Waste, in large part, can be driven by not using food products in their entirety – in fact, just among Manufacturers, byproducts and production line waste cause over 90% of all surplus food. While this is generally lower than at other supply chain stages, there are still areas for improvement.
Maximizing product utilization means designing facilities, operations, and menus to use as much of each product as possible. It also means rethinking the concept of “waste” by turning surplus and byproducts into food products through upcycling, which has opened new doors for innovation and investment. Solutions in this action area focus on using ingredients and products in their entirety, preventing waste through minimizing losses on a production line, extending product life, designing menus to use all product parts, and more. Some of this can be implemented through basic staff training, while other solutions involve the development of new food processing equipment.
Maximizing product utilization seeks new opportunities to create profit through repurposing and creatively repackaging existing products into new forms, thus finding greater value in items or parts usually deemed worthless. Internally, businesses can invest to make operational changes or purchase equipment that will provide returns over time – which is why nearly 60% of the capital needed to implement solutions in this action area stems from Corporate Finance and Spending. Externally, innovators have opportunities to capitalize on the gaps within the upcycling field, while Private Equity and Venture investors should seek opportunities to invest or acquire.