Wasted Food: the Antithesis of the Triple Bottom Line

Transcription

1 Wasted Food: the Antithesis of the Triple Bottom Line June 6, 2014 Gail Tavill VP, Sustainability The issue of food waste is not a new topic among sustainability professionals, but it has just recently been gaining increased attention from government agencies, media and the general public. Stresses on food production systems due to multiple social, economic and environmental factors have revealed alarming statistics about the amount, causes and consequences of wasted food in the US and globally. This presentation will dive into the food waste problem and share information about the Food Waste Reduction Alliance, a unique industry collaboration working to address this problem.

2 Who is ConAgra Foods? ConAgra Foods began doing business in 1919 as Nebraska Consolidated Mills. In 1971 we were renamed ConAgra, Inc., and the company became ConAgra Foods in ConAgra Foods is a publicly-traded Fortune 500 company headquartered in Omaha, Nebraska With our recent acquisition of Ralcorp, our combined companies employ more than 36,000 employees, across more than 100 facilities With net sales exceeding $18Billion annually

3 you may know us better by these

4 ConAgra Foods Recipe for Growth

5 Citizenship Approach We re talking about you, the person who loves our food. We want nothing more than to make safe, delicious and nutritious foods while providing the information you need to make choices for a healthy lifestyle. Food Safety & Quality Health & Nutrition Consumer Communication This includes employees, investors, suppliers and business partners, as well as the communities where we live and operate. Our people Our customer & suppliers Giving back to our communities Ending child hunger It s all about changing attitudes about WASTES: Wasted Energy Wasted Water Wasted Material Resources Internally and in our supply chain to assure long term access to food Access our 2013 Citizenship report at: 5

6 As POPULATION & WEALTH increase, so does demand It s Basic Economics The Earth is mostly a fixed asset, so supply CANNOT rise equally to meet demand This WILL drive up costs, some sooner than others A sustainable business will plan for these pressures and think two steps ahead

7 What is Food Waste? Any solid or liquid food substance, raw or cooked, which is discarded, or intended or required to be discarded Organic residue generated by the processing, handling, storage, sale, preparation, cooking, and serving of foods

8 Economic Impact Growing, processing, and transporting food of which 25-40% is ultimately wasted Disposal costs, retailer shrink, consumer out-ofpocket costs, etc. Social Impact Environmental Impact Energy, water, and land use associated with food production GHG generation when food scraps degrade in landfills 50 million Americans have food insecurity Enough nutritious calories are grown and produced in the US each year to feed every American

9 Why Reducing Food Waste is Strategic Good for You Over-consumption of food leads to obesity and health problems so we offer a wide array of single serve and portion control options Good for the Community Need to feed people, not landfills if we are to succeed in Ending Childhood Hunger Novel solutions for donating semi-finished goods, obsolete ingredients and other nontraditional foods from our plants has substantially increased our donation capacity Good for The Planet Valuable natural resources are wasted in growing, harvesting and transporting food that isn t ever eaten energy, water, land, chemicals, etc. Food rots in landfills producing methane gas - 21x more potent that CO 2 for GHG effects Landfills account for >20% of all US methane emissions 30-40% of All Food Produced is Wasted Nearly 80 BILLION Pounds / Year in the US = ~ 250 Pounds / US Citizen / Year

10 ConAgra Foods Waste Footprint, FY13 People Landfill 1% 5% People Soil 3% Energy 4% Animals 87% Animals Energy Soil Landfill Already diverting 95% of organics from landfill so not a new concept Most of our by-products becomes food for animals There is economic incentive to do this right Top Line: Revenue from animal feed and energy recovery Bottom Line: Savings from reduced landfill fees Below the Line: Tax incentives for donations Even at 95% diversion, we still have too much going to landfill >110Million lbs!

11 Re-Direct Food Losses to Most Beneficial Use Generated 100 MM Lbs. less waste from FY11 to FY12 87% of our organic By-products are diverted to local farms for animal feed Some materials are best suited for soil amendments via compost or direct land application ConAgra Foods Endorses the US EPA Food Waste Recovery Hierarchy Finding unique opportunities to segregate and donate semi-finished & bulk foods to Feeding America partners Nearly tripled the materials sent for energy recovery from FY11 to FY12 and doubled again in FY13 Last resort is to destroy materials without any value recovered. In FY13, ConAgra Foods landfilled only 5% of organic wastes generated

12 Saving Slims Troy, Ohio >1.8 Million pounds of Slim Jim pieces donated as of March 2014 During Slim Jim production, a small percentage of scrap, consisting of loop ends, mis-cuts and short sticks, is worked back into the product. The remainder used to go to landfill, but is now donated to a food rescue organization in Metro Detroit.

13 Save our Shreds Twin Falls, Idaho before after The reduction in frozen waste from the installation of VFDs on the fans is unbelievable. There is virtually no blow off at lower fan speeds. Joey Burchard, Line 3 Superintendent 250 tons of potato waste reduced 20% reduction in waste produced at the line

14 Make More Dough by Wasting Less Council Bluffs, Iowa 235 tons of food waste eliminated 60% reduction in dough waste for the line Proving what gets measured, gets managed, Council Bluffs created a standard process to measure the amount of dough wasted each day to identify and implement improvements.

