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There is great interest in localization and safety of food as there are increased number of people thinking about their health and becoming savvy about what they consume and how it affects the ...

There is great interest in localization and safety of food as there are increased number of people thinking about their health and becoming savvy about what they consume and how it affects the environment, so they increased responsiveness as well, which make think majority of companies to focus on sustainability strategy which comprises in itself environmental, social and economical pillar, in order to provide people with the safe, and healthy food with including food security, democracy, and sovereignty. This thesis examines how food supply chain affects environmental change.

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  • 1. UNIVERSITÀ DELLA SVIZZERA ITALIANA FACULTY OF ECONOMICS LUGANO SUSTAINABLE DEVELOPMENT IN THE FOOD SUPPLY CHAIN MASTER`S DISSERTATION OF SAMRAD ISMAYILOV 11-993-854 Supervisor: Prof. Erik LARSEN Second Reader: Prof. Gianluca CARNABUCI Academic Year: 2012-2013 Submission Date: 27 September, 2013
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  • 4. iv ABSTRACT There is great interest in localization and safety of food as there are increased number of people thinking about their health and becoming savvy about what they consume and how it affects the environment, so they increased responsiveness as well, which make think majority of companies to focus on sustainability strategy which comprises in itself environmental, social and economical pillar, in order to provide people with the safe, and healthy food with including food security, democracy, and sovereignty. This thesis examines how food supply chain affects environmental change. Due to increasing world population, the environmental impact of food supply chain is getting bigger in global perspective and which cause companies to think how to provide more food which will not harm the environment and people. Research from different books and academic papers which is about sustainability in food supply chain have been taken into consideration. The books which are used: Cheryl Baldwin: “Sustainability in the Food Industry” and Ruben O. Morawicki: “Handbook of Sustainability for the Food Sciences”. Hereafter, sustainability should be included in each phase of the food supply chain, starting from the processing till the disposal and cradle to cradle model should be used. Food waste and food loss must be diminished which it is possible to minimize them but companies still face with food waste and loss which shows uncoordinated system of crew. Pesticides are used for growing food which further will cause damage to human health. Food transportation and distribution causing global warming and during the processing food the gasses that are global warming potential are emitted to air which further create green house gas effect. Recycling is considered to be the solution to diminish the environmental footprint, which is reusing the disposal in its system. Packaging is using nonrenewable energy and creating waste. Currently companies are focusing on sustainability more than before and want to use packaging which reduce the food waste and while recycling could cause less contamination. Key words: Food security, sustainability, food waste, packaging, food supply chain
  • 5. v ACKNOWLEDGMENTS Gratitude is a great virtue. This dissertation becomes possible to me with the help of many people in many ways. For the idea writing about food, came to my mind on the first semester during the prof. Larsen’s lecture on Corporate Strategy course. Further combining it with sustainability, I came up with the help of Prof. Dr. Frank-Martin Belz lecture on Sustainability Marketing and Sustainability Innovation during studying in Technische Universitat Munchen. Thanks to Prof. Larsen for supervision and sharing ideas with me. Special gratitude to the USI Library crew, who helped me a lot. I want to thank for the support my family, and friends.
  • 6. vi TABLE OF CONTENTS Chapter Page ABSTRACT....................................................................................................................... iv ACKNOWLEDGMENTS .................................................................................................. v TABLE OF CONTENTS................................................................................................... vi List of Abbreviations .......................................................................................................viii CHAPTER I: Introduction.................................................................................................. 1 1.1 Food supply chain..................................................................................................... 2 CHAPTER II: Background and Literature Review ............................................................ 8 2.1. Sustainability............................................................................................................ 8 2.2. Food Democracy...................................................................................................... 9 2.3. Food sovereignty.................................................................................................... 10 2.4. Food citizenship..................................................................................................... 12 2.4.1. Sustainable food.............................................................................................. 14 2.4.2. Food security................................................................................................... 14 2.5. Why sustainability?............................................................................................ 15 2.5.1. Consumerism ...................................................................................................... 16 2.6. Sustainable development ....................................................................................... 19 2.6.1. Sustainable food supply chain ........................................................................ 23 2.7. Unsustainable consumption ................................................................................... 26 2.7.1. Food waste ...................................................................................................... 28 2.7.2. Wastewater...................................................................................................... 30 2.7.3. Solid Waste..................................................................................................... 30 2.7.4. Air Emissions.................................................................................................. 31 2.8. Environmental impact of food supply chain.......................................................... 32 2.9. Ecological footprint and climate change................................................................ 33 2.10. Food Safety, Health, and Nutrition...................................................................... 38 2.12. What is sustainable food company?..................................................................... 43 2.12.2. Raw materials and ingredients made from renewable resources.................. 43 2.12.3. Water neutral................................................................................................. 43 2.12.4. Net-zero air emission.................................................................................... 44 2.12.5. Biodegradable liquid and solid wastes.......................................................... 45 2.13. Packaging............................................................................................................. 45 2.14. Reuse.................................................................................................................... 48 2.14.1. Recycling ...................................................................................................... 49 2.14.2. Composting................................................................................................... 50 2.14.3. Edible Packaging .......................................................................................... 50 2.15. Distribution .......................................................................................................... 51 2.16. Life Cycle Assessment (LCA)............................................................................. 58 CHAPTER III: RESULTS................................................................................................ 64 3.1 Ecolabling........................................................................................................... 64 3.2 Use of waste ....................................................................................................... 69
  • 7. vii 3.3 Companies that are involved into sustainability program.................................. 70 3.4 Food Scandals .................................................................................................... 75 CHAPTER IV: CONCLUSION ....................................................................................... 78 Appendix........................................................................................................................... 80 Appendix A................................................................................................................... 80 An Energy Intensive Supply Chain............................................................................... 80 Appendix B................................................................................................................... 81 Appendix C................................................................................................................... 82 Appendix D................................................................................................................... 83 Appendix E ................................................................................................................... 84 Appendix F.................................................................................................................... 85 Appendix G................................................................................................................... 86 Appendix H................................................................................................................... 92 Appendix I .................................................................................................................... 93 Appendix J .................................................................................................................... 93 Appendix K................................................................................................................... 94 Appendix L ................................................................................................................... 94 Appendix M .................................................................................................................. 95 REFERENCES ................................................................................................................. 96
  • 8. viii List of Abbreviations CFC- Chlorofluorocarbons DGP- Deutsche Gesellschaft fur Pharmakologie (German Association of Pharmacology) EPA- Environmental Protection Agency FAO- Food Agriculture Organization FAOSTAT- Food Agriculture Organization Statistics FSC- Forest Stewardship Council GMO- Genetically Modified Organism HCFCs- Hydrochlorofluorocarbons HFCs- Hydrofluorocarbons IFOAM- International Organic Federation of Agriculture Movements IFPRI- International Food Policy Research Institute LCA- Life Cycle Assessment LOHAS- Lifestyle of Health and Sustainability MSC- Marine Stewardship Council PLA- Polylactic acid PNAS- Proceedings of the National Academy of Sciences QCL- Quality Controlled Logistics UNEP- United Nations Environment Programme WBCSD- World Business Council for Sustainable Development WFC- World Food Council WHO- World Health Organization WWF- World Wildlife Fund
  • 9. 1 CHAPTER I: Introduction In our fast developing environment sustainability issue becomes one of the frequently discussed topics. Nowadays, most of the food, which is consumed by the world population is supplied by the food industries. There are lots of industries involved in sustainability. The reason, why I choose sustainability in the food supply chain is because; food is one of our most essential daily needs, it is salvation for human life, it gives us energy to work, and to play. It makes us grow healthy and strong. Without food we die. All living things—plants, animals, and human—need food to live and grow. All foods that we eat come from plants and animals. But world populations do not eat the same foods. Some people in Central Asia live mostly on milk and milk products. Eskimos live mostly on consumption of meat and fish products while the San Blas Indians of Panama eat mostly fruit and vegetables. Some group of countries eat foods that other do not eat. For instance, certain groups in Iran enjoy sheep’s eyes. Food plays a significant role in development of nations. In countries where food is scarce, people spend most of their time getting enough to eat. This usually slow the process of progress, due to people have little time to devote to industry, science, government and art. In nations where food is abundant and easy to get, people have more time to spend in activities that lead to progress, human betterment, development and successfully flourishing their environment. Providing good, sustainable food for everybody is one of the major problems of modern life. There have been many wars for capturing fertile lands, and controlling rich food producing lands. But it is no longer necessary to go to war for food. The nations of the world are now using scientific knowledge to research and find solution of their food problems. They work together in the United Nations Agriculture organization (FAO1 ) to help hungry nations produce more food. The research question is based on “why people should develop sustainability food supply chain?” Thus main objective of the thesis is to focus on drawbacks of food industries, their damages to people lives and environment, and moving towards the sustainable food 1 FAO is an international agency which collects and gives information on the production, consumption, and distribution of food throughout the world.
  • 10. 2 supply chain. Sustainable development of food supply chain is being highly recognized by the world biggest companies such as: Procter and Gamble, Nestle, and Unilever. A Further goal is to scrutinize the purchasing of food in people’s daily life and the effect of genetically modified products on people’s health. The requisite focus is developing sustainable food supply chain in order to diminish ecological footprint. Advantages of sustainable process comprises lower production costs, increased market share, improved relationship with stakeholders, improved product function and quality, last but not least reduce the risks (WBCSD, 2002). Food safety is connected with people’s livelihood, the responsibility is extremely heavy (Sloan, 2007). Today people are more aware of food that they are consuming, as they are paying close attention to what they are purchasing. In fast changing environments people get news very fast, through nontraditional channels like, social networks (Twitter, Facebook and so on). Thus people are aware of the food that can harm their health, so while buying products they are interested in nutrition facts, they are also paying close attention to the label that been used by the company such as, bio, fair-trade, rainforest alliance certified, marine stewardship council (MSC), forest stewardship council (FSC) etc.. But people should also take into consideration that this can be also a Greenwashing. Development of sustainable agriculture and food supply chain must be significant part of long term economic and environmental planning, because corresponding food and liveable environment are both crucial for the long term survival of our species. Environmental concerns are moving further in priority to many of customers. In order to answer research question, methodology which I used in my dissertation is based on qualitative studies about sustainability in the food supply chain. I focused more on researches from the book, academic papers and websites of the companies and associations dealing and involving in sustainability practice. All the data that are used in dissertation are acquired from secondary sources. 1.1 Food supply chain Supply is the network that is dealing with production, delivery and selling of the products. Supply chain management involves in itself arrangement of ingredients,
  • 11. 3 seasons, weather condition, and limited shelf life of food products. In comparison to other supply chains, it takes into consideration the perishability factor of foods. Managers must consider handling and time, including need for special transportation, storage, and distribution system and delivery of food to consumers, safe, visually attractive, and with the highest nutritional value. Due to sophisticated supply chain the availability of fruits and vegetables does not change significantly during the year, the only drawback for this kind of production may be the perceived taste that customers will distinguish it from seasonal fruits or vegetables. Price level is also varying during seasonal and non-seasonal products. Highly perishable fruits such as strawberries and raspberries are available year around with the help of coordinated effort of producers, processors, and distributors. Figure 1.1 depicts a simplified model of food supply chain, where it starts with the production of raw materials and ends with the products conveyed to the final user. Figure 1.1 Simplified supply chain for food products. Black arrows in between steps represent transportation. Materials flow in opposition to information. (Ruben O. Morawicki, 2012). In food production systems the major raw materials are produced in the fields, farms or harvested from rivers, lakes, and oceans. Some raw materials are processed directly after harvesting, for instance: fish from oceans. But some others are packed and temperature preconditioned, like for vegetables and fruits. Rise and potatoes are stored for long periods of time before being delivered to consumers. Some raw materials may pass
  • 12. 4 through several manufacturing stages at various locations of supply chain before reaching the consumers. For example, wheat is harvested then has been transported to mills where it is going to be transformed into flour. Further, flour is retailed to consumers or sold to the bread and baking industry, which further process it. Ingredients are deemed to be the second component of the supply of the raw materials and can be domestically supplied from all around the world (Ruben Morawicki, 2012). Packaging is the third important element of the supply of materials for the safe and better distribution of food products. Foster et al. (2006) have classified food production in three degrees, which are: low-, medium-, and high-processed foods. Fruits and vegetables are considered low-processed foods, because they are commercialized as fresh and demand minimal processing, washing, sorting, and packaging. Canned and frozen products and bread type of products are deemed to be medium processed foods. To the high-processed foods include products such as ready to eat meals, which involve in several suppliers of raw material, ingredients and processes. After processing food is packaged and kept in warehouses, the temperature is regulated according to the product that has been kept; it can be either in room temperature or in freezers as needed. Further processed packaged food is transported from warehouses to the distribution centers. Distribution centers are equipped with environmental control, which provides food products with the corresponding temperature conditions. Distribution centers are playing order processing role in supply chain mechanism as this phase is responsible for the fulfillment of orders that come from retailers and wholesalers. Food retailers have direct contact with the customers. They are the last link in the food production and distribution channel. Food retailers include convenience stores, grocery stores, and online companies. Restaurants take the place of retailers in foodservice supply chain. Customers are the definitive users of the food supply chain. The ultimate impact of how the product has been processed will be checked from the customers’ point of view, as if the quality of the product is high or was the product dangerous and so on. Consumers are one of the main actors of the chain as they generate revenue, credibility, loyalty and can make the companies change towards the sustainability in their food supply chain. “A supply chain is a system of organizations, people, activities, information, and
  • 13. 5 resources involved in moving a product or service from supplier to customer” (Canadian Supply Chain Sector Council). Supply chain activities transform raw materials, natural resources, and components into a finished product that is conveyed to the end customer. In complex supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. A food supply chain or food system refers to the processes that describe how food from a farm ends up on our tables. The processes include production, processing, distribution, retailing, consumption and disposal2 . In majority of the stages of the food supply chain companies face with the problem of environmental impact of foods towards the Earth. As the customers also become much savvier about what they consume, they require safe food and make companies to think about this issue. Food companies starting thinking about this issue and they start to focus on the sustainability of their supply chain and improve the efficiency. Thus companies focus more on energy intense supply chain. Food supply chains are set of organizations, that are producing and distributing animal based products or vegetables to consumers (van der Vorst et al., 2005). Due to diseases that connected with food, and globalization of food production, consumers become savvy, and becoming more interested in the origin of the product, which leads to a growing interest in traceability, freshness and quality of what they have bought. Concerning about the safety of foods, it has been created the need for additional protection in the food supply chain, like traceability (Ruben M., 2012). Perishability factor of food makes food supply chain different from nonfood supply chain. Product traceability can be useful in any supply chain. Under EU law, “traceability” means the ability to track any food, nutrition, food-producing animal or substance that will be used for consumption, through all stages of processing, production, and distribution. Giving information to the consumers about the origin of their product can be win-win situation. For instance, through “followfish” consumers can type the code, that is depicted in the package of fish product and track it in the website (www.followfish.de), in order to see from which sea it has been caught. With traceability companies can build bridges between suppliers and end users. Traceability is needed, because it is significant that when national authorities or food businesses identify a risk they can trace it back to its 2 See Appendix A: An Energy Intensive Supply Chain.
