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Fighting

food waste
Using the
Circular Economy

KPMG.com.au
B Fighting food waste using the circular economy

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entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 1

Contributors and acknowledgements 2


Foreword 4
Introduction 5
Fighting food waste: The problem and opportunity 6
What is Circular Economy? 8
What does Circular Economy mean for food? 11
Around the world: Enabling Circular Economy to fight food waste 13
Current state of play in Australia 15
Circular Economy in Action 18
– Case study: Woolworths 19
– Case study: Yume 21
– Case study: Natural Evolution Food 23
– Case study: Tarac Technologies 25
– Case study: Mackay Sugar 27
– Case Study: Peats Soil 29
Fight Food Waste CRC 32
KPMG Circular Economy Services 33
Contributors 34
Looking for more inspiration? 34
Appendix 1: International enabling ecosystems 35

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
2 Fighting food waste using the circular economy

Contributors and
acknowledgements
KPMG and the Fight Food Waste Cooperative Research
Centre (CRC) have produced this report to highlight
opportunities in the circular economy.

The Australian Fight Food Waste CRC brings together industry, research
and the community to capitalise on Australia’s food waste opportunities.

The Fight Food Waste CRC is now the largest food waste research, development
and extension public private partnership globally with 43 industry partners, eight
university partners and eight state agencies participating in the cooperation.
The CRC has funding to operate until 2028 ensuring focus and effort towards the
National Food Waste Strategy, which has a goal of halving food waste by 2030.

Through three research and development programs, the Fight Food Waste CRC
will REDUCE food waste across the supply chain, TRANSFORM unavoidable
waste into innovative products and ENGAGE with industry and consumers
to create behaviour change.

At KPMG, we believe that while growth is the fuel of development, how you
grow matters. That’s why we strive to do things in a way that gives ‘now’ the
win it needs while setting the future up for a win too.

It’s with this common purpose that more than 200,000 KPMG people in
153 countries and around 7,500 in Australia help companies plan sustainable
pathways to value and growth. We offer deep expertise in Audit, Assurance
& Risk Consulting; Deals, Tax & Legal; Management Consulting; Innovation,
Solutions & Ventures; and tailored business services through KPMG
Enterprise.

We foster a diverse, inclusive and forward-thinking culture and our


employees give freely of their time and expertise to help fuel community
wellbeing and growth that benefits us all.

Through our dedicated Circular Economy and Food and Agribusiness


consultancy practices, KPMG specialists are focused on helping
organisations grow more with a lighter impact on the planet.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 3

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
4 Fighting food waste using the circular economy

Foreword
Australia is a standout producer of high working together with the countries These three simple principles are at
quality and safe food that the world leading minds on food waste reduction. the heart of the FFW CRC and can be
wants yet we take for granted. We The FFW CRC aims to create value out directly linked to all of our research,
produce enough food to feed 60 million of food waste through treating it as a development and extension projects.
people in a country with a population of resource. Determining the best options
25 million, yet the United Nations Food for any resource stream is the role of I recommend this report to any
and Agriculture Organisation reports our research community. Ensuring individuals or organisations wanting
that 35% of this food grown for human that by the end of our term industry to fight food waste using the circular
consumption is wasted. In 2019 the and consumers alike re-value surplus economy and note that the Fight Food
Federal Department of Environment food is our primary aim. Ultimately Waste CRC and KPMG are here to help
and Energy reported that this equates wasting food, no matter where in the you on your journey.
to 7.3 million tonnes per annum, enough supply chain, must become as socially Dr Steven Lapidge
to fill the Melbourne Cricket Ground to unacceptable as littering. Chief Executive Officer
the brim near nine times. Shockingly Fight Food Waste Cooperative
this occurs at a time when more than Outlined in the following pages is
information on food waste in Australia Research Centre
1 in 5 Australians are food insecure and
food charities are struggling to meet the and globally, principles of the circular
rising need for food relief. We can do economy, as well as leading businesses
better as a nation and adopting circular in Australia that have adopted circular
economy principles to prevent food economy principles, some up to
waste is the first step. 90 years ago, and have developed
successful businesses that manage
The Fight Food Waste Cooperative food waste. “Winning the fight against
Research Centre (FFW CRC)
While the concept of the circular
food loss and waste can
commenced in July 2018 with a vision
economy may be new to many, the save Australia AUD$20
of an Australia without food waste
and a 10-year horizon. The benefits of principles behind it have long been billion per annum through
achieving this vision are enormous. utilised by many human civilisations, increased industry
such as the Romans, where recycling
Winning the fight against food loss
of materials was common. Ultimately,
profitability and reduced
and waste can save Australia $20 food insecurity, as well
billion per annum through increased circular bioeconomy principles come
industry profitability and reduced down to three key aims as highlighted as enhancing Australia’s
food insecurity, as well as enhancing by the Ellen Macarthur Foundation: reputation as a sustainable
Australia’s reputation as a sustainable 1. Design out waste and pollution. food producer.”
food producer. The only way this
2. Keep products and materials in use. Dr Steven Lapidge,
can be achieved is through industry,
governments at all levels, and society 3. Regenerate natural systems. Fight Food Waste CRC

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 5

Introduction
Food waste is a global issue costing
over AUD$1.75 trillion annually1.
In an effort to reduce poverty and We can fight food waste using The World Resources
inequality, encourage economic the circular economy
Institute through
growth and recognise environmental For businesses adopting circular
impacts, the UN’s Sustainable
Champions 12.3 has
models, benefits include greater
Development Goals include a target efficiency and profitability, less waste reported that the
of halving food waste by 2030. and cost, better innovation and stronger average return on
Acknowledging our own AUD$20 relationships with customers. investment is 14:1 for
billion food waste problem, Australia
has set a National Food Waste However, for many the concept of the 700 companies
Strategy aligned to the UN target2. circular economy models and the shift involved in their analysis.
required in mindset and business
Reducing food waste can have a World Resources Institute3
processes can seem daunting. In
positive benefit for the environment Australia, there is a need for greater
and communities. Beyond this, by understanding of what circular economy
adopting a circular economy approach means and how businesses are
to reduce, reuse and recycle food successfully adopting circular models.
waste, there is the opportunity for
new business models to emerge and By fighting food waste through a
financial benefits to be captured from circular economy model, there is a real
what was otherwise being wasted. advantage to be gained for business,
communities and the environments
While the concept of circular in which we live, work and grow.
economy is not new, challenges like
resource availability, volatile growing
conditions, pressures on supply and This report aims to:
margins in food production, as well as
1. Highlight opportunities to address
changing consumer preferences, are
food waste through the circular
forcing us to rethink inefficient and
economy.
wasteful linear models through our
food supply chains. 2. Highlight international ecosystems
enabling circular economies.
3. Showcase successful home-grown
business models and initiatives
to inspire action.

1. Boston Consulting Group (2018) Tackling the 1.6-Billion-Ton Food Loss and Waste Crisis – values modelled from FAO Global Food Losses and Food Waste (2011).
2. Arcadis National Food Waste Baseline (2019).
3. World Research Institute (2017) Champions 12.3 The business case for reducing food loss and waste.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
6 Fighting food waste using the circular economy

Fighting food waste:


The problem and opportunity
Food loss and waste is a Food loss and waste per year
global issue with estimated
costs of almost AUD$20 Global: Global forecast (2030):
billion annually for Australia
and AUD$1.75 trillion
worldwide. By reducing
~AUD $1.75t
1.3 billion tonnes
~AUD $2.2t
2.1 billion tonnes
food loss/waste, there is
Aust (2016-17):
the potential to not only
reduce financial losses, but
also to capture financial
~AUD $20b
7.3 million tonnes
gains through new markets
and revenue opportunities,
and improve brand value.

Food loss and waste from farm to plate ($Ab)

Production Post- Processing Distribution Consumer


harvest & packaging & retail
Global4

345
Australia5
180 190 305 730
1.6 1 1 5.2 +10

4. Boston Consulting Group (2018) Tackling the 1.6-Billion-Ton Food Loss and Waste Crisis – values modelled from FAO Global Food Losses and Food Waste (2011).
5. Arcadis National Food Waste Baseline (2019).

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 7

FAO Global Food Losses and food waste

8% 20%–30%
Target 12.3
Halve global per
capita food waste

of global greenhouse of food is lost or wasted Australia to halve


emissions annually6 before reaching the consumer.6 food waste by 2030

(caused by gases released from It is inefficient to use financial resources, as well


rotting food and also energy used
in food production that gets wasted).
as land, water, energy and labour to produce food
that is ultimately wasted or lost.

