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Prospects for the Sugarcane Industry A Technical Perspective Dr Peter Rein BSST Conference, April 2019 1

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Page 1: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Prospects for the Sugarcane Industry

A Technical Perspective

Dr Peter Rein

BSST Conference, April 2019

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Page 2: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Outline

Changes in the external environment

Changes in the cane and beet sugar industries

Cost of production

Technology and innovation drivers

What’s new

Diversification

Managing resources

Technology

People

Environment and sustainability

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Page 3: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

PwC report on key factors that define

“competitive success” for industry players (2015)

A larger portfolio of diverse products, both within the sugar

industry and beyond;

An ability to “go global,” with greater geographical coverage,

responding to the needs of major, international customers –

minimizing risks while taking advantage of the opportunities;

An ability to excel in industrial performance, raising efficiencies

while controlling the costs of production, up and down the

supply chain;

To achieve the “critical size” that gives some ballast against big

players, upstream and downstream;

Remaining agile and efficient, ensuring sustainability in terms of

agricultural, industrial and business goals.

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Page 4: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

World sugar production, consumption

and ending stocks

4

Page 5: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

The long term trend in real sugar prices

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1952 1958 1964 1970 1976 1982 1988 1994

1998 U

S$/t

on

ne

Sugar Price Sugar Price Trend

Trend = -1.5%/year

5

Page 6: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

World raw sugar prices, NY #11

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Page 7: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Changes in the cane sugar industry

Average cane sugar costs have fallen over the past 20 years

At least 1/3 of this fall is due to the changing distribution of output

Brazil, Thailand and India played a crucial part in this structural shift

EU changes led to an expansion of destination refiners

Raws became a larger proportion of world traded sugar, reversing

previous trend. Changing again to more white exports.

Sugar price affected by oil price, through ethanol (?)

Sustainability issues have gained importance

Emphasis on energy – effect on net cost of production

Mechanical harvesting more widespread

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Page 8: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

New EU sugar regime changes (deregulation)

From 2017, beet quotas abolished

Consequences:

Competition in the EU intensifies

Beet producers free to export

2 refineries in France closed – because beet sugar is produced more

cheaply

Higher cost beet factories closing

But low sugar prices encourage beet growers to switch crops

EU sugar production lower this year

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Page 9: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

ACP sugar imported into EU (Eurostat)

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Page 10: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Beet yields(ref: Vermeulen 2015)

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Page 11: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Beet recovery + losses(ref: Vermeulen 2015)

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Page 12: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Sugar yield in the Netherlands

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Page 13: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Brazil (ref. Pecege Projetos)

Cost of production risen

in last 20 years

Decrease in productivity.

Both yield in t/ha and TRS

content (kg TRS/t of

cane) have been falling in

recent years: when

comparing 2007/08 and

2016/17, the fall was of

4% and 10%, respectively.

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Page 14: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

South African Sugar Industry (SASTA 2014)

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Page 15: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

South African sugar industry (SASTA 2018)

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Page 16: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Increase in fiber content in Australia(Ref: Dr N Berding)

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Page 17: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Chris Norris (ASSCT 2015)

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Page 18: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Factors affecting the cost of production

Length of milling season

Utilization of expensive milling assets

Large crop improves profitability

Size of the mill

Economy of scale

Milling is a high fixed cost industry, and high throughput drops unit cost of production

Rationalization evident, particularly in mature industries

Quality of the cane

Milling costs largely related to tonnes cane crushed

Revenue depends on sugar produced

Thus high sucrose cane improves profitability

Technical efficiency in field and factory

Labor costs

Industry structure

Diversification boost to revenue

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Page 19: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

How do the milling industries compare?

Use a Factory Performance Index (FPI), the ratio of actual to expected

recovery.

FPI = OR/OR*

A good performance gives a value of 100.

