RIRDC REPORT Increasing productivity through decreasing ... · Centre in a PIRSA and...

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1 RIRDC REPORT Increasing productivity through decreasing food waste and loss in the value chain, particularly pre-farm gate Robbie Davis 2016 RIRDC Rural Woman of the Year (SA) February 2017

Transcript of RIRDC REPORT Increasing productivity through decreasing ... · Centre in a PIRSA and...

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RIRDC REPORT

Increasing productivity through decreasing food waste and loss in the value chain, particularly pre-farm gate

Robbie Davis 2016 RIRDC Rural Woman of the Year (SA)

February 2017

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Table of Contents Executive Summary ................................................................................................................................ 3

Introduction ............................................................................................................................................ 4

Background ............................................................................................................................................. 4

The Issue ................................................................................................................................................. 5

Methodology .......................................................................................................................................... 6

Anticipated Outcomes ........................................................................................................................... 6

Project Travel Itinerary .......................................................................................................................... 6

1. United Arab Emirates (UAE) (Dubai) ............................................................................................... 7

2. The Netherlands .............................................................................................................................. 8

3. Belgium ......................................................................................................................................... 16

4. France ............................................................................................................................................ 18

6. Northern Ireland ........................................................................................................................... 28

7. Denmark ........................................................................................................................................ 29

Discussion ............................................................................................................................................. 33

Recommendations ............................................................................................................................... 34

Acknowledgements .............................................................................................................................. 36

References ............................................................................................................................................ 37

Appendices ........................................................................................................................................... 38

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Executive Summary Australian studies indicate that around 25 per cent of horticulture production is lost inside the farm gate. Most of this is thought to be avoidable with approximately 80 per cent of these losses able to be eliminated. The potato industry is the most significant but disproportionate contributor to this waste. The project investigated the need for Australian agricultural and horticultural industries to increase productivity through decreasing pre-consumer food loss and post-consumer food waste in the value chain, particularly at the farm gate at a regional level. There was a focus on the potato industry; the world’s third largest food crop. The study tour enabled the direct discovery of mainly European practices in the value-add of graded-out (waste) horticultural product pre-farm gate. ‘Waste’ is not a considered word in the European food vernacular and the use of by-products/co-streams has enabled a maximising approach to the use of food generally. The major difference is the EU Government-led initiative to curb waste entirely across the horticultural value chain which has derived from an environmental perspective, not an economic one. There is no doubt that the environmental imperative driven by many small land holders conducting primary production on limited acreage provides a completely different perspective to waste transformation and reduction to the issues confronted in the Australian environment. The fundamental issues of value-adding are however, the same. The Australian industry and the Government at all levels are failing in their response to reducing ‘waste’, increasing profitability at farm gate and in turn contributing to the nation’s GDP. What is lacking is innovation. Innovation in packaging, product and promotion. In particular, the processing sector in Europe, is taking responsibility for waste reduction by adopting a total chain approach to reducing food waste and is working transparently with its supply chains in a non-competitive way to reduce food losses starting on farm. This tour has provided valuable research into understanding under-valued waste streams, particularly in the potato industry and wider horticulture sector to enable determination of economically viable options for value-adding food loss and industry waste. It was understood that EU (including the UK) research and technology was comparatively advanced in the transformation of 'waste' into value-added products; especially food for human consumption. Key recommendations include the following:

• Use of clever packaging to extend shelf-life; • Value-adding of out-grades/off-cuts for ‘ready-meals’ and potato products of high net

worth; • Starch, high value protein and cellulosic fibre production; • Biogas and fertiliser production as by-products; • Extension of value chains in the fresh sector to include processing facilities in a collaborative

model; and • Establishment of REFRESH Australia through a Government initiative and partnership.

This study also highlights the urgent requirement for an industry-led, Government-supported Food Waste Fund enabling investigation, innovation and alleviation of the industry-wide productivity drain caused by on-farm food losses.

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Introduction The project investigated the need for Australian agricultural and horticultural industries to increase productivity through decreasing food loss and waste in the value chain, particularly at the farm gate at a regional level.

The intent of the project is to identify how successful European and American processors and food technologists have transformed and value-added to horticultural waste streams, particularly in the potato industry. This knowledge is vital to increasing the productivity and market penetration of South Australian/Australian horticultural product.

Background Current estimates suggest that around 20 per cent of primary horticultural production is lost pre-farm gate, potentially equating to approximately $1.72 billion of lost produce every year. Pre-farm gate food losses occur for many reasons, including weather, pests, quality and low prices, however 60 per cent are avoidable. Currently most horticultural food losses (including those which could be used for human consumption in juice or processed products) and industry waste goes into low value animal feeds or are dumped. This is because most primary producers have few other options available, as individually the significant costs of looking at high value waste transformation technologies and alternative supply chains are beyond reach. However, when uniform horticultural waste is regionally collected it could be turned into valuable food products and profitable businesses (Lapidge 2015).

What is food waste?

Different European studies show that between one third and a half of world food production is not consumed (Gustavsson et al, 2011; Bio Intelligence study, 2010), leading to negative impacts throughout the food supply chain. However, the data behind these figures comes from different sources, which use a variety of definitions for what is considered ‘food waste’. As in Australia, there are very few measurements of waste in agriculture, horticulture, aquaculture, fisheries or other primary production activities and wide differences in the definition of food waste within this sector (Stenmarck et al. 2016). A Joint Food Waste Declaration; “Every crumb counts” was initiated by stakeholders across the EU food chain in 2013.1 This declaration focuses on food wastage, which is the decrease in edible food mass that was originally intended for human consumption2, in line with the UN Food and Agriculture Organisation’s (FAO) definition.3 Food wastage includes both food losses, which occur at the production, post-harvest and processing stages, and food waste4, which arises at the retail and consumption stages. It emphasises “food wastage” to clearly distinguish the concept from waste, which is defined in the EU’s Waste Framework Directive, and to emphasise the need for a supply chain approach. The South Australian potato industry produces approximately 385,000 tonnes of potatoes annually. It is the nation’s largest producer and contributes in excess of $440 million to State gross food revenue. South Australia also provides 80 per cent of the fresh washed market nationally, produced predominantly in the Murray Mallee region. At least twenty per cent of total production worth millions of dollars does not meet supermarket specification and is graded out as nil commercial value waste, based largely on size and shape, and is subsequently fed to livestock. This also occurs in all other production states of Australia (Western Australia, Queensland, Victoria, Tasmania, and 1 http://everycrumbcounts.eu/ 2 Food mass that was not originally intended for human consumption is therefore not considered food wastage 3 Idem 4 Idem 2

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Queensland). Additionally, there is an estimated at 5-10 per cent waste from the potato processing sector at the processing plants including McCain Foods (Aust) Pty Ltd, Simplot Australia Pty Ltd, The Smiths Snackfood Company Pty Ltd/Pepsico and Snackbrands Foods Pty Ltd.

The South Australian Government is committed to the 'Premium Food and Wine from Our Clean Environment' strategic priority and ensuring that the state's food production practices are environmental sustainably. 5 Recent efforts at Primary Industries and Regions South Australia (PIRSA) have focussed on reducing and transforming food loss and waste (FLW). This was the topic of the recent G20 Agriculture Ministers discussions in Turkey, where all G20 members were encouraged to “strengthen their efforts to address it”.

At a national level, Horticulture Innovation Australia (HIA) initially proposed a 'Food Waste Fund' in its Strategic Co-investment Funding Pool 2 priorities, however this no longer the case. Potatoes South Australia is currently collaborating with the University of Adelaide's FOODPlus Research Centre in a PIRSA and industry-funded project "Transforming 'waste potatoes' into premium value-added food products"(Appendix 1). Potatoes South Australia is also collaborating with PIRSA-SARDI in a Federally-funded South Australian River Murray Sustainability (SARMS) Program, "Transforming Riverland food loss and industry waste into profit" (Appendix 2). HIA is supporting this project in-kind and has a representative on the Project Advisory Committee which is chaired by the author.

There is no doubt that the simplest way to lift agricultural output is not by lifting productivity but by reducing primary production food waste. This project will provide lessons from the Northern Hemisphere where value-adding to 'out of specification' and waste product is both highly advanced and normal practice.

This problem is in fact an opportunity.

The Issue The South Australian/Australian potato sector is very focused on premium fresh potatoes for supermarket sale and processing potatoes for frozen French fries, with few options for 'out of specification' or waste product. In fact, a recent Swiss study (Willersinn et al. 2015) identifies the potato as being discarded disproportionately often compared with all other food waste. The research found the following:

o The majority of potato losses is used as animal feed; o Approximately half of all potatoes are lost somewhere from field to plate; and o Approximately half of the potato losses are quality driven.

Food waste is today's hot topic. The EU and the USA are well advanced in the characterising and bioprospecting of horticultural food loss streams to evaluate, recover and recycle valuable ingredients into high value-added products within the food chain. These countries are also utilising 'seconds, thirds and fourths' of horticultural product; Australia is just at 'seconds'. Such waste can be used in high-end applications including processed food, pharmaceutical, nutraceutical, cosmeceuticals and other biotechnological applications. Such novel product categories and brand equity can derive premiums domestically and in export markets.

Developing innovative new food opportunities, such as through the use of advanced High Pressure Processing (HPP), pulsed electric field processing, advanced heating technologies, functional food ingredients and nutraceuticals can address the changing ways in which consumers meet their dietary requirements. This could also include using horticultural waste to print the 3D foods of tomorrow.

5 http://www.pir.sa.gov.au/premium_food_and_wine

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Methodology This proposed project involving desktop and in-market research will provide the following:

• Demonstrate that South Australia/Australia can be a leader in transforming food waste to support its green, clean credentials for domestic and export markets, attracting premium value for its food products and reducing its environmental footprint;

• Identify value-added product, particularly potato, to support the transformation of food waste into higher value food products; and

• Determine what missing technology and/or infrastructure could be developed/acquired as well as its/their cost/benefit.