Food waste is the highest growth opportunity for food and


Food
Waste
agribusiness in Australia based on 16 food and agribusiness
opportunities analysed by Food Innovation Australia Ltd

If food waste were a country,


it would be the 3rd largest
green house gas emitter
behind China and USA6
28%–35%
forecast CAGR 2015- 20257

US $2.7 tril ion


By 2050, a circular economy for food could deliver
/year

up to US$2.7 trillion per annum of benefits. $700b


resulting from reduced waste and value-added by-products,
and the remainder from environment and health benefits.8

6. FAO Global Food Losses and food waste.


7. Size of the prize – An overview of 16 global opportunities for Australian food and agribusiness, FIAL November 2017.
8. Ellen MacArthur Foundation – Cities and circular economy for food.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
8 Fighting food waste using the circular economy

What is
Circular Economy?
The circular economy is an economic 6 business benefits of the circular Five principles for a circular economy
model that aims to avoid waste and economy for SMEs9: include:10
to preserve the value of resources 1 Reduced exposure to rising and
(raw materials, energy and water) Principle 1:
the volatility of resource prices
for as long as possible. Products Waste no longer exists
2 Thinking circular stimulates
and materials are continuously (re)
innovation Principle 2:
circulated – as opposed to a linear
model in which they are discarded
3 Creates a green image Biological materials are renewable,
as waste after use. 4 Opens new markets and technological materials not and should
opportunities for growth therefore be recycled
5 Increased customer loyalty and Principle 3:
Circular
more stable revenue streams
Reduce. Reuse. Recycle. Try to reuse the product as a whole,
6 Environmental benefits through if that is not possible parts of the
vs reduced use of raw materials, product, and if that is not possible
energy, and fresh water. recycle the materials
Linear
Take. Make. Dispose. Principle 4:
First repair, then reuse, then refurbish
and then recycle
It’s good for the environment and our communities.
It’s good for business. Principle 5:
Make use of renewable energy

9. Let’s help SMEs to go circular, 2018 https://ec.europa.eu/environment/sme/pdf/Training%20materials_English.pdf


10. Guided choices towards a circular business model, https://www.greencycle.si/wp-content/uploads/2018/03/guided_choices_towards_a_circular_business_model.pdf

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Introduction to the subject

Master class introduction to the circular economy Fighting food waste using the circular economy 9

on There are a number of global Overview


Figureof global
1: overview sustainability
of global sustainability mega mega forces
forces (source: KPMG (2012), expect the
sustainability mega forces that are unexpected)
e of this module is to aintroduce
driving the concept
shift towards of circular
circular 11
. economy
Climate Energy and Material Water Population
why circular economy is a relevant concept for SMEs. As stated
Challenges
al introduction, non-renewable like resource scarcity,
natural resources are becoming
Change fuel resource
scarcity
scarcity growth

y due to: thegrowing


growing global population,
global population, therapidly
growing wealth in
conomies and the rapidly
reducing globalreducing
stocks of global stocks of these
natural
.g. oil, natural gas and rare metals). This has resulted in rising
resources
ncreased price andThis
volatility. environmental declineincluding
forces businesses,
are driving
e these resources the need The
more efficiently. for change.
concept of the circular
vides a way of thinking on how to increase resource efficiency.
Rising Urbanization Food Ecosystem Deforestation
“A circular economy is middleclass security decline

based on the principles


al business environment is more complex and
ng than ever of designing out waste
and pollution, keeping
, digital connectivity, accelerated consumption and disparate
ave combined products and materials
with ecological decline, a lack of global
in use, and regenerating
governance and resource scarcity to transform the playing
nesses. As a result, today’s global business environment is Impacts on business
x, uncertain,natural
volatile andsystems. ” ever before.
fast-moving than

MG identifiedEllen
trendsMacArthur
which have significantly
Foundation changed and will
change the global business environment: globalization, digital
accelerated consumption, disparate prosperity, ecological Resource
Price Physical and Changing
resource scarcity. In addition KPMG identified global New constraints
increases & weather customer
mega forces that in the nearby future will have a strong regulations on
volatilty changes preferences
production
the business environment and shall force the global business
o become more sustainable (see: figure 1, lefthand side).

Source: KPMG, Let’s help SMEs to go circular, page 10.

2018 KPMG N.V., a Dutch limited liability company, is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. 10

According to the Earth Overshoot Earth overshoot day: a call to action


Days calculation, if the world’s
population lived like Australia did
in 2019 we would have used more
ecological resources than the planet
is able to renew in a year by 31 March.
That means we would need 4 earths
if everyone in the world acted like
Australians.12

The global date the world consumes


more than the annual ecological
resource renewals is 29 July 2019.
In 2018, the date was 1 August. If
food waste was cut in half worldwide,
the Overshoot Day would be moved
back by 10 days.13

Source: Overshoot Day (2019), Country Overshoot day.

11. KPMG (2012), Expect the unexpected


12. Overshoot Day (2019), Country Overshoot day, https://www.overshootday.org/newsroom/country-overshoot-days/
13. https://www.un.org/sustainabledevelopment/sustainable-development-goals/

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
10 Fighting food waste using the circular economy

With the growing strain on resources, In addition to the benefit a circular


they are becoming more and more model can have in reducing food waste
difficult and costly to access. The and enabling a shift towards zero
linear model of “take, make, dispose” hunger, businesses and governments
is not economically or ecologically are recognising the potential of the
sustainable. The pressure on resource circular economy to drive business
access and environmental impact competitiveness, sustainable
is driving a focus on the benefit of a economic growth and job creation
circular model for reducing, reusing through waste to value initiatives.
and recycling. The goal of circular is to
unlock maximum value from inputs and For businesses going circular,
outputs for the longest possible time. benefits include greater efficiency
and profitability, less waste, reduced
Shifting towards a circular economy cost, better innovation and stronger
is one of the most important relationships with customers and
transformational challenges supply chain partners.14 In contrast
government, companies and to the current ‘take-make-dispose’
communities are facing. It is also a model, the concept of circular economy
key opportunity – enabling progress is widely recognised to enable more
towards the UN Sustainable sustainable business models through
Development Goals including halving increased resource efficiency.
food waste by 2030 and zero hunger,
improving resource efficiency (land,
energy, water) and creating the
potential for new economic models.

UN SDG Goal 12 target 12.3:


“By 2030, halve per capita global food waste at the retail and
consumer levels and reduce food losses along production
and supply chains, including post-harvest losses”

UN SDG Goal 12 target 12.5: The UN Sustainable Development


Goal 2 – Zero Hunger and 12 –
“By 2030, substantially reduce waste generation Sustainable Consumption and
through prevention, reduction, recycling and reuse” Production set targets to fight
food waste.15

14. KPMG (2019) Getting ahead in the circular economy, KPMG.


15. https://www.un.org/sustainabledevelopment/sustainable-development-goals/

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 11

What does Circular


Economy mean for food?
In its simplest form, the circular What are the farmers doing to reduce waste?16
economy principles of reduce,
reuse and recycle apply to food as:

1
Reduce
Decrease volume lost to waste

2
Reuse
Redistribute surplus
edible food

3
Food Recovery Hierarchy
Recycle
Food recovery hierarchy
Creating new value from food
waste and inedible by-products Source Reduction & Reuse
Mo

Reduce the volume of surplus


st

food generated
Pre
fer

The ‘Food Recovery Hierarchy’ notes Feed Hungry People


ed r

that to address food waste with Donate extra foods to food banks,
a circular mindset, the preferred soup kitchens and shelters

outcome is to reduce the volume of


surplus food generated or reuse it. Feed Animals
Divert food scraps to animal feed
Least preferred is sending the waste
to landfill. Industrial uses
Provide waste oils for rendering and
Developed by FoodDrinkEurope, the fuel conversion and food scraps for
illustration on the following page digestion to recover energy

highlights the opportunities from farm Composting


to consumer to prevent and reduce Create a nutrient-rich soil
amendment
food waste through circular economy
models. To fight food waste through
Le

Landfill/Incineration
ast

circular, it is key that the agri-food Last resort to disposal


Pre

value chain work together in finding


fe
rre

ways to keep food fresher for longer


d

16. https//www.rabobank.com.au/savings/2019/03/26/05/27/financial-healthbarometer-food-waste-infographic-2018/

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
12 Fighting food waste using the circular economy

through improved storage conditions Food brands, retailers, chefs, and nutrients into the soil. Marketing and
and logistics, creating products other food providers have a major branding is also important to tell the
from all harvested produce, seeking influence on what we eat. In circular story of the food to consumers so that
opportunities to convert waste into models, they have an important role in benefits such as increased margins
energy, feedstock, fertiliser or other designing food products, recipes and and new markets can be realised.18
products, and in informing consumers menus that are healthy for people and
about the process from farm to plate, the environment. This extends to food
the impact of food waste, portion packaging that preserves food and is
sizes, and storage instructions.17 also compostable so it be recycled as

A Circular Economy for the food and drink industry

Source: https://circulareconomy.fooddrinkeurope.eu/

Governments, universities and and its use in circular business


EU Circular Agenda 2024
research bodies, and financial models. Universities and research
institutes also have a role in circular as bodies can also include circular Product Environmental Footprint
stakeholders in the food and agri value principles and food systems in course voluntary disclosures on labels by
chain. For example, Governments curricula. Finally, financial institutes 2021, telling the whole lifecycle
can influence transitions to circular could incentivise circular economy impact of the product will highlight
through policies, incentives and business models by directing capital circular businesses/products from
access to practical support and towards businesses with circular exploitive/wasteful products.
training. Innovation hubs connecting models or working towards circular.18
government, research and industry
offer the ability to fast track research

