Life Cycle Assessment

PREFACE Fishes and agricultural products are most important products in Indonesia, which are used for national consumption and for export as well. Some destinations of agricultural product export are Japan, United States of America and Europe. For entering these countries the exporters must fulfill the requirements such as food safety or HACCP. Furthermore the requirements of consumers are expanding and they want the products, which are safe, nutritious, and environmental friendly. Global trade at moment grows faster and consumers have more benefit on these condition. Without any consideration on environmental impacts it can cause some ecological bad effect, for example more pollution releases on the environment due to transportation and production, using raw material was not controlled, etc. The trading of agro- and seafood products becomes more attractive and challenge, because Indonesia is one of agro- and fish producer and some of them are exported, which must fulfill the requirements including ecological ones. One of ecological requirements is Life Cycle Assessment (LCA) which counts energy usage, pollution and waste during the processing based on system boundary. The processing could be started from on-farm and ended on point of sale or on consumer. All steps are important ones that influence on quality of products and on ecological requirements. The processing and supply chain activities could contribute unpleasant effects on environment. This condition can influence the supply chain of agricultural products to Europe. For further discussion and improvement the understanding on Indonesia-European foodstuffs supply chain, the Indonesia Institute of Life Cycle Assessment for Food Business (ILCA) – Faculty of Agricultural Technology – Universitas Gadjah Mada conduct 3rd ILCA-Conference, which has a theme on this issue. Furthermore the challenge and opportunity of global trade especially on agro- and seafood business will be discussed. We apologize if there are still weaknesses in the preparation and the execution of the seminar and workshop. We hope that the forum can be used as a media for information and update sharing as well as networking establishment in the field of life cycle assessment, especially in Indonesia. Have a nice seminar and workshop!.

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TABLE OF CONTENT

Preface ............................................................................................................

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Table of Content .............................................................................................

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Conference Schedule .......................................................................................

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1.

Keynote Speech from Director General of Processing and Marketing of Agriculture Product Ministry of Agriculture Republic of Indonesia .......

1

2.

Beberapa Permasalahan Bangsa dan Strategi Pemecahannya .................

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3.

Kebijakan Pemasaran Luar Negeri Produk Perikanan ..............................

43

4.

Life Cycle Assessment - Challenge and Opportunities for IndonesianEuropean Food Supply Chains..................................................................

65

5.

Fishing for Litter in Germany - a cooperation project ..............................

80

6.

Driving Environmental Excellence and Creating Sustainable Growth ..... 100

7.

Indonesia’s Supply Chain: Problems and Its Potential Disruptions (Cases for Agro and Seafood Business) .................................................... 115

8.

System Dynamics - a tool for decision making in supply chains ............. 138

9.

Consumer Carbon Footprint (CFC) as an indicator for climate change potential of German Households............................................................... 149

10. Developing Life Cycle Assessment Model in Reduction GHG Emission using Intelligent System Dynamics: Palm Oil Biodiesel Industry Case ... 171 11. Life Cycle Assessment on the production of Crude Palm Oil (CPO) in PTPN XIII ................................................................................................. 179 12. Life Cycle Assessment on Enlargement Production of Vannamei Shrimp (Litopenaeus vannamei) in PT Indokor Bangun Desa ................. 195

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3rd ILCA-CONFERENCE ON ECOLOGICAL REQUIREMENTS OF INDONESIAN-EUROPEAN FOOD SUPPLY CHAINS: Challenge and Opportunity for the global Agro- and Seafood-Business Fakultas Teknologi Pertanian UGM, 25-26 September 2013 Day 1: 25 September 2013 Time

Activities

07.30-08.45

Registration and coffee morning

08.45-09.00

Opening remarks: ILCA coordinator and Dean of Faculty of Agricultural Technology

09.00-10.30

Keynote speeches: ‐ ‐

10.30-12.30

Direktur Pemasaran Luar Negeri, P2HP Kementerian Kelautan dan Perikanan Direktur Pengembangan Usaha dan Investasi/ Pemasaran Luar Negeri, P2HP Kementerian Pertanian

Keynote speeches ‐ ‐ ‐

Life Cycle Assessment - Challenge and Opportunity for IndonesianEuropean Food Supply Chains (Prof. Dr. Ing. ElmarSchlich - Justus Liebig University - Germany) Fishing for litter - a cooperation project of fishermen (Helmut Schmitz - Dual System Germany - the Green Dot Company, NGO’s and public authorities) Driving Environmental Excellence and Creating Sustainable Growth - Mignone Akiyama - Tetra Pak Asia

