ctff at the accelerator centre canada’s technology for food ctff at the accelerator centre ctff...

CTFFat the accelerator centre

Canada’s Technology for Food


CTFF

Canadian Technology SolvingFood Industry Challenges

Velocity Problem Solving


Ted Mckechnie

• Chairman/CEO/Founder…Canada’s Technology For Food…2011- Current…

• Chairman/CEO/Owner…The Davies Group Of Companies…2000 –Present…

• President/CEO/Owner…Ethnic Food Group International Inc.,…2009-2012…

• President/COO/Owner…Humpty Dumpty Foods…

• President/COO…Maple Leaf Foods…• Executive VP Marketing/Sales…PepsiCo…

Kraft…General Foods…Philip Morris…


Overview

• Food /Beverage Industry has multiple sectors…– Produce…– Dairy…– Meat and meat products…– Beverage …– Sugar and Confectionery products…– Retail and Commercial bakeries…– Food/Beverage wholesalers & distributors…– Grocery/Food specialty stores…– Food/Beverage Restaurants…


Overview

• Canada’s agri-food sector is a key component of national, provincial and regional economies within Canada…

• Canada’s food manufacturing industry is a critical part of the sector… – Food and beverage shipments were valued at

$92.8 Billion…– Over 84% of Canadian food and beverage

manufacturing establishments had less than 50 employees, but accounted for 17% of total industry shipments…


Overview

• George Morris Institute…

• Canada trails US & Global Competition in Productivity…– Key Factor is level of investment in

Technology…

• Large Food Processors are more productive than smaller ones as a result of…– More investment in larger facilities…– Less investment in smaller facilities…


CTFF Operational Description

• Leads & facilitates a fragmented & disparate National & Regional Food/Beverage Producing /Processing Industry into a single minded focus on Advanced Manufacturing Technology For Food…

• Fosters Innovation , Sustainability & Commercialization of Technology For Food within the Canadian Food/Beverage Processing sectors by identifying significant Processing-Packaging-Supply Chain-Data-Food Safety Challenges…

• Works with individual SME Food/Beverage Processors/Producers Processors to find Industry Solutions through Collaborative Consortia with Fabricators-Technology Integrators-Academic Institutions-Funding Agencies….


Overview - Vision

• To cultivate , facilitate & develop new “World Class” advanced manufacturing innovative technology solutions for Canadian food/beverage for processors/producers to achieve productivity, innovation, sustainability & commercialization targets.– Not off the shelf…hidden but existing technology…– Create and innovate new technologies…– Lower the cost of existing technologies… – Integrate existing technology into new working

technology…– Add value to imported technology… – Enhance best practices & advanced manufacturing

concepts….


Overview

• Food and beverage industry executives see technology as the greatest driver of future growth…(KPMG LLP’s 2013 FBIO)…

• Companies that adopt and utilize Technology tools most effectively are positioned to capitalize on improving business conditions….(KPMG 2013)…


Overview

• The Canadian Food/Beverage processing Industry generated $100 Billion in economic activity annually & directly employs 300,000 Canadians…

• The Ontario Food/Beverage processing Industry generated $39 Billion in economic activity annually & directly employs 125,000 Ontarians…

• These are the 2ND largest manufacturing sectors in Canada & Ontario…


Overview

• Ontario Producer vs. Ontario Processor …

• Producer $8 Billion Revenue…– 20% of Revenue…>50% of Funding…– Strong Lobby…

• Processor $32 Billion Revenue…– 60% of Producer product purchased by Food

Processors…– 80% of Revenue…<50% of Funding…– Weak Lobby…


Problem Solving In The Food Business

• **Food Safety & Traceability Requirements…SMES…– Global Food Safety Standards established…

– Retailers Globally have bought into GFSI Certification Standards…January 2015…

– SMES are not moving forward on this initiative due to cost…Process & Infrastructure…

– 8,000 SMES in Canada...3500 in Ontario…

– Consolidation or Bankruptcy could be the result…



• **Food Safety & Traceability Requirements…SMES…– The cost of GFSI Certification for SMES precludes

them from moving forward…

– Large firms see GFSI Certification as a must to compete…

– SMES see GFSI Certification as an additional cost to their business…

– There are 8,000 SMES in Canada…

– A limited number are moving forward on GFSI Certification…



• **Food Safety & Traceability Requirements…SMES…

– An integrated Food Safety & Traceability system that is efficient...low cost…effective…input raw materials to DC…for SMES…