17. https://circulareconomy.fooddrinkeurope.eu/
18. https://www.ellenMacArthurfoundation.org/explore/food-cities-the-circulareconomy

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 13

Around the world:


Enabling Circular Economy
to fight food waste
Western Europe, Japan and China
There are five core roles for government in enabling and encouraging
have led the way in enabling and
circular economy models:20
encouraging circular economy
models. These regions demonstrate 1 Create a vision for the Region, State and Nation
that government has a key role to
play in providing incentive and support 2 Engage with stakeholders

for businesses to adopt circular


3 Provide economic incentives
business models.
4 Influence urban management levers
Likewise, investment and financing
models can enable a circular 5 Legislation and regulation
economy through promoting and
rewarding those pursuing economic • Empowering consumers – active engagement of citizens
opportunities connected with circular in changing consumption patterns
models and thinking. For example, • Information on products’ durability and reparability can also
since 2014 Rabobank NL has shift purchasing decisions towards more sustainable choices
been driving the Circular Business • Consumer protection against false environmental claims etc.
Challenge, in partnership with CSR
Netherlands and KPMG. Over 50
businesses have participated in
the challenge which aims to map
opportunities for circular economies
in regions and bring entrepreneurs
together to develop new ideas/
solutions and a circular action plan.
The challenge inspires action and
helps businesses to get started on
their circular journey.19

19. https://www.rabobank.com/en/about-rabobank/in-society/sustainability/circular-economy/rabobank-circular-economy-challenge/index.html
20. https://www.ellenmacarthurfoundation.org/assets/downloads/CE-in-Cities_Policy-Levers_Mar19.pdf

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
14 Fighting food waste using the circular economy

The below provides a snapshot of Government activity and


frameworks around the world aimed at enabling and promoting
a shift toward circular. More information is provided in Appendix 1.

EU UK France
• EU Circularity Agenda 2024 • UK Govt Food Waste Measurement • ‘National Pact to Combat Food Waste’
• Product Environmental Footprint Roadmap - to halve food waste by 2030 in 2016, France made a commitment to
• The Courtauld Commitment – voluntary reduce the phenomenon by half by 2025
• EU Monitoring Framework for the
Circular Economy agreement aimed at the UK grocery • ‘Loi Garot’ The first national law against
sector food waste particulary at the retail level
• First analysis of Europe’s progress
in achieving a more sustainable, • The UK Plastics Pact to create a circular
regenerative economy economy for plastics
Japan
•E
 U Strategy for Plastics in a Circular • ‘Basic Act on Establishing a Circular
Economy Finland Society’ enacted law in 2000
• Resource-related policy goals • Circular Economy roadmap to be a • Food Loss Reduction Promotion Bill
with targets and indicators carbon-neutral circular economy by 2025 • Food industry recycles about 85 per cent
• ‘Let’s help SMEs to go circular’ project • Business Finland and the Ministry for of its food waste
Foreign Affairs have make the circular
economy part of Finland’s country image.
Netherlands China
• Initiatives to building capabilities in
• Goal to be completely circular economy sustainable food systems, bio-based • Circular economy effort commenced
by 2050 – ‘A Circular Economy in the economies and digitisation (data and 20 years ago
Netherlands by 2050’, new technologies) • Circular Economy Promotion Law
• Actively seeking policy and incentives • China and the EU signed a Memorandum
for businesses to go circular and working of Understanding on Circular Economy
to remove legislative roadblocks Scotland
Cooperation
• Food for the Circular Economy policy brief • Target to reduce foodwaste by 1/3 by 2025
• Food Smart Facility - The Netherlands, • ZeroWaste Scotland
USA
Rabobank, the World Bank, IFAD, FAO • £70 million for a Circular Economy
and the Rockefeller Foundation Investment Fund and Service to support • U.S. Food Waste Challenge
small and medium-sized enterprises • National target to reduce food waste
(SMEs) by 50% by 2030
• Circular economy strategy – • Food Loss and Waste 2030 Champions
‘Making Things Last’
• Joint agency agreement ‘Winning on
•P
 roposed Circular Economy Bill to drive Reducing Food Waste Initiative’
towards net zero carbon emission by 2045

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 15

Current state of play


in Australia
Solving the AUD$20 billion issue The strategy outlines four priority The Australian Futures Project 2018
of food waste in Australia will take areas to be pursued to meet this – Wasting the Future noted that
a collaborative approach between objective: government intervention is required
supportive government initiatives, to reduce the levels of waste sent
entrepreneurial spirit, active industry 1. Policy support to landfill. The approach to waste in
participation, applications of disruptive 2. Business improvement Australia is linear with a focus on
technologies, and input from 3. Market development recycling and landfill with significant
academia and significant consumer 4. Behaviour change. volumes of hard waste sent offshore.
behaviour change. This practice has been impacted by
Since the launch of the National Food regulatory changes in China, India
Momentum on the importance solving Waste strategy, Food Innovation and Australia, restricting the export of
food waste has grown over the past Australia Limited has been formulating Australia’s recyclable waste streams.
and is rapidly transitioning from the national implementation plan,
niche to mainstream. The 2017 War monitoring and evaluation framework For traction to be made, there needs
on Waste, a four part documentary which is due to be released later this to be a greater focus on reducing
aired on the ABC, catalysed the issue year. This framework looks to bring waste rather than recycling or reusing
into the mainstream for consumers, together industry, government and it.22 This concept is aligned with the
leading to sales growth in products academia to create business solutions food waste hierarchy that identifies
such as Evolution’s Green Banana and supporting policy frameworks to the preferred option as reducing the
Resistant Starch powder and the drive change. volume of surplus food produced.
introduction of new policies and
process at retail, for example In May 2019, the Federal Government Momentum has also been building
Woolworth’s Odd Bunch range. provided AUD$1.6m in funding to across state governments with a
Planet Ark to establish a National number launching (or due to launch)
In 2017 the Federal government Circular Economy Hub and their circular economy policies and
launched the National Food Waste Marketplace which aims to be the action plans in 2019.
Strategy outlining a framework for “B2B’s ‘eBay’ to enable the circular
action towards halving Australia’s food economy and match buyers and
waste by 2030, a goal aligned with sellers of waste resources.21
the UN Sustainable Development In October 2019, Yume’s Katy Barfield
Goal 12.3. The National Food Waste won an Australian Financial Review
Strategy was updated in 2018 to 100 Women of Influence award in the
include consideration of circular Business and Entrepreneur category
economy principles. for her leadership and innovation in
the food waste space.

21. https://planetark.org/documents/doc-1864-circular-economy-hub---program-information
22. http://files.australianfutures.org/Wasting-The-Future-Final-Report-PDF.pdf

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16 Fighting food waste using the circular economy

South Australia: Victoria: defines the State Government’s role


Through circular economy principles The State has commenced shifting in implementing circular economy
South Australians are transforming towards a circular economy and principles across NSW and provides
the way the economy uses and is currently developing a circular principles for implementing circular
values resources. Top of the agenda is economy policy and action plan to economy in the Government’s
reforming household waste, reducing be released in late 2019 through the processes and decision making.27,28,29
food waste through developing Department of Environment, Land
industry solutions, reforming Water and Planning.25,26 In September Queensland:
packaging and single use items, 2019 the Victorian Government hosted In 2019, the State Government
developing the circular economy in Global Table in Melbourne, bringing defined its waste vision and
business and preparing for waste together leading international and strategy towards a zero-waste
resulting from natural disasters.23 Australian agrifood participants under society that leverages circular
one umbrella to create a conversation economy principles.30 Earlier this
In October 2019, the State on solving the biggest food year Queensland became home to
Government launched an AUD$11m challenges and creating tomorrow’s Australia’s first Circular Economy
research consortium for Agricultural breakthroughs. A key focus of (CE) lab with an aim to help drive the
Product Development led by the the event was achieving the UN state’s transition to a new low-carbon
University of Adelaide, including a Sustainable Development Goals and and circular economy, delivering
AUD$4m Government Grant. Up to food waste and sustainable packaging opportunities for industry and more
40% of SA’s primary production can was a key focus of the event. jobs for Queenslanders. A key focus
end up as waste. The Consortium
of the CE Lab is to consolidate
brings together 18 partners and is
focused on turning this waste into
New South Wales: industry, research and government
Released its Circular Economy Policy partnerships and expertise to identify
high value products for markets such
in Feb 2019 – Too Good to Waste. and deliver circular economy pilot
as pharmaceuticals, cosmetics and
The policy provides direction for projects. To date, the CE Lab has had
packaging.24
circular with seven guiding principles, five projects including two focused on

23. Green Industries: https://www.greenindustries.sa.gov.au/circular-economy


24. https://www.adelaide.edu.au/newsroom/news/list/2019/10/22/making-high-value-products-from-agricultural-waste
25. https://engage.vic.gov.au/circulareconomy
26. https://www.environment.vic.gov.au/sustainability/circulareconomy
27. https://www.epa.nsw.gov.au/your-environment/recycling-and-reuse/response-to-china-national-sword/circular-economy-policy
28. https://engage.environment.nsw.gov.au/circular
29. https://www.epa.nsw.gov.au/-/media/epa/corporate-site/resources/recycling/19p1379-circular-economy-policy-final.
pdf?la=en&hash=F80151EA9C2C3E27BA889D15D18041CDF7A4D25A
30. http://statements.qld.gov.au/Statement/2019/4/17/queenslands-shift-towards-a-circular-economy-steps-up-a-gear