Typical numbers are as follows:

19

Country Australia South

Africa

Other

Africa

Latin

America

Thailand Louisiana P’ppines Colombia Guatmla

FPI 99-106 95 -100 94 - 98 92-100 90 - 92 96 Avg. 99 Avg 100 91-99

Page 20: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Brazilian trash separation plants

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Page 21: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Cane dry cleaning

Dry cleaning has major advantages:

Cost savings in terms of reduced wear and maintenance

Increased factory capacity due to reduced quantities of extraneous matter

Reduced energy consumption

Higher calorific value of the bagasse

Lower losses of sugar in filter cake, bagasse and molasses

Improved sugar quality

Reduced cane losses

There are some disadvantages as well:

Additional equipment has to be installed, with associated capital, maintenance and operational costs

A small quantity of cane may be lost in cleaning (but much lower than losses in harvesting)

Extraneous matter – a potential fuel or a potential disposal problem

There may be implications for the particular cane payment system.

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Page 22: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Innovation

Technological change is happening much quicker

Unlearn the past - the future is no longer an extrapolation of

the past

Global competition is a reality

In sugar, innovation is seen in areas of production expansion –

Brazil, India, Thailand.

Strongest sugar companies are/were those with well-

developed R + D/technical departments

Closure of many company R + D departments

Sugar industry is slow to innovate and too conservative

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Page 23: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Three generations of ethanol plant in Brazil

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Page 24: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Ethanol production cost in Brazil

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Goldemberg J. et al. Biomass and Bioenergy (2004) 26, 3, 301-304

Page 25: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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Ref: Gouden

& Walthew

SASTA 2018

Page 26: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Improve existing technology

Invest in intellectual capital to reduce physical capital

Adopt new materials (e.g. abrasion or corrosion resistant)

Improve performance of existing equipment

Employ new design / optimization techniques (e.g. CFD, FEA)

Adopt new techniques (e.g. neural networks, plant-wide optimization, new maintenance approaches)

Oil refineries use machine learning software to improve reliability

It requires a deliberate effort to keep up to date

It requires acknowledgement that on-going improvement and change is required to keep up, let alone get ahead.

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Page 27: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

CFD is a game changer

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Page 28: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

What’s new in cane sugar processing

Dry cane cleaning

Perforated mill rolls

New diffuser designs

Mud recycle to diffusers

Lamella juice clarifiers

Horizontal belt filters

Multiple rising film evaporators with common separator

Lamella syrup clarifiers

Centrifugal control and optimization

Bagasse drying

New refining technology

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Page 29: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Rationale for energy export

The active pursuit of energy production from sugarcane

in the form of liquid fuels and electric power can yield

considerable benefits, including:

Use of renewable resources for energy production

A favorable impact on the generation of greenhouse gases and the

environment

Reduction in a nation’s reliance on imported fuels

Incentives to expand agricultural production

Elimination of the burning of cane

The prospect of enhanced sugar mill profitability

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Page 30: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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James Joule

1818 - 1889

Page 31: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Barriers to energy projects

In most countries a free market does not exist

Government or quasi-government bodies dictate prices paid

for power and ethanol use/price regulations

Production of energy pellets may be the best option – export

energy in the form of a fuel.

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Page 32: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Estimates of current practice (Leal 2018)

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Page 33: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

CTBE project in Brazil

Trash recovery and use for power generation.

Five year project with funding from the Global Environment Facility (GEF).

Half-way through project (pages.cnpem.br/sucre/).

Testing different options of washing to remove sand and some problematic

contaminants such as K, Cl and S, that are leachable.

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Page 34: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Sugarcane biomass

Sugarcane fixes more dry matter / ha than most other crops

and more than “natural” vegetation

Energy from lignocellulosics

Intensive R + D in US, Brazil and elsewhere

Both thermochemical and hydrolysis/fermentation route being

followed.

Lignocellulose ethanol cost depends on processing cost, ethanol

from corn or sugar on feedstock cost

High energy canes are being bred for future lignocellulose

exploitation

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Page 35: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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Page 36: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

1st Stubble sugarcane harvested December, 2005

Chacahoula, LA (6/22/06)

L 99-233 L 99-226 HoCP 91-555 Ho 95-988

Sugarcane

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Page 37: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

1st Stubble energy cane harvested December, 2005

Chacahoula, LA (6/22/06)

US 72-114

Energy Cane

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Page 38: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Integration of sugar and energy cane

processing.

