The Paradox of Food Waste versus Food Insecurity

Transcription

1 The Paradox of Food Waste versus Food Insecurity and the Potential for Surplus Food Management A brief overview of food waste management by food supply chain companies, considering the potential of efficient surplus food management as an answer to the food waste versus food insecurity paradox in developed countries.

2 On January 1, 2016, the United Nations Sustainable Development Goals officially went into operation, to be adopted by 193 countries. No poverty and zero hunger are the first two of those 17 goals to be applied universally over the next 15 years. 1 This is not surprising because almost 795 million people worldwide are estimated to be undernourished and lacking food security. Food security is a state in which all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food, which meets their dietary needs and food preferences for an active and healthy life. 2 Food insecurity is a relevant issue even in high-income countries; today in Europe, nearly 43.6 million people are estimated to be food insecure. 3 Worldwide more than 1 billion tons of food, comprising one-third of the food produced for human consumption, is wasted each year. 4 The carbon footprint of the food produced but not eaten is estimated to be around 3.3 Gtonnes of carbon dioxide (CO 2 )-equivalent. In fact, according to the Food and Agriculture Organization, if food waste were a country, it would be the third highest greenhouse gas emitter, after only the United States and China, and occupying 30 percent of the world s agricultural area. 5 The situation is no different when we consider only developed countries. In Europe, for example, food waste ranges from 74 million to 101 million tonnes per year and the associated costs are estimated at around 143 billion Euros. What s worse, the percentage of total food waste that is edible is very high at 83 percent for retail sale, 50 percent for primary production and processing, and 59 percent for food service. 6 Apart from the economic loss for the companies producing food waste, social and environmental losses are evident when edible food eventually becomes waste. Food Waste Hierarchy Reducing food loss and waste along the food supply chain is a critical and high priority element of any sustainability strategy. Many European countries adopt the hierarchy as shown in Figure 1, although there is currently no specific European Union (EU) legislation on how to apply the EU waste hierarchy to food. 7 Tackling the problem at its roots by preventing the generation of food waste is of obvious importance. Collaboration, such as by sharing information among supply chain actors to reduce the volume of waste created, is an example of possible prevention practices. Donations from food sources to nonprofit organizations, such as food banks, soup kitchens, and food pantries, is also a way to cope with the paradox of food insecurity versus food waste. Preventing food from becoming waste is the most crucial component from the sustainability perspective and appears at the top of the food waste hierarchy. Once food is not suitable for human consumption and becomes food waste, it can still be suitable for feeding animals. Food scraps and food processing residues can also be recycled into soil, as fertilizer or compost, creating economic value. Finally, advancing technology will increasingly allow food waste to be processed as an economical source of biomass energy. In contrast, landfilling without energy recovery appears at the bottom of the food waste hierarchy and is becoming an increasingly expensive route for the management of food waste, both from an economic and environmental perspective. Figure 1. Food waste hierarchy. Surplus Food Management Waste Management

3 Figure 2. Surplus food management. Agriculture Manufacturing Food aid organizations Disfavoured population Retail Food service Surplus food Surplus Food Management Though food processing companies naturally attempt to minimize waste generation at the source, inevitably food is wasted during the manufacturing process. Once the waste is generated, it has to be managed. Due to high levels of global malnutrition and hunger, the focus has become the rapid redistribution of unsold edible food from the food supply chain to those who can consume the food the way it was intended. Consequently, many researchers have started considering surplus food redistribution through non-profit organizations (see Figure 2) as a way to cope with the social issue of food insecurity and the environmental issue of food waste. In fact, many researchers use the term surplus food in order to distinguish unsold food suitable for human consumption from the food residue that is not suitable for human consumption (or food waste). The definition of surplus food is the edible food that is produced, manufactured, retailed or served but for various reasons is not sold to or consumed by the intended customer. 8 The literature suggests two pillars to be considered in order to be able to distribute surplus food through non-profit food aid organizations: 1. Management control systems (Measure Organize Coordinate) Many companies do not distinguish surplus food from food waste, and this prevents any action to save the edible food for human consumption. Measuring them separately in the daily processes would make companies IT 3 3 HWC th International Conference on Thermal Treatment Technologies & Hazardous Waste Combustors arch Houston T

