Factors driving waste in the food supply chain

Factors Driving Waste in the Food Supply Chain Emel AktasZ Topaloglu, T van ‘t Wout, Z Irani, A Sharif, S Huda,

11 Apr 2016

PresentedatFoodSafetyandFoodSecurityWorkshop,Dubrovnik,Croatia,11-13Apr2016

ThispublicationwasmadepossiblebyNPRPgrant#[NPRP7-1103-5-156]fromtheQatarNationalResearchFund(amemberofQatarFoundation).Thestatementsmadehereinaresolelytheresponsibilityoftheauthors.

Agenda

§ Background on Qatar and food security§ SAFE-Q Project Overview § Literature Review§ Methodology§ Findings§ Discussion

© Cranfield University 2

Background on Qatar and Food Security Challenges

Qatar: location

© Cranfield University 4Source:MapsVersion1.0(1398.26.2),dateretrieved:16Sep14

Qatar: country info

§ Area: 11,586 sq km (compare Croatia: 56,594 km2)§ Climate: arid with mild, pleasant winters; very hot,

humid summers§ Population (2016 est.): 2,545,603

§ Doha (capital) 956,460 § GDP (2014 est.): $298.4 billion (49th)§ GDP per Capita (2014 est.): $145,894 (1st)§ Human Development Index (2014): 0.850 (very high,

32nd)


Source:https://en.wikipedia.org/wiki/Qatar,dateretrieved:10Apr16

Food in Qatar

§ Imports > 90% of food consumed in Qatar§ Climate puts pressure on distribution

operations§ Problems with logistics and supply chain

infrastructure, lack of warehouse capacity§ Problems with retail markets, abundance of

food and motivation to buy in bulk


Qatar’s food profile

© Cranfield University 7Source:AOAD2013,ArabAgriculturalStatisticsYearBook,Alpen Capital,CIRSGeorgetownUniversity,Qatar.Source:GoogleMaps

What is food security?

Food security exists “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”.

World Food Summit, 1996


Pillars of food security

§ Food availability: sufficient quantities of food available on a consistent basis

§ Food access: having sufficient resources to obtain appropriate foods for a nutritious diet

§ Food use: appropriate use based on knowledge of basic nutrition and care, as well as adequate water and sanitation

§ Stability of the above


SAFE-Q Project Overview

Research Team


CranfieldUniversityLeadPI

Dr EmelAktas

GeorgetownUniversityCo-LeadPI

Dr Zeynep Topaloglu

Dr Zahir Irani

BrunelUniversityLondonCo-PI

Dr AmirSharif

BrunelUniversityLondonCo-PI

Dr Samsul Huda

UniversityofWesternSydney

Co-PI

Tamaravan’t Wout

GeorgetownUniversityResearchAssistant

CranfieldUniversityResearchFellow

Dr Akunna Oledinma

Food security and SAFE-Q


Scope


Wasteatthisstageisgeneratedbydifferentcausesincludingbutnotlimitedtopurchasers’qualitystandards,weatherconditions,storageissues,etc.Similarconsiderationsapplyforprocessingwherethenatureofthetransformationprocess,qualityassuranceandotherfactorsmayaffectwastagegeneration.However,thispartofthesupplychainisnotaddressedintheproject.

Consumers’purchasehabits,availablestoragefacilityandoriginalqualityofthepurchasedfoodlargelyaffectthequantityofgeneratedwaste.

Thecoldchain,transportconditions,qualitydegradationoftheproductduringtransportduetotheelapsedtimeandtransportconditionsinfluencethewastegenerationinthisstage.

Mostofthefoodwasteisgeneratedduringsomestoragephaseintheprocess.Interruptioninthecoldchainarenotoriouscasesofwastage,butpoorhandlingofthegoodsalsosubstantiallycontributetowastagegeneration.

Production

Processing

Transport

Consumption

Wastage

Storage

Distribution

Aim

§ To develop a decision support system that provides strategic input on management of food supply chains to examine implications of specific food security policies

§ Objectives § To create a typology of the causes of food waste

occurring in distribution and consumption§ To identify changing trends in consumption of food and

resulting waste § To develop a holistic understanding of the food waste

generated in the supply and the demand sides § To make suggestions for reducing, and eliminating where

possible, the food waste


Literature Review


Journey of our food


agricultural production industrial refining packaging distribution consumption

waste management

Unsustainable situation

§ An increasing level of food-related waste (Vaclav, 2004) per unit of food demand created (Alexandratos and Bruinsma, 2012)

§ High level of non-domestically derived and supplied food within Qatar§ A significant need to reduce import dependence § from above 90% - to become 60% by 2025

(Abrahams, 2013; Babar and Migrani, 2014; Basher et al., 2013)


Food Distribution§ Distribution has to ensure that the food product maintains its quality and

safety while it is transported downstream on the chain and until it reaches the consumer (Akkerman et al., 2010)

§ Vulnerability of Arab Countries, including Qatar, to global price shocks: global food prices are transmitted into domestic food prices (Ianchovichina , 2013)

§ Significant challenges to the economy: loss of value added and to the environment: loss of natural resources depleted to produce food, disposal issues (Caswell, 2008)

§ Wholesale price controls in Qatari food chains: “rentier bargain” policy aimed at protecting consumers from price volatility (CIRS, 2012)

§ Consumers’ attitudes toward the shelf life of food (Van Boxstael, 2014)§ Consuming food products beyond their use-by date risks the food safety, § Disposing of food in a short time before or after the use-by date results in

food waste if the food is still acceptable for consumption.


