Avoiding food wastage along the food value chain: Nestlé initiatives

OECD Food Chain Analysis Network

20th June 2013

Javiera Charad

Environmental Sustainability Project

Manager

Nestlé at a glance

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CHF 92.2 billion in sales in 2012

339,000 employees in over 150

countries

468 factories in 86 countries

34 research, development and

technology facilities worldwide

Over 2,000 brands

1 billion Nestlé products sold every day

Consumer Retail Agriculture Postharvest

Manufacture &

Distribution

Why?

Recom

menda

tions**

• Poor farming

conditions

• Extreme weather,

water stress

• Mechanical damage

• Spoilage

• Harvest losses

• Out-grades

• Lack of appropriate

storage

• Inadequate infrastructure

and distribution systems

• Pest, disease, spillage

• Lack of cold/cool chain

• Process losses

• Damage during

storage, distribution

• Contamination, off-

specification

• Inefficient

packaging

• Supply chain

inefficiencies

• Inappropriate packaging

• Adverse Marketing

strategies

• High product standards

• Poor planning

• Cooked, prepared or

served too much

• Not used in time

• Confusion over date

labels (e.g. use by /

best before)

• Socio economic

factors

• Wrong Packaging

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• Better information

systems

• Education

• Technology &

knowledge transfer

• Low cost harvest

machinery

• Raise awareness

• Fit for purpose

• Better packaging

• Clarification on date

labels

• Improve collection/

separation rates

• Efficient supply chain

• Cool/cold chains & dry

storage

• Alternative sources of raw

materials packaging from

waste

• Improve transparency

of food waste and

environmental impact

• Deployment of

existing

technology in

storage and

transport

• Investment in new

technology

1/3 food produced in the world is wasted (1.3 billion ton)*

Developed

countries

Developing

countries

*FAO 2011 Global food losses and food waste

*Global food losses and food waste (2011) FAO

Foresight. The Future of Food and Farming (2011). Final Project Report. The Government Office for Science, London.

Food wastage is unacceptable

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...in an environment where water is increasingly scarce, natural resources are constrained and biodiversity is declining. All of these elements are vital for feeding a growing world population and for the development of Nestlé.

Specific to our food and beverage

business we focus zero waste, along

the value chain from farmers to

consumers and beyond.

Prevent food wastage from occurring is the preferred solution

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Prevent

Reduce

(Food redistributed to people

Food sent to animal Feed)

Recover/Recycling

Disposal

When it does occur, it should first

go to feeding people or, if unfit for

human consumption, to feeding

livestock if legislative

requirements are met.

If not, it should be recovered, e.g.

transformed into fertilizer or

compost or used for renewable

energy production.

The preferred option will depend

on a case by case evaluation.

Only as a last resort should food

waste be incinerated without

energy recovery or sent to landfill.

Consumer Agriculture & Postharvest

Manufacture & Distribution

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Nestlé is avoiding food wastage along the food chain

R&D

Pets for People & Fare Share

donation programmes

NCE Zero Waste

Approach R&D Programme

contributing to 0 waste.

Provision of cooling

systems in India

Food waste in Responsible

Sourcing Guidelines (soy

and sugar)

2013 Project looking into

waste up-stream supply

chain, storage and farming.

Project Zeus helped

reduce food wastage

in hospitals

Improve Demand

Planning

Bad goods reduction

Programme

Portion size Guideline

Nido scoop and detailed

preparation instructions. It

provides advice about storage,

so as not to waste any.

Capacity Planning

Programme to

better manage

inventories

Improved

manufacturing

practices result in

food waste

reduction

Appropriate Packaging:

prevents spoilage,

breakage, contamination

39 factories with

zero waste to landfill

or incineration

Shelf stable products

Awareness campaing for

employees

Transforming perishable raw materials into safe and value-added food products for consumers

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As the world’s leading food and

beverage company we

transform more than 14 million

tonnes of perishable raw

material into finished, shelf-

stable products every year.

One of our most recognisable

examples of this is Nescafé, the

soluble coffee we created in

1938 as a solution to Brazil’s

coffee bean surplus at the time.

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Helping farmers to avoid milk losses

We provide cooling facilities

to help farmers in developing

countries reduce milk losses.

By providing these facilities

we have managed to reduce

losses between farm and

retail by up to 1.4 million

tonnes annually.

Ongoing R&D programme to find new ways to reduce food wastage across the value chain

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This includes plant science

initiatives such as marker

assisted breeding (not-GMO)

to accelerate the production

of better quality coffee and

cocoa plants, and other

specific crops that are an

important source of raw

materials for us.

By offering farmers a choice

of improved plant varieties we

can help to reduce the

number of plants lost to

disease or to climatic change.

Achieving zero waste in our factories

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Last year 39 of our factories

achieved zero waste for disposal.

By 2015, 10% of Nestlé factories

with 0 waste.

In 20 of our Nescafé factories, we

use coffee grounds from the

manufacturing process as a

source of renewable energy.

Packaging prevents food waste by protecting the ingredients from spoilage or damage

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Improving capacity and demand planning in distribution

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By improving our capacity and

demand planning, we are

reducing the likelihood of product

returns and spoiled goods.

Offering consumers the right portion sizes, preparation instructions and storage guidance

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We help consumers manage

their food shopping by offering

them the right portion sizes for

their needs.

We provide preparation

instructions on our packaging,

which is crucial to prevent food

wastage, and via websites

such as 'Maggi Kochstudio' in

Germany.

Running specific campaigns to encourage employees to reduce food waste in canteens

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At our headquarters in

Switzerland we succeeded in

reducing food waste by one

third in six months by

encouraging employees to take

an appropriate portion of food

from the self-service buffet and

by allowing them to buy

leftovers and take them home.

Proactive long-term engagement and partnership on food wastage

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Committed to reducing food wastage along the value chain We are committed to further reducing food waste along the entire

production chain from farm to consumers and beyond, as well as to

raising awareness of the fact that the true value of food is often not

reflected in its price.

We support the wide and well application of the polluter-pay principle.

We engage to leverage zero waste along the value chain.

We call on all stakeholders involved in the food chain from farm to

consumer and beyond to take action to prevent and eliminate edible food

wastage on a global scale.

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Thank you