There is definitely a case for co-investment in 'state of the art' technology across horticulture to enable economies of scale for regional South Australia/Australia. The proposed collaborative model (PIRSA-SARDI, University of Adelaide, University of South Australia, Food SA, Food Innovation Australia Limited (FIAL) and the Royal Agricultural and Horticultural Society (RAHS)) for the South Australian Food Innovation Centre (SAFIC) which aims to "increase the capacity of the South Australian food industry to value-add commodities resulting in high-quality, nutritious and sustainable food backed with research and innovation” is also the ideal vehicle for waste transformation technologies.

It is clear that future work to drive productivity gains will be greatly enhanced by an intimate understanding of the research already done and technology currently employed internationally, particularly in the EU and USA.

Anticipated Outcomes Expected outcomes were anticipated to be:

• Development of sustainable and innovative food packaging to meet consumer demands; • Creation and launch of innovative value-added food products from graded-out regional

resources for domestic and Asian markets based on health, taste and convenience; • Higher profit margins for primary producers and increased sector productivity; and • Development of a highly technologically-skilled world-class future workforce.

The learnings from the project will be directly applied to current waste transformation projects being undertaken and to the horticulture sector nationally.

Through this project’s information exchange, the potato industry; in the eyes of the community, the financial sector, Governments and its current stakeholders, will be significantly elevated.

Project Travel Itinerary Due to both time and financial constraints, it was considered that a concentration in European destinations (and countries en route) was the most beneficial use of the funding provided. Generally, this also allowed a more detailed and focused discovery of EU markets and how they were serviced in terms of production efficiencies and waste transformation.

The study tour included the following countries:

1. United Arab Emirates (Dubai) 2. The Netherlands 3. Belgium 4. France

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5. United Kingdom 6. Northern Ireland 7. Denmark 8. Finland

The study tour commenced on Friday 28 October and was completed on Saturday 26 November 2016 (Appendix 3). All appointments were established well in advance and on advice from The University of Adelaide FOODPlus Research Centre, PIRSA-SARDI, The Crawford Fund and Industry (see acknowledgements). The OECD Food Chain Analysis Network Meeting on Food Waste in Retail and Processing in Paris 23-24 June 2016 provided additional contacts. Some appointments provided in-depth information and transferable technologies for Australian incorporation while others only demonstrated and cemented the obvious need to address valorisation at a national level. The individual appointment findings by country are as follows:

1. United Arab Emirates (UAE) (Dubai)

Hypermarkets/Supermarkets Despite this study focussing on pre-farm gate waste, the value-adding of graded-out product in retail outlets (supermarket chains) was observed informally in several countries. The largest supermarkets in Dubai are Carrefour, Spinneys, Choithram, LuLu, Geant, Waitrose and Hyper Panda. Of these, Carrefour, the largest French hypermarket chain in the world, was introduced to the Middle East and North Africa (MENA) market in 1995 by Majid Al Futtaim, the leading shopping mall, retail and leisure pioneer across MENA. As France's leading food retailer, tackling food wastage is central to Carrefour's commitments. In 2013, in order to reduce its environmental footprint, Carrefour implemented a Global Plan to Tackle Food Wastage; upstream-throughout the agricultural and industrial production processes and supply chain (including partners), as well as downstream through its customers and consumers. A driver is the ambitious strategy to reduce its CO2 emissions by 40 per cent between 2010 and 2025. This strategy is in place in all 20 hypermarkets (8 in Dubai) and 24 supermarkets (15 in Dubai) in the UAE. Al Dahra Bartlett In 2013 Al Dahra National Investments developed a joint venture with Albert Bartlett, the UK’s largest potato specialist in the farming and trading of potatoes. The purpose of the joint venture “Al Dahra Bartlett” is to cultivate potatoes in Egypt for trading and distribution in the Middle East, Africa and Europe and to build a specialised potato grading, packing and storing unit. Based in Abu Dhabi, the JV also distributes imported Albert Bartlett branded products. These products include a diverse range of innovative value-added pre-packaged products, utilising graded-out produce from the fresh market. Products include mash, par-cooked wedges and slices with partitioned condiments for sauces, butter and herbs.

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2. The Netherlands

Wageningen University and Research (WUR) Centre for Development Innovation Wageningen The Netherlands, based on research by WUR, aims to ensure that food intended for human consumption is actually used for this purpose. Food or parts of food that do not end up being consumed by humans can be regarded as food waste. The Netherlands is taking steps to ensure the following:

• Prevention of loss of food destined for human consumption; and • Optimal valorisation of residual flows from the food supply chain as described in the

processes laid down in the “Moerman Ladder” (see Fig 1). This means putting as much as possible of such residual flows to productive use such as animal feed, in bio-material processing or for other industrial purposes, In order to keep a check on the extent to which the Netherlands is achieving this ambition, WUR has developed a Food Waste Monitor based on analysis of the flows of raw materials and food through the entire food supply chain from producer to consumer. The monitor examines the flows leaving the food supply chain, which are referred to as “secondary resources” and their final use.

Fig 1 Ladder of Moerman, Wageningen University and Research (WUR) The right framework for ensuring that food remains food FUSIONS The EU member states determined that a common language on food waste was critical. The FUSIONS (Food Use for Social Innovation by optimising waste prevention Strategies) research project investigated the problems involved and advised the European Commission on these issues,

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from the perspective of waste disposal. The approach used by FUSIONS is based on WUR’s methodology (mapping of waste and determination of flows in the food supply chain).6 The framework for the description of the mass balance of food flows makes it possible to monitor food waste prevention, optimal valorisation of the above-mentioned secondary resources and waste management in the food supply chain. The monitor distinguishes between avoidable, potentially avoidable and unavoidable secondary resources and by-products. It was decided on the basis of this mass balance, in consultation with representatives of the Dutch food industry, that the flows of avoidable and potentially avoidable secondary resources can be regarded as food waste. The Dutch government decided in 2009 that this food waste should be reduced by 20 per cent by 2015. The term 'optimal valorisation’ of secondary resources from the food supply chain currently means selection of the best possible option from the “Moerman ladder”, a list of possible ways of dealing with these secondary resources with maximum conservation of energy and material, in descending order of efficiency from prevention of food waste to disposal in landfill sites. The economically most favourable way of dealing with these secondary resources is not always the one that is best for the environment. There are various reasons for this, some related to the market and others to government policy, including financial stimuli. FUSIONS was the first pan-European multi-stakeholder project to tackle food losses across the supply chain through raising awareness. Although unable to meet with Mr Toine Timmermans, Program Manager Sustainable Food Chains, WUR, there were communiques by telephone and email. T Timmermans is a member of the High Level Panel of Experts of the Committee on Global Food Security (GFS) and his current research is focused on radical technology driven innovations to increase resource efficiency in the food supply chain, by reducing food loss and improving valorisation of resources. He presented at the ‘No More Food to Waste’ Symposium in The Hague in June 2015 and the OECD Food Chain Analysis Network Meeting on Food Waste in Retail and Processing in Paris in June 2016. He is the coordinator of the EU projects FUSIONS and also REFRESH (Resource Efficient Food and dRink for the Entire Supply cHain). REFRESH REFRESH was initiated in June 2015 as a follow-up program. 7 By enabling, encouraging, engaging and supporting 26 partners from 12 European countries, the project's goal to contribute towards Sustainable Development Goal 12.3 of halving per capita food waste at the retail and consumer level by 2030 will be realised. 8 Initially, the REFRESH focus will be on four pilot countries (Germany, Hungary, Spain and the Netherlands) and China (launched in November 2016). The partners include leading universities, research institutes, private businesses, governments, civil society and other stakeholders. Funded by the Horizon 2020 Framework Programme of the European Union under Grant Agreement no. 641933, the partners have a shared vision to reduce food losses along production and supply chains, reduce waste management costs and maximise the value from unavoidable food waste and packaging materials. It builds on and goes beyond existing initiatives (FUSION) to develop, evaluate, and ensure the spread of social, technological, and organisational insights and practices related to

6 www.eufusions.org/phocadownload/Publications/Estimates%20of%20European%20food%20waste%20levels.pdf 7 www.eu-refresh.org 8 http://www.un.org/sustainabledevelopment/sustainable-consumption-production/

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food waste. This is underpinned with guidance to legislators and policy makers to help support effective governance to tackle food waste. A central ambition of the REFRESH project is to develop a holistic ‘Framework for Action’ model that is based on strategic agreements or a pact across all stages of the supply chain delivered through collaborative working and supported by evidence-based tools to allow targeted, cost effective interventions. Currently there are more than 1000 global initiatives which must be recognised, shared and perhaps integrated into each local environment with adaptation due to differing drivers. The idea has been to reach out to other countries, to identify if collaborations/synergies/alliances can be found. REFRESH will conclude in June 2019.

The project aims to:

• Develop strategic agreements to reduce food waste with governments, business and local stakeholders in four pilot countries (Spain, Germany, Hungary and the Netherlands). A call for pilots will be issued for the business community and other stakeholders to participate in testing new approaches to reduce food waste and replicate these approaches into other countries;

• Formulate EU policy recommendations and support national implementation of food waste policy frameworks; and

• Design and develop technological innovations to improve valorisation of food waste, for example from food processing, and ICT-based platforms and tools to support new and existing solutions to reduce food waste.

