Food waste: Is it a ‘wasted’ opportunity?
As businesses and investors align with these goals, the recovery of commercial food waste can become a cornerstone of the region’s transition to a green economy
In the Gulf Cooperation Council (GCC) countries, we witness a paradox unfolding every day. From the 55 million tonnes of food imported every year into the region, one third — approximately 18 million tonnes — ends up in landfill. The numbers simply don’t add up. Given its primarily hot and arid climate, the region struggles to meet the domestic food demands of a growing population.
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE import 85 per cent of their food requirements – this includes nearly 100 per cent of their rice and 90 per cent of their cereal needs. Ironically, these countries are also the biggest producers of food waste per capita in the world – an average of 300 kilogrammes per person per year.
The economic cost of food waste in the region is staggering – over $13bn annually. This does not even account for the significant pressure on municipal waste systems. In addition to wasting food of epic proportions, there are tremendous missed economic opportunities in food waste.
Have governments, businesses and investors overlooked the economic and societal value of waste?
Food waste has significant intrinsic value, containing three key components – nutrients, energy and water. The key to realising this value is to find viable ways to extract as many of these components as possible. Currently, most food waste goes straight to landfills, resulting in enormous economic and environmental losses.
Organic matter in food waste sent to landfills is responsible for generating methane, one of the most potent greenhouse gases and a major contributor to climate change.
Leveraging food waste: Opportunities and solutions
So how can we create economic value from commercial food waste? Perhaps surprisingly, the answer lies in feeding.
It starts with feeding animals that will eventually sustain humans in this region. Solutions already exist to convert grain-based end-of-life foods into animal feed for cows, sheep and chickens – replacing grains that can cost growers upwards of $250 per tonne. Startups have also found creative ways of feeding food waste to black soldier fly larvae. The larvae can, in turn, sustain animals including fish and chickens.
A second valuable use of food waste is to nourish the earth. Methods exist to transform food waste into high-quality compost that can be spread over gardens and public spaces, reducing the price of organic compost per kilogram. In Saudi Arabia, biochar, derived from date palm production waste, helps reduce the water consumption of palm trees by up to 40 per cent while helping to embed nutrients into the soil.
Food waste can also be used to fuel engines. Some businesses in this region already convert used cooking oil into biodiesel, valued at over $1,000 per tonne.
Food waste is increasingly used to power the electricity grid. In fact, this region has launched several waste-2-energy facilities that use heat to extract energy from waste. Although this method helps minimise the waste that goes to landfill, the process required to separate the water content is energy intensive and must compete with more economically viable renewable energy sources that are becoming abundant in this region.
The best way to reduce food waste, of course, is simply to minimise it. Today, there are multiple ways to monetise food waste avoidance. Some businesses in the region are doing just that – providing commercial kitchen operators with the data necessary to simply buy better and less food, creating savings and more efficient processes across the entire value chain.
With the sheer volume of food waste generated in the region, the opportunities for investment are vast. However, cultural attitudes toward food, logistical challenges in collecting and redistributing waste, and limited awareness among businesses and consumers all require targeted strategies to overcome the hurdles that impede food waste recovery.
Governments have a major role to play in conceptualising and driving policy incentives, education campaigns, and infrastructure investments.
The commitment of the GCC countries to sustainability and economic diversification is a natural impetus to drive change.
As businesses and investors align with these goals, the recovery of commercial food waste can become a cornerstone of the region’s transition to a green economy.
Samer Kamal is the MD, Tactical Connections and Christophe Guibeleguiet is the head of the Climate & Sustainability Practice at APCO.