– Use of Technology…


Problem Solving In The Food Business• THE PRODUCT…

– Pork Side Rib…

• THE PROJECT…– Remove side rib from Pork Belly…– Labour & Yield opportunities…

• THE PROCESS CHALLENGE– Removing Side Rib from Pork Belly– Cutting Side Rib from Pork Belly..– Highly Skilled Labour…Prone to repetitive injuries…– 2 People per shift…Yield & Labour…– Currently a completely manual process


Problem Solving In The Food Business• THE PROCESS CHALLENGE

– Difficult work and difficult to train …– Important that it is done properly to maximize the yield

of each of the parts– Currently have two – four individuals each doing 450

pieces per hour– Need to be able to do the left side of the hog and the

right side of the hog…– Annual labour costs to be eliminated (fully loaded

including benefits) = $130,000 -$260,000– Also would have ergonomic benefit


Problem Solving In The Food Business• PRODUCTIVITY IMPACTS ($ Savings)

– Automation…$200,000-$250,000 annually in Labour & Yield…per shift…

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Machine Wrapping…Assuming 30 Manufacturers Canada

wide = $6 Million-$7.5 Million…3 shifts = $18 Million - $22.5 Million…

– US…10 X = $180- $225 Million…



• THE PRODUCT

– Frozen Stuffed Cabbage Rolls……– Current Cabbage source from California……– Cabbage Rolls are hand rolled……– There is significant Variety on Fillings…– A cabbage roll is a dish consisting of cooked cabbage

leaves wrapped around a variety of fillings. It is common to the ethnic cuisines of the Balkans and parts of Europe and the Middle East as well as Finland and Sweden…

– Cabbage leaves are stuffed with the filling which are then baked, simmered or steamed and generally eaten warm, often accompanied with a sauce. The sauce varies widely by cuisine.



• THE PROJECT– Source Prepared Cabbage at lower cost…Ideally sources

in Canada & prepared at Processor…– Machine Wrap vs. Hand Wrap Cabbage…All other

components are automated…

• THE CHALLENGE– Two Components…– Source fully prepared cabbage at a lower cost, at the

same /higher quality ,preferably in Canada…Gregorian Variety. In California they clean… blanch… freeze the leaves.

– Move from Hand wrapping to Machine wrapping delivering the same or improved quality…



• PRODUCTIVITY IMPACTS ($ Savings)– Sourcing…$200,000 in shipping alone– Machine Wrapping…$200,000-$400,000 per shift if we

could automate Cutting and double that if we could automate the whole process.

– 3 shifts = $600,000-$1,200,000…

• INDUSTRY PRODUCTIVITY IMPACTS($Savings)– Canada…30 Businesses = 30 X $600,000-$1,200,000

=$18 Million -$36 Million…– US…10 X $18-$36 = $180 Million - $360 Million…



• THE PRODUCT– FROZEN Lasagne i.e.…Meat…Cheese...Veg…etc……– Most Noodles are hand layered vs. machine layered…

• THE PROJECT– Machine Layered Noodles vs. hand layered…multiple

thicknesses…sizes…– This project is a single component…Automating the

Processing element…• THE PROCESS CHALLENGE

– A variety of size & thickness of Noodles are layered by hand…

– One Component…– Convert from Hand Layering to Machine Layering

delivering the same or improved quality …



• PRODUCTIVITY IMPACTS ($ Savings)– Machine application of pasta…$120,000 1 shift…3 shifts

= $360,000…

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Canada Machine application of pasta…30 duplicate

businesses = $10.8 Million…– US …300 = $108 Million…



• THE PRODUCT– Stuffed chicken breast…finished weight 142 grams

after breading, 105 grams before breading…– -A layer of chicken surrounding a filling. The fillings

include such things as ham and cheese, butter logs, and broccoli and cheese logs. The entire portion is then covered with a layer of batter and breading….

• THE PROJECT– -Automate the Stuffing & Wrapping of Chkn breasts...