  • 14. 6 source in order to swiftly isolate the problem and keep contaminated products from reaching consumers. The EU is providing almost €12million to the 5-year TRACE project, which kicked off in January 2005. This project supported by over 50 European organizations and one from China, the enterprise will deliver integrated traceability systems, guides to traceability best practice, and food verification systems, specifically in the chicken, mineral water, meat, honey and cereal sectors. Food trace has been designed for strengthening traceability procedures between businesses. It searches to set up a clear identification system and a network of databases so that information can be centralized and shared (European Communities, 2007). Product assortments get broadened by producers, in order to satisfy widening needs of consumers. Current projections in Figure 1.2 show continued increase in world population: Figure 1.2 Population growth in various types of countries. Source: UN Population Division, from van der Mensbrugghe et al. 2009 As it has been depicted in Figure 1.2 world population will reach to 9 billion in 2050. Taking this into consideration the consumption of products will increase as well, and that undisputedly will affect environmental or ecological footprint. Time will show either the world situation get worst or better. Here after I would like to quote Bill Gates: “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten”
  • 15. 7 Taking into consideration climate change during last decades, companies and consumers should move towards the sustainable products. Food supply chain management has become an essential issue in both business and public agendas. It demands a various management approach which considers intrinsic characteristics of food products and process but traditional supply chain management aim is responsiveness and cost. Over the last few decades practitioners have given large importance to the food supply chain management than ever before. In addition to that recently food supply chain connected with the new trend, which is called sustainability. Sustainability is an issue that assists to meet the needs of world populations, without damaging world for the future generations (Linton et al., 2007). Sustainability aims to improve the quality of living not only for existing people but for coming generation as well (Bloemhof, 2005). Through the sustainability consumers would perceive foods more secure and safe. Nowadays NGOs need to work close with each other in order to ensure food democracy—safe, justly produced sustainable food for all mankind. In general food supply chain must take into account food democracy, food sovereignty, and food security. It must not only be focused on economic needs of the company, especially food companies which are emphasize their involvement in the sustainability practice. The purpose is to see how the food supply chain and consumption of foods affect the environment and ways to improve it, provide people with healthy, nutritious food, that will not cause diseases.
  • 16. 8 CHAPTER II: Background and Literature Review 2.1. Sustainability Sustainability is about reducing environmental footprint and ensuring of keeping natural resources for the future generation without damaging the environment. Nowadays sustainability become trend, each company integrate sustainability into its corporate marketing strategy. With the developing the strong food democracy, people will be able to get the access to transformation of agro-food systems in to the long run, which is obliviously closely related with the sustainability issues. By having sustainability as a strategy, companies have a robust support on preserving natural resources to their descendants and they get close involvement on global issues related to the Earth. In 1980s in The United States sustainability appeared as strong issue in helping for the solution of food and agriculture. Even though for some companies sustainability may appear as fading trend that will disappear soon, the food industry growing so fast that is quickly catching up with the concept of the sustainability. Sustainability might be a solution to the depletion of natural resources that the whole economic system is based on. Climate change is the main issue that results in the natural disasters that appears in modern life, thus for the long-term survival companies move towards sustainable development. Sustainable development is considered vital for each company, especially to the food supply chain industry. As food supply chain directly may harm the world population through diseases and environmental pollution. Definition for the sustainability is following: “A sustainable product or process is one that constrains resource consumption and waste generation to an acceptable level, makes a positive contribution to the satisfaction of human needs, and provides enduring economic value to the business enterprise”. Bakshi and Fiksel, 2003
  • 17. 9 2.2. Food Democracy In mid 1990s ‘food democracy’ was referring to the long process of pursuit for bettering the food industry for all, not to the few (Lang T. & M. Koc et al. 1999). Food democracy is striving to arrange the production and consumption of food at a close geographic location, meanwhile rising opportunities for the democratically managed cooperation between producers and consumers. The idea of food democracy, defines food as a life good that should ideally exist within democratic control (The Authors Journal. 2009). Food democracy can be built into food culture. The term food democracy is being used in different ways, but it mostly focus on the interest of the mass, the ‘bottom-up’ over ‘top down’, for building of social movement to implant right into culture and expectations (Lang T. and M. Heasman. 2004). Through food democracy it should be ensured that everyone has the access to the affordable, healthy foods and world population should be ensured about the food security. Health of the people and the planet is closely linked. So if people have healthy planet, the existing and future generation will live healthy life as well. Health shows us how we can manage four domains of existence: the psychological (biological), the material (our environment), the social (human interaction), and the cognitive or life world (culture) (Lang T, Barling D and M Caraher. 2001). Opposite to the food democracy we can place ‘food control’, in which food is being used as a vehicle of control. Using food as political weapon is not something new. For instance, in US Public Law 480’s utilization of food aid in foreign policy (George S. 1976) or think about sugar, slaves, and trade (Mintz SW. 1985). When the British state re-exerted some food control in World Wars One and Two, it did so facing strong lack of food (Woolton TE. 1959). But food democratic campaigns were also alleging demands for appropriate food (Paulus I. 1974) living wages (Hannington W. 1977), and recognition for women and children (Rathbone E. 1924). In 1939, UK produced only a third of its food needs but colonial preference collapsed in dreadful war circumstances, and local production was rebuilt to two thirds of needs by 1945 and result in the Agriculture Act: never again enfeeble food capacity. However time passed by UK could not maintain the focus on local food consumption. UK production is dropping. It is currently 63% self-sufficient, while 74% for local foods are growable in UK (Defra. 2006). The food trade breach is
  • 18. 10 becoming bigger, approximately £22 billion of food and drink is imported, 68% of which comes from different countries in EU (Food and Drink Federation. 2006). The idea of food democracy has been further scrutinized by Hassanein, who signifies that “food democracy ideally means that all members of an agro-food system have equal and effective opportunities for participation in shaping that system, as well as knowledge about the relevant alternative ways of designing and operating the system” (Hassanein , N. 2003). From this, it is clearly shows that food democracy is based upon a concept where world population should create their own agro-food system, shape the food system for their own needs, rather than to step aside and be a simple, passive spectators (Hassanein. 2003). The concepts such as: ‘food democracy’, ‘food sovereignty’ and ‘food citizenship’ are similar. In 1990s Tim Lang came up with the concept of food democracy, in order to increase the corporate control and absence of people interest in food system (Lang & Heasman, 2004). Lang supported the need to democratize the food system and look at ‘food as a locus of democratic process’, which is substantially a consideration for enhancing the role of citizens in the management and control of the food system. Food system change is not driven by farmers, it is driven by consumers. Eating is agricultural act. Consumers are beginning to stand up and take control the food system. 2.3. Food sovereignty The idea of ‘food sovereignty’, was developed in a bottom-up manner by the international movement of farmers Via Campesina3 from 1996 onwards (Wittmann et al., 2010), the concept was going largely in the same way as the food democracy concept, it has been considered having an even stronger rights-based focus and being more clear from producer perspective. With the food sovereignty it has been understood, that is the right of the people to decide about their food and agricultural policies (Patel, 2009). The 3 Via Campensina is an international movement which coordinates peasant organizations of small and middle size producers, agriculture workers, and indigenous communities from Asia, America, Africa, and Europe. It is defending family farm based sustainable agriculture and was the group that invented the term “Food sovereignty”.
  • 19. 11 term ‘Food sovereignty’ is used for reaching particular problems of society, such as, starvation and malnutrition, it is also about improving the development in the rural areas, also to make better world population livelihood through sustainability. This approach is considered for the development of people betterment in agriculture section, and dealing with food security as well. There is not exact definition for the ‘Food Sovereignty’, but one of the mostly used is from People’s Food Sovereignty Network (2002): “Food Sovereignty is the right of peoples to define their own food and agriculture; to protect and regulate domestic agricultural production and trade in order to achieve sustainable development objectives; to determine the extent to which they want to be self- reliant; to restrict the dumping of products in their markets; and to provide local fisheries-based communities the priority in managing the use of and the rights to aquatic resources. Food Sovereignty does not negate trade, but rather it promotes the formulation of trade policies and practices that serve the rights of peoples to food and to safe, healthy and ecologically sustainable production”. The food is a basic human right. The concept of food sovereignty is wide spread nowadays, many NGOs using this definition in their policy documentation. Food and Agriculture Organization of the United Nations have started to use this concept as well. This concept is mostly focus on the poverty, starvation and malnutrition of mankind. During the World Food Summit, it has been declared that ‘Food Sovereignty is precondition to genuine food security’, and the right to a food can be seen as an instrument to achieve it (World Food Summit, Future without hunger, 1996). Food sovereignty is the right of the people and communities for the good, healthy and safe food. Further, it is about having rights for the agricultural and food policies, and implementing sustainability strategies in production and distribution of the food. The definitions of the Food sovereignty contain the following elements:  The right to food;  Advantage is given to the local agricultural production in order to focus on feeding people locally;  The right is given to the smallholder farmers to produce food and an identification of Farmers Rights;
  • 20. 12  Water, seeds, land, and livestock breeds accessed by the smallholder farmers, fisherfolk, pastoralists and landless people. The fight against genetically modified organisms;  The rights to consumers to determine for themselves what they would like to consume, and how and by whom it is produced;  The people’s involvement in agricultural policy decision-making;  The right of countries to defend themselves from underpriced agricultural and food imports;  The identification of the rights of women that are playing major role in agricultural production, and in food production particular;  Connecting the agricultural prices to production costs and stop all forms of dumping.  Agroecology as a way not only to produce food but also to get sustainable livelihoods, living landscape and environmental integrity (Michael Windfuhr and Jennie Jonsén, 2005). It has been found out that food sovereignty consists new forms of ‘agrarian cititzenship’ as ‘a model of rural action that’ guards against both state abuses and the market by accomplishing the role of civil society and democratic communication (Wittmann. 2009). For the Olivier De Schutter (United Nations Special Rapporteur on the Right to Food) the right to food is “The right to have regular, permanent and unrestricted access, either directly or by means of financial purchases, to quantitatively and qualitatively adequate and sufficient food corresponding to the cultural traditions of the people to which the consumer belongs, and which ensure a physical and mental, individual and collective, fulfilling and dignified life free of fear”. 2.4. Food citizenship Using the concept of ‘citizenship’ relating with the agriculture and food was uncommon in Europe, meanwhile in United States and Canada there is worthy literature about ‘food citizenship’. In the late 1990s there was concept of ‘civic agriculture’ which is strongly
  • 21. 13 developed in the community-based conception of multifunctional and localized agriculture defined as ‘a locally organized system of agriculture and food production characterized by networks of producers who are bound together with place’ (Lyson, 2005). Civic agriculture has the possibility to change individuals that are lack of interest towards the agriculture and food, into active food citizens (Lyson, 2005). ‘Food citizenship is the practice of being engaged in food-related behaviors that support, rather than, the development of a democratic, socially and economically just, and environmentally sustainable food system, to the exclusion of practices and processes that evidently threaten these ideals’ (Wilkins, 2005). As a critique of corporate policy and loss of food skills within the public, the concept of food citizenship was used to show the need to move beyond food as a commodity and people as consumers (Welsh and MacRae, 1998). In the analysis of Welsh and MacRae they established four dimensions to the process that lower food citizenship: 1. corporate control over food chain; 2. Manipulation of the supermarket environment; 3. Providing customers with limited product information; and 4. Emphasizing processed and convenience foods—which demand less skills of shoppers and eaters—over less processed ones. Food citizenship is surrounding alternative food movements and networks (Baker, 2010). Through consumer behavior perspective food citizenship is accepted as buying of local foods which create a demand for alternative sustainable consumption (Seyfang, 2006). Food citizenship can be understood as people who choose life like ‘Lifestyle of Health and Sustainability (LOHAS)’. Their purchases mostly focus on sustainable products which will not threaten the world life with its consumption. Local foods are considered to be sustainable and food citizenship procurement based on them. Locavorism can be considered as food citizens because their consumption mostly focus on local foods as well. Locavorism term became well known in 2005 by a group of food citizenship in San Francisco who started website, www.locavores.com, to encourage their attempt to eat only food that had been grown or harvested within 100 miles of San Francisco, for a month (Time, 2006).