At the Consumer Goods Forum (CGF) Retail Summit held in Paris 27-28 October 2016, T Timmermans presented on ‘Public-private partnerships, the context and success factors of voluntary agreements towards SDG12.3’. He reinforced the need for partnerships by focusing on the public-private angle and the importance of voluntary commitments to meet SDG 12.3 on food waste. While the private sector is leading the way, the work of governments must be recognised.9 As a result of the Summit Consumer Goods Forum Sustainable Retail Summit, a Food Waste Booklet has been published. It is a compilation of real-life examples from the CGF members on how they are measuring and reducing food loss and waste. The CGF is the only organisation bringing consumer goods retailers, manufacturers and service providers together globally, and this publication showcases its commitment to tackling the issue of food loss and waste.10 T Timmermans also presented at the Food waste, the European perspective Solutions & models for collaboration Zero Waste Conference in Vancouver on 3 November 2016.11 REFRESH Australia was discussed and may be progressed with input from WUR.12 Lamb Weston/Meijer (LWM) Kruiningen ‘Serving the world with potato solutions’ ‘When we look at a potato, we don’t just see a potato. We see possibilities.’

9 http://www.tcgfsrs.com/files/CGF_2016_Sustainable_Retail_Summit_Executive_Summary_light.pdf 10 http://www.theconsumergoodsforum.com/files/Publications/2016_CGF_Food_Waste_Booklet.pdf 11 http://www.zwc.ca/sessions/2016Presentations/FoodWaste-ACallForNationalAction-ToineTimmermans.pdf 12 http://eu-refresh.org/inventory-and-evaluation-effectiveness-existing-approaches-voluntary-alliances

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Lamb Weston is the world’s second largest player in potato processing and a leading brand in high quality potato products, which are sold in over 100 countries globally in collaboration with ConAgra Foods Lamb Weston and Lamb Weston/Meijer. The company Lamb Weston/Meijer (LWM) serves Europe, the Middle East and Africa (the EMEA region) supplying frozen potato products including Twisters, Potato Dippers and Connoisseur Fries as well as dehydrated potato flakes to customers in the foodservice, quick service, industry and retail sectors. The company operates five factories: the Netherlands (3), the United Kingdom (1) and Austria (1) and employs 1,200 people in the EMEA region.

As a major frozen food manufacturer, LWM recognises its responsibility in tackling the world’s food challenges and aims to be the potato industry leader on sustainable development within the EMEA region by 2020. Potato waste is one of three key themes.

Ms Jolanda Soons, Senior Manager Regulatory Affairs & Sustainability, and European Potato Processors’ Association (EUPPA) Sustainability Committee Chair, provided an oversight of the global company’s Sustainability Report 2012-2014 (Lamb Weston/Meijer 2015); the initiative behind the ‘Roadmap to 2020’ which envisages the creation of shared values to create a sustainable , effective supply chain. The Company’s 2020 Objectives are to:

• Increase potato utilisation by 10 per cent per tonne of consumed, finished product • Provide zero waste to landfill • Maximise the reuse of by-products and waste streams; and • Promote a more conscious consumption in the food chain.

This will result in a reduced ecological footprint, so less land and fewer resources to produce the same amount of finished products will be required.

Fig 2 LWM Sustainability Report 2012-2014

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LWM is proud of the following achievements:

1. Zero waste of food study-from field to fork (paddock to plate) In 2013 Lamb Weston Meijer contracted Dutch consultancy Schuttelaar & Partners to conduct a food wastage baseline study along its entire potato supply and value chain. A key result of this study was a Food Losses & Waste (FLW) mass balance model, giving insights into all potato losses; where they arise in the supply chain, why they arise and their final destination. Ways to increase resource efficiency and reduce losses at each stage of the supply chain were identified. To establish a baseline, WLM used data spanning three full years, while using one production facility as a model for the study. It was ascertained that the industry requires approximately 2 kg of potatoes to make 1 kg of French fries. However, the difference is not wasted. Actual food wastage was determined by applying the definitions from WUR. Classifications of loss were edible or inedible and then further categorised as avoidable, potentially avoidable or unavoidable food waste. The supply chain comprised raw product, processing, logistics, customer and consumer. The breakdown of the individual losses from harvesting until the shipment of finished frozen products to customers was established. The actual food wastage of edible material until shipment of finished products to customers was determined at 5.6 per cent. Half of this amount was caused by potatoes left in the paddock after harvesting, the other half is potentially avoidable loss of potato material during potato storage (not an issue in Australia), or in frozen processing, sorting, packaging and storage. In Europe, on average, approximately 6-8 per cent of frozen potato products sold to food service customers is never consumed; they are thrown away, mostly before they are actually served. This means that for every 12.5 kg case of French fries produced, up to 1 kg of fries is wasted at restaurant level. One per cent of packed finished product does not reach its customer base. A small volume is redirected and offered to local food banks on a monthly basis, while the remainder goes to feed. According to the proposed European definition of food waste, all edible and inedible food materials re-used to feed animals or re-cycled into bio-based materials are excluded and not considered food waste. (There is no such definition in Australia. In fact, there is no definition of food waste.)

2. Growing potatoes sustainably LWM’s agronomy programme focuses on improving resource efficiency and sustainable production and storing practices. In 2013, a tailor-made sustainability survey for its suppliers was distributed to half of its database. The results showed the following:

• 68 per cent of growers use GPS to reduce fuel and inputs • 83 per cent use techniques to reduce pesticide emissions • 91 per cent use ‘green manure’13 • 56 per cent take measures to protect nature, wildlife or biodiversity • 30 per cent produce ‘green (renewable) energy’ (solar or wind power)

13 In agriculture, ‘green manure’ refers to crops which have already been uprooted (and have often already been placed under the soil). The dying plants are of a type of cover crop (eg brassica) often grown primarily to add nutrients and organic matter to the soil.

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• 41 per cent buy ‘green (renewable) energy’

3. Using a ‘magic potato’ to reduce harvest damage Data was collected to determine which producers sustained the highest percentage of harvest damage. An ‘electronic potato’ was ‘planted’ during harvesting at these high damage sites to determine where the damage is occurring enabling production methodology adjustments.

4. The WeightWatcher-how to stop potatoes from losing weight Potatoes lose up to 8 per cent of their weight during long-term storage through loss of water and carbon dioxide. (This is not an Australian problem). Together with an equipment supplier, LWM have developed software with equipment supplier Mooij Agro for an ingenious tool called WeightWatcher which measures weight loss in stored potatoes. This enables producers to compare their data with other producers storing the same potato variety at the same time, providing the choice of the most effective storage strategy to limit weight loss.

5. Getting more from each potato by using optical sorting Grading and cutting potatoes to achieve the right length and quality is an important element in increasing potato utilisation. For the past 50 years potatoes have been graded on diameter, which meant potatoes that were long but too slim were under specification to reach the frying process. In 2010 LWM installed an optical sorter in raw grading, which measures the length of individual potato tubers. This gives the company more accurate data about the potatoes processed, improves resource efficiency and reduces complexity. Since introducing the new system, LWM has needed to buy in additional potatoes to produce potato flakes, as narrow, long thin potatoes are now utilised for frozen product. Significant results Over the past six years LWM has employed innovative methodology to increase its resource efficiency and cut waste. The company now achieves 4.3 per cent more finished potato products (frozen and flakes) from each potato, compared to the level in FY 2008. The aim is to ‘do more with less’. Valorisation of by-products and waste streams LWM had zero significant spills during the period under review. Today, none of the waste produced at its five European plants is landfilled. Of the residual waste generated from potato processing, 99.7 per cent of it is reused, recycled or recovered. The remaining 0.3 per cent (mixed company waste) is incinerated by specialised local waste companies to generate electricity. Next steps The Zero waste of food study identified key opportunities for each link in the supply chain ranging from optimising potato storage conditions using the Weight Watcher tool, further reducing potato losses during sorting, peeling and cutting; to further optimising raw grading ensuring the right potatoes are used for the right finished product. The strategy is to focus on increasing internal potato utilisation; from field to cold store, while developing a program to support customers to reduce potato waste in their restaurants.

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When the 2020 target is achieved, for every 100 kg of potatoes harvested LWM customers will serve 10 per cent more French fries or other potato products compared to 2008. The key challenge LWM plans to increase the valorisation of its residual waste streams from both an environmental and economic perspective. Potato processing by-products will be moved further up the food waste hierarchy, based on the Ladder of Moerman (see above). Achieving this will require a multi-pronged approach. It will involve preventing waste, reducing inputs and increasing re-use. The steps from most preferable to least preferable are:

• Prevent • Redirect to feed people • Redirect to feed animals and to industrial use • Recovery (soil enrichment and renewable energy) • Disposal

T Timmermans, Programme Manager Sustainable Food Chains, WUR has stated the following: “Improved food use and the valorisation of resources are crucial if we are to move towards a sustainable food system. LWM is showing leadership in this area by not only analysing its own performance, but also by being transparent. It is an example to other companies not only because it defines a strategy which sets targets but because the company works together with others in the processing sector in a non-competitive manner.” Even the printed hard copy of the LWM Sustainability Report 2012-2014 is printed on FSC certified paper containing potato starch. It is clear that the processing sector is taking responsibility for waste reduction by adopting a total chain approach to reducing food waste and is working with its supply chains to reduce food losses starting on the farm. EUPPA J Soons, as Chair European Potato Processors’ Association (EUPPA) Sustainability Committee also provided an overview of the role of this Committee in driving towards zero waste in the potato processing supply chain.14 In 2014 EUPPA surveyed its members to understand the initiatives that were being employed to reduce food losses and waste. The initiatives start on farm with agronomic practices including varietal selection to reduce inputs, increase disease resistance and increase the usable portion of the potato, better soil management and crop nutrition, reduced mechanical damage and improved storage technology. Members advised their valorisation of by-products and waste streams into cattle feed, biogas, biofuel (on-site anaerobic digestors), starch, compost, organic fertiliser, bio-based materials (drilling mud, bio-plastics, glue) and recycling into metals and cardboard. Companies are also introducing co-product lines to produce dehydrated potato flakes and/or chopped and formed products (made from small parts and whole potatoes not suitable for frozen

