The Food and Agriculture Organization of the United Nations estimates that 40 per cent of all the food produced in the country goes to waste, costing an estimated figure of $20 billion per year. CRC Chief Executive Dr Steve Lapidge says half of the wastage figure is from household waste and one of the main reasons is the low price of Australian food.
"Australia is the second cheapest country in the world (behind the USA) in terms of the cost of food as a percentage of income," he said. "So, it is very easy to waste food. We don't think about it because it is not a major cost impediment for most Australians - although it still is for some. Also, there is no penalty for throwing food out in Australia, or New Zealand. In many countries you pay for your rubbish, based on the amount that you throw out - whether it is weighing bins or whether it is taking waste to a particular station where you pay by the kilogram."
Dr Lapidge adds that Australia produces three times the amount of food that is needed, so there is generally no guilt in throwing out the food.
The CRC is a unique $133 million industry-wide response to this situation that is made up from organisations right along the supply chain, from farmers organisations and produce groups right through to supermarkets and government bodies.
With a large part of Australia in drought at the moment, Dr Lapidge says a lot of primary production will have to be downgraded, which highlights the need for alternate value chain to put the products into, to at least get some return for farmers.
"One area the CRC will deal with is horticulture waste, or I shouldn't say waste, it’s actually a resource," Dr Lapidge said. "Graded out produce, which depending on crop could be anywhere between 20-40 per cent, we are trying to provide alternate value chains for. One thing that has become popular around the world is seconds produce, sold in Australia as "The Odd Bunch" or “Imperfect Picks”. But it is not always what the grower wants because they can take away from their premium products. So, it's new value chains and alternative destinations that our participants are after, and that's what we are trying to provide."
Another area that can be developed, to help reduce waste, is the ingredients supply chain, whether that is for functional foods, standard food or nutraceuticals - which is currently mostly imported from overseas. Dr Lapidge says half available of these are available in surplus horticulture chains.
The CRC will draw together industry, research and government over 10-year project, across three main areas; reducing supply chain losses, transforming unavoidable waste, and education, training and behaviour changes.
"It is certainly not an overnight issue," he said. "It can be done and it has been done in other countries and the UK has probably been one of the most successful with the 'Love Food, Hate Waste' program. Beating waste is directly relevant to how time poor we are, what our pay is doing at the time, and a number of personal factors. Getting around that to a more philosophical debate, more environmental, more social well-being is something that is going to take time, but it certainly can happen. There are certainly some good analogies with health programs where we have changed our behaviour over many years of public education."
"Some of the early targets will be around getting some of the Australian nutraceutical ingredients that are currently imported from overseas onto the market," Dr Lapidge said. "Certainly, there is some low hanging fruit, as such, that we are trying to get commercialised very quickly. Then some of the behaviour change projects, or the research behind them will be kicking off early. The Australian Government has committed to the National Food Waste Strategy, which is for 50 per cent reduction by 2030, for which there will be a long running national education project that the CRC will support."
Long term, it's also hoped the CRC and participants will deliver new sources of revenue and market growth for food companies, less waste of resources through the supply chain from grower through to consumer, less food waste ending up in landfill, and more donated food to feed hungry Australians.
For more information
Dr Steve Lapidge
Fight Food Waste Cooperative Research Centre
Phone: +61 401 990 367