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Fighting food waste using the circular economy 17

the food-agri supply chain. One looked The Fight Food Waste CRC, now the
at eliminating soft-plastics from food largest food waste R&D Public Private
production and another at repurposing Partnership globally with AUD$63m
waste streams from the agri-food cash, AUD$57m in kind, 50 industry
value chain.31 and 10 research partners is also a
key mechanism to bringing together
Queensland’s Chief Entrepreneur government, academia and industry
and Co-chair of World Economic to design and implement solutions to
Forum Circular Economy working reduce waste.
group, Leanne Kemp, is encouraging
Queensland to become one of the Whilst momentum is building with
WEF Lighthouse Circular Economy Federal and State Government
examples. policies and initiatives directed
towards circular economy and food
Western Australia: waste, significant collaborative work
from players across the food value
Waste Avoidance and Resource
chain is required to develop circular
Recovery Strategy 2030 provides a
solutions towards tackling the issue
long-term strategy and targets for the
of food waste.
state for continuous improvement
of waste management. The strategy
outlines the vision for Western
Australia to “become a sustainable,
low-waste, circular economy in which
human health and the environment
are protected from the impacts of
waste”, and the targets and enablers
(knowledge, infrastructure and
incentives) to achieve this vision.

Tasmania:
In June 2019, the Government
released a Draft Waste Action Plan
for consultation. The plan proposed,
among other targets, the reduction of
organic waste sent to landfill by 25%
by 2025 and 50% by 2030 and the
introduction of a waste levy by 2021
(Tasmania is one of the few states
without a waste levy in place).32

31. http://statements.qld.gov.au/Statement/2019/2/25/australian-first-circular-economy-lab-opens
32. https://dpipwe.tas.gov.au/environmental-management/waste-action-plan

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18 Fighting food waste using the circular economy

Circular Economy
in Action
Industry also has an important
role to play in tackling food waste.
Throughout the agri-food supply chain Agriculture Post-Harvest Processing Distribution Consumption
there are opportunities to reduce, Horticulture waste Storage and Food manufacturing Logistics Food waste
reuse and recycle waste. There are – Unwanted crops transport waste
– Spillage,
waste – Losses during – Households
– Retailers
– Losses during – Wineries, packing/transport
a number of businesses that are harvest spoilage, breweries – Supermarkets, – Restaurants &
contamination – Canneries, food wholesalers catering
applying the principles of circular – Crop damage,

PUSH
processing – Large facilities
disease, natural
& services
economy to tackling food waste disasters – Out of spec (e.g.,
(e.g., airports,
confectionery)
and achieving financial benefit. Animal-based
– Abbatoirs,
hospitals)
waste
slaughtering
– Large animals, waste
The below diagram developed by pigs, poultry by
products
Fight Food Waste CRC highlights – Fish bycatch
the opportunities to create value – Losses at pasture

from food waste by applying circular


economy principles to the agri-food Mechanical Chemical Thermal Biological
value chain. Mechanical Chemical Thermal Biological
conversions conversions conversions conversions

ENABLE
As the focus on food waste and – Dewatering – Compositional – Gasification – Anaerobic
– Filtering (e.g., analysis – Pyrolysis digestion
circular models grows, so do the micro- & ultra-fil – Standard solvent – Incineration – Fermentation
tration) extraction
new businesses and solutions. – Centrifugation – Other solvent
– Hydro-thermal – Composting
– Vermiculture
liquefaction
The following section provides free extraction – Insect processing

a spotlight on some Australian


companies that are putting circular
economy into action to fight food Cropping Industrial High-value Feeding Feeding
waste, and are benefiting from inputs products products animals Humans

through new products, new markets, Bulk Materials Energy Food system Animal feed Rescued food
– Compost – Gas products – Re-processed – Fresh food
and new business models. – Ferlitiser – Diesel & ethanol – Nutraceuticals waste Re-processed food
– Char – Hydrogen – Starch & fibres – Re-direct waste – Soups
PULL

– Electricity – Other additives – Black soldier fly – Fermented foods


Materials (e.g., colourants) larvae
– Fibers Non-food products
– Biocomposites – Pharmacological
agents
– Polymers
– Fibers

Source: Fight Food Waste CRC.

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entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 19

Case study

Woolworths

Description of business With these programs in place, Date Established


Woolworths Supermarkets is
Australia’s largest chain of grocery
stores. It has 995 stores operating
Woolworths has recorded an
average year-on-year reduction
of eight per cent in food waste sent
1924
around the nation with around to landfill over the past three years.
115,000 staff in stores, distribution Location
centres and head office. Business model – National
Circular initiatives
The organisation purchases 96 per
The chain has enlisted not-for-profit
cent of fruit and vegetables and
partners to redirect food still fit
100 per cent of its fresh meat from
for human consumption into the Business type
Australian farmers, and serves 28
mouths of those who need it the ASX listed,
million customers a year.
most. Any food that is no longer fit Grocery store chain
for human consumption is diverted
Driver for establishing to farms to be used as animal feed
circular economy model or commercial organic composting.
Collectively Australia wastes Company size
AUD$20 billion worth of food a The company’s Stock feed for EDITDAR
year, which is estimated to be Farmers program has been running AUD$6,063m
40 per cent of all food grown for over 10 years.
and manufactured in Australia
Woolworths have also partnered Number of employees
for consumption in this country.
with Tribe Breweries to create a
Woolworths is committed to help
reducing that number.

In a bid to tackle the food waste


circular economy beer – Loafer. This
limited edition pale ale has been
created with more than 350kg
115,000
problem Woolworths announced of left over bread and each sale
in June 2019 that 100 per cent of represents a meal being delivered
its supermarkets now have an to vulnerable Australian’s through
active food waste landfill diversion its partnership with Feed Appeal.
program in place. These programs
All money raised through the
include –rescuing surplus fresh
purchase of Loafer beer goes
food and distributing it to hunger
directly to community food relief
relief charity partners, donating
stock feed to farmers and sending
the waste for commercial organic
composting.

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entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
20 Fighting food waste using the circular economy

Case study

charities to supply ovens, freezers, Woolworths have invested heavily in


cool rooms, transport and other their team members to ensure that Key benefits of Circular
vital infrastructure to help them they have the education, training, Economy activity
store, cook and share meals, which resources and equipment to better
1. Redistributed 350kg of bread
themselves are often cooked from identify and divert surplus food that
from landfill to be used in
rescued food to meet the growing can no longer be sold away from
brewing beer, profits from which
demand for food relief. landfill and toward the most beneficial
are donated to Feed Appeal
stream – be it food rescue for hunger
Loafer’ is available exclusively at BWS relief, farmer donations for animal 2. Eight per cent reduction in food
and Dan Murphy’s stores across feed or commercial composting. going to landfill over the past
Australia. For every six pack sold three years.
($25), 50 cents is donated to Feed They are also the only retailer to 3. Over 55,000 tonnes of food
Appeal which equates to one meal. have joined the Fight Food Waste diverted from landfill
For every carton sold ($73), $2 is Cooperative Research Centre.
donated to Feed Appeal, which can The Fight Food Waste Cooperative
help to feed a family of four. Research Centre brings together
Advice for others in adopting
industry, research and the community
circular
Business results to capitalise on Australia’s food
waste opportunities. There are three 1. Develop partnerships to create
With these programs in place,
research and development programs a circular value chain
Woolworths has recorded over
55,000 tonnes of food being diverted which include reducing food waste 2. Re-examine the concept of
from landfill, and 10 million meals across the supply chain, transforming “value” to build the business
have been delivered to Australians in unavoidable waste into innovative case
need across the country. high-value co-products, and engaging 3. Be aware that circularity is not
with industry and consumers to ‘one-size-fits-all’
To date over 750 farmers and create change.
community groups from around the
country have joined the Woolworths How to get involved / where to
Stock Feed for Farmers program and learn more:
last year Australian farmers received Visit the Woolworths website for
more than 33,000 tonnes of surplus more information -
food from Woolworths that is no https://www.woolworths.com.au/
longer fit for human consumption shop/discover/community/food-waste
but suitable for livestock feed or
composting.
Element/s of the food hierarchy
model addressed:
Where to next
Woolworths has a strong Source Reduction
Mo

& Reuse
st

commitment toward Food Waste


Pre

Feed Hungry
and has committed to working
fer

People
edr

towards zero food waste to landfill. Feed Animals


There is a desire to look at further
opportunities to re-purpose products Industrial uses

destined for landfill.


Composting
Le
ast

Landfill/
Pre

Incineration
fer
r
ed

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 21

Case study

Yume

Description of business Business model


Yüme is an award-winning social Yüme collects a commission
enterprise that created the world’s on products sold and generates
leading B2B online marketplace other income through marketing
for quality surplus products that partnerships and premium service
Date Established
connects Suppliers with Buyers. packages.
Yüme are the Airbnb of surplus food.