Methodology

SAFE-Q methodology

2015 2016 2017

20

Workshops to set the scene§ Stakeholders invited to workshops

§ Demand (restaurants, caterers, consumers + NGOs + Government) [20 + 3 + 1]

§ Supply (importers, logistics service providers, retailers + NGOs) [10 + 3]

§ Half a day session§ Presentation on food security§ Introduction of the project aim and objectives§ Introduction of the workshop aim and plan


Workshop Methodology

1. Discussion in groups2. Using post-its to

denote causes of food waste

3. Prioritising elicited causes

4. Identifying causes under the PESTLE categorisation


Interview Methodology

§ Semi-structured interviews with participants on § demand side, § supply side, § governmental organisations and § nongovernmental organisations


Datacollectionfrom

interviews

Dataanalysis:elicitationofcauses

Datasynthesis:groupingofcauses

Creationofheatmap

Findings


Supply Side Participant Groups PESTLE Results


Causes Identified during Interviews by Participants in Distribution


[1] "Portion.Size" "Storage" [3] "Refrig...Temp" "Purchasing.Habits" [5] "Free.Food" "Culture" [7] "Quality" "Expiry.Date" [9] "Labeling" "Poor.Planning" [11] "Convenience" "Packaging" [13] "Promotions...Discounts" "Demand.Uncertainty" [15] "Stock.Control" "Transport.Damages" [17] "Operational.Activities" "Poor.Forecasting" [19] "Food.Handling" "Commercial.Decisions" [21] "Shelf.Life" "Import.Docs" [23] "Low.Cost.of.Food" "Minimum.Order.Quantities”[25] "Import.Regs" "Food.Regs" [27] "Certification" "Port.Capacity"

Heat maps


Packaging

Food.Regs

Promotions...Discounts

Certification

Port.Capacity

Labeling

Import.Regs

Expiry.Date

Shelf.Life

Convenience

Low.Cost.of.Food

Culture

Minimum.Order.Quantities

Transport.Damages

Free.Food

Operational.Activities

Purchasing.Habits

Import.Docs

Storage

Refrig...Temp

Stock.Control

Poor.Forecasting

Food.Handling

Portion.Size

Demand.Uncertainty

Poor.Planning

Quality

Commercial.Decisions

-1 0 1Column Z-Score

Color Key

RETAIL

REGULATIONS

BEHAVIOR

OPERATIONS

Hierarchicalclustering

ImportersRetailersLogistics service providersWarehousing companies

Conclusions


§ Waste in food supply chains is a complex problem

§ Multiple stakeholders§ Different worldviews§ Environmental conditions§ Policies around food import and market

functions

Future Work

§ Validation of the causes and interrelations among them

§ Development of a system dynamics model for policy analysis

§ Risk assessment of particular policies on food supply chains


Thank you

Questions / Comments?


[email protected]

@emelaktas

http://uk.linkedin.com/in/emelaktas/

https://blogs.commons.georgetown.edu/safeq/

References§ Vaclav, S. (2004). Improving efficiency and reducing waste in our food system, Environmental

Sciences 1 (1) : 17-26.§ Alexandratos, N., and, Bruinsma, J. (2012). World Agriculture Towards 2030/2050 - The 2012

Revision, Food and Culture Organisation, Agricultural Development Economics Division, Food and Agriculture Organization of the United Nations,. ESA Working Paper No. 12-03.

§ Abrahams, L.A. 2013. Qatar National Food Security Programme: Initiating a Model for Arid States. CIHEAM Briefing Note, Number. 90, January 2013. Available. [on-line]. URL, http://ciheam.org/images/CIHEAM/PDFs/Observatoire/NAL/nal90.pdf

§ Babar, Z., and Mirgani, S. (2014). Food Security in the Middle East. Oxford University Press. § Basher, S., D. Raboy, S. Kaitibie, and I. Hossain (2013). Understanding Challenges to Food

Security in Dry Arab Micro-States: Evidence from Qatari Micro Data. Journal of Agricultural & Food Industrial Organization, 11 (1) : 1-19.

§ CIRS (2012) Food Security and Food Sovereignty in the Middle East Working Group Summary Report. In: http://www12.georgetown.edu/sfs/qatar/cirs/FoodSecuritySummaryReport.pdf. Accessed 09/23 2013

§ Akkerman R, Farahani P, Grunow M (2010) Quality, safety and sustainability in food distribution: a review of quantitative operations management approaches and challenges. OR Spectrum 32:863-904 ISSN: 0171-6468

§ Reuters (2013) QATAR: Rising prices of food imports drive inflation rate in Qatar. In: . Reuters. http://www.itnsource.com/en/shotlist//RTV/2013/06/23/RTV230613003/. Accessed 11/24 2013

§ Van Boxstael S, Devlieghere F, Berkvens D, Vermeulen A, Uyttendaele M (2014) Understanding and attitude regarding the shelf life labels and dates on pre-packed food products by Belgian consumers. Food Control 37:85-92 ISSN: 0956-7135


Factors driving waste in the food supply chain

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