• THE PROCESS CHALLENGE – Design a piece of equipment that will substitute for the

manual handling of the chicken breast portions, but will maintain the handmade shape which adds significant perceived value to the product…

– Also makes a line of the uniform co-ex formed products, which is required by certain customers. Because the inner filling is deposited using sausage stuffer type equipment, only uniform fillings that can be pumped can be added to these products…

– This precludes making products with whole pieces of ham, such as we add to the hand made products. So the challenge is to find a way to add whole pieces of ham or other fillings to the co-ex product…



• PRODUCTIVITY IMPACTS ($ Savings)– Wrapping…$600,000…2 Shifts…

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Wrapping…30 businesses x $600,000 = $18 million…



• PRODUCT– Premium Beer…

• THE PROJECT– Recovering saleable Beer & Water Recycling before

the yeast is disposed.– Beer Recovery System…

• THE PROCESS CHALLENGE– Brick tankers out for disposal 330 hL of waste yeast per

week. The average solids is 20%, with the balance of the volume being concentrated beer (at 8.0 v/o) being lost…



• THE PROCESS CHALLENGE– A cost-effective, sanitary method of concentrating the

yeast stream would yield significant savings. If we were to double the solids concentration, that would equate to approx. 100 hL of recovered beer at value of $25/ hL…

– Annual savings would be estimated $150,000 at 40%...$300,000 at 60% & $500,000 at 80%...

– Large beer companies use centrifuges at a cost of $500,000 each. This is simply too costly for smaller Craft Brewers. Almost 80% of Waste Yeast Processing liquid is beer...



• PRODUCTIVITY IMPACTS ($ Savings)– Annual savings would be estimated $210,000 at 40%...

$280,000 at 60% & $315,000 at 80%...

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– In Canada, there are estimated 40 Craft Breweries…

Savings at 40% = $9 Million…60% = $11 Million…80% = $13 Million.

– In the US...400-800 Craft Brewers….Savings estimated 40% = $86 Million…60% = $112 Million…80% = $126 Million…


Problem Solving In The Food Business• THE PRODUCT

– Fresh Citrus Fruit…– Defined as Oranges & Grapefruit…

• THE PROJECT– Pealing & sectioning varieties of Fresh Citrus Fruit with

improved speed & yield…

• THE PROCESS CHALLENGE– Citrus ( oranges and grapefruit) sectioning equipment:– Current process is manual with high labour input

delivering high quality finished outputs at 1/3 the rate that we can generate out of balance of fruit ( honeydew, cantaloupe, pineapple ) that we process. Ability to remove skin of fruit & cut with the right speed & yield.


Problem Solving In The Food Business• THE PROCESS CHALLENGE

– Currently completed by hand in Canada. Competes with Mexico where labour is so inexpensive that automation has no payback.

– Existing auto cutters do not have the speed of hand labour & poorly manage raw fruit size variance.

– Currently KBFI does 90 lbs. per hour on traditional fruit & 3 lbs. per hour on citrus & specialty fruit (Mangos).

– Automation must target minimum of 30 lbs. per hour…ideally significantly higher…

• PRODUCTIVITY IMPACTS ($ Savings)– -We estimate if that process could be automated the

potential annual savings in labour cost and food cost would be between $100,000 per shift per year dependant on product yield rate that automation would deliver ($’s shown represent less than to equal current yield standard).

– -$ 100,000 one shift…3 shifts = $300,000….



• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Estimated Savings based on 30 duplicate industries in

Canada =$9 Million…– N.A = $100 Million…



• THE PRODUCT– Waste Water after production…

• THE PROJECT– Cost effectively recycle/re-employ waste water within

the Key Brands Inc. manufacturing operation to reduce costs…



• THE PROCESS CHALLENGE– To cost effectively & efficiently reduce the cost & recycle waste

water from operations.– Specifically , remove starch from hot water used to cook

pasta , potatoes , and rice…recover heat from now starched hot water &re-use water that would otherwise go down the drain.

– The process needs to be completed in a small footprint as there is no room for filtration ponds, large separation tanks, etc.

– Removing Starch from Hot and Cold processing water will reduce surcharges as well as allowing for heat recovery from heated cooking water used in our processing environment.