Driver for establishing


Business results 2016
Yüme is servicing buyers and
circular economy model suppliers nationwide. The company
At Yüme we are building a more experienced threefold growth Location
transparent and connected food in the past 12 months and have Melbourne
industry – forging new channels to returned $4.5 million to Australian
market for the 4.1 million tonnes of farmers and manufacturers though
food going to waste every year in the sale of 1.3 million kilograms
the commercial sector in Australia. of food, saving an estimated
Business type
Yüme partners with businesses 2,600 tonnes of CO2 emissions Social Enterprise
to do things differently leveraging with embodied water value of 85
technology to ensure edible food million litres.
realises its maximum resource
value – to be sold and consumed. Where to next
Yüme suppliers include Kellogg’s, Company size
Yüme’s vision is a world without $2-5 mil turnover
Mondelez and Unilever and our
waste. The current priority is to
buyers are the likes of Sodexo,
scale locally (volume of suppliers
Spotless, Accor and discount
and buyers transacting on the
retailers.
platform), expanding further into Number of employees
the primary produce segment,
before taking our solution (platform
and know-how) to international
8
markets.

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entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
22 Fighting food waste using the circular economy

Case study

There are also opportunities to deploy


our technology expertise to transform Key benefits of Circular
supply and demand optimisation Economy activity
beyond surplus food.
1. Optimise resource use – stop
Yüme is a commercial solution that the take-make-dispose mentality
operates at the top of the food waste 2. Triple bottom line payback
hierarchy – improving the bottom line 3. Promotes collaboration
for both suppliers and buyers.

Element/s of the food hierarchy Advice for others in adopting


model addressed: circular
Source Reduction 1. Don’t do it alone – partner and
Mo

& Reuse collaborate


st
Pre

Feed Hungry
2. Act now or you’ll lose market
fer

People
r
ed

share (avoid the cost of inaction)


Feed Animals
3. Educate your stakeholders
Industrial uses

Composting
Le
ast

Landfill/
Pre

Incineration
fer
r
ed

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 23

Case study

Natural Evolution Food

Description of business In 2010, Rob accidentally drove


Natural Evolution Foods over a hand of lady fingers and he
converts green bananas that saw what looked like dust. This
were previously classed as food drove him to ask and research
waste into nutritional gluten-free could this be a flour?
super foods, along with health
After suffering mild coeliac Date Established
supplements, baking products,
symptoms and not being 2010
beauty products and ointments,
impressed with the majority of
equine supplements.
gluten free products on the market
Rob and Krista began producing a
Driver for establishing small batch of 6kg of banana flour
circular economy model per week sold through his family’s Location
For many years Rob and his family café. Green bananas are very North Queensland
were among the largest banana difficult to peel making the work
growers in Australia, specializing in labour intensive and slow.
a variety known as Lady Fingers.
When the bananas were too bendy, The first week it took the entire Company size
too straight, or too big they didn’t week for the gluten free “banana SME
meet supermarket guidelines so flour” to sell. The next week the
were sent to waste. Each week, flour was sold out by Wednesday.
more than 450 tonnes of green The following week, it was sold
out Monday morning and before Number of employees
bananas were being wasted in
North Queensland and at least 5
tonnes per week was from Rob
and Krista’s farm.
they knew it, word had spread and
orders were being phoned in and
demand was months ahead of
9
their ability to supply.
But the fruit was good for eating Waste use
and packed full of nutrients. In Business model ‘out-of-spec’ horticulture
fact, cattle would break fences – bananas, sweet
Seeing an opportunity in the
and wallabies would gather to eat potatoes
market, and with dedication and
the wasted green bananas. The
innovation, Rob designed the first
wallabies would actually reach over Products
and only peeling machine in the
ripe, yellow bananas just to eat the prebiotics, GF flour,
world. This increased output to
green ones. cake mixes, packaging,
approximately 300kg per week
vodka
which also sold out weeks and
often months in advance.

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entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
24 Fighting food waste using the circular economy

Case study

In August 2014 Natural Evolution What began as a purpose and use


Foods received a grant from for tonnes of wasted bananas each Key benefits of Circular
Commercialisation Australia to assist week has evolved into a new market Economy activity (reduce,
in building the world’s first and only for all growers. reuse, recycle)
pharmaceutical grade banana flour
1. Value-adding process for green
factory – a 950 square meter food Business results banana waste
processing factory.
Natural Evolution has opened up a 2. Reduced waste to landfill
Since finishing the facility in late new market for previously wasted 3. Access to new national and
2017, the business is able to produce bananas and sweet potatoes. Rob and international markets and
approximately 8 tonnes of banana Krista now run the first and biggest customers
flour each week. Natural Evolution commercial production of banana
Foods sources green bananas and gold flour in the world.
sweet potatoes from the Tablelands
For his enthusiasm and vision Rob  Advice for others
region. It takes 10 tonnes of banana
has received numerous accolades 1. Be inquisitive – just because
waste to produce 1 tonne of flour
for his inventions and food processing it has always been that way,
which is processed on site using the
techniques. Krista has also been doesn’t mean it should always
patented ‘Nutrolock’ technology.
recognised receiving the title of be that way.
Not only did they need to invent the 2018 Agrifutures Rural Woman
2. Don’t be afraid to say no –
and build the peeling, processing of the year.
surrounding yourself with the
and drying equipment for a product right team that aligns with your
Natural Evolution Foods began by
that had never been created before company and personal values.
transforming waste bananas into
– which took more than five years
a highly nutritious food source and 3. It’s a journey – the goal posts
– they also had to find and educate
is now revolutionizing the banana often shift and change and
their market.
industry where bananas are being you need to be able to pivot to
It was a rather unconventional grown for the sole purpose of flour ensure you get the goal in!
approach to finding and establishing production.
communication to the market. Over
many years of research and listening Where to next? Element/s of the food hierarchy
to people from all over the world Natural Evolution Foods is now model addressed:
the internal Natural Evolution team considering how their patented
was ready to officially launch their processing technology can be used Source Reduction
Mo

& Reuse
commercial products.
st

for other wasted foods in the industry.


Pre

Feed Hungry
fer

Natural Evolution Foods product range They are also working towards a People
edr

has now expanded to include cake larger facility based in Walkamin due Feed Animals

and baking mixes, gold sweet potato for completion early 2021.
Industrial uses
flour, protein powder, beauty products
and healing ointments, and fiber Composting
Le
ast

supplements for horses.


Landfill/
Pre

Incineration
fer

Products are available to customers


r
ed

around the world via Natural


Evolution’s website and also in stores
across Australia, as well as in New
Zealand, Japan, England, Singapore
and Canada.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 25

Case study

Tarac Technologies
A closed loop system creating value from
solid and liquid winemaking residuals

Date Established
Description of business clients and supply chain partners
Tarac Technologies takes waste
created during the winemaking
process and transforms it into
to adopt sound sustainable
management practices. 1930
Tarac’s motto is:
value added products for local and
Location
export markets. SA & NSW
Through Tarac’s closed loop
system, the company also ensures
minimum environmental impact
and waste from its own processing Number of employees
by-products.

Driver for establishing


Business model
Tarac’s sustainable system starts
on the land in the form of grapes
60
circular economy model
and finishes on the land in the form
Tarac Technologies was established of stock feed products, irrigation Waste used
in 1930 by ex-CSIRO scientist water and soil conditioners. Waste wine industry,
Alfred Allen at his home in the from winemaking is transported grape marc
heartland of the Australian Wine to one of Tarac’s 4 sites, located
Industry – the Barossa Valley, South near winemaking regions in South
Australia. Australia and New South Wales, Products
for treatment and value-adding value adding to solid
From the beginning, Tarac has been
processing. and liquid winemaking
committed to sustainability and
residuals
environmental resilience of the Tarac treats over 135,000 tonnes
Australian Wine Industry. This is of grape marc, more than 40
reflected in the company’s vision million litres of liquid waste and
and core values as well as ISO approximately 7,000 tonnes of solid
14001 environmental management waste annually; about 70 percent
system accreditation. Tarac of the solid and liquid residuals
works to proactively manage and produced by the Australian wine
implement resource efficiency industry.
measures and also encourage their

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
26 Fighting food waste using the circular economy

Case study

Solid residuals are treated to recover With an eye on the environment


grape alcohol, brandy spirit and and the Australian wine industry’s Key benefits of Circular
tartrates. These products are returned waste challenge, Tarac’s business Economy activity
to the wine industry. Liquid residuals solves major waste disposal and
1. Removes a waste disposal
from wineries are treated at a waste environmental issues and in doing
problem for wineries saving
water treatment plant co-owned this contributes to the long term
money and reducing their
by Tarac and a major local winery sustainability and resilience of the
environmental liability
in Nuriootpa. The facility, known as Australian wine industry.
the North Para Environment Control 2. Valuable products are created
(NPEC), is considered to be one of for the use of the Australian
Where to next wine industry delivering a
the most efficient and effective waste
1. Driving further efficiency gains sustainable revenue stream
water treatment plants in Australia.
Treated water is used to irrigate local 2. Extracting more value from for Tarac
vineyards and pasture near Tarac’s raw materials 3. Through recycling water, Tarac is
Samuel Road, Nuriootpa site, and 3. Responding to rising costs able to reduce its need for water
to replace use of mains water in of energy from the Murray Darling Basin.
Tarac’s processes. 4. Looking for sustainable growth
opportunities
By applying a closed loop system,
Advice for others in adopting
Tarac also recycles and reuses its
circular
own by-products. Waste water from Element/s of the food hierarchy
Tarac’s own processes is recovered, 1. Be prepared to make a long term
model addressed:
treated at the same plant and re-used commitment to achieve results.
for Tarac’s own processes. Solid Source Reduction 2. Attitude and commitment
Mo

residuals from Tarac’s processes & Reuse are key.


st
Pre

are turned into stock feed, mulch, Feed Hungry


fer

People
soil conditioners and other products
edr

for the agricultural and horticultural Feed Animals

industries. Industrial uses

In addition to the wine industry, Tarac Composting


Le

supplies products to other industries


ast

Landfill/
Pre

including craft distilleries and other Incineration


fer
r

alcoholic beverage producers, food,


ed

homeopathy & naturopathy.