  • 22. 14 2.4.1. Sustainable food Food citizens are the people who are taking social and environmental issues into consideration, while purchasing or consumption. Their purchase mostly focuses by the ‘local food’ which is produced through the sustainable food process. Food citizens pay attention to the labels as well, which shows that the product is made sustainable and organic. They are influenced by the fairtrade, bio, organic, FSC, MSC and etc. logos while buying foods. It has been accepted that sustainable food is healthier for people and the Earth. In the food chain sustainable food concept encourages different environmental, health, and social ideas. When thinking about sustainable food, it should be pure from the environmental, social, and economic perspective. From the environmental perspective in the production of food, it should be utilize less finite resources such as oil, and emit less greenhouse gasses, for the social perspective food should be treated well in the supply chain, for economic is making money for the further investment in sustainability or for the betterment of the world population. The World Health Organization says that what is good for health is usually good for the environment. From it come up that sustainable food is good for both planet and the people. 2.4.2. Food security Food security exists when all people have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy lifestyle (World food summit. 1996). The four pillars food security is: availability, access, utilization and stability (FAO 2009). Food aspect - it is an integral part of the concept of food Security. Time passing by, food security need to change as well, in order to face new threats and barriers to achieving food security. Food security is not just about producing food, it is people of having access to food, the food which is healthy and nutritious. And all these things together stably produced, and that’s where the sustainability comes in terms of how can we have sustainable food security. As the climate change, population increase, consumer behavior change we are facing a very difficult time in terms of food security for everybody on planet Earth.
  • 23. 15 There are lots of challenges of the poor nationalities to have access to food (Amartya Sen, 1981). In the meeting of the World Food Council (WFC) in 1982 there were discussions about ‘Food security for people’. Further in 1983 the Council of the FAO and the WFC come up with the recommendation to the further definition for the food security and included the access of the individual to food (WFC, 1983; FAO, 1983). 2.5. Why sustainability? People psychology is based on consuming as much stuff as they see. People are obsessed with all their stuff. Stuff moves from the following process; extraction, production, distribution, consumption and to disposal. All together this system is called the materials economy. In extraction phase; it is about taking natural resources from the Earth. For instance: fossil fuels, water, animals, plants, wood, minerals and coal. In production, it is related of using energy and chemicals to natural resources for making products. Genetically modified foods can be included to this phase. Further, is about transporting and selling the products to the wholesalers or retailers. Consumption: buying and using the products. Disposal phase: waste is being dumped, burned or recovered for further recycling. In reality there are lots of things that missing in this material economy. From one thing this system looks pretty fine, but the truth is that, this system is crisis, it is linear system, and we are living in a finite planet. We cannot run a linear system on a finite planet indefinitely. Every step along the way, this system is interacting with the real world. It is interacting with societies, cultures, economies, the environment and all the way long it is bumping against the limits. The limits of the system; one of the major things that are missing is people. People live and work all along in this system. Next, what is missing; the system starts with extraction, which is fancy word for natural resource exploitation. With extraction, people chopped the trees, the use up excessive measure of water, and they wipe out the animals, with putting them in endangered situation. So here we are running up against our first limit, we are running out of resources, we are using too much stuff. It can be hard for us, people to hear this, but this is the truth, we cannot run away from this situation, we have got to deal with it. In the
  • 24. 16 past three decades, 1/3 of the planet’s natural resources have been consumed (Paul Hawken, Amory Lovins and L. Hunter Lovins, 1999). We are cutting, mining, harming and trashing the place so fast. They were undermining the planet’s variability for people to live here. In the US less than 4% of original forest left (Lester Brown, Michael Renner, and Christopher Flavin, 1998). 40% of the waterways in the US have become undrinkable (American Rivers, Americas Most Endangered Rivers, 1998). The problem is not just we are using too much stuff but we are using more than our share. 2.5.1. Consumerism The concept of consumerism is about people consumption of nonessential goods in excessive amount, and this notion benefits the economic system. Consumerism becomes an emerging phenomenon in developing countries and it is widespread among middle class customers, this notion creates similar buying power of inhabitants who are not all affluent (Robins and de Leeuw, 2001). Further, globalization of economy gives access to the many products that were inaccessible in some countries (Mayell, 2004). Consumption is encouraged to be as a tool of happiness for the consumers. But buying power does a little for overall satisfaction of people, they just keep going on consuming, for them holding basic freedoms are more important than material factors (Smil, 2003). The drawback of consumerism is that in most cases it deploys nonrenewable natural resources and materials that cannot be sustained in the long run. US have 5 % of the world’s population, but they are using 30% of the world’s resources (John L Seitz, 2001) and creating 30% of world’s waste (Frances Harris. 2004). If everybody consumes that US rates people would need 3 to 5 planets (Mathis Wackernagel and William Rees. 1996) but we only got one planet. 75% of global fisheries now are fished at or beyond capacity (World Summit on Sustainable Development. 2002). Misuse of forests leads to destruction of the trees, which are important for the fresh air. In the material economy system, if you do not own or buy you do not have value, that’s how consumerism has been created. Next, the materials are moved to production system and here it has been used energy to mix toxic chemicals in with the natural resources to make toxic contaminated products.
  • 25. 17 People interact with all the chemicals that they exposed to everyday. These toxics build up the food chain and concentrated in our bodies. Human breast milk is the food that is considered to be on the top of the food chain. From this come up that, with the smallest member of our societies are babies, and are getting the highest lifetime dose of toxic chemicals from breast feeding from their mothers. It is an incredible violation. Breast feeding must be the most fundamental human active nurturing; it should be sacred and safe. Breast feeding is still best for nurturing the babies and mothers should definitely keep breast feeding. The people who bear the biggest part of these toxic chemicals are factory workers, many of whom are women of reproductive age they are working with reproductive toxins and more other toxics. The women that work in these factories and exposed to toxics are the reproductive aged women that do not have any other options. Globally 200.000 people a day are moving from the environment that sustained them for generations into cities (Ken Livingstone. 2007), many to live in slumps, looking for work no matter how toxic that work maybe. As it has been seen it is not just resources that have been wasted along the system but people, too, whole community is getting wasted. A lot of toxics leave the factories in products but even more leave as byproducts or pollution, and it is a lot of pollution. The pollution is considered to be another limit. Companies that want to overcome this problem, move the factories overseas, pollute someone else’s land. But a lot of that pollution is coming right back, carried by the wind currents. Through the usage of natural resources and producing products the process moves for the further phase, distribution. In this phase all the toxic contaminated junk is being sold as quickly as possible. The goal in here is to keep the people buying and keep the inventory moving. The heart of the system, the engine that drives the system is consumption. Protecting this phase becomes top priority for the government and corporations. Government and corporations encourage people to shop. We, people are become nations of consumers. Their primary identity has become that of being consumers, not mothers, teachers, farmers, but consumers. The primary value for the people that is creating importance is consuming. People are shopping frequently, keeping the materials flowing. Majority of staff that people run through the system is being trashed within 6 months. The consumption rate was not always that high, the average US person now consumes twice
  • 26. 18 as much as they did 50 years ago (Juliet B. Schor and Douglas Holt. 2000). And this system was actually designed for making people to consume. The government and Corporations thought about how to expand and grow the economy, and retail analyst Victor Lebow articulated the solution that becomes the norm for the whole system. He said: “our enormously productive economy demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfaction, and our ego satisfaction in consumption. We need things consumed, burned up, replaced and discarded at an ever-accelerating rate”. Companies uses two of their most relevant strategies, which are; planned obsolescence (Vance Packard et al., 1960) and perceived obsolescence (Vance Packard, 1960). Planned obsolescence means the product is designed in such a way that it becomes useless in short period of time, and that makes customers to go and make further consumptions. But sometimes stuff cannot break fast enough in order keep consumers to purchase, so there is another concept, perceived obsolescence. Perceived obsolescence persuades us to get rid of stuff that is still functional and useful. This can happen through fashion and model changes, that are one of the consumerism issues, that make us, people to be accepted in society and cope with the people. In this strategy advertising and media plays great role, in influencing people choices in purchase decision and make people just go shopping. In US people do shopping 3—4 times as many hours as their counterparts in Europe do (Gary Cross, 1993). The last phase of the material economy is disposal. At the huge rate of consumption, in the end it all goes in the garbage, and this takes process to disposal. Each of people in US makes 4,5 pounds of trash a day (U.S. Environmental Protection Agency, 2007). This number is twice what each of people made thirty years ago (U.S. Environmental Protection Agency, 2001). The garbage either gets through to the landfill, or burned and then troughed to the big hole that is made in landfill. Each way contaminate the air, water, land, and causes one of the main global problems, the climate change (Heather Rogers, 2005). This system is in crisis, as it is previously mentioned, the system face with lots of limits. It will not work like this; people should change their point of view and move towards
  • 27. 19 sustainable production system. Nowadays there is a new school that is thinking about this stuff and it is based on sustainability: Zero Waste, Green Chemistry, Renewable Energy and so on. The sustainability supply chain should be implemented in every production system, in order to lessen the burden of the Earth and put effort against climate change, which causes to the lots of people lives. 2.6. Sustainable development Sustainable development concept becomes one of the main issues in modern economy, majority of companies implement sustainability strategies into their business. With the sustainable development companies try to meet the need of the current population without damaging the world and make it worst for the future generations (United Nations General Assembly, 1987). Sustainable development is about using natural resources without degrading the planet. Natural resources are significant components for sustainable future. Food supply chain management is a significant process in food industry. Nowadays the concept of sustainability comprises into food supply chain and becomes Sustainable Food Supply Chain. Sustainable development deals with keeping the balance between three aspects of it, which are ecological, social and economical issues, for the long term betterment of human life (Aiking and Boer, 2004). In the modern life consumers interests towards a sustainable food is growing. Government also become cautions about food security, and implement strict rules on food safety and sustainability problems, which are dealing not only with their economical issue but also take into consideration social and ecological issue. These are three main dimensions of sustainability, which are depicted as equal pillars in the Figure 2.1 (Ruben O. Morawicki, 2012). Considering all these stages with sustainable development it is possible to long term future betterment of society.
  • 28. 20 Figure 2.1 Current view of the three dimensions of sustainability (Ruben O. Morawicki, 2012) From an economic perspective sustainability is a contribution of building stark, responsive and competitive economy, by guarantying that adequate land of the right type is available in the right place and at the right time for backing the growth and innovation. Next socially sustainability is about supporting healthy communities, by providing the supply of healthy, organic foods and meets the needs of present and future generations, with the creation of high quality environment, with the right to nutritious food. Environmental sustainability is about enhancing on protection of natural resources, use of renewable energies that will not damage the Earth, reduction of waste and pollution for decreasing the ecological footprint. It focuses on moving to the low carbon economy (UK Sustainable Development Strategy, 2012). The Environmental pillar is considered to be unknown to the customers. For instance: the survey that has been conducted by the Leopold Center for Sustainable Agriculture in 2007 has results like this, 88% of respondents accepted local and regional food systems to be somewhat safe or very safe and had purchase preferences for such foods, but 12% perceived global foods of being safe (Pirog and Larson, 2007). From the survey researchers realize that the respondents did not know that airplane transport of food emitted more greenhouse gases than truck and have high level of ecological footprint (on a per pound basis of product transported) ( Pirog and Larson, 2007). Companies invest in redesigning their logistic system and focus more on three dimensions of sustainability and improve food quality, reduce food waste and improve
  • 29. 21 sustainability and transparency. The traditional performance indicator for supply chain “cost” replaced by the Triple Bottom Line concept which is closer to sustainability and comprise in itself Profit, Planet and People (van der Vorst et al,. 2005). Over time passing people become more concern about the environmental pillar of sustainability as well. Environmental pillar is the most important system in sustainability. Companies take natural resources from environmental pillar. While from the business perspective, a company to be sustainable, all it need is to make money. But taking into consideration a social pillar of sustainability companies need to meet the needs of the consumers. The food companies pay income to the employees, and provide food for the social subsystem. Further, food companies and employees pay taxes to government which benefits the economic subsystem. From that point it has been accepted that the environmental pillar is the ultimate system for backing social and economic pillar (Fig. 2.2). Environmental issue is the base pillar of the sustainability. Since food companies take water, land, and energy from environmental system; labor from social subsystem; capital from economic subsystem (Ruben O. Morawicki, 2012) therefore food companies benefit from environmental pillar. Figure 2.2 A more realistic view where the environmental pillar supports the social and economic dimensions (Ruben O. Morawicki, 2012). Social Environment Economic
  • 30. 22 For the social benefits it is; income for the workers, and safety food, and for the economic benefits it can be the taxes that has been paid which is support again social subsystem which invest them into education, roads, buildings, social projects and so on (Ruben O. Morawicki, 2012). Investigating sustainability in the beef industry, it has been considered that environmental sustainability can be positively correlated with the social and economic pillars, while social sustainability can be in a trade-off with the economic sustainability (Ruggero Golini and Matteo Kalchschmidt, 2011). High food safety, traceability hygiene normative, better animal conditions, satisfaction of employees is positive social sustainability. Animals’ mistreatment can lead to negative social and economic impact. As mistreatment can make the meat worse and customers are not going to contribute any zeal for buying that product. Investing on the environmental sustainability can benefit social and economic performance. Better animal conditions can have positive impact on social performance but can have negative impact on economic performance (Ruggero Golini and Matteo Kalchschmidt, 2011). Moving the food supply chain towards sustainable food supply chain, food companies should pay attention not only to production of foods with the help of renewable energy but also take into consideration of people’s health issue. Because nowadays there are lots of concerns about food safety scandals and globalization of food production (Trienekens and Zuurbier, 2008). Food security is still considered one of the main problem of sustainable food supply chain as population is up to reach 9Bn by 2050 (Global Food Security, 2012), so necessary issue is to focus also on the reduction of food waste that cause contamination of planet. Consumers are increasingly reckoning the origin of their food, the health that it will provide and how the sustainable food supply chain matters through ecological and social perspective. Sustainable agriculture is about creating production that is not going to damage soil but will create more healthy land for the environment.