– This allows re-use of a percentage of treated water…– Currently no system available that fits into a small footprint

( i.e.: does not require large siltation tanks/ponds and separators) for high water volume users who cook large amounts of starch based raw materials ( pasta, potatoes, and rice as examples) …



• PRODUCTIVITY IMPACTS ($ Savings)– $250,000 per shift…3 shifts = $750,000…

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Assuming 75 duplicate Processors in Canada = $56.3

Million…– In the US 10 X = $563 Million…



• THE PRODUCT– Pork Butts…

• THE PROJECT– Twist Wrapping Korean Pork Butts…– Labour & Yield opportunities…

• THE PROCESS CHALLENGE– Automate the Twist Pkge Wrapping of Pork Butts for

Korea…– The Product is overwrapped , rolled & spun /twisted at

both ends by hand.– As a result the Centre tightens & the ends twisted,

similar to a “Candy Kiss”…



• PRODUCTIVITY IMPACTS ($ Savings)– $100,000-$200,000 annually per shift in Labour &

Yield…– 3 Shifts = $300,000-$600,000…

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Assuming 10 Manufacturers Worldwide = $3 Million-$6

Million…– US 10 X = $30 Million - $60 Million…



• THE PRODUCT– Premium Apples…

• THE PROJECT– Develop a Robotic System that replaces hand pickers…

• THE PROCESS CHALLENGE– Create & develop a low cost high quality Robotics

system that improves yield & quality & eliminates labour…

– Focus on picking vs. dropping from tree due to vibration…



• PRODUCTIVITY IMPACTS ($ Savings)– Savings per shift based on $10 Million Annual $’s = $2.5

Million…

• INDUSTRY PRODUCTIVITY IMPACTS ($ Savings)– Canada Apple Business = $1 Billion Revenue = $250

Million Savings…– US Apple Business = 20 X = $5 Billion Savings…


Problem Solving In The Food Business• ***We’re wasting food…Food Waste…Key To

Ending World Hunger…– A new study by the UN’s Food and

Agriculture Organization found that limiting food waste globally could reduce the need to raise more food by 60 percent...

– Canada tosses 40 per cent of the food we produce each year… It's bad for business and bad for the planet…

– A whopping 40 per cent of what we produce is wasted…


Problem Solving In The Food Business• We’re wasting food…Food Waste… Key To

Ending World Hunger…– The overall value of food in Canada that

ends up in garbage cans, compost bins and those big dumpsters…$27 billion…

– Food requires vast amounts of water to grow and energy to harvest, transport and package. When food is thrown out, all those resources are wasted, too…


Problem Solving In The Food Business• We’re wasting food…Food Waste… Key To

Ending World Hunger…– A 2004 study showed that forty to fifty per

cent of all food ready for harvest in N.A. never gets eaten…

– The quantifiable difference in value between what is produced on farms, then processed…distributed…sold every year, compared to what is consumed, exceeds $271 billion…


We’re wasting food…Food Waste… Key To Ending World Hunger…• % of Food Waste In Canada…

– Farmers Field 9%...– Packaging / Processing 18%...– Transportation / Distribution 3%...– Retail Stores 11%...– Food Service / HRI 8%...– Home 51%...

• Huge Opportunity…


We’re wasting food…Food Waste… Key To Ending World Hunger…• Reasons For Waste…

– Overproduction…. too much production and/or poor flow of products through the chain, often resulting in the need to discount in order to flow products through the system before they spoil…

– Defects in products or equipment…poor quality products, poorly operating equipment, communication errors, shortened shelf-life, poor delivery…

– Unnecessary inventory…occurs at any point along the chain, including in households; creates excessive delay, poor customer service, long cycle times, excessive spoilage…


We’re wasting food…Food Waste… Key To Ending World Hunger…• Reasons For Waste…

– Inappropriate processing…incorrect procedures or systems, often when simpler approaches would be more effective…

– Excessive transportation…excessive, often complex and costly movements of products or information…

– Waiting …long periods of inactivity result in poor materials or information flow, long lead times & increased spoilage…

– Unnecessary motion…poor design of any link or workplace along the chain, or the overall chain itself, often leading to lost or damaged items…

ctff at the accelerator centre canada’s technology for food ctff at the accelerator centre ctff...

Documents

food ctff

accelerator centre slide

existing technology

sector food

technology tools

new working technology

food safety challenges

food fosters innovation