Business results
With almost 90 years experience,
Tarac is the leading manager of
winemaking residuals in Australia.

Tarac has been recognised for its


contribution to the wine industry
and sustainability through a number
of awards including Banksia
Sustainability Awards and Australian
Business Awards.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 27

Case study

Mackay Sugar
Sugar by-products to bioenergy

Date Established
Description of business
Mackay Sugar, a Member of
Nordzucker Group, is Australia’s
Approach to fighting food
waste through circular
The two main by-products of
1988
second largest sugar milling sugar production are biomasses
company, producing 690,000 tonnes - bagasse, the fibre left over from
of raw sugar a year. They also have a crushing the sugarcane, and Location
25 per cent interest in sugar refining molasses. Bagasse is used for Mackay, Queensland
within Australia and New Zealand in biofuel and molasses is used
a joint venture with Wilmar. as supplementary stock feed.

Sugar milling produces valuable Business type


by-products which Mackay Sugar
Business results Sugar, molasses and
is processing for its ‘green projects’ Through using bagasse, Mackay electricity producer
focused on bioenergy. Sugar is largely energy self-
sufficient with excess energy
produced being redirected to
Driver for establishing
the national electricity grid. Company size
circular economy model
Their 38 megawatt Racecourse AUD$400m+
Mackay Sugar is committed to Cogeneration Plant (situated at
ensuring their operations are done their Racecourse Mill) produces
in an environmentally responsible enough renewable electricity
manner. They have a ‘nothing Number of employees
to power about 30 per cent of
is wasted’ business approach –
reusing and recycling their by-
products to create ‘green’ products
Mackay year-round. The plant
is also reducing Queensland’s
greenhouse gas emissions
600
with a carbon positive footprint, by 150,000 tonnes equivalent
that also enables Mackay Sugar carbon dioxide (CO2e) each year,
to grow its business and products. and unlike solar and wind, is not View ‘Nothing is Wasted
intermittent. Cycle’ Factsheet
Recognising the growing market
opportunity and interest in View Cogeneration
renewable energy, Mackay Sugar diagram
worked to create value from sugar
milling by-products molasses
and bagasse.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
28 Fighting food waste using the circular economy

Case study

Where to next Element/s of the food hierarchy


Mackay Sugar is undertaking a five Key benefits of Circular model addressed:
year refurbishment of their three Economy activity
Mackay sugar mills and will be Source Reduction
1. Largely energy self-sufficient,

Mo
& Reuse

st
improving energy and processing including production of refined

Pre
Feed Hungry
efficiency to maximise output from

fer
sugar, using renewable fuel. People

edr
the Racecourse Cogeneration Plant.
2. Reduced carbon emissions. Feed Animals
There is considerable scope to
3. Return mill waste products Industrial uses
increase surplus bagasse quantities
(ash and mud) to cane-land
through improved energy efficiency
as soil nutrients. Composting

Le
and increase renewable electricity

ast
production. 4. Molasses used as animal feed Landfill/

Pre
Incineration

fer
and as a feedstock for renewable

r
ed
Mackay Sugar will continue to ethanol production (by Wilmar).
monitor opportunities for using their
molasses for liquid biofuel production,
however the advent of electric Advice for others in
vehicles may impact this market. adopting circular
Molasses is an excellent renewable
1. If process waste can be recycled
carbohydrate feedstock for chemicals
to aid production of the input
currently derived from fossil fuels –
crop (eg sugarcane), yields can
developments in this market will also
be improved and fertiliser costs
be monitored.
reduced.
Improved water management is 2. Avoid waste disposal costs.
another focus for Mackay Sugar, 3. Reduce environmental impact
with longer term plans to operate as much as possible (inputs and
their mills using a larger percentage outputs).
of the water that comes to site
4. Consider biomass-to-energy
within the cane. This will reduce the
opportunities (thermal or
need for supplementary river water,
electrical) to increase revenue
and reduce outflow to their water
or reduce energy input costs.
treatment ponds.

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entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 29

Case study

Peats Soil
Organic waste to carbon-rich compost, mulch and bioenergy

Description of business Business model Date Established


Peats Soil is a second-generation, Peats Soil receives and
South Australian based company
focused on receiving, processing
and marketing recyclable organic
processes green organics from
Adelaide council kerbsides
and from businesses with
1974
resources in bulk and bag forms. the BiobiN including hotels,
supermarkets, schools, office
Peats Soils also created the BiobiN, Location
buildings, food processors and South Australia
a mobile, on-site capture and manufacturers. Peats processes
containment bin that starts the the green organics to create
composting process for organic soil improvement products for
waste (fruit, vegetable and meat) agribusinesses, households
and manages the odour. They have and businesses. Company size
also developed processes for AUD$18m+
creating biogas and biodiesel. Peats manages and processes
100,000 - 150,000 tonnes of
Driver for establishing organic waste annually.
circular economy model Number of employees
The patented BiobiN® aeration
Peter Wadewitz, Managing Director
of both Peats Soils & BiobiN®
Technologies, started making
system starts the composting
process of organic material,
reducing bacteria and other
95
potting mix for his father when he pathogens. The composting Waste use
was in his early teens. This grew process maximises the amount Food and Garden
into a nursery and the move to of organic material that can be Organics
organics was driven by the State collected by the BiobiN®.
Government decision to focus on
recycling organics. Once the waste is collected by
Peats, the processed or partially Products
Close to 15 years ago, Peter processed organic material can • Compost
developed the BiobiN® that enables be added to products such as soil • Mulch
the composting of organic waste conditioners, compost and biofuels • BIogas
to start before being collected by – providing a valuable supply of • Biodiesel
Peats. In 2005, Peter demonstrated nutrients, carbon and organic matter • BiobiN
the BiobiN® on the show ‘New to agricultural soils, landscape
Inventors’. supplies and alternative fuels.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
30 Fighting food waste using the circular economy

Case study

This compost goes back to gardens, The Whyalla renewable energy plant
farms and vineyards as organic is planned to be fully operational by Key benefits of Circular
and carbon-rich material to improve 30th June 2020. The site will process Economy activity
soil health. green, organic and food waste, digest
1. High quality compost restores
the waste using Anaerobic Digestion,
Peats also capture the methane gas nutrients in the soil.
to produce both biogas for sale into
produced by rotting organic material the grid and a compost product that 2. Reduced food waste in landfill
to create biogas for renewable can be sold to surrounding agricultural 3. Alternate energy sources
energy production, and dirty fat from markets for soil improvement and through biogas and biodiesel
food service and supermarkets carbon enhancement. Compost 4. Reduced the requirement for
to create biodiesel. product can be palletised for using water use of up to 60% on key
Peats works to continually improve in an air seeder on farm. agriculture crops
their processes and products applying Peats is working to have its 25
insights from their customers in the strong truck fleet run on the biodiesel
farming community and also working produced through the onsite biodiesel Advice for others in
with company scientists and industry plant and the whole operation adopting circular
professionals to ensure products are powered by biogas from an anaerobic 1. The opportunities are huge and
certified and tested to meet Australian digestion process. now is the time to take action.
standards.
2. Requires a coordinated approach
Element/s of the food hierarchy across all levels of government
Business results model addressed: and industry
Peats has built over 500 BiobiNs 3. Need to build additional
with most in use around Australia. Source Reduction
composting capacity in
Mo

& Reuse
There are also BiobiNs in China,
st

regional areas
Pre

Feed Hungry
USA and UAE, markets that present
fer

People
edr

big opportunities for organic waste


Feed Animals
capture and conversion.
Industrial uses
In May 2019, Peats opened its fourth
composting and renewable energy Composting
Le
ast

manufacturing at Whyalla, South Landfill/


Pre

Australia. Incineration
fer
r
ed

Where to next
The company’s vision is to be a world
leader in sustainable and innovative
organics recycling to produce valuable 
landscaping, garden and horticulture
products.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 31

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
32 Fighting food waste using the circular economy

Fight Food Waste CRC


If you are interested in fighting food
A list of existing Fight Food Waste
waste and benefiting from the circular
CRC participants can be found at
economy, the Fight Food Waste CRC
fightfoodwastecrc.com.au/about-
is here to help. You can either:
us/participants/.
1. C
 ontact the Fight Food Waste
CRC (08 8313 3564 or enquiries@ Should you prefer to discuss
fightfoodwastecrc.com.au) or go to your options in person contact
our website fightfoodwastecrc.com.au Dr Steven Lapidge, CEO of the
to obtain simple advice. Fight Food Waste CRC at
steven@fightfoodwastecrc.com.au.
2. Present your opportunity to
the SME Solutions Centre
(fightfoodwastecrc.com.au/project/
sme/) when funding rounds are open
and apply for up to $50,000 (matching
funding required) to develop new
products or processes within your
business to eliminate waste.