14 https://www.eu-fusions.org/phocadownload/EPM2016/VII%20EUPPA.pdf

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potato products) and potato specialties (like potato wedges or slices), from undersized potatoes not suitable for French fries. This is mainstream practice throughout the industry. EUPPA members are committed to redirecting and recycling by-products of potato processing and treating the wastewater with a target across EU of zero waste to landfill. At the OECD Food Chain Analysis Network, “Reducing food loss and waste in the retail and processing sectors” in Paris 23-24 June 2016, J Soons provided a presentation “Towards a sustainable potato supply chain - vision vs action”.1516 This outlines how WLM maximises economic efficiencies through supply chain initiatives to reduce food loss and waste. Of critical importance and significance is unified EU policy and the shared responsibility approach to waste management. The European Commission publication of “Dealing with waste in the European Union” in 2010 demonstrates just how far advanced the EU is in collectively addressing the crisis.17 Kiremko BV Food Processing Equipment Montfoort “A chain is only as strong as its weakest link” Kiremko develops, manufactures and installs machinery required for the automatic and semiautomatic processing of potatoes into French fries, snack products such as chips, pellets, tortilla chips and other potato by-products like flakes, granules, salads and mash. The company also manufactures machines for processing (root) vegetables, not only for fresh but also for the deep-frozen and chilled market. Customisation offers integrated solutions for each of the processes from the infeed of the product as raw material up to the outfeed as ready-made, packed final product. The equipment is installed worldwide with approximately 85 per cent of sales being exported. Since 1978 Kiremko has been in partnership with its associate in the United Kingdom, Kiremko (UK) Ltd. In 1996 the company joined forces with Idaho Steel Products Inc, an established manufacturer of high quality food processing equipment in the United States. This move strengthened Kiremko’s presence in the North American market. In July 2005 Idaho Steel Products Inc acquired all of the available stock of REYCO Systems Inc and this overall cooperation has ensured a world-wide presence and capability. Kiremko’s processing technology includes the design and manufacture of machines for destoning, washing, peeling, cutting, blanching, drying, coating, frying, cooking, forming, pasteurising, sterilising, cooling, freezing, optical sorting, transport, distribution, seasoning, weighing and packing. Mr Andy Gowing, Director and Mr Twan van de Berg, Area Sales Manager discussed the vision and objectives of the global company and provided a tour of the Montfoort facility. They emphasised that the introduction of value-adding to ‘historical’ waste is now ‘main stream’ in both Europe and Northern America.

15 https://www.oecd.org/site/agrfcn/meetings/Session%203_Jolanda%20Soons.pdf 16 https://www.oecd.org/site/agrfcn/meetings/8th-oecd-food-chain-analysis-network-meeting-june-2016.htm 17http://ec.europa.eu/environment/waste/pdf/WASTE%20BROCHURE.pdf

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With this emphasis and need for the industry value chain to valorise waste, Kiremko has developed ‘formed’ potato product lines to accompany more traditional cut potato process lines such as French fries or cut roast potato lines. This enables the use of rejected potato from traditional process lines, thereby improving the overall yield of the processing facility. Many different products and shapes can be made, such as hash browns, croquettes, waffles, rounds, triangles and customised complicated shapes. Potato flakes are also an extremely cost efficient part of recipes for end-products such as stackable chips, extruded snacks, baby foods, bread and pancake mixes, formed meat products, and as non-food applications such as plastics. With Kiremko, a flake line is installed in parallel with an existing process line, for example a French fries line. The reject potato from the French fries line is used as a raw material to convert it into a saleable quality of flakes. This method is an efficient way of improving the overall yield of a processing facility as material, which previously would have been discarded as waste, is now converted into a saleable product. Kiremko products are used widely by the fresh and processing companies in Australia but formed product is not main stream, and flakes are yet to be produced.18

3. Belgium

European Commission (EC) Brussels Food waste prevention has been singled out as a priority area in the Communication on 'Closing the loop-an EU action plan for the Circular Economy’ as adopted by the European Commission in December 2015.19 The need to prevent and reduce food waste, while ensuring the safety of the food and feed chain, is a subject of growing societal, economic, environmental and political interest. The EU and its Member States are committed to meeting the food waste reduction target adopted by the United Nations General Assembly as part of the 2030 Sustainable Development Goals. In response to this, the EU has established a Platform on Food Losses and Food Waste.20 The overall mission of the Platform is to support the Commission, Member States and all stakeholders in the food value chain in achieving the SDG 12.3 food loss and waste reduction targets without compromising food safety, feed safety and/or animal health.21 A meeting was held with Anne-Laure Gassin, Policy Officer Innovation and Sustainability, Directorate General (DG) for Health and Food Safety (SANTE). She supports the development of policy on food waste prevention and was previously involved in the European Food Safety Authority (EFSA), EU legislation on nutrition labelling for foodstuffs and in the private food sector. A Gassin emphasised the importance and relevance of the EU-funded FUSIONS and REFRESH programs (see above). She highlighted the UK’s WRAP program, “Love Food, Hate Waste”, and the impressive lead taken by the UK Government (see below).

18 http://www.kiremko.com/en_US/download.html/category/5-kiremko-project-development 19 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – Closing the loop – an EU action plan for the Circular Economy - COM(2015)614 (http://eurlex.europa.eu/legalcontent/EN/TXT/?qid=1453384154337&uri=CELEX:52015DC0614 ) 20 https://ec.europa.eu/food/sites/food/files/safety/docs/fw_eu-actions_flw-platform_tor.pdf 21 Halve per capita food waste at retail and consumer level and reduce food losses along the food production and supply chains by 2030 (http://www.un.org/sustainabledevelopment/sustainable-consumption-production/ )

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‘Waste’ is referred to as ‘by-products’, ‘co-streams’ or ‘former foodstuffs’. It is seen as an opportunity, not a problem. Food Supply Chain Roadmap 2020 A Gassin spoke of the Food Supply Chain Roadmap 202022 which is an interdepartmental working group coordinating activities to reduce food waste in Belgium. The initiative came from the Flemish Government but membership and involvement in the alliance is open to SMEs, NGOs, Government and large businesses. The Government of Flanders and the food supply chain sectors work together in a Flemish food supply chain platform, a dynamic platform for coordinated action on the prevention of food losses. In 2014 the Government of Flanders and its food supply chain partners signed the declaration of commitment ‘Together against food losses’. The common vision is based on 3 principles:

• A shared responsibility: • Prevention as a starting point and the food losses hierarchy (Ladder of Moerman) as the

guiding principle; and • Collaboration and consultation.

The partners pledged to produce a Food Supply Chain Roadmap 2020 to deliver concrete actions. They called upon companies and organizations in the food supply chain, as well as all relevant societal stakeholders, to join them in their effort to combat food losses. At present 54 organisations have endorsed the Declaration of Commitment and promised to tackle food losses with the food losses hierarchy as the guiding principle. The aim is to establish a broad societal ‘Food Waste Coalition’ to reduce food losses in Flanders. The public-private Food Supply Chain Roadmap 2020 was launched in April 2015 and includes objectives and actions on sector and food chain level, with the aim to reduce food losses as much as possible and to valorise food losses as highly as possible, in line with European objectives. The aim is to achieve the following:

• By 2020; to reduce food losses in Flanders by 15 per cent; and • By 2025; to reduce food losses in Flanders by 3 per cent.

The roadmap consists of nine action programmes implemented with a total of 57 actions, covering food losses from farm to fork. The programs are as follows: 1. Supporting companies in reducing food losses; 2. Collaboration in the food supply chain; 3. Awareness-raising, inspiration and commitment at company level; 4. Training employees to promote food loss reduction; 5. Awareness-raising, inspiration and commitment at consumer level; 6. Building new business models for collaboration between the regular and social economies; 7. Promoting and facilitating donation of food surpluses; 8. Investing in research; and 9. Monitoring knowledge and commitment. 22 https://ec.europa.eu/food/sites/food/files/safety/docs/fw_eu-actions_ms_20150424_p09.pdf

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Food losses are currently being mapped and monitored in order to develop commitment and to identify areas where the most opportunities can be gained for prevention and high value valorisation. Additionally, food losses in government catering are being measured and analysed to set up a reduction strategy.

4. France

OECD Paris Following the OECD’s Food Chain Analysis Network’s 8th Meeting in Paris in June 2016 and Australia’s participation in representative, Dr Steven Lapidge, PIRSA-SARDI, an invitation was extended by Ms Morvarid Bagherzadeh, Policy Analyst OECD to the author to provide a presentation at the OECD headquarters. M Bagherzadeh currently monitors agricultural policy developments in the EU, coordinating the OECD’s contributions to the policy dimension of the Agricultural Markets information System (AMIS) and implementing OECD activities on food waste. The presentation was followed by discussion with M Bagherzadeh, Mr Peter Borkey, Principal Administrator, Environment Directorate, Environment and Economy Integration Division OECD, Ms Marie Russell, Senior Programme Officer Agricultural Codes and Schemes Trade and Agriculture Directorate OECD and Ms Wilhelmine Brown, Agriculture Adviser, Australian Delegation to the OECD. There was keen interest in the projects in which Potatoes South Australia is involved. They are:

• PIRSA-funded “Transforming waste potatoes into premium value-added product”; and • SARMS-funded “Transforming Riverland food loss and industry waste into profit”

(Appendices 1&2)

There was agreement that action on agricultural waste reduction must be society-driven, followed by appropriate government policy. This is demonstrated by FUSION which focuses on social innovation.