  • 31. 23 2.6.1. Sustainable food supply chain The purpose of food supply chain is to provide customers with the right amount of product, right level of quality and with appropriate shelf life4 . With sustainable food supply chain food companies can get competitive advantage. (Ahumada and Villalobos, 2011). The basic goal of sustainable food supply chain is of being cautious about operation impact on environment and social and guarantee satisfaction of customers with the most effective and efficient way. The UK Sustainable Development Commission (SDC; DEFRA 2002) has gathered various opinions of stakeholders’ point of view in order to create an internationally applicable description of ‘sustainable food supply chains’ which are following: 1. Produce safe food, for the market demand, meet the need of food citizens, as according food security and democracy everyone has the right for the nutritious food, and create accurate information about the food that they are consuming through traceability. 2. Backing the vitality and diversity of urban and rural economies and communities. 3. Empower viable maintenance to be made from sustainable land management. 4. Operate and esteem within the limits of natural resources, like; soil, water and biodiversity. 5. Gradually accomplishing high standards of environmental performance by minimizing energy consumption, reducing resource inputs and by using renewable energy wherever applicable. 6. Assure for all employees that are involved in food chain a harmless and hygienic working environment, and provide them with high social welfare and training. 7. Reach compatibly high standards of animal health, better condition, and welfare. 8. Sustain resources accessible for growing food and use the alternative land for the other significant needs of society. 4 The shelf life of a product is length of the time, starting from the day it is produced before the product considered unacceptable for consumption or become obsolete (Donslaar et al., 2006)
  • 32. 24 Several actors, which are working within food industries, need to make applicable changes to their supply chains in order to make it more sustainable. Sustainable food supply chain generates safe production and while consuming it brings well-being for the generations. Sustainable food supply chain can be contributed within following three groups that will make food logistics efficient and long term: 1) Cost reduction and improved responsiveness. 2) Better food quality and minimization of food waste 3) Improved sustainability and transparency (Mehmet Soysal et al.). These groups can be considered as phases of sustainable food supply chain management. Cost reduction and improved responsiveness Nowadays consumers of the food sector demand high quality food and that make companies produce more safe food, and also deliver it with competitive prices (Trienekens and Zuurbier, 2008). Thus the companies in order to satisfy different demands or tastes of customers and to lower cost, they are sourcing their necessary products for their operations (van der Vorst et al., 2005). From here globalization of food industries appear. Supply chain management focus on reducing operations’ cost. Obviously issues in food supply chains are more complicated than in the past (Bilgen and Ozkarahan, 2007) and due to economic crisis food industry companies focus mainly on cost reduction. Another main concern of food supply chain is responsiveness. It is based on the time of placement and accepting an order from customers and also companies agile response towards fast changing customers’ needs. Responsiveness is a key issue for keeping customer satisfaction and the customer service in the food industry, where it should be adequately with the customers’ expectations and their experiences. The main factors for establishing supply chain are following (Gunasekaran et al., 2008): minimizing the lead time for information and materials flow, timely bases information sharing, shortening total cycle time, coordinate the workflow in various level of supply chain, making good decisions for backing the system, integrating information about operations. There is also trade-off between these two concepts; cost reduction and improving responsiveness (van der Vorst et al,. 2005). By increasing competition and variety of products, companies
  • 33. 25 decrease the inventory size in order to reduce inventory costs, but meanwhile if they decrease the inventory size they cannot meet the needs of customers on time and that decreases responsiveness as well. So food supply chain companies should keep reasonable and applicable balance between these two concepts: reduction of cost versus improving responsiveness. Better food quality and reduction of food waste Improving the quality of food and reduction of food waste is considered one of the main issues in the transition between supply chain and sustainable supply chain. In the food supply chain there is continuous change in the quality of the food, starting from the materials that leave the grower or the meat products that leave slaughter houses, to the moment that it reaches consumers (Dabbene et al., 2008). Perishable foods have lower shelf life than non-perishable foods. Perishable products require special care that can cope with the challenges of diminishing deterioration rate, such as temperature control mode (van Donselaar et al., 2006). Nowadays several organizations have been created in dealing with the issue of the food, such as; the Food and agriculture Organization (FAO), the World Health Organization (WHO), UN and World Trade Organizations (Trienekens and Zuurbier, 2008). These organizations objectives is based on providing world population with healthy food, they are doing many things to achieve this, such as, setting norms, standards, providing technical support, controlling or assessing the process. Dealing with the perishability issue of products, van der Vorst et al. (2007, 2011) have proposed idea of Quality Controlled Logistic (QCL) and said that better supply chain design can be built if the quality of the products will be tracked long the process of supply chain. There should be new innovative models being developed for reduction of food waste, and dealing with perishability. Quality of food diminishes linearly and considered useless after some period of time (Zanoni and Zavanella. 2007; Eksioglu and Jin. 2006). For paying attention to the perishability of the product, companies in the food industry should pay attention to the temperature, and determine the best temperature throughout the chain (Rong and Grunow. 2010; van der Vorst et al., 2009).
  • 34. 26 Improved sustainability and transparency Sustainability concerns are quickly growing in the food supply chain. EU is one of the main followers of sustainability issue (Linton et al., 2007). There are several significant EU regulations related with sustainability supply chain, such as, The General Food Law (Regulatio EC/178/2002) and The Waste Electrical and Electronic equipment (WEEE) (Directive 2002/96/EC) (Bloemhof, 2005). Sustainability approach affects the decision of the stakeholders in the food supply chains. With the sustainability the traditional supply chain link to itself three pillars of sustainability (Environmental, economical, social) (Chaabane et al., 2012) with the consideration of the food quality. Traceability has also growing impact on food supply chain. Consumers nowadays are becoming savvier, and they interested about what happened to the product as it went through the supply chain (Vis, 2012). Traceability is emphasizing more on people and planet aspect of sustainability. If companies want to reach traceability, tracking, and tracing the product throughout the value chain, they should strengthen integration, communication, and cooperation actors within their value chain (Fritz and Schiefer, 2008). 2.7. Unsustainable consumption Unsustainable consumption leads to lessen the planet life, and worsen the health of the people. Examples for the unsustainable consumption can be: overfishing, deployment of non renewable resources, and waste, bad working conditions, animal mistreatment and so on. As the majority of the food companies outsource they create high ecological footprint. Excessive usage of land and contamination of it brings to useless soil. The farmland on which food production depends is rapidly losing its fertility, because of intensive agriculture practice (UNEP). UNEP estimates that due to excessive agriculture practice, during the 20th century 2 billon hectares of arable land were lost their fertility. Two to five million hectares are facing with the same fate each year (Nellemann et al., 2009). According to International Food Policy Research Institute 24% of total global land area has been influenced by the land degradation – estimating the loss of 20 million tons
  • 35. 27 of grain each year, or 1% of global annual grain production (IFPRI, 2011). In Figure 2.3 it has been depicted the loss of arable land per person. 1.5 billion of world population around 42% of the very poor live on worsen lands (IFPRI, 2011). Figure 2.3: Annual loss of per capita arable land in developing countries, 1961-2009 (Source: Preliminary analysis based on linear regression model from data from Food and Agriculture Organization of the United Nations, FAOSTAT database). The FAO State of the World’s Fisheries and Aquaculture (2011) state that fish consumption has reached high level; using fish diets reach its record with nearly 17 kg per person. Fish supply over three billion people with approximately 15% protein intake. Fisheries support about 8% of world population livelihood (UNEP, 2012). Depletion of fish will happen in near future unless steps are taken to limit the catch in order to allow them time to recover. As indicated some species of predatory fish, such as Atlantic cod, swordfish, and Bluefin tuna is just 10% of what it was century ago, and expectation is about extinction of these species in a few decades ( Heal and Schlenker, 2008). The case about fishing sardine in the Monterey bay (California): In 1900 there were two companies that were exploiting sardines, H. R. Robbins and Frank Booth’s Cannery. Then 1903 Cannery acquired Robbins and started sardine canning industry. Rapidly expanding business suddenly collapsed because fish were virtually gone (Historic Monterey, n.d.). The most likely cause is considered to be overfishing. But later also it
  • 36. 28 has been appeared that a natural boom – and – bust cycle caused small changes in the water temperature which affected to the decline of the sardines in Pacific Ocean (Cascorbi, 2004). Obviously it is seem that in both cases that affect vanishing of sardines affected by unsustainable consumption. People in Monterey had an assumption that the natural resources were unlimited and would last forever, thus that brings for the overfishing, overexploitation of resources. At those times people were strongly believed that “oceans were inexhaustible and that man could not affect the species at sea” (Glantz and Thompson, 1981, p.113). Today sardines are back to California, but their consumption is strictly regulated. Nowadays, 75% of world’s fish have been overexploited or fished to its biological limit (UNEP, 2012). For preserving fish and meet the need of growing population, FAO’s World Aquaculture found out that global fish production from aquaculture grew up to 60% between 2000-2008, from 32.4 million tonnes to 52.5 million tonnes. 2.7.1. Food waste From unsustainable consumption the environment faced with large amount of wastes. The main types of waste are considered to be; solid, emission, and water (Niranjan and Shilton, 1994). Majority of the industrial spheres generate wastes and by products. For example: in cheese production, cheese have been separated from the milk, which is not going to be used, it is a by-product (Erkman, 1997). The enterprises do not want to keep the wastes in their places, and they want to find several ways of getting rid of it. But frequently environment is acting as recipient of all these wastes, including the waste with high toxicity and creates contamination (Cheryl Baldwin, 2009). These wastes plays major role in the deterioration of planet. Approximately every year 1.3 billion tonnes food produced for people, gets lost or wasted, according to FAO commission (11 May 2011). According to Global Food Losses and Food Waste5 , industrialized and developing countries disperse almost the same quantities of foods—respectively 670 and 630 million tones. Consumers in rich countries every year waste approximately 222 million tonnes 5 Global Food Losses and Food Waste, was commissioned by FAO from the Swedish Institute for Food and Biotechnology (SIK).