3. Become a participant in the Fight


Food Waste CRC to undertake
larger research, development or
extension projects, as well as benefit
from networking with like-minded
organisations and receiving regular
information on what is happening
globally in the fight against food waste.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 33

KPMG Circular Economy Services


Shifting from a KPMG ’s circular economy services include:
linear to a circular • Research and trends analysis • Providing education and training
model presents to give insights on market activity,
regulatory opportunities and risks
to help build circular capabilities.

opportunities and and stakeholder expectations. • Facilitating external


collaborations to accelerate the
benefits for businesses, • Identifying and assessing transition to circular through open
circular risks and opportunities innovation challenges for problem
communities and the through material flow analysis to solving, or targeted connections to
environment. identify opportunities for circular, researchers, commercial partners,
solutions to enable circular and and others.
model the financial benefits
KPMG specialists bring together skills and costs. • Implementing strategy including
in supply chain advisory, sustainability, change management support,
strategy, innovation, customer and • Developing strategy and and measurement and reporting
marketing, business modelling and determining what is needed of circular impacts.
finance to help your organisation along to implement these solutions,
the circular economy journey, no matter including skills and competencies. • Assessing circular and
what stage you are at. sustainability reports prepared
• Developing metrics to measure by organisations to communicate
As well as supporting individual business
circular performance set goals, progress against metrics.
from a variety of sectors, KPMG brings
targets and performance
experience working with organisations
monitoring metrics.
such as:

• World Business Council for


Sustainable Development
– developed a circular metrics Linear risks are real
framework that helps companies Co-authored by Circle Economy, PGGM, KPMG, WBCSD,
measure and benchmark their circular and EBRD, the report aims to raise awareness and create
performance a constructive dialogue with the financial and business
• European Commission – provided community to better understand and model ‘Linear Risks’
training to advise government on – the exposure to the effects of linear business practices
strategies to stimulate circular which will negatively impact an organisation’s ability to
economy and delivered training to continue as a going concern. It also aims to increase
small and medium enterprises to help awareness on how circular economy can provide a solution
them go circular to mitigate these ‘Linear Risks’.
• Rabobank NL – partnered to deliver the
Rabobank Circular Economy Challenge
aimed at supporting Dutch businesses
on their circular economy journey.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
34 Fighting food waste using the circular economy

Contributors
Thank you to the following people for their contribution to this report:

• Dr Steven Lapidge, Fight Food Waste CRC


• Ben van Delden, KPMG
• Adrian King, KPMG
• Amanda Goddard, KPMG
• Scott Valentine, KPMG
• Marie-Claire Renault, KPMG
• Lucy Gubbins, KPMG
• Adrian Cullen, Woolworths
• Alex Holt, Woolworths
• Krista Watkins, Natural Evolution Foods
• Roslyn Aikman, YUME
• Julie Rawlings, Tarac Technologies
• Jeremy Blanks, Tarac Technologies
• Peter Gill, Mackay Sugar

Looking for more inspiration?


• Fight Food Waste CRC, fightfoodwastecrc.com.au
• KPMG – Let’s help SMEs to go circular, ec.europa.eu/environment/sme/pdf/Training%20materials_English.pdf
• KPMG – Circular Economy Services, home.kpmg/xx/en/home/insights/2019/04/circular-economy-services
• Ellen MacArthur Foundation – Food Initiative, ellenMacArthurfoundation.org/our-work/activities/food
• Food Drink Europe Ingredients for a circular economy, circulareconomy.fooddrinkeurope.eu
• Circular CoLab, circularcolab.org/us-circular-economy-report
• Too good to go, toogoodtogo.com/en
• Danish Food Cluster, danishfoodcluster.dk/members
• Winnow, cutting food waste with artificial intelligence, circularitycapital.com/winnow-portfolio
• UK Food waste supermarket, circulatenews.org/2016/10/food-waste-ripe-innovation-two-uk-examples
• Phenix, wearephenix.com
• The Plant (USA), plantchicago.org
• The state of circular economy in America, circularchange.com/s/USCEStudy_FullReport.pdf
• Holland Circular Hotspot, hollandcircularhotspot.nl/en
• Planet Ark, planetark.org

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 35

Appendix 1
International enabling ecosystems

Around the world, Governments are Sixty three legally binding targets circular solutions. To date, 28 SME
driving activity to enable and promote and 68 non-binding objectives were support organisations (for example
a shift toward circular. The following set across nine environmental policy chambers of commerce and sector
provides examples of some of these areas that the EU member states associations) have received training
activities from around the world. have to meet37 to establish or expand their support
• EU Strategy for Plastics in a programmes on the subject of
EU Circular Economy – EU-wide policy circular economy.40

• EU Circularity Agenda 2024 – framework adopting a material-


specific lifecycle approach to
Netherlands
In 2015, the EU Action Plan for the
integrate circular design, use, reuse • Goal for The Netherlands to be
Circular Economy was adopted and
and recycling activities into plastics a completely circular economy
outlined plans to move towards
value chains38 by 2050. “A Circular Economy
circular economy, to improve
in the Netherlands by 2050”, a
competitiveness, create jobs, • The EU has established resource-
government-wide programme for
and enable sustainable growth.33 related policy goals extending as far
circular economy was released in
• Product Environmental Footprint – ahead as 2050 as part of its Europe
September 2016. The document
a methodology for measuring the 2020 strategy. In many cases, these
marks the start of a coordinated
environmental impact of products, goals are accompanied by relevant
and focused effort towards circular
as well as a includes a set of targets and indicators to track
with a shared vision and agreed
principles for communicating the implementation39.
pathway. Five economic sectors and
environmental performance of • In September 2018 ‘Let’s help SMEs
value chains have been identified
products.34 to go circular’ project was released.
as priorities for the transition to
• EU Monitoring Framework for the This was a project of the European
circular, including biomass and food,
Circular Economy (2018) – 10 key Commission DG environment in
and transition pathways have been
indicators covering each phase of conjunction with KPMG provided
developed.41
the lifecycle of products as well as training support and materials
• Once a year the Ministry
competitiveness aspects35 to small-medium enterprises. It
of Infrastructure and Water
was noted that Small-medium
• Environmental Indicator Report Management will hold the National
enterprises (represent 99% of
of 2012 – first analysis of Europe’s Circular Economy Conference
all EU businesses) were having
progress in achieving a more (in Dutch), and the Netherlands
difficulty in transitioning to circular
sustainable, regenerative economy, Environmental Assessment Agency
due to more limited organisational,
using six key indicators to assess (PBL) will publish a progress report
technological and financial capacity
resource efficiency and a further six every two years.
and access to (pre-) financing for
addressing ecosystem resilience36.

33. https://ec.europa.eu/environment/circular-economy/index_en.htm
34. https://europen-packaging.eu/policy/4-eu-product-environmental-footprint.html
35. https://ec.europa.eu/eurostat/web/circular-economy
36. http://reports.weforum.org/toward-the-circular-economy-accelerating-the-scale-up-across-global-supply-chains/favourable-alignment-of-enablers/?doing_wp_cron=
1572381733.9413309097290039062500#hide/fn-49
37. http://reports.weforum.org/toward-the-circular-economy-accelerating-the-scale-up-across-global-supply-chains/favourable-alignment-of-enablers/?doing_wp_cron=
1572381733.9413309097290039062500#hide/fn-49
38. https://ec.europa.eu/environment/circular-economy/pdf/report_implementation_circular_economy_action_plan.pdf
39. http://reports.weforum.org/toward-the-circular-economy-accelerating-the-scale-up-across-global-supply-chains/favourable-alignment-of-enablers/?doing_wp_cron=
1572381733.9413309097290039062500#hide/fn-49
40. https://ec.europa.eu/environment/sme/circular_economy_boost_en.htm
41. https://www.government.nl/documents/leaflets/2016/09/22/a-circular-economy-in-the-netherlands-by-2050

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
36 Fighting food waste using the circular economy