Circular economy package – a definition of food waste OECD representatives advised that the European Commission aims to stimulate the recycling of waste and growth of the market for reuse of secondary raw materials, in the framework of the “circular economy”. It has been suggested in this connection that a definition of food waste should be included in the EU Wastes Directive, together with a target for the reduction of food waste. The FUSIONS definitional framework was used as a basis for this proposal. However, the view taken by FUSIONS (and hence also by the European Commission) on which parts of the mass balance of the food supply chain should be regarded as food waste differs from that taken in the Netherlands led by the WUR research. For example, the European definition combines edible and inedible components of the food flow, while the Netherlands only considers the edible parts. Furthermore, the EU does not consider residual flows that have been valorised by reuse as animal food or bio-based products as food waste, while the Netherlands does to a certain extent. These examples make it clear that the discussion about the definition of food waste is not over yet (see above).

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This gives rise to uncertainty in the industrial sector, and makes it more difficult to set targets and monitor progress. The main complaint made by industry is that the inclusion of food waste in the overall legal category of waste means that valuable secondary resources, which find useful application outside the food supply chain intended for human consumption, may be designated as waste, which creates significant legal, economic and administrative barriers to their valorisation. This acts against the idea behind the Circular Economy Package, which aims to stimulate optimal utilisation of raw materials and residual flows. It has been determined that it is not productive to focus too strongly on a definition of food waste. Other European partnerships were discussed including: The Agricultural European Innovation Partnership (EIP-AGRI) The agricultural European Innovation Partnership (EIP-AGRI)23 works to foster competitive and sustainable farming and forestry that 'achieves more and better from less'. It contributes to ensuring a steady supply of food, feed and biomaterials, developing its work in harmony with the essential natural resources on which farming depends. It brings together innovative farmers, advisers, researchers, businesses and NGOs at EU level and within the rural development programmes (RDPs), forming an EU-wide EIP network. EIP Operational Groups are project-based and tackle a certain practical problem or opportunity which may lead to an innovation. The Operational Group approach makes the best use of different types of knowledge in an interactive way. An Operational Group is composed of those key stakeholders who are in the best position to realise the project's goals, to share implementation experiences and to disseminate the outcomes broadly. The first Operational Groups are currently being set up in several EU countries and regions. National Industrial Symbiosis Program (NISP) Originally developed in the UK, NISP24 has developed into an international network in 30 countries across five continents and is open to businesses from all industry sectors. Supported by international synergies, it provides a mechanism to share knowledge and ideas on how companies address resource efficiency and by-product utilisation. Using this cross-sector and disruptive supply chain approach, NISP identified opportunities to reuse underused or undervalued resources, converting previously wasted materials, energy or water into bottom line benefit whilst generating environmental benefits. Part of NISP’s global appeal is that the facilitated industrial symbiosis approach has been proven to deliver benefits across any economy or culture. In Europe International Synergies has worked in Finland and Denmark to support programmes moving from regional to national scale, with regional programmes continuing in Belgium, Hungary, Italy, Netherlands, Northern Ireland and Romania. International Synergies is also a partner in the NISP France programme funded by the French Environment and Energy Management Agency (ADEME) and French Provinces, which was formally launched in 2017 with L'Institut de l'économie circulaire. Recent success with Horizon 2020 (the biggest EU Research and Innovation program with nearly 80 billion euros of funding available over 7 years (2014 -2020) is enabling extension activity into Germany and Spain.

23 https://ec.europa.eu/eip/agriculture/en/content/EIPAGRIabout 24 http://www.nispnetwork.com/

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Despite the many programs, they appear to be well coordinated and harmonised through the EC and the OECD Food Chain Analysis Network. Groupe Carrefour Paris Carrefour is a multinational retailer headquartered in France. It is the largest hypermarket chain in the world and is the fourth largest supermarket chain in the world. The company started its operations in 1958 and it operates in Albania, Austria, Bulgaria, Belgium and Brazil, China, Egypt, Georgia, India, Iran, Indonesia, Japan, Jordan, Kuwait, Malaysia, Morocco, Macedonia, Pakistan, Portugal, Taiwan, Turkey, UAE and United Kingdom. As France's leading food retailer, tackling food wastage is central to Carrefour's commitments. In 2013, in order to reduce its environmental footprint, Carrefour implemented a Global Plan to Tackle Food Wastage; upstream-throughout the agricultural and industrial production processes and supply chain (including partners), as well as downstream-its customers and consumers. A driver is the ambitious strategy to reduce its CO2 emissions by 40 per cent between 2010 and 2025. Following the resolution adopted by the Consumer Goods Forum in 2015, Carrefour’s commitment is to reduce food waste by 50 per cent in 2025 compared to 2016 - a collective challenge with solutions to share.2526 Achievements include: 66 per cent of food waste in stores was recovered in 2015, 200 trucks will run on bio-methane in France by 2017, from 30 per cent to 50 per cent reductions on products with short expiration dates and more than 495 Carrefour-branded items have had their use-by-date (UBDs) or minimum durability date (MDDs) extended. A telephone meeting with Ms Agathe Grossmith Corporate Social Responsibility (CSR) Carrefour Group, was conducted. She is leading the products sustainability department, contributes to the company’s CSR policy and leads Carrefour CSR’s action plan which focuses on tackling wastage including food waste, preserving biodiversity and collaborating with partners. Carrefour has pioneered elements of the ‘circular economy’. One of its major commitments is the 2013 introduction of delivery vehicles running on bio-methane; a major component of Carrefour’s “Anti-gaspi” plan to tackle waste. Bio-waste produced by hypermarkets which is no longer fit for human consumption (rotten fruit and vegetables, pastries, meat waste, plant waste) is recovered and then processed in a ‘methanisation’ plant which transforms it into bio-gas.

This bio-gas is then purified and transformed into fuel bio-methane before being sent out to the service stations that make up the GNVERT network. It is then used to power Carrefour delivery vehicles. The tests conducted in Paris and the Lille region in 2013 and 2014 involving around 10 bio-methane vehicles reduced CO2 emissions by 12 per cent for each box transported over one year of operation. Carrefour is also the largest private donor to the Food banks. It sets the retail benchmark for environmental CSR globally. 25 www.carrefour.com/combating-waste/anti-food-waste 26 Idem 9

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5. United Kingdom Waste & Resources Action Programme (WRAP) Banbury Oxon ‘At the forefront of the circular economy’ ‘Love food, hate waste’

WRAP was established in 2000 as a company limited by guarantee and receives funding from the Department for Environment, Food and Rural Affairs, the Northern Ireland Executive, Zero Waste Scotland, the Welsh Government and the European Union.

WRAP is also a registered charity which works with governments, businesses, individuals and communities to deliver practical solutions to improve resource efficiency, reduce waste and to develop sustainable products and the achievement of a circular economy27

What is a circular economy? A circular economy28 is an alternative to a traditional linear economy (make, use, dispose) in which resources are kept in use for as long as possible, extracting the maximum value from them whilst in use, and then recovering and regenerating products and materials at the end of each service life. As well as creating new opportunities for growth, a more circular economy will:

• Reduce waste; • Drive greater resource productivity; • Deliver a more competitive UK economy; • Position the UK to better address emerging resource security/scarcity issues in the future;

and • Help reduce the environmental impacts of our production and consumption in both the UK

and abroad. A meeting was held with Mr William McManus, Organics Sector Specialist and Ms Elaine Charlesworth, Programme Area Manager to discuss WRAP’s vision, targets and collaboration with the EU. WRAP's vision is a world in which resources are used sustainably. Its mission is to accelerate the move to a sustainable, resource-efficient economy by:

• Re-inventing how we all design, produce and sell products; • Re-thinking how we all use and consume products; and • Re-defining what is possible through re-use and recycling.

Through its “Love Food, Hate Waste”29 30 initiative, WRAP is working at all points of the circular economy by:

• Making resource use more efficient; • Reducing the production of waste;

27 http://www.kmc.dk/media/78633/170111circular-economy.pdf 28 http://www.wrap.org.uk/content/wrap-and-circular-economy 29 www.wrap.org.uk/about-us/our-plan 30 http://www.wrap.org.uk/content/love-food-hate-waste

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• Maximising the recycling of waste; and • Identifying alternative business models.

This expression has been copied globally, including in Australia. Courtauld Commitment 2025 Over recent years it has also brokered a number of voluntary agreements with business including in the retail sector through the Courtauld Commitment.31 Courtauld 2025 is an industry-wide ten-year voluntary agreement aimed at making food and drink production and consumption more sustainable. One of the targets is to achieve a 20 per cent reduction in food and drink waste arising in the UK. Signatories to the Courtauld Commitment include industry leaders such as Tesco, Sainsbury’s, Asda and big brands including Unilever and Nestlé. The EU praised phase one as an example of best practice.

The targets are to:

• Reduce household food and drink waste by 5 per cent; this represents a 9 per cent reduction in real terms to counter the expected increase in food purchased;

• Reduce traditional grocery ingredient, product and packaging waste in the grocery supply chain by 3 per cent. Signatories will have to make an 8 per cent reduction in real terms to counter the expected increase in production and sales; and

• Improve packaging design through the supply chain to maximise recycled content as appropriate, improve recyclability and deliver product protection to reduce food waste, while ensuring there is no increase in the carbon impact of packaging. Signatories will have to make a 3% reduction in real terms to counter the expected sales increase.

The second phase of this agreement helped prevent 1.7 million tonnes (Mt) of food and packaging waste, saving more than 4.8 Mt of CO2 and £3.1billion for consumers, industry and local authorities. A similar agreement in hospitality and food service is also helping to reduce waste and increase recycling. The next agreement, Courtauld 202532, focuses on improving sustainability of key food and drink products from harvest to consumption.

Sustainable Development Goal 12

The UN has 17 Sustainable Development Goals (SDGs). Target 3 of SDG 12 is to halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains losses by 2030.