12.30-13.30

Lunch break

13.30-15.00

Invited Speakers ‐ ‐ ‐

Supply Chain Management in Indonesia - Adi Djoko Guritno System dynamics-a tool for decision making in supply chains - Nadia S. Petri Consumer Carbon Footprint (CFC) as an indicator for climate change potential of German households - Manuel Mohr

15.00-15.15

Coffee break

15.15-16.30

Paper presentation ‐ ‐ ‐

Developing Life Cycle Assessment Model in Reduction GHG Emission using Intelligent System Dynamics: Palm Oil Biodiesel Industry Case - Hermawan Life Cycle Assessment on the production of Crude Palm Oil (CPO) in PTPN XIII - Hisyam Life Cycle Assessment on Vannamei Shrimp (Litopenaeus vannamei) in PT Indokor Bangun Desa - Ika Restu Revulaningtyas

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Day 2: 26 September 2013 Time

Activities

08.30-09.00

Coffee morning

09.00-10.30

Room 1

Room 2

Room 3

Workshop: Fish and

Workshop:

Workshop: Getting started

Seafood - German

Sustainability

research of key variables

demand meets

aspects of different

for an Indonesian

Indonesia supply -

packaging solutions

Consumer Carbon

Prof. Dr. Ing. Elmar

- Helmut Schmitz

Footprint (CFC) - Manuel Mohr

Schlich 10.45-11.30

Plenary Session of the workshop

11.30-12.00

Closing remarks: ILCA coordinator and Prof. Dr.Ing. ElmarSchlich

12.00-13.00

Lunch

Room 1: Operational room 2nd floor; Room 2: TIP meeting room 3rd floor; Room 3: Auditorium.

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3rd ILCA CONFERENCE ECOLOGICAL REQUIREMENTS OF INDONESIAN-EUROPEAN FOOD SUPPLY CHAINS 25-26 September 2013 | Fakultas Teknologi Pertanian | Universitas Gajah Mada | Yogyakarta

Life Cycle Assessment “Challenge and Opportunities for Indonesian-European Food Supply Chains”

Elmar Schlich

3rd ILCA – Conference, 2013-09-25

Selamat pagi

Life Cycle Assessment (LCA) - Challenge and opportunities for IndonesianEuropean food supply chains Elmar Schlich

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Agenda Interaction:

Ecosphere

Technosphere

LCA:

History, Methodology, Case studies

Discussion:

Indicators and management rules

Conclusions:

Teaching and Research at ILCA 2

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Environment

Interaction

Ecosphere

Technosphere

Border description by boundary conditions

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Environment

Interaction

Disposal into ecosphere

Supply from ecosphere Breathing air Drinking water Foods Raw materials Energy carriers

Open loop

Solid waste Waste water Air pollution Noise Waste heat Radiation

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Environment

Interaction

Disposal

Supply Breathing air Drinking water Foods

Closed loop

Solid waste Waste water Air pollution

Raw materials Energy carriers

Noise Waste heat

Radiation 5

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Food = Essential means of living Drinking water: Food No. 1 Regional food supply by public waterworks Consumption: ~120 liter per day and capita (in Germany) Price: ~ 4 € per 1,000 liter, 0.4 Eurocent per liter (resp.) Aliments: Carbohydrates, proteins, lipids, energy Agriculture Primary production of plants and livestock by agriculture, seafood farming and fishing Processing in small-scale handcraft and food industry Sale at retailers Point of Sale (POS) Supply almost independent of seasons (in Germany)

Consumer

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Entire supply chain for food Consumer Retail, Point of Sale ↕ Großhandel ↕ Zwischenhandel ↕ Endproduktion ↕ Zwischenproduktion ↕ Primärproduktion, Landwirtschaft

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Entire supply chain for food Non-professional actors

Consumer

Private transportation

Retail, Point of Sale Professional actors ↕ External distribution • Traceability Wholesale trade • HACCP ↕ External distribution • TQM (ISO 9000) Intermediate trade ↕ External distribution • LCA (ISO 14040) Packaging • IFS External transportation ↕ • GlobalGAP Intermediate production • MSC ↕ External transportation Primary production • FSC...