15 Dustin Dough for Gravy Marshall, Missouri 96.2 tons of flour kept out of the landfill 740 pounds of flour recovered each day We just knew there had to be a better answer than sending dusting flour to the landfill. We could do better for our bottom line, and we could do better for our planet. Don Batye, Pie Line Lineservice $57,600 annual cost savings, less than 1-year payback

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17 FWRA Goals & Scope 3 year initiative, cross-industry collaboration with these primary goals: Reduce Food Wastes Generated Increase Food to Donation Increase Recycling of Food Wastes IN-SCOPE Agriculture Processing and Manufacturing Transportation Retail Consumer

18 FWRA Members

19 US EPA s Food Waste Recovery Hierarchy

20 Food Waste Reduction Alliance - Phase I Assessment: US Food Waste Distribution, % 22% Feed People Feed Animals 65% CAG: 1,690* 7% 5% Energy Recovery Compost/Land Application Landfill Recovered / Recycled: 21MM tons= 35% Total Losses Generated: DISPOSED for NEGATIVE value: 61MM tons 40MM tons

21 Food Waste Reduction Alliance - Phase II Assessment, 2011: Where / Why Are Losses Occurring? Consumer 47% Plate Waste Damage Expired/Spoiled Obsolete Foodservice 48% Plate Waste Over Prep Expired/Spoiled * Does not include waste from Agriculture

22 Food Waste Reduction Alliance Best Practices Toolkit Published in April

23 Environmental Model for Diverted Food By-Products: Actual, Self Reported Data from 13 Manufacturers (17% of US production) Projected for Total US Diverted Food Production Materials % of Total Tonnage MTCO2E/ 1,000 Tons total MTCO2E Donation / People 1.6% 350,000 (223) (78,050) Animals 68.6% 15,200,000 (223) (3,389,600) Energy/Rendering 3.7% 825,000 (120) (99,000) Compost/Land apply 20.7% 4,575,000 (200) (904,000) Landfill 5.4% 1,200, ,000 Total Organics 100% 22,150,000 Organics Diverted 94.6% 20,950,000 (3,642,650) 1) Tonnage is based on FWRA Tier II Assessment survey published summer ) MTCO2E for diverting to animal food and donation is an estimate - EPA's Waste Reduction Model (WARM) does not include these options. 3) MTCO2E for energy is very conservative as it is based on incineration 4) MTCO2E for composting and landfill based on EPA WARM Model

24 Economic Model for Diverted Food By-Products: Actual, Self Reported Data from 13 Manufacturers (17% of US production) Projected for Total US Diverted Food Production Materials % of Total Tonnage / Year Revenue or Cost ($/ton) Estimated Revenue Donation / People 1.6% 350,000 Animals 68.6% 15,200,000 $10.00 $152,000,000 Energy/Rendering 3.7% 825,000 $20.00 $16,500,000 Compost/Land apply 20.7% 4,575,000 ($10.00) ($45,750,000) Landfill 5.4% 1,200,000 ($60.00) ($72,000,000) Total Organics Generated 100% 22,150,000 Total Organics Diverted 94.6% 20,950,000 $50,750,000 1) Tonnage is based on FWRA Tier II Assessment survey - published summer ) Average landfill fees are very conservative. They vary greatly by location 3) Estimated revenues/ton for animal food and energy recovery are VERY conservative. Values range widely depending on nutritional value of the materials, consistency of supply, local demand and transportation costs. 4) Compost / land application in most cases incurs a cost to the waste generator. This estimate is conservative.

25 25 FWRA Joins the US Food Waste Challenge Why take the challenge? Improve your bottom line through cost savings from improved purchasing and preparation practices and reduced waste disposal fees Support your community by using food to feed people, not CAG: landfills 1,690* Reduce your environmental footprint and greenhouse gas emissions Get recognized for your achievements Access free technical assistance for your baseline assessment and food recovery activities

26 What Industry Can Do: Preservation & Packaging Will Be Part of the Solution to Reduce Food Waste in Home Plate Waste Single Serve meals are right sized, so no guilt for a clean plate Portion Control packaging reduces losses due to over-consumption and failure during re-storage Damaged Packaging needs to be effective get the product into the home And functional it needs to work for the product: cooking features, EZO features, dispensing features can all enable less product wastage Expired/Spoiled Freezing, Aseptic Processing, Thermal Processing and other preservation techniques extend shelf life and protect food safety- allowing consumers more time and flexibility to enjoy our products Packaging technologies also extend shelf life via barriers and reclose features, also enabling less waste in home Modern Processing & Packaging have already had positive impacts on the US Food Supply Chain. Continued innovations can reduce wastes in home.

27 What Can YOU Do About Food Waste? 95% of municipal food waste happens at the FORK Right size your portions in home and out - and eat your leftovers! Compost trimmings if you can Shop smart, especially for perishables, to avoid over-purchasing Embrace ugly produce! Fruits and vegetables don t have to look perfect to taste great Rotate inventory in your fridge so you don t leave things behind Follow storage instructions on packaging Be educated about date codes use common sense about food safety vs. food quality Respect food, where it comes from and the effort it takes to get it to you Spread the word, let s make ALL waste socially unacceptable!! A video to leave you with

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