In light of this, WRAP is extending its work internationally, having recently worked in partnership with the United Nations Environment Programme (UNEP) and the UN’s Food and Agriculture Organisation (FAO) to develop a global food waste guidance tool as part of the UNEP Think.Eat.Save initiative.33

31 http://ec.europa.eu/environment/waste/prevention/pdf/Courtauld_Commitment_Factsheet.pdf 32 http://www.wrap.org.uk/content/new-phase-courtauld-commitment-targets-further-11-million-tonnes-waste-reduction%20 33 http://www.wrap.org.uk/sites/files/wrap/WRAP-Plan-Resource-Revolution-Creating-the-Future.pdf

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Achievements include the following:

• Between 2010 and 2015 in England alone, WRAP initiatives reduced greenhouse gas emissions by nearly 50 million tonnes (Mt), which is equivalent to the annual carbon dioxide emissions of Portugal ; and

• Between 2008 and 2011 it generated £2.2 billion of benefit to the UK economy.

WRAP is a contributing partner in REFRESH which runs for 4 years from July 2015 until June 2019. The ‘Framework for Action’ has been based on the Courtauld Commitment. WRAP personnel are very keen to be kept informed about the progress of the South Australian projects and Australia’s potential commitment to valorisation. Schur International Holding a/s Star Systems, Schur Technology, Schur Packaging Schur, with headquarters in Horsens, Denmark, is an international team of twelve companies offering packaging, packaging machines, packaging systems and technology. It has a staff of approximately 700 employees working in Denmark, Sweden, Norway, Germany, France and the USA. Mr Vince Larson, System Sales Manager, provided a tour of retail chains in Ashford, Kent. These included Waitrose Supermarket Company (John Lewis), Sainsbury Supermarket Company, Tesco, Aldi and Lidl. Marks & Spencers food department was also visited. The aim was to observe the differing ‘classes’ of chains, store layouts and value-adding in terms of packaging and innovative product. Schur Packaging is at the forefront of clever solutions in both function (including to reduce waste) and form. In fact the UK generates 15 million tonnes of food waste per year with customers losing GBP700 per year due to at-home waste. Waitrose is UK’s top-tier supermarket chain with both Royal Appointments and stockists of Duchy Originals, Prince Charles's organic food brand. Under a 2009 licensing agreement Waitrose has the exclusive right to manufacture, distribute and sell Duchy Originals products in the UK, creating a partnership with a shared passion for quality British-grown food, sustainable farming, and excellent relationships with suppliers and for charitable giving. Sainsbury's is the second largest chain of supermarkets in the United Kingdom, with a 16.9 per cent share of the UK supermarket sector and over 1,300 outlets. Tesco (a Public Limited Company) is a British multinational grocery and general merchandise retailer with headquarters in Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and fifth-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK (where it has a market share of around 28.4 per cent). It serves food to 50 million customers around the world, sourcing food from thousands of suppliers in more than 70 countries. A distinguishing feature of Tesco is its commitment to reduce waste and its collaboration with suppliers and customers to address this. It also has a commitment that no surplus food will be wasted in its UK operations by 2017. Tesco has been used as a leading example below. In order to tackle food waste in its supply chain, Tesco has assembled an experienced team from across its business and has engaged with external experts. Primary producers and suppliers have been surveyed together with the conduct of detailed food waste research with Tesco customers.

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There is dialogue with key national and international bodies, academics, leading NGO and charity programmes to better understand where the food waste is occurring. 34 Tesco aims to be a global leader in reducing food waste and now publishes independently assured food waste data from its UK operations publically ie transparently. This is a first for a major UK retailer. In the first six months of 2014, 28,500 tonnes of food were wasted in Tesco stores and distribution centres in the UK which is equivalent to 0.87 per cent of the volume of products sold in the retail stores during the same period. This is a relatively small proportion of the estimated 14.8 million tonnes of food for UK consumption that is wasted every year. The largest contributors to waste in the supply chain are at the production and consumption points; equally responsible for an estimated 32 per cent (WRAP UK/KPMG). In Asian markets the agriculture and supply chain food losses are higher. Additionally, Tesco chairs a coalition of leaders from government, business, research and civil society. This group, Champions 12.3, is dedicated to accelerating progress towards the UN Sustainable Development Target 12.3. This target is to halve per capita global food waste at retail and consumer level, and reduce food losses along production and supply chains by 2030. In support of this, Tesco is calling on the wider industry to:

• Commit to reduce food waste and set targets setting clear timelines to redistribute food surplus in operations;

• Publish food waste data publically; and • Collaborate across the supply chain particularly to reduce on-farm food waste.

(Tesco Annual Report 2015’16)

Tesco is also proud to be one of the founding signatories of the new Courtauld 2025 Commitment. Tesco has also partnered with WRAP and the Sustainable Consumption Institute (SCI) to conduct customer research aimed at developing the understanding of the underlying causes of food waste in the home. As part of this work, Tesco is improving the methodology behind display date codes on products. A new metric to measure total food waste hotspots for 25 of the food items most regularly sold in Tesco stores has been developed to prioritise efforts and track progress in reducing the wastage of these products. This includes waste profiles for many horticultural products; eg grapes, apples, bananas and bagged salad. Insights include the following:

• Trialling new varieties with a longer shelf life; • Agronomic trialling to reduce disease/pests; • Using new protective techniques; • Ordering produce direct from producers; • Using consistent messaging about storage; • Increasing crop utilisation through different product ranges; • Using state-of-the-art data logging to optimise transport conditions; and • Using re-sealable packaging.

34 www.tescoplc.com/files/pdf/reports/tesco_and_society_2013_ipad.pdf

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Reducing food waste on-farm Tesco works with its primary producers and suppliers to reduce farm waste by: Responsible food sourcing Produce of different shapes and sizes has been sold in its ‘Everyday Value’ range for many years. Broadening our specifications In 2016 Tesco launched its ‘Perfectly Imperfect’ range of ‘wonky’ fruit and vegetables. Better food processing Tesco is connecting its primary producers with suppliers of fresh and frozen foods which has increased demand for produce that falls outside specifications. For example, potato producer Branston Ltd, supplies ‘out of specification’ product to manufacturer, Samworths for value-adding into Tesco-branded mashed potato (see below). Smarter crop management Despite advanced forecasting and ordering systems, bumper crops occur are sold at low cost in extra large boxes. Helping farms redistribute food to charity Tesco introduced its top 20 suppliers to its charity partner Fareshare which works to redistribute edible food to people in need Supporting suppliers with flexible ordering Tesco shares forecasts with suppliers and is trialling flexible ordering. This assists suppliers and Tesco to smooth out variations in production and demand. In fact to minimise the amount of food wasted in Tesco operations globally, a blueprint based on best practice in the UK has been developed for roll-out to operations around the world. This includes programmes to accelerate the use of smaller cases to sell fresh produce and improving packaging to reduce damage. The building of formal partnerships with suppliers is delivering reductions in food waste across the supply chain through better forecasting, improved infrastructure and knowledge sharing. Marks and Spencer (M&S) (a Public Limited Company) is a major British multinational retailer headquartered in Westminster, London. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It specialises in the selling of clothing, home products and luxury food products. Aldi, based in Germany, is the common brand of two leading global discount supermarket chains with over 10,000 stores in 18 countries, and an estimated combined turnover of more than €50 billion. It holds 6th position in the United Kingdom market. Internationally, Aldi operates in Denmark, France, the Benelux countries, the Iberian Peninsula, and Poland, Ireland, United Kingdom, Hungary, Switzerland, Australia, Austria and Slovenia. Lidl is also a German global budget supermarket which operates over 10,000 stores across Europe. Since launching in the United Kingdom in1994, Lidl has grown consistently, and today has over 590 stores. It is still a small player in the United Kingdom, with a grocery market share of less than 5 per cent.

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The ‘no-frills’ retailers are very different to the top three supermarkets and provide greatly discounted, often bulk but limited ranges. Their market share in the UK has doubled since 2008. They are direct competitors with each other internationally. It is clear that the stocking of high value-added food through product innovation which is reinforced by ‘smart’, unique packaging is correlated with high end retail outlets. The value-added product range, for potatoes in particular, in Waitrose, Sainsbury’s, M&S and to a lesser extent Tesco supermarkets, exceeds that available anywhere in Australia. Potatoes are sold in 500 gm-1 kg packaging in the following ways: Waitrose

• Maple roasted winter vegetables (par cooked in a roasting tray) • West Country Butter Mash (serving dish) • Chunky chips (cardboard box) • Frites (cardboard box) • Triple cooked chips with duck fat (roasting tray) • Spinach and mint potatoes (plastic resealable pouch) • Seasoned Charlotte potatoes (plastic resealable pouch) • Continental Salad Potatoes (plastic resealable pouch) • Baby New Potatoes (plastic resealable pouch) • Duchy Originals Salad Potatoes (plastic bag)

It is noted that plastic bags in the Duchy Original range are not recycled despite the organic content. Sainsbury’s

• Six Potatoes in their jackets with a knob of butter with parsley in each (roasting tray) • Potato slices coated in light batter (roasting tray) • Gnocchi (microwave 2 mins in bag)

Also • Cauliflower rice (microwave 4 mins in bag) • Beetroot rice (microwave 5 mins in bag) • Boodles (vegetable pasta) (microwave 3 mins in bag)

M&S

• Potato Rosti Cakes • Melting Middle Croquettes • Potato Croquettes • Frites (cardboard box) • Crispy Potato Slices • Colcannon Potato Mash (with kale or cabbage) (serving dish) • Cheddar Cheese Potato Mash (serving dish) • Ultimate Potato Mash (serving dish) • Super Seeded Wedges • Potato Tots (cardboard box) • Rosemary & Garlic Parmentier Potatoes

