Food waste Is waste reduction a better option to cut emissions? Steve Spencer Director, Freshlogic
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1 Food waste Is waste reduction a better option to cut emissions? Steve Spencer Director, Freshlogic The proposition Is waste reduction a better option for cutting agriculture s emissions? Consider: Trade offs between and emissions What implications for research, policy, extension 1
2 What do we do? Food market analysts and advisers Thruchain mapping How it works? Adding it up Deeply involved in work across key food value chains Fresh produce, dairy, meat Track consumer spending on food Clients from farm to, industry level and Governments The problem 1. Is there excess supply v consumer demand? 2. Are we wasting limited resources & emitting excessive GHGs vs demand 3. Can better yields curb the problem? 4. Waste reaching landfill creates emissions 3% of emissions, 20-40% is food 5. Are solutions workable or (at best) theoretical 6. Can we divert waste to address food security? 7. Can we measure it? 8. Can we value it, and does that matter? 2
3 The content Put this issue into context What is waste? How big is the issue? What is causing it? What are some solutions? The response to the proposition? Some ways to think about the problem A way to size the issues and solutions Sources of emissions Total emissions pie (2008 to 2012) average Industrial 6% Waste Forests 3% 4% Fugitives 7% Electricity 34% Agriculture 14% Transport 15% Fuel combustion 17% 3
4 Sources of emissions Industrial 6% Waste Forests 3% 4% Related activities Agriculture s share 83mt (2008 to 2012) average Soils 18% Burning 14% Livestock 68% Fugitives 7% Agriculture 14% Transport 15% Electricity 34% Fuel combustion 17% Consider some questions How much waste is from the big emitters? What is driving key food industry volumes? How much output stays onshore and may end up in domestic waste streams? Could we cut emissions by reducing through the elimination of waste? 4
5 Food exports are highly relevant! % of food volume sold into each market 0% 20% 40% 60% 80% 100% Beef Sheep Pork Poultry Seafood Milk Fruit Veg Grains Eggs Exports Grocery Foodservice Source: Freshlogic FOODmap Consumption within Australia 000 Tonnes Beef Sheep Pork Poultry Seafood Milk Fruit Veg Grains Eggs ,599 1,766 68% of GHG emissions from agriculture + portions of other types 2,304 3,013 Source: Freshlogic FOODmap 5
6 Consumption within Australia 000 Tonnes Export driven industries We have competitive advantages Export markets hungry for food If more is available, it will be sold offshore Beef 468 Sheep 329 Pork 154 Poultry 649 Seafood 166 Milk Fruit Veg Grains Eggs 224 1,766 1,599 3,013 2,304 Source: Freshlogic FOODmap Consumption within Australia 000 Tonnes Beef Sheep Pork Poultry Seafood Milk Fruit Veg Grains Eggs ,599 1,766 Small portion of ag emissions from tilled soil? 2,304 3,013 Source: Freshlogic FOODmap 6
7 Consumption within Australia 000 Tonnes Beef 468 Sheep 329 Pork 154 Poultry 649 Seafood 166 Milk Fruit Veg Grains Eggs 224 Domestic focused industries Oversupplying fresh needs Losing advantage in If less is available, should decline 1,766 1,599 3,013 2,304 Source: Freshlogic FOODmap What do we mean? What is waste Where does it occur? How much do we think is incurred? 7
8 Channels to the consumer Retail DC Supermarket Further Independent food outlets QSR Page 15 Household Household waste Surplus to need Fridge spoilage Retail DC Supermarket Further Independent food outlets QSR Page 16 8
9 Retail Supermarket Buying > demand Retail DC Supermarket Further Independent food outlets QSR Greengrocer Butcher / seafood Foodservice Restaurant / takeaway Fast food Page 17 Supply chain Processing Failure to make specification Excess supply Unviable by-product streams Yield from raw into useful food Retail DC Supermarket Further Independent food outlets QSR & distribution Fresh markets Distribution and logistics Page 18 9
10 Farm Retail DC Supermarket Farm Surplus to demand Unviable harvests Underutilised feed Weather damage Quality underperformance Further Independent food outlets QSR Page 19 Can we measure it? Can t manage what you can t measure Limited whole of chain analysis National Waste Study 2010 Identified the gaps Sized the task Page 20 10
11 Can we measure it? The quality of data available Retail DC Supermarket Further Independent food outlets QSR Strong Moderate Weak Page 21 How big is this issue? Only anecdotes? 4 million tonnes? Disappearance is million tonnes (just primary sourced) US study (Aug 2012) says 40% losses from farm to landfill Mostly fresh produce at and consumer points Various categories incur waste earlier 11
12 How big is this issue? Source: National Resources Defence Council 2011 What are the drivers of waste? If we are to create change, first understand WHY waste is created and what trends are apparent! Processing Grocery Food service 12
13 What are the drivers of waste? Economic and market volatility Waste a new KPI for sustainability Demand for convenience and portion control Climatic uncertainty Processing Weak signals Precision buying Grocery Food service Poor planning Frugal households uncertainty and volatility in foodservice Page 25 What are the drivers of waste? Economic and market volatility Waste a new KPI for sustainability Demand for convenience and portion control Climatic uncertainty Processing Weak signals Precision buying Grocery Food service Poor planning Frugal households uncertainty and volatility in foodservice Page 26 13
14 The biggest scope for impact? Processing Grocery Food service Solutions The % of sales volumes into foodservice 14
15 The biggest scope for impact? Processing Grocery Food service Solutions? Processing Improve business skills Grocery Food service Education: cost and impact on planet Reducing waste and waist! Collaboration to improve supply chain signals Can t get supply & demand matched how will the more complex management of waste be possible Capture and process Page 30 15
16 Solutions Capture initiatives Energy Diverting to composting Charity collection Diverting to valid unmet demand? Local v global Can we take our waste into needy markets? Are we part of the solution to global food security Biowastes less than 1% of renewables Dual purpose space limits & energy Cost competitive? Inefficiency is a weakness Feasible without support? How close is regulation? Solutions Capture initiatives Energy Diverting to composting Charity collection Diverting to valid unmet demand? Local v global Can we take our waste into needy markets? Are we part of the solution to global food security Small but important part of the solution Social v environmental 16
17 Solutions Capture initiatives Energy Diverting to composting Charity collection Diverting to valid unmet demand? Local v global Can we take our waste into needy markets? Are we part of the solution to global food security Viability? Donate v sell at price? Back to the proposition Imperative: invest in measurement! Align with supply chain realities Making an impact? Changing household behavior Market signals in domestic sectors Collection and (LGAs) Limited impact on farm emissions World demand creates incentive Better scope in curbing livestock emissions through other means 17
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