NETWORKS
2.Analyze this network using at least two of the concepts presented, paying particular attention to the linkages of the regional network with ‘non-local’ actors.3.Make clear how the network you identify constrains and/or enables actors to work towards closing material loops.
Last class was all about networks, what they are, how they are
structured and their utility for Industrial Ecology. For this week's assignment we were asked to think of a particular regional network, regional networks can be defined as networks that are delimited
and formed due to location, they are bounded by region and activity is spatially concentrated in certain locations. The network structures we can find in such clusters can be
categorized into three different forms: agglomeration, industrial complex or
social networks.
One of my favorite examples of an industrial complex is the Wissington facility of UK's main beet sugar producer, British Sugar [BS]. British sugar is owner of the biggest beet sugar refinery in the world, located in the industrial complex of Wissington Norfolk, UK. For over 25 years, a cluster of different industries has grown and developed in the area, forming what I would classify as an industrial complex, but as specified by Gordon and McCann, more than only one type of network can be observed at the complex.
Some examples of how this self organized network interacts are as follow:
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The site contains most of
the farmland where the beets are grown, therefore increasing interaction
between local farmers and reducing costs of transportation from de field to the refinery.This interaction has renderd beneficial for both BS and the farmers, BS has taken advantage of the closer relationship with the farmers, developing trust between them and allowing them to actively colabotare to increase the crop yield of the sugar beet by means of scientific research that has given them information that farmers can apply directly at the field . This network goes both ways, and the dependency relation between both parties is pretty much equilibrated, since farmers need BS to sell their goods and to help with research on beet sugar growth and BS needs the farmers since they provide the raw material for their core production of sugar, also their relationship is well developed and trust is a main factor, since beet is regarded as a difficult crop and farmers could choose to grow other crops, but the security of having a buyer that is also concerned in crop yield and quality, helps tighten this relationship.
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CO2 rich flue gas has been
used at green houses built on site for the horticulture of tomatoes. BS partnered
with a local distributor for the retail of tomatoes, British Sugar controls the production, but has decided to bring an external player that has expertise in the horticulture market. This form of network allows the exchange of knowledge, generating dependency between BS and its retailer, which has the expertise in horticulture BS lacks, since it's main production consists of sugars and syrups.
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The sight has an
installation to produce bioethanol out of sugar molasses, this instalation constitutes a JV between
BS, Dupont and BP, this type of network fits more in the Social network
definition, having been developed through mutual cooperation and trust between
these companies.
BP actually approached BS and now they are sharing capacity and expertice to develope this Bioethanol plant, which is profitable for all participants since they enjoy a subsidy from the british government. This kinds of interactions help close material loops by utilizing surplus sugar and waste bagasse as raw material for bio fuels, these materials would otherwise be thrown to landfill but are now used to produce fuels that to some extent are used in lorries for the famring of sugar beet.
BP actually approached BS and now they are sharing capacity and expertice to develope this Bioethanol plant, which is profitable for all participants since they enjoy a subsidy from the british government. This kinds of interactions help close material loops by utilizing surplus sugar and waste bagasse as raw material for bio fuels, these materials would otherwise be thrown to landfill but are now used to produce fuels that to some extent are used in lorries for the famring of sugar beet.
-
Apart from the British Sugar,
companies like Air Liquide (experts in liquefaction) have collocated in the
Wissington site, where they receive the CO2 waste stream from the sugar
fermentation to bioethanol liquefy it and sell it for the gasification of soft drinks, a
good example of how this network is helping close material loops by repurposing waste streams.
-
BS uses byproducts from the
sugar refining process as materials for pharmaceutical process, animal feed,
topsoil and so on, involving different players in this resource network where different material are exchanged and BS has a central role.
Changes in the European Union (EU) Common Agricultural Policy coupled
with increasingly open global trade agreements would progressively open the UK
market up to competition. This, combined with the expanded
production of low-cost sugar derived not from beets, but from sugar cane in
developing nations, represented a significant threat to the future of British
Sugar. [1]
As a response to this pressure, BS developed a series of
strategies that brought about the formation of this network, in order to give
value to waste and increase profit to the actors in the cluster. (Specially BS) Then, non-local actors such as sugar cane producers and policy makers, have
served in this case to make this network more tightly coupled and to develop
strategies to close material loops in order to increase profit for BS.
The Wissington site can be considered a centralized Network, and
British Sugar is positioned in the center of it all, having interactions with
every actor in the network, but actors not having any real interaction with
each other. In this way, BS is in a position of power as they have created a
dependency for all their consumers on all their different byproducts.
In conclusion, Wissington sight is a mix of resource network and regional network with industrial complex and
social network interaction, where the giant of sugar beat refining British
Sugar has a role of centrality and is the only one interacting with the other actors in the network.
References:
[1] From Refining
Sugar to Growing Tomatoes
Industrial
Ecology and Business Model Evolution
Samuel W. Short, Nancy M.P. Bocken, Claire Y. Barlow, and Marian
R. Chertow
[2]
. Gordon, I. and McCann, P. 2000. Industrial Clusters: Complexes,
Agglomeration and/or Social Networks? Urban Studies 37(3): 513–532.
For your first relationship point, is this actually true? Does the close distance reduce the cost of transportation? Seeing as how it would be more likely that instead of having on large long haul you’d have to camp with multiple smaller amounts that are transported. Therefore evening the two out and not necessarily being cheaper because it’s closer? Do you have data/ evidence/references of this?
ReplyDeleteI have trouble making a bigger picture of the entire company. Maybe a small explanation of how the company works, will make the explanation of the individual process networks easier or give me better picture of how the company network works as a whole.
Maybe state that there was an initial state of the company with certain networks before making the comparison to the current company due to the new EU policies and that that is why the industries and new networks developed. I had a little bit of trouble determining why you all of a sudden were comparing something, because I didn’t find out till the end that you were comparing to the initial state of the company. A little confusing to me.
I did really like reading your opinions and explanation on the matter, thanks!
Dear Paulina:
ReplyDeleteI find it hard to understand that after the Agricultural Policy from EU, BS developed a series of strategies that brought about the formation of the network. At the beginning of your article it was noted that the cluster started 25 years ago with several companies. Did the formation of the cluster happen before or after the agricultural policy? It will be better if you could explain more about the development of the network trough dates and how the EU Agricultural Policy somehow helped to strength the bonds between the parts in the cluster.
Nevertheless, what you wrote about Wissington facility and the link you made as an industrial complex mixed with social networks is very interesting, especially the fact about British Sugar, playing the main role. I also consider that you chose a good topic to understand better what was related to networks, non local actors and closing material loops. It is very interesting to see the importance that non local actors such as policy makers and sugar producers have and how they can affect the consolidation of networks. Sometimes they are taking for granted. Overall, I think your blog was very well written and analyzed according to the topic of the class.