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Page 39: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Lignocellulosic biofuels

Enzyme cost and capital costs still a problem for hydrolysis

route

Only 2 commercial-scale plants (commissioned 2014) using

bagasse and trash

Granbio $195 M, 82 ML/y

Raizen $100 M 42 ML/y

Granbio went live in 2014, until 2016. Expected to produce 30

ML this year

Hydrocarbon fuels from pyrolysis estimated to cost 2 to 3 x

grain ethanol at present (on gasoline equivalent).

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Page 40: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Xylose from bagasse (Stora Enso website)

The Stora Enso demonstration plant will utilize sugar cane

bagasse, from the adjacent Raceland sugar mill in LA.

The plant processes biomass to high purity monomeric

hemicellulose sugars, high purity lignin and high purity cellulose

pulp.

First phase to produce the highly refined xylose, along with de-

soiled and de-ashed cellulose material.

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Page 41: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Pelletizing bagasse

Pellet market already well developed,

using mainly wood waste

ISO 17225 to provide unambiguous and

clear classification principles for solid

biofuels and to serve as a tool to enable

efficient trading of biofuels

Wear problems - sand

Louisiana plan

Originally 10 plants planned

Cora Texas installation plans to produce

200 000 t torrified bagasse pellets

DRAX in the UK is importing wood

based pellets from plant in LA and GA.

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Page 42: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Suleiman, Brazil (2015)

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Page 43: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Torrefaction and biochar

Torrefaction of bagasse is a mild form of pyrolysis at

temperatures between 200 and 320 °C.

Slow pyrolysis, a gasified stream is taken for further processing

to fuels and chemicals, and biochar remains as a co-product -

beneficial when returned to the soil (Quirk et al. 2010).

During torrefaction, the bagasse properties are changed to

obtain a better fuel quality for combustion and gasification

applications.

Pelletizing leads to a more dense easily handled fuel, with an LHV

of 20 to 25 MJ/kg

Can substitute directly for coal, but is clean burning.

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Page 44: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Bunge + Solazyme alliance

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Modified Algae technology (aseptic dark reactor with cane juice as input –no

need for sunlight)

Producing triglycerides from sugar –the same way that most animals do

Product of entry for Bunge: Oil rich (>85%) in C14 (Myristic) and C12

(Lauric) fatty acids for the chemical industry

Price available 40 % higher than palm oil

The Algae under the microscope A single cell under fluorescence (green is oil)

Page 45: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

LSU Study (Christian Lohrey MS thesis 2008)

Advantages of co-locating algae production with sugarcane mills

are:

CO2, water, and energy resources available from mill.

Nutrients available from agricultural runoff.

Climate suitable for algae production.

Established agricultural infrastructure and markets

Available resources at a 10 000 metric t/day sugarcane mill

generating 15 % excess bagasse can realistically support

production of 920,000 L/y of algal biodiesel and 21 000 metric

tonnes/y of algal meal.

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Page 46: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

PHB in Brazil

Renewable raw material

Biodegradable

Effluent used as irrigation

Pilot plant annexed to Da

Pedra mill

Difficult to compete

financially with oil based

feedstock

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Page 47: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Bioplastics

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Page 48: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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Page 49: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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Page 50: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

How do you make best use of human

resources?

In mature industries, skills and experience are usually well-

established.

In rapidly expanding industries, a lack of skills is evident

The difference between a good and a mediocre mill is usually

the calibre of the staff, rather than the technology and

equipment

Lester Thurow, MIT: “Skilled people become the only

sustainable competitive advantage”

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Page 51: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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Page 52: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Adjust to the new generations Employers will need to adjust to each generation’s widely divergent characteristics and

idiosyncrasies - re-evaluate workplace practices.

Millennials already accounting for 50 % of the workforce and set to make up nearly 75 %

by 2025.

