Want to boost profits? Build sustainability into your business

Inefficiencies and food waste can seem like an inevitable cost of doing business – but they don’t have to be.

Even low-tech, low-cost investments into a company’s technology and culture can improve both profitability and sustainability.

Food waste – a top priority

According to Donovan Bennett, associate director of circular advisory at Anthesis Group, a global sustainability consultancy, food waste continues to be a massive issue in the global food supply chain, from the farm gate to the processor.

“It’s a very big, global issue right now that is very prevalent,” he says. Bennett says his team works to understand what activities create the waste and how to develop proactive solutions to mitigate them.

Products being wasted for various reasons continue to be both an issue and an opportunity.

According to research from the Canadian food rescue organization Second Harvest, 46.5 per cent of all food produced in Canada is never consumed. The report notes that avoidable food waste—defined as food that could be redirected to feed those most vulnerable and in need—now sits at 41.7 per cent, with a value of $58 billion. In the U.S., it’s estimated that an average of 60 million tonnes of food is wasted annually, as well as 12.8 million and 59 million tonnes in the U.K. and the EU, respectively.

“This waste has a substantial impact on greenhouse gas emissions when it gets to the landfill, as well,” says Bennett. “We have a pretty big financial impact from food waste. We have a very large environmental impact from food waste, and then we also have the social impact of not getting food to the people who need it the most. So we have a lot of different things going on within this issue.”

Extra effort could mean extra revenue

Part of the issue stems from a lack of recognition about waste and the impact of secondary markets. While lower-quality and damaged products or those otherwise unsuitable for primary use often go to markets with lower profitability, Bennett says certain products, such as berries, are inherently fragile and will always need to be treated delicately to stay in a primary market space.

He points out, though, that he’s seen products, such as potato or carrot peelings, combined into other food products or upcycled into animal feed. So, there is potential to continue to capture value with just a little extra effort.

To an extent, though, strong products start at the farm gate. What used to be a top-down approach has shifted to more of a ground-up operation.

“Farmers need to be brought along,” says Scott Franklin, a principal consultant with Anthesis and a member of the company’s value chain transformation team. “They need to learn from other farmers and have a strong business case. Ultimately, you build on-farm resilience, and you can also have more resilience in your supply chain if you're a processor or a consumer-packaged goods company.”

Small changes can make big differences

Nova Scotia-based poultry processor Eden Valley Poultry, which employs around 400 people, uncovered $95,000 in savings when it cleaned its chicken leg conveyor system one extra time during the production day. The cleaning relieved tension on chains and gears and reduced miscuts, which were a major cause of product loss on that line.

They also saved an additional $27,000 by installing a guard where thighs were separated from drumsticks. This closed a gap in the processing line and prevented chicken pieces from falling on the floor.

Dean Gurney, director of corporate social responsibility for the meat processor, says these findings better informed all staff of “the challenges and opportunities associated with food waste.”

Simple solutions to benefit energy use

For one of Ontario’s craft brewers, Cowbell Brewing Co., adding ceiling fans in their barn-style brewhouse reduced their heating and cooling load by 20%.

“The west-facing windows were coated to reduce the greenhouse effect by 80%. This, combined with software-assisted building design and placement, helps maximize passive heating and cooling,” the company states, referring to other considerations given to the efficiency of its overall building design.

With around 160 employees, the company also takes advantage of its operational space by looking for sustainability opportunities in otherwise overlooked places, such as a pollinator—and carbon-friendly green roof on top of the facility. The green roof also helps with insulating the building and improving stormwater management.

First steps

Sustainable solutions for food and beverage processors of any size don’t have to be expensive. Providing more or better training to staff and ensuring equipment is working properly can go a long way toward reducing energy and water use.

“You can be environmentally friendly and save money,” says Bennett. “Let's reduce your operating costs through environmentally friendly actions wherever possible first. If we can divert material and either reduce the waste cost or create value in another way. That's the ideal outcome, rather than just simply reducing cost.”

Deliberately building a company ethos and goals around specific values is critical. It helps get employees on board while showing them that their employer cares about the environment.

Then, more targeted investments can be made, including improvements to facility layouts or incorporating more efficient and effective technologies (such as product sorting equipment using hyperspectral imaging).

However, while higher-tech options can and do have an impact, their effectiveness still relies on the operator.

Bennett says that in this case, management has to blaze the trail for all employees to see. From there, a company implements change as standard operating procedures and policies, along with training. Lastly, it shows employees the value of the change and, where possible, compensates them more for being an active participant in that change.

Bring in experts

There are food sustainability consultants and engineers nationwide who work with companies of all sizes to improve environmental and sustainability efficiencies.

Water and electricity efficiency consultants can advise on ways to cut usage. Energy audit inspectors will examine areas such as heating, refrigeration and cooling systems, facility processes, equipment and infrastructure. If it uses electricity, it will be part of the audit.

Meeting the need

Consumer demand is driving greener products, so it’s not an aspect of the business that can be overlooked without risking being left behind. As energy costs increase, looking for ways to trim spending is a smart risk mitigation approach.

Bottom line

Building a more sustainable business starts with critically examining current technologies, activities, and policies. Participate in an energy audit to see where your facility can gain efficiencies through structural or equipment upgrades. Also, look for ways to add value to what has traditionally been considered waste.

Article by: Matt McIntosh and Trevor Bacque