4 Food insecurity is a relevant issue even in high-income countries; today in Europe, nearly 43.6 million people are estimated to be food insecure. aware that surplus food is generated. Once it is measured periodically and in a structured way, a decisionmaking system can be created. Procedures can be developed to take into account all relevant causes and management methods associated with the generation of surplus food. Donations to non-profit organizations are one method that can be used by the companies to save surplus food. In addition, discounts for primary markets, sales to secondary markets, or using the surplus food for marketing actions like sponsoring events are other methods to be considered by management. Food manufacturing companies should establish such processes and decide when to apply different methods. Finally, surplus food measurement indicators, as well as the organizational procedures, should be unified and should be communicated regularly within all functions in a company. The process of managing surplus food involves various business functions and the efficient interaction between those functions leads to timely decisions to save food in one way or the other. 2. Relationship with non-profit organizations (Pro-activism and regularity) Once a company can control its flow of surplus food through a well-structured management control system, it can decide whether to donate it or manage it in a different way. If the company considers the donation option, it should coordinate the process with non-profit organizations. To create a proactive and regular process, the company should define the products and the quantities expected to be donated, together with a detailed schedule concerning collection and/or distribution. Strong collaboration with reliable non-profit organizations will reduce the cost of management as transportation is generally the responsibility of the receiving organization. Such collaborations will contribute to corporate citizenship and the brand of the company, and also reduce the cost of waste disposal. Conclusion Food is wasted throughout the whole supply chain, from the agriculture stage to final household consumption. In today s competitive environment, sustainable waste management appears to offer important leverage for companies, and donating surplus food is an increasingly relevant practice for sustainable waste management. Considering the high level of food insecurity, even in developed countries, managing surplus food efficiently and effectively is increasingly recommended when preventing the creation of surplus food is not feasible. Figure 3. Critical factors for surplus food management. SURPLUS FOOD MANAGEMENT CONROL SYSTEM Measurement Organization Coordination RELATIONSHIP WITH FOOD AID ORGANIZATIONS Pro-activism Regularity

5 In this context, innovation in the operational systems is necessary in order to modify the existing processes to support a surplus food redistribution system. This pushes many stakeholders to work together: companies (e.g., producers, retailers, service operators), non-profit organizations (e.g., food banks, soup kitchens, food pantries), and public bodies (e.g., municipal, regional, and national governments). Strong collaboration between them is crucial in the fight to eliminate food waste and reduce food insecurity. em Sedef Sert is with the Department of Management, Economics, and Industrial Engineering at Politecnico di Milano, Italy. sedef.sert@polimi.it. References 1. United Nations. The Sustainable Development Agenda. See development-agenda (accessed September 15, 2017). 2. Food and Agriculture Organization. The State of Food Insecurity in the World. See (accessed September 15, 2017). 3. The Centre for Social Protection. Banking on Food: The State of Food Banks in High-income Countries. See (accessed September 15, 2017). 4. Food and Agriculture Organization. Global Food Losses and Food Waste: Extent, Causes and Prevention. See mb060e00.pdf (accessed September 15, 2017). 5. Food and Agriculture Organization. Food Wastage Footprint: Impacts on Natural Resources. See (accessed September 15, 2017). 6. Reducing food waste through social innovation. Estimates of European food waste levels. See Estimates%20of%20European%20food %20waste%20levels.pdf (accessed September 15, 2017). 7. House of Lords. Counting the Cost of Food Waste: EU Food Waste Prevention. See parliament.uk/pa/ld201314/ldselect/ldeucom/154/ htm (accessed September 15, 2017). 8. Garrone, P.; Melacini, M.; Perego, A.; Sert, S. Reducing food waste in food manufacturing companies; J. Cleaner Prod. 2016, 137,