• The Dutch Government is actively presented by a circular approach to France


seeking policy and incentives food production, waste and value • In France, major legislation passed
for businesses to go circular and from by-products.43 in 2015 on energy transition was a
working to remove legislative • The Ministry for Infrastructure first significant step in raising public
roadblocks with a focus on:42 has open lines of communication awareness about the issue of waste
– Fostering legislation and so people can identify and raise and moving toward a more circular
regulations – this involves challenges to achieving a circular economy.47
reviewing legislation to identify economy. • “National Pact to Combat Food
any laws that cause roadblocks • Food Smart Facility – The Waste” in 2016, France made a
for the transition to a circular Netherlands, Rabobank, the World commitment to reduce food waste
economy. These roadblocks will, Bank, IFAD, FAO and the Rockefeller by half by 2025.48
wherever possible, be transformed Foundation are working together to • The first national law against food
into incentives. develop a global framework to tackle waste, known as the “Loi Garot”,
– Intelligent market incentives – food loss. This includes ‘country establishes a set of measures to
for example financial benefits for heat maps’, which show losses reduce and manage this problem,
companies that use resources within the main food production particularly at the food retail level49
as sustainably and efficiently as chains in each country and which
possible, and higher prices for allows it to identify scope for action
Finland
products manufactured in a way and investment.
that is harmful to the environment • In 2016, Finland released its
Circular Economy roadmap
– Financing UK
aimed at outlining the plan to be a
– Knowledge and innovation • UK Govt Food Waste Measurement carbon-neutral circular economy
– International cooperation Roadmap - to halve food waste by 2025. The roadmap was
by 203044 developed with input from various
– Investments being made in
businesses working toward • The Courtauld Commitment is sectors, companies, government
a circular economy a voluntary agreement aimed at departments and researchers and
improving resource efficiency pilot projects were identified in the
• The Government’s aim is that by
and reducing waste within the UK Circular Economy Roadmap
2030, 50% of materials to be reused
grocery sector. The agreement is • An updated roadmap was released in
as far as is possible, and for waste
funded by Westminster, Scottish, March 2019 to recognise the need for
to be converted into usable raw
Welsh and Northern Ireland revised goals and actions. Examples
materials where possible.
governments and delivered by of actions identified in the Roadmap
• The Government has committed €8
the Waste and Resources Action include impact investing and financing
million in 2020 for programmes to
Programme (WRAP). It supports for internationally competitive circular
advance the transition to a circular
the UK governments’ policy goal solutions, and tools for industry to
economy in a variety of sectors.
of a ‘zero waste economy’ and transition to circular.
To incentivise circular projects
climate change objectives to reduce
that reduce carbon emissions, • In an effort to position Finland leader
greenhouse gas emissions45
the Government plans to make a in circular economy, initiatives are
• The UK Plastics Pact46 is a focused on building capabilities in
one-off sum of €80 million available
trailblazing, collaborative initiative sustainable food systems, bio-based
in 2020 for circular projects from
that will create a circular economy economies and digitisation (data and
groundworks, roadbuilding and
for plastics. It brings together new technologies)
hydraulic engineering.
businesses from across the
• In April 2017, PBL Netherlands • Business Finland and the Ministry
entire plastics value chain with UK
Environmental Assessment Agency for Foreign Affairs have make the
governments and NGOs to tackle
released a policy brief Food for the circular economy part of Finland’s
the scourge of plastic waste.
Circular Economy that focused country image.50
on policy needs and opportunities
42 https://www.government.nl/topics/circular-economy/encouraging-a-circular-economy
43. https://www.pbl.nl/sites/default/files/downloads/PBL-2017-Food-for-the-circular-economy-2878.pdf
44. https://www.igd.com/articles/article-viewer/t/food-waste-in-2019-whats-new-whats-happening/i/21526
45. http://www.wrap.org.uk/content/what-is-courtauld
46. http://www.wrap.org.uk/content/the-uk-plastics-pact
47. https://theconversation.com/the-rise-of-the-phenix-giving-a-second-life-to-food-waste-97407
48. https://media.sitra.fi/2017/02/28142644/Selvityksia121.pdf
49. https://theconversation.com/the-rise-of-the-phenix-giving-a-second-life-to-food-waste-97407
50. https://media.sitra.fi/2019/03/20110330/kiertotalouden-tiekartta-tiivistelma-en2.pdf

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.
Fighting food waste using the circular economy 37

Scotland USA
• The Government has a target to • In May 2019, the Government • I n 2013, US Department of Agriculture
reduce foodwaste by 1/3 by 2025.51 introduced the Food Loss Reduction and the Environmental Protection
• ZeroWaste Scotland was established Promotion Bill which will come into Agency launched the U.S. Food Waste
in 2014 to provide leadership, practical effect by the end of 2019. The Bill Challenge for stakeholders in the food
support and inform policy and includes the establishment of a food value chain to share best practices on
investment for a circular economy in loss reduction body in the Cabinet ways to reduce, recover, and recycle
Scotland. The not for profit is funded Office that will be responsible for food loss and waste. The goal was to
by the Scottish Government and the policy development on the issue. The have 1,000 participants by 2020. By
European Regional Development Fund Bill establishes October as the annual the end of 2014, the U.S. Food Waste
Food Loss Reduction month and Challenge had over 4,000 active
• In 2016, the government committed
requires Government to investigate participants
£70 million for a Circular Economy
food loss and enable initiatives that • In 2015, aligned with the UN
Investment Fund and Service to
support entities such as Food Bank.55 Sustainable Development Goals, the
support small and medium-sized
enterprises (SMEs) to develop • The Japanese concept of “mottainai” United States government has set a
technologies, business models and refers to regret at allowing a resource national target to reduce food waste
infrastructure for circular and help to go to waste without using its by 50% by 2030.
existing businesses redesign their full value.56 •R
 ecognising that a shift to reducing
process in order to move towards a • The Japanese food industry recycles food waste needs active participation
circular economy.52 about 85 per cent of its food waste, from the whole value chain, the US
• In 2016, the circular economy which are turned into animal feed, Department of Agriculture has named
strategy “Making Things Last” was fertilizer or methane.57 25 major food manufacturers, retailers
published with a focus on waste and food service and hospitality
China organisations as Food Loss and Waste
prevention and four key areas: 1.
Food and drink and the bio-economy, • China’s circular economy effort 2030 Champions. Each champion has
2. Remanufacture, 3. Construction commenced 20 years ago as a way committed to a reduction in food loss
and the build environment, and 4. to improve the economy, protect the and waste within their own operations
Energy infrastructure.53 environment and reduce the demand and is required to report on progress
on natural resources.58 through their company websites.61
• In September 2019, the Government
proposed a Circular Economy Bill • A number of policies have been • In October 2018, a joint agency
with a plan to drive towards net zero introduced to encourage the agreement titled Winning on Reducing
carbon emission by 2045. The Bill is development of circular economy Food Waste Initiative was signed by
open for consultation and includes systems. For example, In 2008 the the U.S. Department of Agriculture
plans for a “Green New Deal” to Standing Committee of the 11th (USDA), the U.S. Environmental
drive investment into projects that National People’s Congress (NPC) Protection Agency (EPA), and the U.S.
will support the net zero carbon formalised aspects of the Circular Food and Drug Administration (FDA).
emission goal.54 Economy concept in a Circular This is a formal commitment to a
Economy Promotion Law59 shared vision of reducing food loss and
Japan • In 2018, China and the EU signed a waste and an agreement to coordinate
• The Japanese Government enacted Memorandum of Understanding on actions (for example research, policy
the law entitled “Basic Act on Circular Economy Cooperation to discussion, public-private partnerships,
Establishing a Circular Society” set a platform for greater sharing of and methodologies for measuring
in 2000. best practice and continued focus, food waste) and leverage government
investment and improvement related resources.62
to circular economies.60

51. https://www.zerowastescotland.org.uk/reduce-food-waste
52. https://resource.co/article/scotland-invests-%C2%A370-million-develop-circular-economy-10877
53. https://www.gov.scot/publications/making-things-last-circular-economy-strategy-scotland/pages/2/
54. https://resource.co/article/scottish-government-table-circular-economy-bill
55. https://zenbird.media/new-japan-law-to-aid-food-banks-and-spread-food-loss-awareness/
56. https://www.abc.net.au/radionational/programs/philosopherszone/avoiding-waste-with-the-japanese-concept-of-mottainai/6722720
57. https://www.sitra.fi/en/articles/japan-finland-show-off-circular-economy-wcef2018/
58. https://www.youtube.com/watch?v=r-36deRWjx0&list=PLXT_ozykGVanA0x8nK7BP7AHNP9Ln2B4P&index=10
59. http://www.indigodev.com/Circular1.html
60. https://www.ellenMacArthurfoundation.org/news/china-eu-agreement-paves-way-for-global-adoption-of-circular-economy
61. https://www.usda.gov/foodlossandwaste/champions
62. https://www.usda.gov/foodlossandwaste/winning

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Ben van Delden
Partner, AgriFood Tech
and Circular Economy Lead
T: +61 3 9288 5894
E: bvandelden@kpmg.com.au

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T: +61 3 9288 6135
E: svalentine@kpmg.com.au

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© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
May 2020. 414015302CORPS.

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