Transforming Food Waste into
a Resource
Last Minute Market and the
Italian case study
Prof Andrea Segrè
Dean of the Faculty of Agriculture of the University of Bologna (Italy)
and Chair of Last Minute Market
HUNGER AND OVERNUTRITION
• FAO estimates that the global agricultural production could
feed 12 billion people (the double of the current world
population)
• The World Food Summit in 2009 has called for a 70%
increasement in the agricultural production by 2050 to meet
the food demand of a growing population
BUT
while 935 million are hungry, 300 million people are obese
and 1 billion people are overweight.
Food surplus would be enough to feed 3 billion people (Stuart:
Uncovering the global food scandal, 2009)
• HUNGER and OVERNUTRITION are strictly connected both in
developed and developing countries.
• The Millennium Development Goals were established in 2000
to halve the number of starving people by 2015…but the data
are still shocking
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
The paradox
FOOD INSECURITY vs WASTE
WHILE MILLIONS ARE STARVING…..
US: American families buy more food than what the family members
consume. On an average expenditure of $ 42 on food, $ 14 are
spent on unnecessary products.
UK: 30 and 40% of the food production is wasted every year for a
value of £ 16 billion. The food waste amounts to 1/3 of all the waste
produced in Britain. 250,000 people every day could benefit from
the wasted food.
Italy: 20 million tons of food are wasted from the field to the
supermarket (source: Italian Food Waste Report 2010)
More data will be presented in the course of the conference!
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
FOOD WASTE IN ITALYData from the Italian Food Waste Report 2010
Food waste originates along the whole supply chain
IN ITALY
Waste in the fields: in 2009, 3.25% (17.700.586 t) of agricultural production in Italy
remained in the fields
Waste at the producers’ organizations level : in 2008/09 almost 81,000 tons of
fruits and vegetables were withdrawn from the market, of which only 6.13% was not
wasted.
Waste in the agroindustry: in 2009 food waste stood at around 2.2%. (2.161.312 t)
Waste at retailers level: in 2009 food waste stood at 1,2%. (244.252 t)
TOTAL 20.290.767 t
Every year we waste an amount of food that could meet the food requirements of
3/4 of the Italian population (44.472.914 people).
The economic value of the food waste is EUR 37 billion or 3% of our GDP.
Dumping food waste in a landfill causes environmental damage.
By volume, it is the largest contributor to methane gas production.
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
Food Waste vs Food Surplus
At the same time we accumulate surpluses
Reasons for food surplus
- Structural agricultural surpluses (CAP)
- Defects/changing/damages in packaging
- Residues of promotional activities
- Seasonal products
- Non-compliance with the typical physical standards
- Cessation of the business activities
- Close to the expiry date
- Launch of a new product
- Errors in production planning
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
Last Minute Market benefits poor people and people
in need.
Our aim: not a single minute or product should be
wasted—it s a “last minute” action!
A growing number of people in developed countries
require emergency food assistance – they do not
have access to enough food. For a variety of
reasons, the same developed economies produce a
growing quantity of FOOD SURPLUS.
In Italy 13.6 million people live with less than 1300
euro per month.
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
Profit vs Non Profit
FOOD SURPLUS
↓
For profit companies (firms, processing industries, food
shops, supermarkets…) it represents a COST (transport and
destruction of the products)
↓
For the civil society it represents a NEGATIVE
EXTERNALITY (environmental pollution).
↓
For charities and non profit institutions it is an OPPORTUNITY
(more food).
LMM is the link between profit (the supply) and non profit (the
demand)
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
Waste: Market Failure,
Inefficiency, Gift
Demand (-)
Food waste is a market failure
Supply (-)
Poor people - charity org.
Surplus - business
They demand
Products not for sale
GIFT
They need
Products safe to eat
They can’t buy- no money
No price
Speak the “no profit
language”
Speak the “business
language”
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
Win-Win Strategy
For profit companies
Public
administration
Win-Win
Charity
organizations
It provides economic, social and environmental benefits by reducing the amount of
waste and improving assistance to people in need.
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
Stakeholders’ benefits
Companies
- Reduced disposal costs
- Fiscal benefits
- Better logistics
- Increase visibility in the territory
Charities
- Constant supply
- Free food
- Reinvestment of the savings
- Better assistance
Public Administration
- Reduce products in landfill
- Better quality assistance
- Ability to grant discounts
- Better management of funds
Society
- Minor negative externalities
- Education (do not waste!!)
-“Ethical" behavior
- Reciprocity
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
NOT ONLY FOOD
LAST MINUTE MARKET
NON FOOD
FOOD
BOOK
HARVEST
SEEDS
PHARMACY
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
If LMM were adopted in all Italy…
Stores’ Typology
Cash and Carry shops
Superstores
Supermarkets
Small shops
TOTAL
Expected quantities of recuperated
food per year
4.644 tonnes
67.467 tonnes
128.785 tonnes
43.357 tonnes
244.252 tonnes
VALUE OF RECUPERATED
FOOD
CO2 emissions
928.157.600 euro = 580.402.025
meals in a year
291.393 tonnes of CO2 are produced
because the food end up in landfills
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
Achievements
Last Minute Market’s achievements are:
•the commercial success of the donor companies
•a contribution to sustainable development (a better
management of economic, social and environmental
resources)
•an important reduction in CO2 emissions
•a contribution to education on lifestyles, consumption
•benefits to the people helped by the charities (better
and more nutritional food)
•the charities can invest the money they would have
spent on food for other purposes
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE
LAST MINUTE MARKET
LMM combines
solidariety with
environmental
sustainability.
At the same time it
enhances strong
community actions
and promotes
networking
activities.
Thank you!
www.lastminutemarket.it
andrea.segre@unibo.it
LAST MINUTE MARKET – TRANSFORMING WASTE INTO RESOURCE