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Tesco

• Baked Potatoes with Cheddar Cheese and Smoked Bacon

Potatoes are also sold by variety in plastic bags of 2kgs. Rarely are fresh loose potatoes displayed; when they are, they each have variety stickers (as per apples) and are in small wooden crates. In French supermarkets, 1 kg of fresh pomme de terre (potatoes) is sold in a covered rattan basket or an open weave bag clearly displaying best use. Branston Ltd Branston, Lincoln Branston is a privately own company with sites in Lincoln, Perth (Scotland) and Somerset in the South West of England. Growing from a farmers’ co-operative, Branston supplies retail, wholesale and food manufacturing customers with fresh and innovative ready prepared potatoes. With a team of 700 people, it packs for Tesco (see above) and Waitrose. The prepared foods business, commenced in 2005 and a purpose-built, award-winning factory was built at the Lincoln site in 2009. In 2016 a new factory extension was completed allowing potatoes which are unsuitable for the fresh market to be peeled before going to convenience food producers as part of their mash potato ranges or as topping for pies and casseroles. The company has dedicated resources to green technology including an anaerobic digestor, a water recycling plant and solar PV power. It is also a Carbon Trust Standard recipient. A meeting and factory tour was held at the Lincoln site with Mr John Griffin, General Manager, Mr Richard Heppleston, General Manager and Mr George Christoudias, Sales & Marketing Director. Of 350,000 tonnes of potatoes produced by and for Branston (there are 125 contract producers), there are 50,000 tonnes of waste. 5000 tonnes is unfit for human consumption and is diverted to the anaerobic digester. Previously, the balance was value-added as stock feed or processed externally. However, the transition to value-added “ready to cook” potatoes is enabling in excess of 5000 tonnes of ‘waste’ to be utilised as human food by Branston. This is in the form of chips, wedges and potato side dishes. 70 tonnes per week are being peeled for mash. A growing market is food service with an ‘explosion’ of niche high end fast food outlets. Currently Branston provides 80 percent of its processed product to Tesco and has 50 per cent of Waitrose’s business. There is zero waste to landfill. Collaboration with Retailers A very strong collaborative model has been developed with Tesco including a joint Business Plan and the establishment of a Sustainable Farming Group comprising producers, Branston, Greenvale and Tesco. There is complete transparency between Tesco and Branston at the operational level; a unique level of trust and cooperation.

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6. Northern Ireland

Wilson’s Country Ltd Portadown, Craigavon, County Armagh “You Say Potato” Wilson's Country Ltd is the leading potato brand in Ireland with a strong commitment to innovation. It specialises in pre-packed and processed potatoes, supplying food retailers, caterers and food processing companies. This includes own label, branded pre-pack and peeled potatoes. Product is sold in both Northern Ireland and the Republic of Ireland. A meeting was held with Mr Lewis Cunningham, Managing Director and Mr Angus Wilson CEO who started the value-adding business from the family farm in the 1980s. The waste stream at farm level was significant and a processing facility has been the solution to this problem; now a profitable opportunity. The introduction of a peeler has provided a profitable revenue stream while reducing wasted product.

Fig 3 Schur Packaging for Wilson’s Country Ltd, Northern Ireland Wilson’s no longer operate commercial farms and purchases product from approximately 25 producers; packing and processing 80,000 tonnes annually. The value-added product range includes the following:

• Garlic & Herb Potatoes • Tomato & Basil Potatoes • Fresh Peeled Potatoes (microwave in bag) (Fig 3) • Fresh cut chips • Spicy Potato Wedges (par cooked in roasting tray) • Garlic & Herb Diced Potatoes

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Potatoes are not sold in Ireland as ‘loose’ but always pre-packed in plastic as the cost of cardboard/paper is prohibitive. The offering of different products in meal deals is allowing the ‘assembly’ of meals, not ‘cooking’. Anaerobic Digestion Anaerobic Digestion within the UK is a rapidly expanding technology with its use in Northern Ireland targeted towards the agriculture sector and its diversion of waste from landfill. A booklet has been produced which advises potential developers on the identification of appropriate sites, planning and licensing conditions, potential product use and financial returns.3536 WRAP provided input.

7. Denmark

An Australian Starch Industry Currently Australia is a net importer of starch and has no potato starch industry. In 2015, Australia imported close to 20,000 tonnes of potato starch (market value of $20M). In Australia, the starch market is predicted to reach A$1.6 billion by 2018 at a CAGR of 3 per cent. The global modified starch industry is currently worth US$9.5 billion, and projected to reach over US$11 billion by 2020 (4.1% Compound Annual Growth Rate (CAGR), marketsandmarkets.com). China is a major buyer of starch, particularly potato-derived starch products with a 2015 import of 150,000 tonnes with a market value of $150M (Alfa Laval and UN Comtrade). Imports into China have steadily increased during the past decade. Over a two day period, there were meetings in Denmark with collaborating businesses; Alfa Laval, Bioptimate, Sicca Dania and the University of Copenhagen (see below). The focus was on the potential establishment of an Australian starch industry including the synthesis of high value by-products; plant protein and fibre. This would enable valorise all waste in the potato industry ie “One in, all out”. Presentations were provided by Bioptimate (Appendix 5) and Sicca Dania.

35 http://www.niassembly.gov.uk/globalassets/documents/raise/publications/2013/environment/5213.pdf 36 http://www.cre.ie/web/wp-content/uploads/2012/10/13_Kevin-Fitzduff.pdf

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This interest in starch production and possible international transfer of expertise coincides with a bid, “South Australian Innovation Centre for Agricultural Product Development” under the South Australian Department of State Development’s Research Consortium Program (DSD-RCP). The bid was led by Professor Vincent Bulone, University of Adelaide, Agriculture Food and Wine and was in the final top three tenders. The consortia consists of the three South Australian universities, two universities from Europe and North America, five South Australian-owned and/or -based industries (including Potatoes South Australia), one national and three international industrial partners, as well as local and international end-users. All Danish companies above are partners. This multidisciplinary and cross-sectorial partnership will form an Innovation Centre headquartered at the Waite Campus of the University of Adelaide. Business Plan The proposal is to convert this waste material into high-value end-products such as starch, fibres, and protein. At full-scale, around 800 tonnes of waste potatoes can be processed per day, with an initial establishment of a smaller pilot plant that can process 240 tonnes per day, commencing operation within 12 months. All processes and machinery would be designed by partner, Alfa Laval Corporate AB, and its partner, Bioptimate ApS (Copenhagen, Denmark). Alfa Laval, a leader in the development of ‘zero waste’ plants for potato starch production, and Bioptimate have optimised processes for the starch industry that increase the quality of starch products by eliminating non-starch components while efficiently recovering energy and recycling water, thereby minimising the overall associated input costs. With the Bioptimate technology, the value of potato derivatives obtained through traditional processes is multiplied by a factor of three. The pilot plant will initially produce starch, but the addition of modules and the later construction of a larger-scale plant will generate three main product lines from waste potatoes: starch, high value protein and cellulosic fibres. By-products from the process include organic fertilisers and biogas, both of which are recycled within the operation to reduce water usage, and input and waste removal costs. The pilot and full-scale plants would generate employment for approximately 250 workers. The financial model projects that the conversion of the current 85,000 tonnes of waste potato produced annually would generate an operating profit of at least $5.6M in year 1, increasing to over $20M by year 5 (Appendix 5). Key end customers in South Australia include Coca-Cola Amatil, George Weston Foods and Barossa Fine Foods. Key players in the global market include partner Ingredion, with bases in North America, Singapore and the Asia Pacific that provide access to its international markets. Uses of starch and by-products Powdered starch is a key ingredient for many different industries, especially as a sweetener and texturiser for food and beverages. Starch products are also a key component of paper and cardboard, improving printability and writing properties. Paper and board typically contain 2–4 per cent starch, with increasing amounts required to avoid deterioration of fibre quality after recycling. Starch plays a key role in pharmaceutical formulations for tablets, creams, and liquid medicines.

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It is used to produce antibiotics, vitamins, nutrition, and even blood plasma replacements. In other industries, starch is used to increase the mechanical strength of yarns and fibres and to protect coloured fabrics. It is a key component of detergents and cosmetics. Starch is also used by the chemical industry to produce surfactants, resins and biodegradable plastics37 and by the construction industry to make plasters, insulation and for mineral and metal processing. Potato fibres and proteins are used predominantly in the food industry as supplements that are gluten-free, lactose-free, vegan, kosher, and halal. Investment for the future To support this bid, a preliminary brochure was produced to attract capital for the construction of a pilot plant (Appendix 6). Alfa Laval will commit experts to establish the plant in Adelaide’s northern suburbs, and is ready to provide instruments and latest technologies by mid-2017. The proven infrastructure of existing Danish plants will be replicated to enable the stated benefits with minimal risks. In the long term, new potato varietals which have higher levels of starch would be introduced from the EU to increase the yield and quality of the end products. The Australian climate provides a unique advantage over international starch producers, in that fresh potatoes can be harvested year-round to the facility, obviating storage requirements or conversely, periods of plant inactivity, and ensuring a constant supply to commercial customers. The quality of the potatoes is also consistent. Two South Australian companies, The Mitolo Group and Zerella Fresh (the largest vertically integrated value chain potato businesses in the Southern Hemisphere) have expressed interest in supporting a starch industry in the northern regions of South Australia. It is anticipated that this would be a whole of industry supply. The timing of the visit to Denmark was ideal as it allowed meetings and liaison with all key collaborating businesses and their key personnel. A tour of the new KMC starch facility in Toftlund was provided by its Managing Director, Mr Jens Jorgen Jorgensen, Sicca Dania’s Director Starch Technology, Mr Steen Simonsen (also a Director of Bioptimate) and Mr Kim O Hansen, Market Manager Starch Business and Mr Jens BlachAndersen, Market Manager, Starch & Decanter Business, Alfa Laval. KMC is a leading producer of starch and other potato based ingredients. The product portfolio embraces native potato starch, a variety of modified starches and application specific solutions as well as potato fibres, granules and flakes. It is 100%-owned by Danish potato producers, providing full control over the entire supply chain, with a guaranteed supply of quality-controlled raw materials with rigorously documented provenance. Under this cooperative arrangement, profits are distributed to members together with by-products (fertiliser and soil). The partner companies are described below: Alfa Laval Nordic A/S Market Unit Life Science and Renewable Resources (LSR) Soborg 37 Plantic Technology Pty Ltd, a German company with an Australian presence in Altona Victoria is widely recognised as an international innovator in the field of bioplastics. Using high amylose starch derived from corn, a cutting edge bioplastic; ‘plantic’ has been developed which is 100 per cent compostable and water soluble. Potato starch could be substituted. www.plantic.com.au