  • 37. 29 food which is almost the entire net food production of sub-Saharan Africa (230 million tonnes). Food losses occur at production, harvest, and processing levels. This situation mostly occurs in developing countries, because of weak infrastructure, low levels of technology and low investment in the food supply chain. Food waste is more related to the industrialized countries. It is most often caused by both retailers and consumers throwing away perfectly edible foodstuffs into the trash. In Europe and North America per person waste by consumers is between 95-115kg a year, while in sub-Saharan Africa and South and Southeast Asia each throw away only 6-11kg a year (FAO, 2011). 40% of food losses in developing countries occur in post-harvest and processing levels, but in industrialized countries more than 40% of losses take place at retail and consumer stages (FAO). For small farmers, loss of food during harvest and in storage reasoned with the loss of the income meanwhile high prices for the poor consumers. While food losses, the dissipation of resources also occur. To these resources can be included water, land, energy, which is while using them result greenhouse gasses emission. Food losses and wastes in middle and high income countries happen mostly related with customers’ behavior and lack of communication among various actors in food supply chain, which creates complication in the process. Food companies while producing foods should focus on the quality and appearance as well. Through the surveys it has been indicated that consumers pay attention more to the quality and taste of the food rather than to its appearance (FAO). Thus, we can see that customers have the power to influence the food producers to focus on the quality of the food. Analysis of the National Resources Defense Council found that grocery stores and other food retailers in US are losing about $15 billion a year, due to unsold fruits and vegetables, and about half of the US food supply being uneaten. From that point commercial and charity organizations could develop a strategy and work with food retailers in order to collect and then sell or use products that have been disposed but are still in good condition from the safety, nutrition and taste perspective. Waste is also appearing because of the firms’ policy, they make consumers to purchase in order to make money. For instance customers in rich countries are encouraged to buy more, “Buy three, pay two” promotion. In consumption phase of the food supply chain it is all about consumers and retailers. They should organize and think
  • 38. 30 about their food purchase policy. They should be informed about the impact and scarce of natural resources. Food processing companies are considered to be one of the major pollutants in the light industrial sector. Light industrial sector comprises in itself textile and dyeing, food processing, electroplating, and leather tanning subsectors (Fryer, 1995; Frijns et al., 2000). In food processing industries the large waste producers are following: milk, cocoa, chocolate, sugar confections, meat processing, and brewing/distillation (Niranjan and Shilton, 1994). But industries that are generating waste should think about refining it, because wastes still may contain some valuable components. But majority of food processing industries do not do it for several reasons: they do not have the knowledge of how to extract these valuable components; the economic benefit is low; absence of legislation which may empower industries for reusing the waste. 2.7.2. Wastewater Wastewater hold in itself biological materials and dissolved solid. According to World Health Organization (1993), yeast manufacturing, frozen shrimp processing, sugar cane distilleries, grapefruit canning generate high amount of wastewater. Meat processing generates high amount of wastewater, too (Carawan and Pilkington, 1986). Water is raw material in meat packing industry. Complex slaughterhouses generate high amount wastewater as they use water for sanitizer and cleaning reasons (Hrudey, 1984). In slaughtering main pollutant is blood (Higgins, 1995). In dairy food plant water is being used a lot; in rinsing and washing the tanks, cans, processing equipments, dirt, fuel oil, dust, ash from boilers (Marshall and Harper, 1984). 2.7.3. Solid Waste Solid waste from different food industries: canning fruits, vegetables, fish generate high amount of solid waste. From packing house there are bones, inedible meat as a solid
  • 39. 31 waste (WHO, 1993). In beer production there may be variety of leftovers, such as spent grains, which have value and can be sold as by-products to the agriculture sector (IFC, 2007d). In Figure 2.4 it has been depicted the percentage of postconsumer solid waste, which is one the most evident influence of the use of packaging. Figure 2.4: Municipal solid waste generated in the United States by material in 2006. From Environmental Protection Agency (EPA), 2007. 2.7.4. Air Emissions Air emission comprises in itself dust, volatile organic compounds, and odor (Niranjan and Shilton, 1994). WHO (1993) indicate that total suspended particulate (TSP), combustion products, and volatile organic compounds (VOC) are the primary pollutants related to the food processing industry that includes to the air emission. Fish processing using direct-fired driers, beer brewing generates about 4.0 kg TSP/ton (WHO, 1993). From the fish processing plant occur odor emissions. Combustion products include carbon monoxide, carbon dioxides and sulfur oxides.
  • 40. 32 2.8. Environmental impact of food supply chain The world food production is increasing as the population and demand is also increasing for the food. Expansion of agriculture land is one of the obvious results of agriculture. It takes time, place and expenses for providing people with ecological services. But expansion of agriculture lands has its own consequences towards the nature, which result in deforestation6 and cause release of carbon dioxide to the atmosphere. In US virgin forests shrunk from 820 million acres in 1620 to about 138 million acres in 1920 (Greeley, 1925). Deforestation was occurring not only because of agriculture use but also for the exploitation of timber. The US is not alone that is losing virgin forest for commercial purpose, it has been conducted that by the year of 2030 55% of Amazon rainforest will be cleared for cattle ranches, for agriculture and commercial use (WWF, 2007). Borneo and Sumatra tropical forests have been deforested for the palm oil plantations. Deforestation has reached to 130 million hectares over the past decade. This area is equal to the joint area of France, Italy, and Spain. While deforestation is still continues in Africa and South America, the recent reports suggest that the global deforestation rate is declined to 20% since 1990s, because of afforestation efforts reported by China and Europe. Greenhouse gasses emitted from agriculture, which will cause climate change in the future. Agriculture also has impact to water use, because productivity of irrigated crops is approximately three times more than just being watered by rain (FAO, 2005). For the irrigating and storing water for energy production purposes in areas of big rivers, large dams have been constructed. Dams have direct impact on some local species, for instance to salmon that migrate yearly to spawn. Excessive extraction of irrigation water results in making it not able to reach the oceans. One of the examples is Aral Sea that is located between Kazakhstan and Uzbekistan, which has been gradually shrinking due to excessive extraction of irrigation water from rivers which has been feeding Aral Sea7 . Animal production has several direct and indirect impacts on the environment. Feed production, which is about using the land for feed crops and production and application 6 See Appendix B: Deforestation of island Borneo 7 See Appendix C: Satellite view Aral Sea
  • 41. 33 of pesticides, is included to the indirect impact. Direct environmental impact include: use of land, pollutants that are releasing to water streams, emission of dust and microorganisms, physical and chemical impact on the land, emission of greenhouse gasses and ammonia (Ruben M. 2012). 2.9. Ecological footprint and climate change Human beings, in order to satisfy their needs, they extract fossil fuels and nonrenewable resources which is degrading the Earth. Earth is the support system that provides us with major things for mankind survival, such as, water, oxygen, dwelling and food, so we should take care of it with trying to diminishing our ecological footprint. The ecological footprint is a scale that measures the productive land with the natural ecosystem needed per person to support a lifestyle (Ruben O. Morawicki). People are using land for many reasons like, food production, housing, waste treatment, building roads and so on. It has been seen that ecological foot print is higher in the rich societies. The global ecological footprint is approximately 2.2 hectares per capita and it is differentiate in various countries8 (Global Footprint Network, 2010). Ecological footprint can be computed for the cities, organization, individuals, and countries. The Earth’s has carrying capacity in which it is connected with the biocapacity, and count biological productivity of the land which is not equally distributed around the world. Carrying capacity is the maximum number of world population the planet can support vaguely while providing them with food, shelter, water and so on. 50% of biocapacity is contained in eight countries, such as, USA, Brazil, China, Canada, Russia, Australia, Argentina, and India. Some of the countries ecological footprint surpasses their biocapacity this makes them importers of biocapacity. From the eight mentioned countries, USA, India and China are main importers and the rest are exporters of biocapacity (World Wildlife Fund, 2008). As it has been measured by the Global Footprint Network, per person global ecological footprint is 2.7 hectares and subtracting it from the global biocapacity, which is 1.8 hectares per capita, resulted in net ecological deficit 0.9, which means that people are living beyond 8 See Appendix D: Ecological footprint and biocapacity of selected countries in the world
  • 42. 34 their capacity, we are overusing the Earth’s resources. In the Figure 2.5 is depicted the ecological demand of the people over the last 40 years as compared to the Earth’s ecological capacity for each year. As it seems from the graph humans started to exceed nature’s ability to regenerate from the mid-1980s onwards. Figure 2.5: Humanity’s Footprint on the Planet (Proceedings of the National Academy of Sciences (PNAS)) (Alex Kirby, BBC News Online environment correspondent, June 24, 2002) Currently humanity with its ecological footprint uses the equivalent of 1.5 planets with providing for the people the resources they need and assimilate their wastes. Taking it into consideration all these it takes the Earth one year and six months to regenerate what people use in a year. UN claims that if current population and consumption trends proceed, by the year 2030s we will need equivalent of two9 Earths to support our needs (Global Footprint Network). But of course we have only one planet which we should take care of it and do not surpass the limits; we have to try to find the balance, the golden middle which we can achieve with moving towards sustainable procurement. With turning resources to waste faster than the waste can turn to be resources again we create ecological overshoot, exhausting the resources that are important to human life. Ecological overshoot is almost the same with the ecological deficit. It occurs when humanity’s demand on natural resources overpass the biosphere’s supply or allowing the planet to regenerate (Global Footprint Network). 9 See Appendix E: World’s footprint and number of planets.
  • 43. 35 According to the WWF’s bi-annual Living Report, Denmark is considered of having the world’s fourth largest ecological footprint and the largest in the Europe. The other three largest ecological footprints belong to Kuwait, Qatar and The United Arab Emirates. According to the report United States is the fifth in the list. The main reason of Danish to have the high amount of ecological footprint it is due to its meat consumption and production. Global Footprint Network which calculates the ecological footprint, admit that the main reason the ecological footprint is high in Denmark, is because of lots of land outside Denmark is necessitate to produce animal feed. Organic Denmark10 states about diet changes towards vegetable proteins in the whole industrialized world as one of the solutions to the environmental crisis. They suggest that the Danish production of animal products for exports should be evaluated according to global sustainability issue, health, and safety demands. The existing food supply has shown lots of impacts that make the system unsustainable. To these impacts include; unseasonal production of foods, high intensity of animal production, lots of waste that come out of foods which can also be by-products, use of energy, distribution, and packaging. Supply chain has significant influence to climate change as it is depicted in Figure 2.6, agriculture alone generate 17-32% of global greenhouse gas emissions (Bellarby et al., 2008). 10 Organic Denmark is a non-profit organization. Their objective is to increase knowledge about organics among Danes, to encourage organic production and sales in Denmark, and to promote sales and exports of Danish organic growers and producers.
  • 44. 36 Figure 2.6: Global contribution of agriculture to greenhouse gas emissions. In the US food system alone consumes close 16% of total energy use (Hendrickson, 1996). Of all water consumption worldwide 25% contributed to the food industry (Okos). Through unsustainable processing system in industries the pollution of air creates greenhouse effect which is not allowing the outgoing infrared radiation and warms the planet, which is causing climate change like, global warming. About global warming there is film named “An Inconvenient Truth” by former United States Vice President Al Gore’s campaign. The most important climate changing facts are rising of the sea level, rising of the temperatures, declining Arctic sea ice, acidifying of the oceans, warming oceans, and extreme weather change. So solution to this, companies should move towards sustainable processing system, but there may be a question pop up: Is a 100% sustainable food company reachable? For achieving the 100% sustainability for the food companies
  • 45. 37 is considered to be desirable because with that they not only focus their business on the economical pillar but also social and environmental. Currently attaining 100% sustainability maybe sophisticated issue, due to lack of access to renewable energies like, solar or wind. Another limit in achieving 100% sustainability may be lack of ingredients and packaging materials that are made from renewable resources. Nonetheless many ingredients used in food industry are renewable based, but they have been produced with non-renewable fuel (Ruben O. Morawicki, 2012). Next limit can be greenhouse gases such as; nitrous oxide and methane come from raw materials production (Ruben O. Morawicki, 2012). Nitrous oxide is resulting from livestock; methane is main emission from the meat and milk production. The consumption of milk and meat can be reduced by better diets (Leng, 1993), but it cannot be eliminated. As we can see nowadays attaining 100% sustainability is difficult, but it is not mean that companies should stop their strategies towards sustainability, they should move forward and scrutinize possibilities for achieving the sustainability in their businesses. In food supply chains the issues that cause the climate change are included into production and post-production system where wastes being burned and the gasses that have been extracted from them, contaminate the air. Climate change make changes to the Earth surface11 as well.  The sea level has risen 0.17 m in the last 100 years (Church and White, 2006).  Recording started from 1880 shows an increase in temperature of 0.8 C (Voiland, 2010).  Oceans’ acidity is incrementing as a result of the carbon dioxide absorption from the burning of the fossil fuels (Sabine et al., 2004).  Extreme weather events that have been indicated by the Climate Extreme Index, which is in aggregate of many weather indicators, show that since the early 1970s extreme conditions in U.S. weather have increased (Gleason et al., 2008). People are extracting their needs from the Earth beyond its capacity without giving break to the planet in order to regenerate itself. 11 See Appendix F: Retreat of Muir Glacier Bay National Park in Alaska as seen in 1941 (top) and 2004 (bottom)
  • 46. 38 2.10. Food Safety, Health, and Nutrition People concerns about their health make them pay attention of what they are buying, is the food produced sustainable and safe. Nowadays in many poor countries there are many people that suffer from hunger, and malnutrition. According to Lederer (2007) about 18,000 children die each day from hunger. Estimations are that 1.2 billion people may be starving by the year 2025 (Runge and Senauer, 2007). In the United States according to the Centre for Disease Control and Prevention considered that 76 million people are sick, 325,000 are hospitalized, and 5,000 die annually from the food poisoning (Mays, 1999). It has been found that food-borne disease ranks in high stage of infectious disease in the coming century (Cohen, 2000). The most widespread food-borne pathogens are connected with animal products, of which comes from factory farms and high-speed processing facilities (Cheryl Baldwin, 2009). There expanding concern about growing number of practices that relates to feeding livestock with antimicrobial agents, the feeding of rendered materials to food animals, increased focus on longer shelf life and reservation by refrigeration only (Cohen, 2000). The antibiotics that give incentive to growth in animal agriculture are one of the major factors that lead the growth in antibiotic resistance in humans (Horrigan et al., 2002; Sapkota et al., 2007). Antibiotic medications are used to kill bacteria and cure people from bacteria that can cause illness and disease. Antibiotics play one of the major roles in the human health. Many diseases that once caused people death now can be cured with antibiotics. But some bacteria get used to commonly used antibiotics and human body has been created new “antibiotic resistant bacteria”. An antibiotic resistance is one of the main health crisis, eroding the discovery of antibiotics and their exposure to clinical medicine. Antibiotics may have some positive effects on livestock meanwhile it is clear that deployment of these antibiotics in feeding process of animals leads to “the increase of antibiotic-resistant bacteria of human significance” (Mathew et al., 2007). Agriculture antibiotic use presents a major initiative of antibiotic resistance worldwide for four reasons:
  • 47. 39 1. It is the largest use of antibiotics in the worldwide. 2. More of the use of the antibiotics in agriculture results in subtherapeutic exposure of bacteria. 3. Drugs of every essential class are utilized in agriculture. 4. World populations are exposed to antibiotic-resistant pathogens through consumption of animal products (Cheryl Baldwin, 2009). Thus feeding animals with antibiotics and while eating, their expose into our body may cause real health problems, because these antibiotics will reduce or eliminate the drugs’ effectiveness, due to enzymes produced by the resistance genes can break down the antibiotics. With the appearance of antibiotic resistant bacteria in people’s body make harder to treat them with antibiotics (Horrigan et al., 2002). Appearing pathogens are also expanding concern, and while partnered with antibiotic resistance, the potential situation is alarming. This kind of situation has been noticed recently with the incidence of methicillin-resistant Staphylococcus aureus (MRSA). Another concern about food supply is a neurologic disease in cattle known as bovine spongiform encephalopathy that may cause degenerative neurologic disease in humans. The United States Environmental Protection Agency has stated that current farming practices are account for 70% of the pollution in the rivers and streams (Cook, 1998). Such pollutions are harmful for people and may cause certain cancers or reproductive and endocrine system disorders (Horrigan et al., 2002). Herbicides, fungicides, and fumigants in every class of pesticide – organophosphates, carbamates, pyrethroids, and especially organochlorides – have at least one agent capable of influencing a reproductive or developmental endpoint in laboratory animals or people (Frazier, 2007). While majority of toxic pesticides have been tabooed, there are still exposure to the pesticides in some countries. Frazier discovered that exposure of men or women to specific pesticides at sufficient doses may increase the risk of sperm abnormalities, decreased fertility in male, spontaneous abortion, birth defects or delay of fetal growth. Pesticides from workplace or environmental exposures can enter to breast milk (Jing et al., 2008; Mahjoubi-Samet et al., 2008; Polder et al., 2008; Raab et al., 2008; and Wang et al., 2008). Food safety is the main concern for the customers, they are thinking about their nutrition. People started to come up with the idea that food controls the health. Currently in the
  • 48. 40 world lots of food scandals appearing that is strongly related with safety of food. In the following it has been shown some examples of the food scandals in different countries. German food scandal; this scandal is mostly occurred about the horsemeat. The current discovery of phenylbutazone in British horsemeat has caused outrage and interest. Phenylbutazone is a nonsteroidal anti-inflammatory drug (NSAID) for the short-term treatment of pain and fever in animals. Phenylbutazone is often reffered as bute (New York Times. 2012). In the United States and United Kingdom, it is no longer approved for human use as it can cause severe damages to human body and can have adverse effects such as suppression of white blood cell production and aplastic anemia. In Germany products like frozen lasagna that was labeled in nutrition food facts that it contains beef but instead it contained horsemeat. This issue occurred not only in Germany but also in other European countries as well. Food controllers from the British Food Standards Agency (FSA) have found traces of bute in horsemeat intended for human consumption. Some of them were exported to France before researchers found that they were contained the painkiller, and may have entered the food chain. Phenylbutazone has been off the market since 1980s in the US, but in Germany it is prescribed only for three specific sicknesses: gout, chronic polyathritis and the rare rheumatic Bekhterev’s Disease, which can cause full rigidity of the spine. Lutz Hein the head of the German Association of Pharmacology (DGP) stated that “It is definitely not an over-the-counter drug like Aspirin or Ibuprofen”. Side effects of the bute may include in itself, stomach and intestinal problems. Veterinarians use bute to treat effected muscles in horses. Vice-chair of the horse committee in the German Chamber of Veterinarians Hubertus Lutz is an expert in regulations related to the horsemeat. Discovery of bute in British carcasses will lead to a meat scandal, because according to Lutz horses that are taken to the slaughterhouses should never be exposed to the bute in their lifetime. Lutz said: “Every horse in Europe has an equine passport, which has to be updated after every purchase or medical treatment; all medications must be listed in the passport. And slaughter horses must not receive any phenylbutazone”. Germany’s state and federal governments have agreed for making plan to prevent false labeling of meat products due to the Europe-wide horsemeat scandal. The ministers from Germany’s 16 stated insisted and claimed to federal government to increase the fines and penalties who falsify the
  • 49. 41 nutrition facts of the product. The ministers also offered that food companies be legally required for reporting the cases of about falsely labeled products. Currently, food companies only have to report to the state regulators if the health of consumers is at risk. The state and federal governments also discussed about introducing website where the consumers can be informed about recalled meat products. The world’s one of the big food companies Swiss-based Nestle recalled beef pasta meals in Italy and Spain after finding the traces of horse DNA. Falsifying the labeling of the meat products creates unethical behavior of companies towards consumers. For instance, false label on beefburgers that shows it is beef but actually it contains horsemeat and horsemeat is considered a taboo food many countries. Falsifying pork as it is beef which is pork considered a taboo in Muslim and Jewish communities. There was a milk scandal in China in 2008. It was about a food safety incident, involving milk and infant formula, and other food components which are adulterated with melamine. By November 2008, China reported 300,000 victims, with six infants dying due to kidney stones and other kidney damage, and 54,000 babies being hospitalized. The chemical that has been added to the milk appeared to have a high protein content. This event raised an issue about food safety and political corruption in China, and damaged the reputation of China’s food export especially with the dairy products. In 2004 watered-down milk caused 13 infants (BBC, 2004) death due to malnutrition. It has been found 10 brands fake milk powder on sale in China. There are several other disease which are mad cow/BSE (Bovine Spongiform Encephalophaty), salmonella in eggs. Facing all this malnutrition worldwide, the best for eliminating or reducing the food system being corrupted, companies should focus on sustainability. Sustainability meaning here is not only the using green technology and producing food or going green, it is also about comprising food safety in itself which will focus on healthy nutrition to people and future. Heller and Keoleian (2000) offer, “A sustainable food system must be founded on sustainable diet. In the most general sense, this would be a diet that matched energy intake with energy expenditure while supplying necessary nutrients for a healthy lifestyle”. In 2004, 66% of adults in US were overweight or obese (University of Michigan, 2006). With such a diet people in US face three major disease that cause death,
  • 50. 42 which are certain cancers, heart disease, and stroke. United States diet is strongly focus on the animal products, which are containing high saturated fat, low in fiber, and being the source of dietary cholesterol, so this kind nutrition brings the people to the chronic diseases that they face in the near future with this kind of diet (Horrigan et al., 2002). Chronic diseases are more common disease in the places that consumption of meat is high (FAO). United States 67% of people’s dietary protein is being obtained through animal products (Pimentel and Pimentel, 1996). According to public health experts decreasing of meat consumption to approximately 60% per day, would help in developed countries to reduce excess weight and obesity, through this people can reach to the health life (Compassion in World Farming, 2008). Of course they should not eliminate the meat consumption because human body needs vitamins that meat contains. While reducing the consumption of meat people will also contribute to the well being of society and environment as meat production emits lots of greenhouse gasses. Excessive amount of meat consumption leads to climate change. Cattle are the most inefficient in their energy consumption; they are requiring 7kg of grain in order to produce 1 kg beef (Brown et al., 1998). Climate change and meat consumption are connected with each other, as one of the reasons may be deforestation in the Amazon rainforest to make room for the livestock. 17% of greenhouse gas emissions are produced by clearing these forests it is more than the entire transport sector (Felicity Brown, 2009). China’s level of meat consumption doubled between 1990 and 2002. In 1961 Chinese consumed about 3.6 kg per capita, while in 2002 they increased the number till 52.4 kg each; half of the world’s pork is currently consumed in China. United States and United Kingdom are among the countries that keep almost stable the meat consumption per person; it is 124.8 kg in 2002. Denmark is the largest meat consumer; in 2002 it reached 145.9 kg per capita12 . Developing sustainability issue in the meat supply chain it should be involved in every phase of its production; starting from the feeding system to packaging, distribution, transportation. Farmers should also think about animal welfare and treat them in good conditions. . 12 See Appendix G: Meat consumption per capita in different countries of the world.
  • 51. 43 2.12. What is sustainable food company? Actors involving sustainability strategy into their food companies’ supply chain, processing, distribution and post consumption disposal have the following characteristics: 1. Rely mostly on the renewable energy. 2. Count on the ingredients and raw material made from the renewable resources with renewable energy. 3. It is water neutral. 4. Has net-zero air emission. 5. Produces absolutely biodegradable liquid and solid wastes at a rate and level that could be easily degraded by nature. Having these into companies portfolio is challenging mission for nowadays, as it has been mentioned before, attaining 100% sustainability is still not possible, but companies moving towards it and achieve highly appreciated results. 2.12.2. Raw materials and ingredients made from renewable resources Glass, wood, paper, metal, cotton, cellophane which are used as packaging materials are not made from the fossil feedstocks. Aluminum cans can be recycled over and over into new cans with a minimal yield loss. Glass is made from silica, which requires energy for its manufacturing and extraction, thus having relatively environmental impact relying on the location of the mine. Salt is obtained from mining, which is nonrenewable or by evaporation of seawater that could be considered as renewable. In sustainable food company all the ingredients and materials should come from the renewable sources and should be produced using renewable energy (Ruben O. Morawicki, 2012). 2.12.3. Water neutral Food production is a water intense system. Water usage is high in this system, especially in agriculture for producing raw materials in the fields need more water. Water used for
  • 52. 44 processing can be extracted from different sources, like from superficial water; rivers, lakes; and aquifers. Aquifer exhaustion is a challenge situation for many areas of the world where agriculture operations have benefited from the wealth of the subterranean water. In agricultures aquifers have been pumped at high rate which did not allow them for replenishment, thus making the system unsustainable. A sustainable food company would use surface water with minimum tapping of subterranean water in order to allow aquifers to replenish (Ruben O. Morawicki, 2012. p13). Water use would be optimized, and diminish the companies water footprint. Food companies can use several strategies for diminishing the water use in their production. For instance: they can reuse water in the same system; recycle water and use it in other processes. Coca-cola is using water recycling strategy in its operations. Coca-cola in Australia recycles filter backwash water by sending it back to the water treatment plant, which after treatment is going to be used in the manufacturing process (Judd and Jefferson. 2003). 2.12.4. Net-zero air emission In the food production system air emission comes from agriculture activities, transportation, processing, storage, and distribution. The emission results in thicken the layer of the atmosphere by increasing the level of the greenhouse gasses, which causes the climate change. To this emission included following gasses: carbon dioxide, methane, hydrofluorocarbons (HFCs), and nitrous oxide. There are also several substances that damage the Ozone layer, which are: chlorofluorocarbons (CFCs), methyl bromide, hydrochlorofluorocarbons (HCFCs) and halons. Methane is produced during the animal waste, rice cultivation and crop leftover burning. Large amount of nitrous oxide is emitted during fertilization of soils. HFCs released in food production come from stationary and mobile refrigeration equipment. In sustainable food company emission of greenhouse gasses would be reduced or eliminated. By changing agriculture practices and use of soil, companies can reduce carbon dioxide emission. In the transportation phase of food supply chain, company can use electric cars or cars with renewable fuels for eliminating carbon dioxide emission (Ruben O. Morawicki, 2012. p13). Refrigeration
  • 53. 45 systems that are using HFCs which causes depletion of Ozone could be replaced with systems that use carbon dioxide or ammonia as working fluids. 2.12.5. Biodegradable liquid and solid wastes The liquid that runs from food processing plants is considered to be biodegradable. But the liquid may contain some content of dissolved solids which demands mechanical energy for degradation. This mechanical energy produced through electricity that is generated by nonrenewable fossil fuels. For making this process sustainable companies should use either renewable energies or alternative technologies for degrading materials. Anaerobic digestion is another choice to the traditional aerobic systems that will not only save the mechanical energy but also create the possibility to produce biogas for energy generation. Anaerobic system is mature technology, which is appropriate for streams with high biоchemical oxygen demand, like the ones from food processing plants. The big amount of solid food wastes are coming from food preparation and pieces either from home or by production in the food service sector. These materials are biodegradable (Ruben O. Morawicki, 2012. p14). 2.13. Packaging Packaging is playing role of saving the food and protecting it from damage and loss. Quality and rational packaging may reduce the food waste. Food waste is common incident in developed and developing countries; hunger and even famine are widespread. Packaging is being challenged to meet ecological roles as well in order to provide sustainable packaging that will reduce environmental contamination as reducing solid waste and increasing recycling process. Packaging uses nonrenewable resources, creates waste, consume natural resources and use energy (Envirowise, 2008). It has been found that almost 95% of the environmental impact is from production of the packaging and only 5% is in the disposal. Container size may have more environmental impact rather than cup material or the cup manufacturing process. In the study guided by the Center of
  • 54. 46 Sustainable Systems at University of Michigan, it has been established that 32 oz yogurt containers consumed 27% less energy to produce and distribute rather than 8 oz containers. (Brachfeld et al., 2001). Leading sustainability strategies for packaging is to reduce material, energy use, and waste. Packaging also influences solid waste stream. Biobased papckaging is appearing to be as an option for minimizing resource depletion. Light weighting packages reduce the transportation cost as heavier packaging options are costly. During the 1970s introduction of polyester packaging such as polyethylene terephthalate (PET) was widespread for the replacement of bottled carbonated soft drinks. Glass, which is recycled and made from recycled materials, is being more and more replaced by light weighting plastic containers. Stoneyfield Farm states that the energy that is used for the glass package for its manufacture and transport is outweighing the energy use over the entire life of plastic containers that goes into manufacturing and transporting, thus Stoneyfield Farm is using plastic containers for their yogurt products. Through lamination or combination, multilayer packages can be achieved with low mass package structure. But these mixed materials are not practical to recycle because of high cost of separation of the material, also since the materials are made by nonrenewable sources and cannot be recycled, their benefits may be limited, during the life cycle analysis is conducted on the package. Nowadays for achieving environmentally friendly packaging effective use of materials has been growing. For example, Danone launches sustainable yogurt cup in the German market. Danone has switched from polystyrene cups to polylactic acid (PLA) cups, which considered as biobased packaging. The new PLA yogurt cup is the result of close collaboration with WWF-Germany and IngeoTM producer NatureWorks LLC (Minnetonka, 2011). According to a life cycle assessment study, which is held by the Heidelberg based LCA Institute for Energy and Environmental Research (IFEU), the switch to PLA improves the products’ packaging carbon footprint for about 25% and use 43% less fossil resources compared to the previous packaging. In Europe Danone is the first company, which shifts towards environmentally friendly packaging for a yogurt product. CEO of Danone in Germany and Switzerland Andreas Ostermayr says: “With our partners, we have taken a first significant step in the packaging development of the future”. Low carbon footprint Ingeo biopolymers appeared from 100% renewable resources, which compete with oil based
  • 55. 47 plastics. Together with NatureWorks, and WWF are working to achieve the International Sustainability and Carbon Certification for the new Activia packaging (Minnetonka, NatureWorks LLC, 2011). Nowadays PLA packaging materials have strong interest from the companies. Polylactic acid (PLA) is an example of polymer synthesized from biomass substance. Biomass packaging materials are typically cellulose or starch based (Haugaard and Mortensen. 2003). PLA is a lactic polymer, where lactic acid is produced from organic products like corn sugar. PLA has been promoted to be near to PET. PLA is thermally sensitive, it softens at <1050 F, thus it has been mostly used for the refrigerated cold fill products, like fresh-cut vegetables, yogurt, salads and so on (Cheryl J. Baldwin, 2009). Zero waste is considered one of the corporate goals of Wal-Mart. Wal-Mart plans to deploy 114 million PLA containers a year that company executives estimate is going to save 800,000 barrels of oil annually. The major PLA supplier, Nature Works LLC found that production of PLA uses 65% less energy than producing conventional plastics, it also produce 68% fewer greenhouse gasses, and comprise no toxins (Elizabeth Royte. August 2006). Further, Unilever expel an outer carton from its Knorr vegetable soup mix and presented a new shipping and display box, which has created a 50% packaging reduction, 280 few pallets, and 6 fewer trucks a year for transporting the same quantity of product (McTaggart. 2008). Annually about 200 million tons of municipal solid waste (MSW) have been generated in the USA. In Figure 2.10 has been depicted composition of municipal solid waste in the US.
