The transportation structure of the Campo Limpo System relies on 47 carriers suitable for the business seasonality, which during peak periods haul up to 70 trips per day, covering a network that services outposts, central stations and final destinations in a precise fashion.

In 2016, demand was met with 12,600 shipments to transport the post-consumption packages, with an average of 13.5 tons per truck - the maximum achieved efficiency when combining safety and capacity factors in these hauls.

Transportation takes advantage of return trips: the vehicles that transport the full crop protection packages to distributors and retailers are used for the return shipment in order to take the empty packages from the outposts to the central stations where they are compacted and taken to their final destination (recycling or incineration).

Starting in 2013, the Scheduled Return of Empty Packages (adEV - Agendamento de Devolução de Embalagens Vazias) has contributed towards improving logistical planning and allowing for a better demand forecast. adEV offers the possibility for farmers to schedule the returns of packaging by means of computer or mobile devices.

Another initiative also launched in 2013 was the standardization of the Itinerant Collection Stations. By means of this receipt option, it is possible to expand the capillarity of the SCL, getting even closer to farmers, especially in areas where the amount of packages does not justify the installation of a physical receiving unit. In 2016, 4,900 Itinerant Receiving actions were conducted throughout Brazil.

Efficiency level achieved in 2016

94%

of commercialized packaging receives environmentally appropriate disposal

SIC

By means of the Central Station's Information System (SIC - Sistema de Informações das Centrais), a web-based system, the logistical planning gets real-time data on the amount and type of material hauled until the preceding day, in various groupings. The speed and efficiency of the system will allow for new configurations starting in 2017, with the possibility of having a more dynamic process and allowing for adjustments in a shorter time interval. Thus, it will be possible to have even more information precision and management quality.

Innovation and technology are the highlights along inpEV's path. The Central Offices Information System (SIC) allows us to ensure traceability of the entire disposal process of empty packaging. Another management instrument, the Scheduled Packaging Return (adEV) allows for easier planning by anticipating demand and inventory management.

Leonardo Fernandes, IT manager at inpEV since 2008.

Proper disposal

In 2016, 44,528 tons of empty packages were correctly disposed of by the Campo Limpo System from an environmental standpoint, representing 94% of the total number of primary packages sold. The System has maintained high levels of efficiency, but the volume of disposed packaging was 2.2% lower in comparison with 2015. This result is due to external factors, such as weather conditions that affected crops, increase in sales of biotechnological seeds more resistant to pests and increased crop protection smuggling, factors responsible for reducing the use of crop protection products in the field.

Routine and careful follow-up allowed inpEV to anticipate this scenario. The final disposal goal initially planned for 2016 was revised in the first half of the year, dropping from 46,500 tons to 44,500, which allowed for the necessary adjustments to the chain, and in the end the achievement of this new goal by the end of the year.

Around 90% of the empty packages are recycled. The others, such as those that have not been properly washed by farmers, flexible packaging or those containing leftover products, are incinerated. GRI EN28

In 2016, the first phase of the Campo Limpo Lids and Plastic Resins facilities was inaugurated, which complements the activities of the Campo Limpo Plastic Transformation and Recycling, both conceived by inpEV (read more in the chart below).

In 2016, a new IBC (Intermediate Bulk Container) separation step has led to a change in this form of disposal and in processing cost reductions. The plastic blisters are separated from the metallic structure, allowing the latter to be reused. The blisters continue to be incinerated. With this, the total benefit to inpEV totaled R$ 460,000, an amount which includes reduction in incineration and gains in the material destined for reuse within the network.

Another important victory in 2016 was the approval to use plastic resin recycled from empty crop protection packaging in new artifacts, leaping from 17 to 33 possible different applications.

Fight against illegal products

Due to the increasing use of smuggled plant health products, inpEV has participated in events to disseminate knowledge and enhance preventive actions, in Minas Gerais. This initiative was taken in conjunction with several sector agencies and government representatives

Receipt of improper products

Starting in 2015, the receipt of packaging containing leftover products handled regularly at the receiving stations was continued in 2016, in which year the number of units prepared and licensed to receive such materials was expanded from 24 to 69 receiving stations. The expectation is to reach 100% of the plants until the end of 2017.

