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Stepping up to the plate: How suppliers are reacting to pressure to reduce food waste and save surplus 

By Mike Humphrey

There is the potential for the food and drink sector to provide a billion extra meals to people in need by reducing food waste, recovering surplus and reinvesting savings.

 

Newton Director, Mike Humphrey, reveals why suppliers are pivotal to those plans to increase surplus recovery in the UK, and how they are responding to growing pressure to do the right thing.

“We will keep supporting those who need it most.” The words used to introduce the National Programme to Redistribute Surplus Food earlier this year may sound simple. Look closely, and they’re packed with meaning. That single word ‘keep’ makes the country’s commitment to consistently, always saving more food and helping more people crystal clear. It is about doing good, for good. It is about industry-wide change.

The food is there to be rescued: 89k tonnes of unpreventable surplus is wasted each year (1). At the same time, there is no shortage of demand for it: food prices have risen for 91% of people (2). One in seven households with children are struggling to afford food, risking pushing more people into buying cheaper calorie-rich, nutrient-poor foods to get by (3).

Already, the government redistribution programme is creating momentum. “It’s aligned us as a redistribution sector,” says Ali Gourley, Senior Public Affairs Manager at the UK’s food rescue network, Felix. Newton works closely with the charity to help organisations contribute to recovery efforts. “This feels different,” Ali told us.

“We are rallying behind the ten-year target and we will hit it, if government moves on policy and – this is vital – if the food industry moves with us.”

Ali Gourley , Senior Public Affairs Manager Felix

So, how can we?

All eyes on supply – why the industry is focused on factories

Retailers will continue to play a vital role in achieving the national target to triple the amount of surplus food redistributed (4) over the next decade.

Supermarkets visibly contribute to their communities, donating millions of meals a year.

We all regularly see the shelves at the exits to donate pasta and tinned goods.

The ‘Let’s make a meal of it’ fundraising campaign, where money is raised at the tills of leading grocers, has a huge impact each year, and 57 million meals were donated through one initiative alone between retailers and Felix in 2022/3 (5).

Packed and labelled, food within retailers can be transported easily to frontline charities to reach millions of people experiencing food insecurity. That convenience is not free: packing and labelling costs, as does moving the food to and from the supermarkets, not to mention margins. Retailers (and their customers) want to do the right thing with round-up donations – and understandably this is their focus as it is where they have the most visibility. But can they have an even greater effect by working with their supply chain to undertake more recovery?

Research within The Waste Equation (6) report suggests so, showing a cost-effective opportunity to recover surplus earlier in the supply chain – within suppliers. The report was created by Newton in collaboration with Felix and Alliance Food Sourcing, part of IGD (Institute of Grocery Distribution). It shows that:

  • It costs  £1.12  for a balanced meal to reach the retail shelf.
  • To manufacture a balanced meal costs  50p – less than half as much.
  • The average cost to recover a meal from within factories is even less – just  17p.

So, buying food at retail price is more expensive than supporting food recovery or funding food produced at cost price by manufacturers. It is not markedly simpler either. Yes, within factories, food is not always yet packed and labelled but even unpackaged items are easy to safely move to charities with processes Felix has developed – and the savings are significant.

If every manufacturer in the country cut their waste and contributed the remaining edible surplus, 89k tonnes would be recovered. That is the equivalent of 212 million extra meals reaching people through charities like Felix, and local charities and community groups every year.

Under pressure

Why suppliers are already adapting

Reducing waste in manufacturing could be a place for our whole industry to invest time, money and effort if it wants to take a significant step towards the government target. The timing is spot on as focus here makes sense for several other reasons.

Suppliers are already reviewing operations right now due to pressure caused by:

1

Rising food costs

Reducing costly waste will save money needlessly being spent on a valuable resource.

2

Retailer shifts

Grocers are choosing to work with suppliers whose values align with their own, increasingly building waste limits and emissions KPIs (Key Performance Indicators) into contracts. Suppliers who don’t get waste under control risk relationships and competitive advantage.

3

Potential policy changes

A mandate not to waste good food is not far away. Sending surplus to animal feed or anaerobic digestion can make revenue, but the food waste hierarchy is clear that feeding people comes first. Tax policy recommendations, based on calculations within The Waste Equation, will soon be shared with the government.

1

Rising food costs

2

Retailer shifts

3

Potential policy changes

Reducing costly waste will save money needlessly being spent on a valuable resource.
Grocers are choosing to work with suppliers whose values align with their own, increasingly building waste limits and emissions KPIs (Key Performance Indicators) into contracts. Suppliers who don’t get waste under control risk relationships and competitive advantage.
A mandate not to waste good food is not far away. Sending surplus to animal feed or anaerobic digestion can make revenue, but the food waste hierarchy is clear that feeding people comes first. Tax policy recommendations, based on calculations within The Waste Equation, will soon be shared with the government.

Ready, steady, go

How suppliers can make a consistent difference

While the pressures and opportunity are significant, changes that make a real difference do not need to be.

For suppliers reviewing their operations, there are opportunities to reduce waste and recover more in six areas: preparation, operations, quality control, giveaway, changeover and planning. Once identified, recovering the surplus requires only simple process changes – for instance, placing edible surplus into large plastic boxes and leaving them in the same place each week for volunteers to collect.

Contributing food consistently in this way is the key to charities being able to plan, cook and share healthy meals with people when they need them. One-off rescues of large volumes of food or innovative projects funded for a year may create headlines, but it is regular, expected food, even in small amounts, that builds the certainty charities need to do their best work. “Suppliers who build surplus recovery into the rhythm of how they operate every day make the greatest difference to communities,” says Ali.

Barfoots, the vegetable grower and manufacturer, provides a standout example. It repackages the edible offcuts from preparing and packaging its butternut squash and sweet potatoes. These packages are then collected by Felix volunteers. “Look at your waste through a different lens,” says Steve Brown, Head of Customer Technical. “It is an alternative stream for repurposing to help people and charitable organisations.”

Suppliers who react to this moment of pressure by collaborating with organisations elsewhere in the supply chain, taking a fresh look at their operations and adapting their ways of working are onto a win-win. Not only will they reduce costs and increase competitiveness, but they will help the industry keep supporting those who need it the most.

 

How to get involved

To find where in everyday operations there are chances to recover even small amounts of food regularly, the IGD’s Alliance Food Sourcing carries out a 15-minute call to introduce its approach. This is followed by factory visits, with Newton where required, to spot opportunities in preparation, operations, quality control, giveaway, changeover and planning to achieve a flow of food to charities. Get in touch to join the companies leading the way in food redistribution.

Find out more

The National Programme to Redistribute Surplus Food builds on the work of the Coronation Food Project inspired by His Majesty the King. The programme was launched following the publication of The Waste Equation report, which was shaped by Felix, IGD’s Alliance Food Sourcing team and Newton. It reveals how the food and drink industry can reduce food waste, recover more surplus to people who need it and use savings to reinvest in creating more good food to donate. Read the full report.

 

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