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3rd ILCA – Conference, 2013-09-25 Professional recycling and recovery management Entire supply chain for food Non-professional actors

Consumer

Private transportation

Retail, Point of Sale Professional actors ↕ External distribution • Traceability Wholesale trade • HACCP ↕ External distribution • TQM (ISO 9000) Intermediate trade ↕ External distribution • LCA (ISO 14040) Packaging • IFS ↕ External transportation • GlobalGAP Intermediate production • MSC ↕ External transportation Primary production • FSC...

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Life Cycle Assessment (ISO 14040:2006) 1. Definition of goal and scope 2. Inventory analysis (LCI) 3. Impact Assessment (LCIA) 4. Interpretation 5. Reporting and critical review

Feedback

Results are valid under the preconditions of scoping, only! 10

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LCA - Examples 1. Definition of goal and scope 1A. Functional unit e.g.: 1 kg beef ready to cook 1B. System boundary b) Primary production, processing, transport to PoS Objective: Comparison of different business scale for the supply of 1 kg food!

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Life Cycle Assessment - Examples 2. Inventory analysis (LCI) - Energy use per year - Size of business unit (number of functional units per year)

3. Impact assessment (LCIA) - Release of CO2, CH4, HHC, N2O ... 4. Interpretation - Allocation: Release in relation to functional unit - Comparison of different procedures for the same intent 12

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Example beef: Local primary production in Germany

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Example beef: Local transport of beef in Germany

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Example beef: Small scale butcher and PoS for local beef

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Example beef: Global primary production in Argentina

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Example beef: Local transport of beef in Argentina

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Example beef: Large scale manufacturing in Buenos Aires

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Example beef: Global transport of beef to Germany

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y = 26.325 x-0.2947

(R2 = 0.85)

Ecology of Scale Local beef: 1.4 – 2.2 kg CO2/kg

Global beef: 0.8 – 1.0 kg CO2/kg

Specific emission of CO2 (carbon footprint) over business size 20

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Population, farmland and wheat crop in Germany: last 200 years

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German Eco-Indicators: Energy using appliance – Indoor, outdoor

Millions of cooling devices in Germany: Saturation

Millions of cars in Germany: Saturation 22


Demands of European consumers beyond legal requirements (1) In general: Wide compatibility of all parts of the entire supply chain to the environment plus social compliance In particular: Application of different management and certification rules launched by authorities or NGO´s - some of these for free, some as business model 23

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Demands of European consumers beyond legal requirements (2) application for free - Life Cycle Assessement (LCA) in accordance to ISO 14040/14044 see: http://www.iso.org/iso/catalogue_detail.htm?csnumber=37456

- Low emission of greenhouse gases – calculation of Product Carbon Footprint (PCF) see:

http://www.ipcc.ch/ 24


Demands of European consumers beyond legal requirements (3) certification for charge - Certification of Forest Stewardship Council (FSC) rules see:

https://ic.fsc.org/

- Certification of Marine Stewardship Council (MSC) rules see:

http://www.msc.org/

- Certification of accordance to SA 8000 standards see:

http://www.sa-intl.org/ 25

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Objectives of ILCA (2011 – 2013) Indonesian Institute of Life Cycle Assessment (ILCA) Department of Agroindustrial Technology Gadjah Mada University Yogyakarta Republic of Indonesia in cooperation with Institute of Agrotechnology Justus Liebig University Giessen Federal Republic of Germany 26


Objectives of ILCA (2011 – 2013) Teaching •

Lectures and Training in Life Cycle Assessment (LCA)

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Lectures and Training in Life Cycle Inventory Analysis (LCI)

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Lectures in Life Cycle Impact Assessment (LCIA)

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Supervision of relevant bachelor and master theses

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Certification in accordance to ISO 14 000 ff

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Objectives of ILCA (2011 – 2013) Research •

Identification of Indonesian supply chains for food

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Identification of Indonesian-German supply chains for food

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Inventory analysis of such supply chains (LCI)

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Impact Assessment of such supply chains (LCIA)

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Supervision of PhD-theses

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Application of projects at public funds and industrial parties

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ILCA research conference and publications 28

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Many thanks to * Gadjah Mada University * Department of Agrotechnology at GMU * Justus Liebig University Giessen Terimah kasih! Thank your for your attention!

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