The receiving units were prohibited from receiving leftovers and improper crop protection products until 2014 according to Conama Resolution 334/03, which was then amended by Resolution 465/15 which then authorized the licensing of this activity. Products manufactured and marketed on a regular basis in Brazil, registered at the applicable federal agencies, but which have expired or their packaging has been damaged, are considered inappropriate for use.

In order to receive this packaging material, the units need to implement physical adjustments, such as defining a specific and isolated space from other areas to store this packaging, among other requirements established by legislation. It is also necessary to obtain new licensing for the unit. inpEV assists the central stations in making these adjustments to their facilities and in obtaining such licenses. Receiving this material will result in greater safety to the environment and to people, thereby avoiding the risk of inappropriate storage in agricultural properties or incorrect product disposal.

Improper Products

Those manufactured and marketed on a regular basis in Brazil, but which have expired or their packaging has been damaged, making their use impossible

Disposal of obsolete products

Obsolete products are those that have been banned and prohibited by law to be manufactured or sold since 1985, in particular, organochlorides.

In the state of São Paulo, since 2015, an agreement signed between the Office of Agricultural Protection (Coordenadoria de Defesa Agropecuária), Cetesb and inpEV aims at developing the activities necessary to manage products declared obsolete. These activities involve issuing licenses, packaging and logistics, incineration, and supervision. The collection activities are expected to remove 420 tons from 327 properties in 2017.

In 2016, inpEV also signed a technical cooperation agreement with the government of Paraná for the second phase of the obsolete product elimination operation in that state, which pioneered actions of this nature. The first phase occurred between 2012 and 2013, when around 1,200 tons of this material were removed from rural properties and then incinerated. This term of cooperation includes the participation of the Secretariat of the Environment and Water Resources (Instituto das Águas e Instituto Ambiental do Paraná – IAP), and the Secretariat of Agriculture and Supply (Instituto Paranaense de Assistência Técnica e Extensão Rural – Emater). It also involves the Organization of Cooperatives of Paraná State (Ocepar - Organização das Cooperativas do Estado do Paraná) and the Faep System (Federal da Agricultura do Estado do Paraná).

Obsolete Products

Those that have been banned by law to be produced or sold, in particular organochlorides

New products

33

artifacts are manufactured using recycled resin, such as:

Pallets, supports for road signs, pole cross-brackets, plastic wheelbarrow buckets and wheels, packaging for lubricating oil, conduits, ducts, boxes, sewage pipes, cardboard and plastic barrels

Disposed packages (t) GRI G4 EN23

Disposal per region (%)
2016

Disposal per state (t)

* Variations in the disposed amount per states from one year to another are the result of specific factors, among which: change in crop protection consumption due to climate change, shipment availability, optimizations in logistics and the expansion of the agricultural frontier.

Safety and control

inpEV's activities ensure the proper disposal of post-consumption crop protection packages, thus reducing risks and impacts on the health and safety of society. All received packaging is inspected upon receipt at the SCL receiving stations and outposts, and a delivery compliance receipt is provided to farmers.

Non-complying packaging (not properly washed) generates a notification and is forwarded to the segregated area (unwashed product shed) and non-pertinent packages (those not used for crop protection products) are refused and returned to producers.

The health and safety impacts and improvements sought in products are also assured by means of ISO 9.001 certification, besides actions like: a) equipment preventive maintenance program; b) weight and dimensional monitoring of bundles; c) non-compliance program of bundles evaluated by the recycler; d) non-compliance treatment case by case; and e) chemical residue monitoring in packages. GRI G4-PR1

It must be stressed that inpEV does not export nor import hazardous waste. The waste considered hazardous and transported by SCL are non-washable packages and those that were not properly washed by farmers at the time the product solution was prepared. Transportation of these items is standardized and is done in distinct shipments from all other packaging. Operators are never in contact with products. In 2016, 4,500 tons of this type of material, corresponding to 10% of the total hauled empty packages, were transported All this material is incinerated. GRI G4-EN25, G4-EN30

We have a consolidated System, and deeply know the process. Our focus now turns to opportunities to optimize costs, improve productivity and generate innovation. We must be attentive to new product and packaging technologies and evaluate the entire chain from this perspective. This motivates us for the future.

Paulo Ely do Nascimento, South, Southeast and Center-West Operations Manager, with inpEV since 2002