Case Studies

Fair Cape Milk Production Facility

The Background

Fair Cape is one of the biggest independent dairies in South Africa with a herd of 2300 cows of which 1150 are used for milk production. Fair Cape produces a line of free range milk and dairy products and has successfully differentiated its milk brand through its focus on the wellbeing of its animals and the environmental friendliness of its facilities. Fair Cape has recognised that climate change and its impacts are the biggest environmental challenges we face this century, and is proactively addressing these challenges in its operations. To complement these initiatives, Fair Cape commissioned GCX to conduct a carbon footprint assessment of its Milk Production Facility as an initial step.

 


The Objectives

The following objectives were set out by the Fair Cape Milk Production Facility:

  • To measure and understand the impact that this Facility has on global warming; 
  • To establish a carbon neutral Milk Production Facility; 
  • To start a process for more business units within Fair Cape to be assessed; 
  • To increase both employee pride and customer loyalty; 
  • To do the right thing, which is inherent in the company’s philosophy.

The Process

GCX conducted the analysis according to the internationally recognised Standard, the Greenhouse Gas (GHG) Protocol (WRI and WBCSD, 2002).

  • The control approach was used to consolidate all emissions;
  • The organisational boundaries were drawn around the operational activities of Fair Cape’s Milk Production Facility; 
  • All Scope 1 and 2 emissions as well as significant Scope 3 emissions (optional) were included. The operational boundaries included the following sites: 
  • 4 milking houses 
  • 1 storage warehouse 
  • Emissions associated with outsourced logistics and distribution were, in accordance with the control principle, included in the assessment; 
  • The data was submitted to GCX by Fair Cape for the latest financial year (June 2008 to May 2009); 
  • If data was not available (i.e. for March-May ‘09), extrapolation was used.

The calculations were done using emissions factors from the following sources:

  • Electricity: Eskom3 (2007)
  • Methane: IPCC1 and CDM2
  • Minibus taxis: TRB4 (2002)
  • Other: DEFRA5 (2008), IPCC (2004)

"Business sustainability equals  environment-friendly business practices." - Melt Loubser, CEO Fair Cape Holdings

The Results

Fair Cape Milk Production Facility’s total carbon footprint for the financial period 2008/9 was 8,902.41 tons of CO2 equivalent (CO2e). Of this, 92% were Scope 1 emissions, 5% were Scope 2 and 3% were Scope 3 emissions. The chart below shows the total inventory of GHG emissions by source.

 

 

  1. Intergovernmental Panel on Climate Change. Source: IPCC Guidelines for National Greenhouse Gas Inventories (2006) chapter 10 on Emissions from Livestock and Manure Management. 
  2. Clean Development Mechanism. Source: III.D. Methane Recovery in Animal Manure Management Systems methodology from the CDM Executive Board, which falls under the United Nations Framework Convention on Climate Change (UNFCCC). 
  3. The South African electricity public utility.
  4. Transportation Research Board. 
  5. Department of Environment, Food and Rural Affairs (UK).

The table below shows total emissions by source and scope and also indicates carbon emissions intensity.

 

 

These findings indicate that for the year assessed,  the biggest sources of carbon emissions for Fair Cape’s Milk Production Facility were:

  • Methane from cow’s enteric fermentation and manure  (7.89 mega-tons CO 2e) 
  • Electricity (466.8 tons CO 2e) 
  • Company-owned mobile & stationary sources (317.41 tons CO 2e)

This equates to an annual carbon emissions intensity of:

  • 867.19 tons CO2e per hectare 
  • 216.80 tons CO2e per employee 
  • 7.54 tons CO2e per milking cow


In summary, an overwhelming 88.6% of the Fair Cape Milk Production Facility’s total carbon emissions is from the methane produced by its cows. Of the total methane produced, 71% is from cow’s enteric fermentation and 29% is from cow manure which is managed in various ways. Other findings were that the milk-producing cows produce more than double the methane emissions of non-dairy cows and that the lagoon manure management system produces significantly more methane than the other systems used.

The Recommendations

Fair Cape has investigated various waste-to-energy project options to reduce its methane emissions. Given the above findings, GCX recommends the installation of a biogas digester. Not only will this displace the Fair Cape Milk Production Facility’s current paraffin, diesel and electricity use, it will also provide a steady supply of organic
fertilizer. This could also potentially be developed into a CDM project where carbon credits are generated. Additional recommendations for the Fair Cape Milk Production Facility were the following:

  • Relook the manure management strategy and attempt to divert more manure away from the lagoon system; 
  • Identify a suitable product for a full life cycle analysis (LCA). If all emissions associated with this product are offset (i.e. from cradle to grave), Fair Cape can then market this product as carbon neutral; 
  • Set emissions-reduction targets that can be properly controlled and monitored on an annual basis; 
  • Implement a company-wide staff awareness campaign to educate and involve staff in carbon-reduction initiatives (e.g. Electricity, waste, water etc) 
  • Implement improved systems for recording data in the required format for future carbon assessments.

The Future

The opportunities identified in this carbon footprint assessment will be considered by Fair Cape management in order to reduce both the carbon intensity and operational costs of its Milk Production Facility. The benefits of conducting similar carbon footprint assessments at other Fair Cape business units will also be considered. Ideally, the measures listed above should be implemented as soon as possible in order to reduce overall emissions before offsetting to make the Milk Production Facility carbon neutral. GCX can advise Fair Cape on offsetting options that best match its requirements. GCX believes that this baseline assessment, and any future annual footprints, will not only complement Fair Cape’s differentiation strategy and provide a sound basis for reducing its environmental impact, but will also create awareness around climate change amongst its employees, suppliers and customers.