  • 56. 48 Figure 2.10: Municipal solid waste by component (2004). Source: Packaging/Brody, Inc. Packaging is taken the highest amount in solid waste. Next if we take into consideration waste by materials13 of packaging, paper and paperboard is acquiring the most significant fraction estimated as 40% in 2004. There are several strategies in order to reduce the total life cycle impact of packaging by reusing, recycling, composting and with using edible packaging. By using these strategies companies not only benefit from reduction of solid waste but also reach of minimization of resource depletion. 2.14. Reuse Reuse is mostly been used for the beverage and quick service food package materials, due to their visibility and volume. Nowadays in Europe reusable packaging is widely used for beer packaging. In some countries, for instance, in Germany, as I experienced during my Erasmus program in Munich, the municipality encourage people to return and reuse bottles using deposits. The process works as the consumers pay some amount more for each bottle of beverage that they purchase, and that amount is returned when the 13 See Appendix H: Municipal solid waste by material (2006)
  • 57. 49 bottle is taken back. Programs like this still appearing in the United States, states such as Michigan and Oregon. Reusable packaging should pass from the sanitation process of each use, because it may be a source of microbiological contaminant. 2.14.1. Recycling Recycling is the diversion of materials like food package and solid waste stream for the use as a package for the new products. The European Union Directive on Packaging and Packaging waste from 1994, activate important focus on recovery of packaging through recycling. Recycling can be used as closed loop and open loop. In closed loop recycling the material is used for the similar or identical package products. In open loop recycling, the package materials are returned and are used for any end product. In both these recycling processes the package material is being removed from the waste flow. Nevertheless, for removing, returning, and for recycling processes energy is required. Further, recycling requires extra cost, due to separation, collecting, and sorting of materials. With the recycling process companies can achieve, diminishing the solid waste, energy maintenance, the materials may provide companies with less expensive raw materials, and reduce emission these are considered for advantages, but it has disadvantages as well, like recovered material may be more expensive than the virgin material also recovered materials require water usage and each time the material has been recycled, it faces with reduction of it functional properties. For instance, each time that recycled paperboard is processed it get shorten of the fiber. In the US usage of recovered paper and paperboard saves approximately 20—40% energy, compared to virgin material (EPA, 2008). Recycled paperboard usually cannot be used as primary packaging due to potential for contamination of contents which is in contact with food. Kellogg uses about 90% recovered content in its cereal cartons (Envirowise, 2008). Recycling of aluminum is considered favorable, due to high cost of electrical energy for refining aluminum from ore. Recovered aluminum saves about 90% energy compared to virgin material (EPA, 2008).
  • 58. 50 2.14.2. Composting The European Union considers composting as a form of recycling. Biodegradable packaging is compostable. Composting is appropriate for organic material. Due to sustainability context composting of paper and paperboard materials are insufficient. While degradation organic materials generate greenhouse gases, like carbon dioxide, methane and so on. 2.14.3. Edible Packaging The aim of edible packaging is to substitute package materials form nonrenewable sources which is hydrocarbon plastics. There are several sources used for edible packaging, which are plant derived from annually renewable sources, like cellulose, starch, biopolymers, protein, lipids, and monomers from microbiological fermentation (Cheryl B., 2009). Edible packaging waste is considered not compostable. There are several advantages of edible packaging, such as: edible packages can be consumed together with the food and leaving no visible residual for disposal; it degrades more swiftly with comparison to glass, paper and metal; considered sustainable as it is made from renewable resources; it can act as barrier between components of various foods to slow down internal deterioration. There are also some disadvantages of edible packaging, which are, they are costly and limited functionality. Limited functionality is because of edible packaging is hydroscopic. Sustainable packaging is considered one of the significant aims of the businesses’, nowadays as they are moving toward environmental and social perspective in order to provide safe and healthy life for individuals and communities throughout its life cycle. For meeting this approach companies should focus on cradle-to-cradle model. The role of packaging is about to protect the foods from deterioration or damage in its distribution. Less waste, using renewable resources and renewable energy can improve sustainability packaging in the food supply chain. By the reduction of the reliance on nonrenewable resources, minimization of resource use, reducing waste, and minimizing energy use can cause minimization of life cycle impact of packaging.
  • 59. 51 2.15. Distribution Distribution is one of the main stages of food supply chain, as it is connected with the delivery of food to the final user or retailers, in which food perishability, food safety should be taken into consideration. In every stages of sustainable food supply chain, three pillars of sustainability should be comprised in the system, which are environmental, economical, and social. In order to meet the sustainability standards in distribution phase, the efficiency improvements, replacement of older technologies with new ones which will have less impact on the environment, improvement logistics system which comprises in itself sustainability issue should be taken into consideration. In transportation nonrenewable fuel consumption should be reduced by using shorter routes or by more fuel efficient transport vehicles (Cheryl J. Baldwin, 2009). Companies also can substitute current fuel with the new renewable fuel, such as biodiesel14 for the distribution of the food, they can move from the global and national to regional food distribution systems which will focus on regional infrastructure for providing the majority of foodstuff. Food distribution includes various ways of transportation, storage methods which join the agricultural production, processing, manufacturing, retailing and consumption systems. Nowadays there are various modes of transport and storage accessible for the contemporary food distribution. Rail and sea transports are commonly used for the long distance transportation, while road and air may be considered fast and flexible. Right storage and handling system are significant for the transportation of food, because of foods nature they can be spoiled or degraded in uncontrolled circumstances, thus companies pay strong attention for managing storage conditions in warehouses and shipping vessels, and refrigeration system of the transports. Refrigeration assists food transportation for the long distances, especially for food products which they have specific keeping temperature. Foods that considered in essence alive, refrigeration plays crucial role, as it prevents or slows the metabolic rates which result in spoilage and bacterial growth. In order to improve the way of food being transported ISO 9000 14 Biodiesel relates to a vegetable oil or animal fat based diesel fuel consisting of long chain alkyl esters.
  • 60. 52 standards for international trade are required for maintaining quality and reliability of foods (Cheryl J. Baldwin, 2009). The usage of transportation and storage technologies connects the places of food production and procurement. Food distribution should be appeared as adjusting the conditions and logistical foundation supporting main developments in food systems. In the modern life, companies are becoming more concerned about sustainability concept, thus for the distribution section of the food supply chain, taking into consideration environmental pillar, food miles, carbon dioxide, and energy consumption are indicators related to distribution. Food miles refer to the distance which food has traveled from where it was produced to the consumption point. Energy consumption shows the fuels which are necessary for transportation and the energy which is demanded for the different ways of storage conditions of food. Carbon dioxide emission is included to this aspect as well. Economic indicators of distribution are profitability, the percentage of food lost, wages, employment, labor productivity, and transport efficiency. The social indicators of distribution are nutritional value of the food, food safety, fair trade initiatives, and quality of life and worker satisfaction. Nutritional value of food incorporates in itself the shelf life and perishability of the food. Some of these indicators may be included in more than one section, for instance; food loss or spoilage of food is not only about economic issue but also contains environmental impact, as spoiled food can emit methane gas from decomposition in a landfill, food lost also may be contributed to social impact, as loss of food can be contributed for rescuing hunger and poor people, or while being degraded it can be delivered to municipal composting programs for the environmental benefit (Cheryl J. Baldwin, 2009). For enrollment in sustainability program companies should focus on reduction of carbon footprints and greenhouse gas emissions, decreasing of solid waste, minimizing reliance on nonrenewable energies, improve efficiencies. Currently food industries involved in international distribution. For instance if we enter a supermarket in US we can observe that there are bananas from Guatemala and tomatoes from Mexico. It is obvious that places that they do not have special conditions for growing the fruits that requires specific atmosphere or condition, these countries will import fruits that they are not able to grow from other countries. The global food
  • 61. 53 distribution expanded because of increasing amount of population and rise in supermarkets, shipping and storage technology innovation, growth of urban areas and international trade. The increasing part of the global food distribution is grocery stores. The growing number of supermarkets is clearly observed nowadays everywhere, and this growth led to the tendency to shift from individual store procurement system to a centralized distribution system which will serve a region, like city, state, and country (Cheryl J. Baldwin, 2009). This centralization is about using central warehouses for the distribution to the stores. With the help of centralization distribution system can increase efficiency and decrease overall product costs by decreasing coordination and other transaction costs (Regmi, 2001). Centralized distribution system is also encouraged by the growth interest of the government about the food quality and safety. With such standards they can prevent widespread diseases like food borne to occur and also paying close attention to contamination. Centralization system can reduce the costs related with meeting the standards, and also assists coordinate logistics along the supply chain. For lowering the transaction costs supermarkets are searching alliances with the suppliers. Reardon et al. (2005) determined that increased consolidation of supermarkets, combined with the aim of supermarkets to attain year round supplies of different fresh foods, has brought to horizontal joint ventures and other strategic alliances between firms in the northern and southern hemispheres. With the help of these alliances supermarkets can be supplied by tropical fruits year round. For instance, mangoes accessible for purchase in the United States come from Central and South American countries. The mango season in Ecuador is usually October till January, while in Mexico the season lasts from March through September, with the help of the alliances between firms in two continents, supermarkets in the United States can be provided with mango sales year round. Technology innovation has also caused the growth in global food distribution. Shipping containers are playing major factor in the reduction of world transportation costs. In 1960s refrigerated mobile containers were developed. With assists of refrigerated containers the amount of transporting perishable foods increased. Further with the tracking technologies companies can track their cargo around the world, with the help of these technologies permit shippers and carriers to monitor the quality of product, reduce costs, and shorten delivery time (Regmi, 2001).
