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Fighting Food Waste Using the Circular Economy

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Fighting Food Waste Using the Circular Economy Fighting food waste Using the Circular Economy KPMG.com.au B Fighting food waste using the circular economy © 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Fighting food waste using the circular economy 1 Contributors and acknowledgements 2 Foreword 4 Introduction 5 Fighting food waste: The problem and opportunity 6 What is Circular Economy? 8 What does Circular Economy mean for food? 11 Around the world: Enabling Circular Economy to fight food waste 13 Current state of play in Australia 15 Circular Economy in Action 18 – Case study: Woolworths 19 – Case study: Yume 21 – Case study: Natural Evolution Food 23 – Case study: Tarac Technologies 25 – Case study: Mackay Sugar 27 – Case Study: Peats Soil 29 Fight Food Waste CRC 32 KPMG Circular Economy Services 33 Contributors 34 Looking for more inspiration? 34 Appendix 1: International enabling ecosystems 35 © 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. 2 Fighting food waste using the circular economy Contributors and acknowledgements KPMG and the Fight Food Waste Cooperative Research Centre (CRC) have produced this report to highlight opportunities in the circular economy. The Australian Fight Food Waste CRC brings together industry, research and the community to capitalise on Australia’s food waste opportunities. The Fight Food Waste CRC is now the largest food waste research, development and extension public private partnership globally with 43 industry partners, eight university partners and eight state agencies participating in the cooperation. The CRC has funding to operate until 2028 ensuring focus and effort towards the National Food Waste Strategy, which has a goal of halving food waste by 2030. Through three research and development programs, the Fight Food Waste CRC will REDUCE food waste across the supply chain, TRANSFORM unavoidable waste into innovative products and ENGAGE with industry and consumers to create behaviour change. At KPMG, we believe that while growth is the fuel of development, how you grow matters. That’s why we strive to do things in a way that gives ‘now’ the win it needs while setting the future up for a win too. It’s with this common purpose that more than 200,000 KPMG people in 153 countries and around 7,500 in Australia help companies plan sustainable pathways to value and growth. We offer deep expertise in Audit, Assurance & Risk Consulting; Deals, Tax & Legal; Management Consulting; Innovation, Solutions & Ventures; and tailored business services through KPMG Enterprise. We foster a diverse, inclusive and forward-thinking culture and our employees give freely of their time and expertise to help fuel community wellbeing and growth that benefits us all. Through our dedicated Circular Economy and Food and Agribusiness consultancy practices, KPMG specialists are focused on helping organisations grow more with a lighter impact on the planet. © 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Fighting food waste using the circular economy 3 © 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. 4 Fighting food waste using the circular economy Foreword Australia is a standout producer of high working together with the countries These three simple principles are at quality and safe food that the world leading minds on food waste reduction. the heart of the FFW CRC and can be wants yet we take for granted. We The FFW CRC aims to create value out directly linked to all of our research, produce enough food to feed 60 million of food waste through treating it as a development and extension projects. people in a country with a population of resource. Determining the best options 25 million, yet the United Nations Food for any resource stream is the role of I recommend this report to any and Agriculture Organisation reports our research community. Ensuring individuals or organisations wanting that 35% of this food grown for human that by the end of our term industry to fight food waste using the circular consumption is wasted. In 2019 the and consumers alike re-value surplus economy and note that the Fight Food Federal Department of Environment food is our primary aim. Ultimately Waste CRC and KPMG are here to help and Energy reported that this equates wasting food, no matter where in the you on your journey. to 7.3 million tonnes per annum, enough supply chain, must become as socially Dr Steven Lapidge to fill the Melbourne Cricket Ground to unacceptable as littering. Chief Executive Officer the brim near nine times. Shockingly Outlined in the following pages is Fight Food Waste Cooperative this occurs at a time when more than Research Centre 1 in 5 Australians are food insecure and information on food waste in Australia food charities are struggling to meet the and globally, principles of the circular rising need for food relief. We can do economy, as well as leading businesses better as a nation and adopting circular in Australia that have adopted circular economy principles to prevent food economy principles, some up to waste is the first step. 90 years ago, and have developed successful businesses that manage The Fight Food Waste Cooperative food waste. “ Winning the fight against Research Centre (FFW CRC) While the concept of the circular food loss and waste can commenced in July 2018 with a vision save Australia AUD$20 of an Australia without food waste economy may be new to many, the and a 10-year horizon. The benefits of principles behind it have long been billion per annum through achieving this vision are enormous. utilised by many human civilisations, increased industry Winning the fight against food loss such as the Romans, where recycling profitability and reduced of materials was common. Ultimately, and waste can save Australia $20 food insecurity, as well billion per annum through increased circular bioeconomy principles come industry profitability and reduced down to three key aims as highlighted as enhancing Australia’s food insecurity, as well as enhancing by the Ellen Macarthur Foundation: reputation as a sustainable Australia’s reputation as a sustainable 1. Design out waste and pollution. food producer.” food producer. The only way this 2. Keep products and materials in use. can be achieved is through industry, Dr Steven Lapidge, governments at all levels, and society 3. Regenerate natural systems. Fight Food Waste CRC © 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Fighting food waste using the circular economy 5 Introduction Food waste is a global issue costing over AUD$1.75 trillion annually1. In an effort to reduce poverty and We can fight food waste using The World Resources inequality, encourage economic the circular economy Institute through growth and recognise environmental For businesses adopting circular Champions 12.3 has impacts, the UN’s Sustainable models, benefits include greater Development Goals include a target efficiency and profitability, less waste reported that the of halving food waste by 2030. and cost, better innovation and stronger average return on Acknowledging our own AUD$20 relationships with customers. investment is 14:1 for billion food waste problem, Australia the 700 companies has set a National Food Waste However, for many the concept of Strategy aligned to the UN target2. circular economy models and the shift involved in their analysis. required in mindset and business World Resources Institute3 Reducing food waste can have a processes can seem daunting. In positive benefit for the environment Australia, there is a need for greater and communities. Beyond this, by understanding of what circular economy adopting a circular economy approach means and how businesses are to reduce, reuse and recycle food successfully adopting circular models. waste, there is the opportunity for new business models to emerge and By fighting food waste through a financial benefits to be captured from circular economy model, there is a real what was otherwise being wasted. advantage to be gained
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