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Alfa Laval is a 17,000 employee-strong Swedish business which specialises in the production of customised products and solutions for heavy industry, including the protein and starch industries, in Denmark, Holland, Finland, Germany and SE Asia. Meetings were held with Mr Christian Landbo, Manager Starch Business, Mr Kim O Hansen, Market Manager Starch Business and Mr Jens BlachAndersen, Market Manager, Starch & Decanter Business Bioptimate ApS Adapted Process Design Solutions (starch, protein, fibre) Toftlund University of Copenhagen Department of Food Science Meetings were held with Dr Jens Chr Sorensen, Vice President (R&D) and Dr Keld Ejdrup Markedal, Director (CEO) (both are also Associate Professors at the University of Copenhagen) and Mr Steen Simonsen. A tour of the pilot laboratory at the University was provided. Sicca Dania A/S Danish Separation Technology Birkerod Sicca Dania was founded in 2015 following the establishment of Danish Separation Technology. The company was formed by a group of individuals with extensive industrial experience and expertise within the evaporation and drying technologies involved in the processing of dairy, starch and food products. The company is able to supply equipment for liquid processing, powder handling, bagging-off systems, automation etc. through collaboration with other companies that are specialists in these fields. Sicca Dania possesses the required expertise to project manage and integrate larger turnkey projects involving starch and dairy products. There is also an office in Shanghai, China. 8. Finland VTT Technical Research Centre of Finland Ltd Espoo VTT is a public not-for-profit conduit between academia and industry supporting Finnish economic growth. It is the leading research and technology company in the Nordic countries. Research and knowledge is used to provide expert services for its domestic and international customers and partners in both the private and public sectors. Its mission is to enhance the international competitiveness of companies through innovative solutions by establishing global strategic networks with universities.

Multi-disciplinary services cover bio-economy, health and well-being, low carbon energy, pilot plants, business development and sustainable and smart cities. Services include product development, assessment, testing and certification, technology and innovation management, and IP and licensing.

In 2015, Primary industries and Regions SA (PIRSA) commissioned VTT to undertake a research study to explore the market opportunities for Functional and Luxury Foods in Asia and Australia and an

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implementation plan of options for the South Australian food industry. Food and packaging manufacturers, research institutes and food associations were involved.38

Meetings were conducted with Dr Maria Saarela, Senior Principal Scientist (Microbiology), Dr Riita Puupponen-Pimia, Principal Scientist (Docent Plant Biotechnology and Metabolomics), Dr Satu Salo, Senior Scientist (Process Hygiene, Industrial Contamination Control and Microbiology) and Dr Katariina Rommi, Research Scientist (Biomass fractionation and protein ingredient). Despite ‘food’ not being a core focus for VTT research, the research centre works intensively with technologies for value-added products including agro-biomass side-streams, particularly the use of plants as a protein source. It is anticipated that the use of plant biomass as a source of protein will double by 2050. The key message is that “waste does not enter the food chain now”. The use of Nordic berry seeds (Cloudberry) and rosehips (a side-stream; not waste) as a source of anthocyanins (an anti-oxidant) for use in food and cosmetic products has been researched and now implemented in products including Lumene cosmetics. 39 Improving food functionality, while maintaining safety throughout the whole food processing and distribution chain, is key to VTT’s development work. An innovative approach to production of the next generation of food is a home appliance that grows the ingredients for a healthy meal within a week from plant cells: VTT’s first 3D-printed CellPod prototype is already producing harvests. The idea of the CellPod concept is based on growing the undifferentiated cells of a plant rather than a whole plant, ie only the best parts of a plant are cultivated. These cells contain the plant's entire genetic potential, so they are capable of producing the same healthy compounds, such as antioxidants and vitamins, as the whole plant. The nutritional value of a cloudberry cell culture, for example, is similar to or even better than that of the berry itself.40 The recovery of anti-bacterial components is also an element of VTT’s expertise. The focus is on developing healthy products with increased consumer value while maintaining sustainable and economic efficiencies. VTT is also specialised in the development of novel cereal-based ingredients such as oat beta-glucan and protein. Intelligent packaging solutions to reduce microbiological risk, decrease colour change and reduce hygiene risk is also a core competency. Potato waste (peels) has also been researched as a potential source for value-added ingredients including for the production of edible bio-polymer films. Peels, which are historically used as stock feed, are rich in starch and also contain suberin, a waxy compound which forms a protective layer in potato cell walls. Both components can be used in edible films. These films can be used in many food and packaging applications, particularly for dry foods (Appendix 7). VTT research also supports the use of potato waste to produce potato protein which has high nutritional value. Isolated native protein has a value of 100 Euros, a hundred-fold increase in market value. Its use has significant application in the processed meat and fish industries. Discussion

38 http://www.pir.sa.gov.au/__data/assets/pdf_file/0003/281658/Project_Summary_Booklet_Final.pdf 39 www.lumene.com/ 40 www.TheCellPod.com

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Globally there is a growing commercial and political focus on resource efficient use and recycling of nutrients and materials within food and agriculture production. Tomorrow’s winners will be those who can produce more with less, keeping in mind the circular approach to production. When facing the new challenges, new business opportunities emerge; this is the circular economy. There is little doubt that Australia is well behind Europe in its approach and uptake of the valorisation of ‘waste’ or the use of the food industries’ co-streams. The critical difference is the slow realisation by industry, but particularly by governments, that food waste, particularly pre-farm gate, is an economic resource that must be utilised. It is also an ethical and moral responsibility. Waste valorisation pre-farm gate is not backed by Government legislation at all in Australia. In the EU, there is obvious innovation in packaging solutions, value-adding through customer-focused ready meal products, additives for functional foods, composting, anaerobic digestion, biogas/biofuel production and starch production. This is transferrable to the Australian environment. This must be supported by consumer education, standardised food labelling to minimise the use of food expiration dates, improved supply/value chain communication and the development of better food harvest, storage and transportation processes.

Recommendations Key recommendations include the following:

• Use of clever packaging to extend shelf-life; • Value-adding of out-grades/off-cuts for ‘ready-meals’ and potato products of high net

worth; • Starch, high value protein and cellulosic fibre processing; • Biofuel and fertiliser production as by-products; • Extension of value chains in the fresh sector to include processing facilities in a collaborative

model; and • Establishment of REFRESH Australia through a Government initiative and partnership.

Additionally, this report has identified some key outcomes which will be fed into current projects being undertaken by Potatoes South Australia Inc:

• Transforming waste potatoes into premium value-added product (PIRSA and industry-funded)

• Transforming Riverland food loss and industry waste into profit (a SARMS initiative, funded by the DoAWR through PIRSA and Industry)

At final writing, the bid; “South Australian Innovation Centre for Agricultural Product Development” under the South Australian Department of State Development’s Research Consortium Program (DSD-RCP) was not successful. However, investors for the establishment of an Australian starch industry are being pursued, using the resources of the Investment Attraction Agency (IAA). This is a key outcome of the project findings and must be pursued to provide a profitable new industry for South Australia and nationally. Packaging and value-adding solutions in terms of food service and retail products will be extended directly to industry.

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It is critical for primary production to lead the way in the transition to a resource-efficient Australia. This report will be extended to all companies visited and to other relevant parties including:

• The RIRDC Board • The Board of Potatoes South Australia and industry stakeholders • Department of Agriculture and Water Resources (DoAWR) • Primary Industries and Regions South Australia (PIRSA) • Department of State Development (DSD) • The University of Adelaide FOODPlus Research Centre • The Crawford Fund • The Chief Agricultural Scientist • Relevant Industry Associations • Relevant Ministers and CEOs

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Acknowledgements

Thank you to the Board and personnel of the Rural Industries Research and Development Corporation (RIRDC) for providing funds for this project, and to Primary Industries and Regions South Australia (PIRSA) through whom this award was administered.

Special thanks are extended to personnel in all international companies and Government agencies who facilitated meetings during this study tour. Their willingness to accommodate time and input is greatly appreciated.

Thanks are also extended to the South Australian Potato Industry, represented by Potatoes South Australia Inc; Dr Steve Lapidge, Director of the Food Innovation Taskforce, PIRSA; Dr John Carragher, Commercial Development Manager FOODPlus Research Centre, Waite Campus, The University of Adelaide and Professor Vincent Bulone, Director, ARC Centre of Excellence in Plant Cell Walls, The University of Adelaide, Director Adelaide Glycomics.

I also thank The Hon Rob Kerin, who together with Dr John Carragher, were referees for my original application.

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References

Bio Intelligence Service (2010). Preparatory study on food waste across EU 27 European Commission Gustavsson et al. 2011. Global Food Losses and Food Waste: Extent, Causes and Prevention, Rome: Food and Agriculture Organisation of the United Nations

Lamb Weston/Meijer. 2015. Sustainability Report 2012-2014, Kruiningen, The Netherlands

Lapidge 2015. Primary Production Food Losses; Turning Losses into profit. PIRSA, Government of South Australia

Stenmarck et al. 2016 Estimates of European food waste levels. FUSIONS EU

Tesco Annual Report 2015’16-CR Review of the Year

Willersinn et al. 2015. Quantity and quality of food losses along the Swiss potato supply chain: Stepwise investigation and the influence of quality standards on losses. Waste Management 46: 120-132.

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Appendices