.
First of all, the risk category and degree of contamination had to be determined. This was done in close contact with the Control Organ of Quality (COKZ). At the same time, a supply chain had to be set up. Here permanent security and sealing was important, because of the financial value of the products. The associated paper flow was completely under the control of independent persons.
The nature of the product created obvious restrictions and time constraints. For example, the fact that the contents of all shipments had to be processed at a pre-arranged pace was a complicating factor. The summer period required the hiring of additional employees. Additional compliance checks were also necessary. Just like the requirement that it had to be processed within the national borders because of the possibility of audits by COKZ.
Fermentation seemed an attractive option to process the total amount of products as quickly as possible. But this would certainly not be the most sustainable and economically best solution.
The implementation
Thanks to a strong collaborative approach, a much better alternative to fermentation was realized: the total amount of butter products was processed into biodiesel.
Thanks to a strong joint approach, FrieslandCampina, Milgro and an end processor realized a much better alternative to fermentation: the total amount of butter products was processed into biodiesel.
A fully transparent chain was set up for processing into biodiesel. The process was carried out under the watchful eye of hired security guards. In the process, all parts of the paper flow were closely monitored, such as pallet lists. The actual destruction of the butter and packaging was also monitored.
The result: environmental, economic and operational performance
FrieslandCampina could have handled the destruction process of the damaged butter products itself, but chose to work closely with Milgro. This offered many advantages.
For example, millions of kilograms of CO2 emissions were saved by jointly choosing to process them into biodiesel. The payout was more than a million euros lower for the insurer. And FrieslandCampina was completely unburdened. Milgro took care of the market exploration, project management, all compliance matters and administration.
Risks and opportunities
Such destruction projects are both risky and promising. By entrusting these complex tasks to Milgro, we not only minimized the risks, but also contributed to flawless day-to-day operations. The seamless cooperation resulted in a success story that all parties involved can be proud of.
Stay informed
Something can always go wrong: damage, spills, a recall, customs clearance, large-scale clearances or some other emergency. Whatever happens, you want it resolved quickly and efficiently, without too much expense. We always strive for the best outcome. Both for your business, and for the environment!
Want to know more about the possibilities? Then make an appointment now with Alex van Kuilenburg, Business Developer at Milgro.
