Professional Documents
Culture Documents
food waste
Using the
Circular Economy
KPMG.com.au
B Fighting food waste using the circular economy
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Fighting food waste using the circular economy 1
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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.
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Fighting food waste using the circular economy 3
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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.
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
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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.
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6 Fighting food waste using the circular economy
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).
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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 7
8% 20%–30%
Target 12.3
Halve global per
capita food waste
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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.
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
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Introduction to the subject
Master class introduction to the circular economy Fighting food waste using the circular economy 9
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).
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
© 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
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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 11
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
food generated
Pre
fer
that to address food waste with Donate extra foods to food banks,
a circular mindset, the preferred soup kitchens and shelters
Landfill/Incineration
ast
16. https//www.rabobank.com.au/savings/2019/03/26/05/27/financial-healthbarometer-food-waste-infographic-2018/
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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
Source: https://circulareconomy.fooddrinkeurope.eu/
17. https://circulareconomy.fooddrinkeurope.eu/
18. https://www.ellenMacArthurfoundation.org/explore/food-cities-the-circulareconomy
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Fighting food waste using the circular economy 13
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
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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.
14 Fighting food waste using the circular economy
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
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Fighting food waste using the circular economy 15
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
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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 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
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
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
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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
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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
& Reuse
st
Feed Hungry
and has committed to working
fer
People
edr
Landfill/
Pre
Incineration
fer
r
ed
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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 21
Case study
Yume
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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
Feed Hungry
2. Act now or you’ll lose market
fer
People
r
ed
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
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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
& Reuse
commercial products.
st
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
Incineration
fer
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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 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.
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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.
26 Fighting food waste using the circular economy
Case study
People
soil conditioners and other products
edr
Landfill/
Pre
Business results
With almost 90 years experience,
Tarac is the leading manager of
winemaking residuals in Australia.
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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 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.
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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.
28 Fighting food waste using the circular economy
Case study
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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Fighting food waste using the circular economy 29
Case study
Peats Soil
Organic waste to carbon-rich compost, mulch and bioenergy
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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
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.
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Fighting food waste using the circular economy 31
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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.
32 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 33
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34 Fighting food waste using the circular economy
Contributors
Thank you to the following people for their contribution to this report:
© 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
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
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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.
36 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 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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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.
Contact us
Ben van Delden
Partner, AgriFood Tech
and Circular Economy Lead
T: +61 3 9288 5894
E: bvandelden@kpmg.com.au
Adrian King
Partner in Charge,
Climate Change & Sustainability
T: +61 3 9288 5738
E: avking@kpmg.com.au
Amanda Goddard
Associate Director, AgriFood Tech
and Circular Economy
T: +61 7 3233 9749
E: agoddard2@kpmg.com.au
Scott Valentine
Senior Circular Economy Specialist
T: +61 3 9288 6135
E: svalentine@kpmg.com.au
KPMG.com.au
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