Jack DiMaggio - Innovations in Gum Rosin - Fiji
Transcription
Jack DiMaggio - Innovations in Gum Rosin - Fiji
PCA INTERNATIONAL MEETING SEPTEMBER 21-23, 2014 Callison Pacific Pine Chemicals , LLC Jack A DiMaggio FIJI South Pacific, 1,300 miles Northeast of New Zealand Formed over 150 million years ago 332 islands of towering mountains, coral seas and white sand beaches Settled 5000 years ago by voyagers Island trade established long before European contact Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management MODERN FIJI Mosaic of indigenous Fijian, Indian and European traditions Value family, respect for others, music & faith Idyllic setting masked the challenges Geography, culture, geopolitics and finance access to opportunity Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management THE FUTURE Today in the hills of Fiji, close to its indigenous people, lies an opportunity as clear and as good as the nature of its islands PINE FORESTS Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management PINE FOREST RESERVES Over 800 square kilometers of pine forest – Fijian Pinus Caribaea variety Hondurensis Suitable for wide variety of wood product applications Advantaged as a source of pine resin, the feedstock for gum rosin and gum turpentine. Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management ACCESS & INFRASTRUCTURE Central Pacific temperate climate Developed industrial infrastructure Maintained roads Reliable trucking and logistics support Modern ports A consistent, efficient supply of forest products to the world’s industrial markets Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management FOREST ECONOMY Stable and growing forest economy Large-scale pine chip production to Asia Saw log production for the domestic market Government initiative to pursue highervalued forest products Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management FORESTRY MANAGEMENT EXPERTISE Mature and experienced forestry workforce Limited land: Damaging ecosystem has direct, lasting consequences Sustainable forest management practices Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management WORKFORCE READINESS Skilled, accessible and bi-lingual English is compulsory in the schools Close proximity to harvest areas of the pine forests Workforce integrity with safety, wage & labor laws Productive services economy A stable, invested population Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management OPPORTUNITY FIT Government established long-term strategic objectives All forest sector development is facilitated by Fiji Pine Limited Commercial applications from pine forests fits strategy for Social, Economic and Environmental health. Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management STRATEGIC ALIGNMENT RENEWABLES Develop a sustainable environment and economy for Fiji REVENUE Realize the vast reserve of commercial value from domestic resources Leverage existing forestry infrastructure RESPONSIBLE Develop complementary, non-competing use for wood products Create clean, high-yield manufacturing processes Further the stewardship of resources for indigenous landowners & stakeholders Pursue proven, reliable markets Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management OUR PARENT COMPANY: IP CALLISON & SONS Founded 1903 Seattle based –agricultural global leader in premium mint oils, flavors and ingredients Supplying chewing gum, oral care, confectionary and personal care industries Superior products, technical knowledge and innovative flavor solutions Global distribution capabilities, and unsurpassed service Seeks to enhance the competitiveness of its clients in the global market Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management OUR NEW DIVISION: CALLISON PACIFIC PINE CHEMICALS,LLC Early 2012 -began to assess potential for large-scale production of gum rosin and gum turpentine Vertically-integrated supplier of gum rosin and gum turpentine: -Tree & forest management -Harvest workforce logistics -Quality control : Labs/testing -Manufacturing/operations -Marketing -Service & support Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management OUR PRODUCTS The Market opportunity is clear and established Crude Gum (pine oleoresin) - Main product further distilled to: - Gum Rosin: Building blocks of the poly terpenic resins industry, rosin resins (pharma, packaging adhesives, printing inks) - Gum Turpentine: Building blocks of the fragrance industry: Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management THE OPPORTUNITY DEFINED MEETING CUSTOMER NEEDS: Traditional supply sources declining-Speculative suppliers create price swings and supply disruptions Significant disruption to customer budgets and supply chains Double-digit increases for feedstock, 30% of total raw material costs to fragrance industry Bring long-term stability in pricing and supply of sustainable high-quality products Allow customer to budget / plan with downstream customers Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management RESOURCE AGREEMENT Agreement with Fiji Pine Limited (FPL) to harvest forests for pine resin October 2012 complete a full yield analysis: Six separate forests on two main (Large) islands of Fiji (Vanua Levu and Viti Levu) Today fully operational in all six forests. -Ra -Bua -Lololo -Macuata -Nadi -Nabou Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management PARTNERSHIP PARTNERS IN AGREEMENT: FPL (Fiji Pine Limited) holds a long-term licensing agreement with Fiji Pine Trust (FPT) to harvest & renew the forest resources FPT (Fiji Pine Trust -the overseer of the land) represents indigenous landholders, entrusted with sustaining natural resources Under Royalty Agreement with FPL, Callison Pacific Pine Chemicals,LLC works with forest-based service companies to maintain, harvest and grow the resource Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management OPPORTUNITY INFRASTRUCTURE INVESTMENT: Plans to invest in commercial plant by end 2014 Phase one (now) - 30,000 mt / yr of crude resin through 2016 Further processed to 24,000 mt / yr of gum rosin and 4,000 mt / yr of gum turpentine Anticipate having commercial operations fully engaged with a GR Facility processing products delivered to the market by 4th qtr 2015 Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management OPPORTUNITY OUR MARKET STRATEGY: Delivers on client mandates for: Callison Pacific Pine Chemicals, LLC Sustainable Forest Management OPPORTUNITY OUR MARKET STRATEGY: Delivers on client mandates for: AVAILABILITY : Provide a steady supply of product Vertically integrated supply chain Strategic alignment with government Geography and resource management QUALITY : Customer & consumer trust Forest typology Business structure Investments in modern infrastructure Sustainable development Accountability of material throughout the supply chain PRICE Significant operational and material cost advantage in Fiji Sell Pine Oleo-Resin and derivative products at a fair re-investment level price Isolate from fluctuation due to speculation. NETEnvironmental sustainability & equity in global economic development Callison Pacific Pine Chemicals, LLC Sustainable Forest Management THANK YOU! Callison Pacific Pine Chemicals, LLC Sustainable Forest Management Our Market Strategy : Delivers on client mandates for: AVAILABILITY : Providing a steady supply of product Vertically integrated supply chain Strategic alignment with government Geography and resource management QUALITY : Customer & consumer trust Forest typology Business structure Investments in modern infrastructure Sustainable development practices Accountability of material throughout the supply chain PRICING: Operational and material cost advantages in Fiji Sell Pine Oleo-Resin and future derivative products at a fair re-investment level price Insulate clients from fluctuation due to speculation. Creating Environmental Sustainability and Equity in Global Economic Development Callison Pacific Pine Chemicals, LLC Sustainable Pine Tapping Management THANK YOU! Callison Pacific Pine Chemicals, LLC Sustainable Forest Management