The Victorian government has set out its plan to halve food waste by 2030 with objectives to build a circular economy, find new ways to prevent food waste, and reuse and recycle food to limit its impact. In the first of a series with Food & Drink Business, CommBank looks at how some of Victoria’s food and beverage manufacturers are answering the call for solutions.
With Victoria producing 50 per cent of all Australian-made foods and 25 per cent of Australia’s national food waste, the Victorian government is seeking to dramatically reduce the true cost of food waste through a range of initiatives.
According to Sustainability Victoria, food waste creates three million tonnes of carbon emissions, wastes 29 billion litres of water and costs $6 billion in lost product and disposal fees each year.
A key part of the efforts to lower food waste is the government’s proposed Circular Economy Regulations 2023, the latest regulatory development designed to manage and de-risk the infrastructure that supports waste reduction.
The state’s food and beverage manufacturers also have a large role to play in achieving food waste targets.
Encouragingly, not only is progress being made to advance the circular economy at a state-wide level, but there is mounting evidence manufacturers are embracing the food waste challenge.
CommBank’s executive manager ESG, Camilla Waterhouse, says, “We are seeing small and medium manufacturers innovate and play a proactive role in the transition to a more sustainable economy.
“Transitioning to a circular resource use framework will play a critical role in both reducing food and packaging waste, and it is an important contributor to our national decarbonisation goals.”
CommBank’s latest Manufacturing Insights report confirmed that 88 per cent of manufacturers believe sustainable manufacturing is important or essential. Reducing and responsibly managing waste was the top-rated sustainability initiative, with 39 per cent already active and 46 per cent planning programs.
Tim Wilson, end-to-end food development and manufacturing business, Flavour Makers’ GM Quality, says waste reduction is already part of the industry’s DNA.
“We don’t see food waste reduction strictly through a sustainability lens. Maximising yield, reducing wastage and giveaways through the process is also good business,” Wilson says.
Circular systems
Another manufacturer strengthening its circular economy practices is Bendigo-based fresh food and ready-made meals producer, JL King & Co. The family-owned business is building a new manufacturing facility, set to further transform its approach to waste management.
JL King & Co managing director, Michael Robertson, says it’s an exciting time for the business as it is embedding circular practices into the new facility’s design. He says it marks the next phase in the organisation’s culture of food waste management and integration of environmental considerations into work practices at all levels.
Robertson explains that one step is building a full waste treatment plant to replace waste interceptors and grease pits, but the company has broader plans and clear environmental management targets to reduce total waste.
Running ahead of Victoria’s aspirations, JL King & Co is targeting a 50 per cent reduction in waste sent to landfill over the next two years and 20 per cent less water consumption in the next 12 months.
Head of Products and Marketing at JL King &Co, Jess Hourigan, says those targets are supported by several programs.
“We are looking across all aspects of our operations to reduce our environmental impact. For example, we’re installing best-in-class equipment into our new facility, allowing us to pressure cook and reduce product loss in the process,” Hourigan says.
For JL King & Co and Flavour Makers, working with suppliers and the community is integral to diverting waste from landfill.
At JL King & Co that includes working with animal breeders to turn food scraps into feedstock, with the next step to provide mulch to local growers across its supply chain.
Meanwhile, Flavour Makers’ brand, the Australian Organic Food Co, that’s available at major supermarket chains, is working with local growers to create a secondary market for fresh produce that supermarkets may deny due to aesthetic factors.
“We work with our suppliers to turn these vegetables into products like our 100 per cent organic pasta sauces and soups. It helps create an additional revenue stream for growers and supports Australian agriculture while decreasing unnecessary food waste,” Wilson says.
Working with a network of farmers and its partner, Carbon8, the company also supports the transition to regenerative agricultural practices. This is helping Flavour Makers advance its goal to become carbon-neutral by 2030.
Identify and eliminate waste streams
The team at independent dairy manufacturer and distributor, Procal Dairies, is also an active circular economy proponent.
General manager Laney Quinn says that reducing food waste is a core principle stemming from generations of “not abiding waste in any way, shape or form”.
Procal Dairies’ state-of-the-art factory has an annual capacity of around 100 million litres of dairy products, using modern techniques to minimise water, gas, and electricity use.
Quinn explains that Procal Dairies categorises waste into different streams and uses data and technology across its operations to better understand waste sources and mitigation strategies.
When it comes to organic material, the first category is production waste, including physical resources running through transfer lines.
Quinn says that until recently, it would flush the lines with water and, with it, up to 300 kilograms per fermented dairy product a week. The Procal team have installed viscosity meters to test what’s in the line and ensure good product isn’t thrown away.
The second stream relates to equipment, where enhancing maintenance, monitoring, training, and sourcing innovative new kit, can help reduce inefficiencies.
Quinn also emphasises that safely extending the shelf life of products is another important consideration and can reduce waste, downtime, and production costs.
Wilson agrees, adding that Flavour Makers uses individual quick freezing (IQF) technology to ensure its products’ longevity and create efficiencies in the supply chain. The high-speed freezing process reduces spoilage and degradation of food products, improving shelf life.
“By using IQF, we can extend their life and prevent them from going to waste,” Wilson says. “This is one of the leading sustainability initiatives we are undertaking as a brand.”
The road to 2030
Procal Dairies, JL King & Co, and Flavour Makers are just three of many homegrown manufacturers taking strides to decrease food waste.
Each business represents a trend towards taking a holistic view of waste management for maximum effect, whether through designing waste out or collaborating with supply chain partners and the community to put it to best use.
A strong and growing commitment among manufacturers is an encouraging sign.
To achieve Victoria’s 2030 target, many more will need to join the circular economy in lockstep with consumers, the waste management industry, and other stakeholders.