The ability to attract and retain talent will be dictated in part by meeting the needs of the employees

– they look for a good work environment

Need to satisfy their need to keep learning and focus on driving change

CSR is very important to them

Gen Z grew up in a recession

Willingness to work hard

First generation that has been online since before they could walk

Prefer to learn on-line

As with millennials, their interpersonal skills are not well developed

Sensitive to injustices

Reverse mentoring pairs older personnel with millennials to bridge generational skills gap.

These new generations can lead to digital solutions for smart manufacturing.

Caveat – young generations over-reliance on software packages

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Page 53: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

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Page 54: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Bonsucro www.bonsucro.org

Bonsucro is:

A multi-stakeholder organisation which fosters the sustainability of the

sugarcane sector

A collaboration of sugar retailers, investors, traders, producers and NGOs

who are committed to sustainable sugar production.

Bonsucro attempts to promote measureable standards in the key

environmental and social impacts of sugarcane production and

primary processing while recognizing the need for economic viability.

Attempts to measure outcomes, not prescriptive

Bonsucro is funded by members.

Bonsucro now getting some traction

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Page 55: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Ref: Eustice et al.

Proc. SASTA

2011

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Page 56: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

GHG Emissions in sugar production (field

to gate)

Raw sugar has a carbon footprint in the range 200 to 800 kg

CO2eq/t sugar

Depending on conditions, 200 to 500 kg CO2eq/t sugar (Rein

2010)

Australia 500 to 800 kg CO2eq/t sugar (Renouf 2007)

Thailand 230, Japan 311 kg CO2eq/t sugar (Hattori 2008)

South Africa average 551 kg CO2eq/t sugar (Mashoko 2010)

Sugar can achieve a negative carbon footprint with export of

> 80 kWh/t cane

Refining approximately doubles C footprint of sugar

Hattori (2008) – refining emissions 314 kg CO2eq/t sugar

US – refined white sugar 570 and beet sugar 1160 kg

CO2eq/t sugar (Taylor 2010)

Best option – white end refining – 400 kg CO2eq/t sugar in

Mauritius (Plassmann et al. 2010)

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Page 57: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Strategies to reduce carbon emissions

Cogenerate and export power to the maximum

extent possible

Maximise cane yield and factory recovery

Reduce the fertiliser and chemical inputs, particularly

N fertiliser

Reduce the extent of cane burning to zero

Reduce the quantities of any supplementary fuels

purchased.

Minimise irrigation power input.

Reduce cane transport distances

Recycle water to reduce water intake.

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Page 58: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Water footprint (Klenk et al. 2012)

No accepted definition

Blue, green and grey water

Green water – largely evapotranspiration

Cane sugar 1500 L/kg sugar

49 % blue water

45 % green water

6 % grey water

Beet sugar 557 L/kg sugar

Blue water 10 %

Green water 67 %

Grey water 23 %

Water footprint of bioelectricity is about a factor of 2 smaller than that for

bioethanol (Hoekstra et al. 2009)

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Page 59: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

59

Per capita sugar

consumption in the

UK over the last

200 years (Source

Czarnikow)

Development of

obesity in the UK

over the last 20 years

(source Czarnikow)

Page 60: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

The future – where is the sugar industry heading?

Production and consumption continue to expand

The industry does not capitalise on the green credentials of the sugarcane

industry.

Fighting the strong anti-sugar lobby is difficult

More emphasis on producing white cane sugar

Technologies to be involved in:

Cane quality

Field and factory yields

Energy

Process simplification

New equipment

Carbon and water footprints

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Page 61: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

Some concluding views

Brazil, India, Thailand, Latin American and other low cost producers will

continue to expand

Technology advances are generally associated with industry expansions

Profitability is still the issue - industries will be looking for ways to

reduce costs (or increase revenue).

Cogeneration, ethanol production and energy efficiency in general will

continue to become more important

R + D should be viewed as an investment rather than a cost

People resources are so important. Make sure you empower them to

do the best they can.

Bottom line – it’s all about cost of production

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Page 62: Prospects for the Sugarcane Industry A Technical PerspectiveProspects for the Sugarcane Industry A Technical Perspective Dr Peter Rein ... agricultural, industrial and business goals

…so, you have

a question?

Gracias

62