  • 62. 54 The growth of urban population, the rise of incomes and some of the lifestyle changes may have also contributed to the growth of the global distribution (Reardon et al., 2003). As the urban population is increasing and they are more intend to eat higher value foods like meat and vegetable, rather than cereal based diet. All these growth on technological innovation, urbanization and trade have crucial impact on the global food distribution system. In order to overcome the challenges that supermarkets face, like environmental deterioration, they should move towards sustainable global distribution system and for that perspective supermarkets have implemented standards which protect food safety and quality, technology innovation allows the diffusion of products worldwide by increasing efficiency and lowering the excessive usage of biocapacity of planet. Worldwide transportation can emit large amounts of greenhouse gasses which increase use of carbon footprint and cause climate change. Schlich and Fleissner (2005) stated that lamb which is imported from New Zealand had a lower energy turnover than regionally produced lamb in Germany, even taking into consideration shipping from New Zealand. In distribution phase of food supply chain transports play significant role which cause to think companies how to reduce fuel consumption and dependence on nonrenewable energy source which one day will reach its peak. Refrigerated transport generates two types of emissions which are energy usage for providing lower temperature and from refrigerant leaks. In refrigerated vehicles in order to generate energy and provide related temperature for the carried food, fuel consumption plays important role which cause carbon dioxide emission, but the use of carbon footprint can be reduced with using biodiesel or electric engine. Refrigerant leaks, is about release of CFCs and HCFCs into the atmosphere which will cause damage of ozone layer and results in vulnerability of the Earth against ultra violet rays. For that reason production of these compounds was banned worldwide and substituted by the hydrofluorocarbons (HFCs). Even though HFCs not damaging stratospheric ozone, they preserve extremely high global warming potential. The usage of CFCs and HCFCs have been banned but in old refrigeration equipment including refrigerated vehicles they are still in use (Cheryl J. Baldwin, 2009). The goal of companies is to have zero carbon emission but now it is still not attainable, but they can reduce carbon footprint with using electrification railroad without burning
  • 63. 55 fossil fuels. For now it can be only possible only for the short distances. Electrification of cargo trucks and ships would depend on the evolution of the high energy density and low weight batteries. At the present time using of hydrogen or synthetic fuels are not mature. Fuel efficiency in truck can be improved with operational betterment such as optimization of logistics, reducing speed, and right maintenance. Fuel usage of long haul trucks can be decreased by technological improvements which include reduction of weight, increasing engine efficiency, and decreasing aerodynamic drag. Small truck could benefit from hybrid engine. For fuel efficiency reduction of idling is also important as drivers keep their engines running in order to maintain the cabin warm or cool or providing energy for light or entertainment systems while resting overnight. Sometimes in cold climates engines left idling due to difficult starts (Stodolsky et al., 2000) but this issue can be solved with setting electric block heaters to maintain the engine warm overnight in cold temperature. There is also another factor that can influence fuel economy which is driver’s behavior. According to Cummins Engine Company (2007) the most efficient driver may achieve 30 percent better fuel mileage than the least efficient ones. Behaviors like coasting to a stop instead of staying on accelerator until the last moment and then breaking hard, fuel savings maybe possible with driving high percent distance in cruise control, and minimize percentage of idling. The use of long combination vehicles instead of conventional configurations leads to a significant reduction of fuel usage per tonne of product transported. Marine shipping is considered to be one of the most energy efficient type of transportation types. It assists around 80 percent of world commerce and contributed to about 3.3 percent of global carbon dioxide emissions from international and regional fleets (Mehling, 2009). The efficiency of fuel consumption of ships comes from their ability to carry large amounts of cargo at low speeds. Even though it is estimated that marine shipping is emitting less carbon dioxide, still emissions from ship engines are much dirtier than any road engine and involved in ocean contamination. Marine engines use fuel which contains high level of sulfur that will cause sulfur dioxide emission. In order to reduce the impact and emissions of sulfur dioxide from ships, regulations are requiring desulfurized fuels with content of sulfur between 1 and 1.5 percent or by using scrubbers eliminate sulfur dioxide from combustion gases. The International Maritime
  • 64. 56 Organization (IMO) has found several operational and technical steps that could reduce ships’ fuel consumption meanwhile reduce carbon dioxide emissions. From the operational perspective, logistics organization, which comprises fleet management and trip optimization, can reduce fuel consumption essentially on all ships. From the technical perspective the reduction of speed, more hydrodynamic hull designs and better propulsion system may result in reduction of fuel consumption (IMO, 2009). Approximately 60 percent of the total cost of running a cargo ship is fuel (“Sailing ships with a new twist,” 2005). Taking this into account reduction of fuel consumption is not only reducing environment impact but also provide economical advantage. It is obvious that wind is cheaper than oil, thus wind power may assist reducing fuel consumption in maritime vessels. There is particular technology which can help to reduce ship’s annual fuel costs by 10 to 35% by using an auxiliary giant kite installed at high altitudes and connected to the ship via a towing rope. The towing kite15 has an area between 150 to 600 square meters and can pull cargo ships, tankers and fishing trawlers by taking advantage of wind at high altitude. Towing kites can operate at altitudes between 100 and 300 meters above the sea level where winds are 25 percent more powerful and more stable than close to the sea level. So by using long towing cable the kite can be used far up from the ship into strong wind currents. Once the kite is used the power of the engine is reduced and saving the fuel. Under optimal wind conditions fuel usage can be gradually reduced by up to 50% (SkySails, 2009). Trains are considered to be fuel efficient due to their low rolling resistance, with low grade slopes, circulation at fixed speeds for long distances, rails which can admit heavier loads than roads, and low aerodynamic resistance in comparison to other vehicles. Transportation is main segment of the United States economy. Traditionally in US rail and water transport have been used for moving lower value agriculture like, corn, wheat, and soybeans. In some cases rail is also used to move semi perishable foods, like, potatoes, onions, and squash. In the United States over the past 25 years the percentage of food transported by trucks has increased, while the percentage of rail transport is decreased. Trucks are the most common way of transporting food. Air transport is used for highly perishable and high value food products. United States carbon dioxide 15 See Appendix I: SkySail
  • 65. 57 emissions from transportation have increased about 40% from 1985 to 2005 (USDOE, 2006). Later on in 2007 food retailers in the United States agreed to be more proactive about environmental concerns. Environmental issues comprises fuel use and greenhouse gas emissions, air pollution, packaging disposal, and total energy use. According to “Food Industry Sustainability”, (2006) by Transport 2000, a U.K. based consulting company provided a report to the United Kingdom’s Department of Environment, Food, and Rural Affairs (DEFRA), which indicated that a lower carbon emission food system would have these features: Efficient operation and management of all processing Least use of temperature controlled storage Usage of more seasonal and local production, products would be sourced as locally as possible Logistical efficiency, for instance; increased fuel efficiency and controlling the loads For food industries in order to improve vehicles utilization and efficiency comprises the following:  Collaborating among operators  New transport refrigeration technologies, in order to diminish energy consumption and leakage  Improving vehicle full rates  Deploying improved technologies for optimizing vehicle routing By using improved technologies and provide vehicles with more eco friendly refrigerated system there is ecoFridge which is designed and manufactured in Europe. EcoFridge is powered with nitrogen, which eliminates greenhouse gas emission and reducing energy use (Cheryl J. Baldwin, 2009). While taking into account environmental and social concern for food distribution system, climate change, traffic congestion, noise levels of vehicles, and fair wages for workers which are involved in food transport should be taken into consideration.
  • 66. 58 According to DEFRA (2006) reduction in food miles through sourcing more local foods will not considerably diminish the environmental impact; companies should take into account mode of transport and transport vehicle fuel efficiency. 2.16. Life Cycle Assessment (LCA) Life cycle assessment measures the environmental impact related with a product, process, or activity. It is product based evaluation. Economic and social impacts are normally outside the scope of LCAs. LCA is the application of mass and energy balances on particular process, product or service and comprises all energy and raw material as inputs and wastes as outputs. LCA requires assessment of inputs and outputs in the system like packaging, transportation, and distribution. Table 2.7 depicts some samples of goals and scopes, functional units and boundaries of LCAs. Figure 2.7: Generic diagram of food product life cycle showing inputs, outputs, intermediate processes, and the system boundary from production of raw material to consumption and disposal (Ohlsson, 2004). Courtesy of Willwy-Blackwell. LCA is a tool for the whole description of emissions, waste and the resource use from soil to end user per unit of various food items. Since 1997 the process of using LCA
  • 67. 59 studies has been standardized by the International Organization for Standardization (ISO). The latest standards of ISO 14040 and ISO 14044 adopted in 2006 provide an overview of the framework and guidelines of LCA. According to these standards the process of LCA consists of four interrelated phases, which are following: 1. Definition of goal and scope. 2. Life cycle inventory analysis. 3. Impact assessment. 4. Interpretation. Life Cycle Assessment approach for a food product is based on reduction of its cumulative environmental impact (European Commission, 2003). 1. Definition of goal and scope it is about defining the boundaries and the processes. The aim of the LCA might be the consideration of similarities or dissimilarities of two alternative packages like; glass with plastic bottles. The scope refers to the functional unit of analysis, the system boundaries, geographic extent of coverage, assumptions, limitations, and so on. The concept of the functionality is used to compare alternative ways of giving a specific functionality or utility to the consumer. System boundaries involve in the how far to follow the life cycle of milk which can be bottled or in a board container, and to which stages to include the analysis. If the objective is to study environmental impact of milk production from animal feeding to disposal of used packages, then the boundary has to encompass all steps in the process, which has been depicted in the Figure 3.7, in addition to other subsystems such as animal treatment, electricity generation, water purification, water treatment, and so on. But if the interest is limited in focusing in comprehending the impact of the processing part, then boundaries are set around the processing and distribution. 2. Inventory analysis is about identifying material and energy flows and environmental releases related to the functional unit of analysis. In this stage of LCA inputs and outputs of processes are measured in physical terms. Inputs in data collection are renewable and nonrenewable energy, water, raw materials, and so on. Outputs are co-products; environmental releases to air, methane, carbon
  • 68. 60 dioxide, sulfur oxide; effluents released to water, biological oxygen demand; generation of solid waste (Roy et al., 2009). When the inputs and outputs are identified numerical terms needs to be established. In this phase may be concerned data on transport, extraction or raw material, processing of raw materials, production packaging materials like plastic and cardboard, electricity use, and disposal of waste materials can be found in commercial LCA databases (Roy et al., 2009). 3. Impact assessment is about assessing the environmental effects of the inventory analysis. This phase is mostly focusing on how the outcomes of the life cycle inventory have the impact on human health and environmental degradation and resource usage. The aim of life cycle impact assessment is about connecting resource extractions from nature and emissions into environment and their damages. This phase of LCA comprises in itself five steps, which according to ISO 14040, step 5 is optional. Step 1. Selection and definition of environmental impact categories. For instance: climate change, acidification, ozone depletion, human health, human toxicity, and so on. Step 2. Assignment of inventory input and output data within the impact categories, this also called classification. For example: hydrofluorocarbons impact on Ozone depletion, carbon dioxide on climate change or acidification in oceans. Step 3. Computation of category indicators, also known as characterization. For instance: how hydrochloric acid (HCI) has impact on Acidifaction. Step 4. Showing the data after characterization. Step 5. This element of life cycle impact assessment is optional and comprises in itself: grouping, normalization, data quality analysis. 4. Last phase of LCA is life cycle interpretation, which is about interpreting assessments and drawing conclusions from the assessments. According to the ISO 14040 the interpretation issue needs to evaluate and check the information resulting from the inventory and impact assessment, and also explain the limitations of the conducted LCA, and provide recommendations.
  • 69. 61 LCA is usually done for the finished product, such as kg of meat, or liter of milk. With the help of LCA companies investigate the impact of their food production on the environment and improve it with implementing sustainability program, and safe the world’s creatures. LCA is considered as new approach and it remains some limitations (Fuller. 1999). The problem in definition and scope is that regarding the functional unit of analysis, geographic scope and system boundaries differentiate, the LCA of various products or packaging materials are hardly comparable (Frank-Martin Belz, 2009). Next problem may cause perishability of information: new materials and swiftly changing technologies related to the production, distribution and waste recovery can cause LCA interpretation become outdated. The selection of impact category is limited to environment and people health. Other social dimensions like cultural diversity, which is arduous to measure, are not considered at all. In this case using of socio-ecological impact matrix and LCA can improve these limitations. The socio-ecological matrix is a qualitative instrument (Belz et al. 1995). With this matrix social and environmental impact of foods can be analyzed and is a good starting point for detailed LCA. Figure 2.8 shows the impact matrix of coffee.
  • 70. 62 Figure 2.8: Impact matrix of coffee. Source: Adapted from Belz, F.-M. 1995. Okologie und Wettbewerbsfahigkeit in der Lebensmittelbranche, Bern: Paul Haupt, p.37. The horizontal axis of matrix shows the main phases of the product life cycle from cradle to grave. The vertical axis depicts the relevant environmental and social dimensions. The phases and dimensions may vary for different products. The impact matrix is also useful for presenting and discussing the results of LCA for both internal and external groups. LCA can be also varying during the food supply chain as it has been depicted in the Figure 2.9. Figure 2.9: Variations of life cycle assessments that are dependent on boundary setting (Ruben M. 2012) Cradle to grave phase of LCA comprises all inputs and outputs in the life cycle of the product from generation of raw materials, which are exploitation of natural resources, energy use, and so on, to the manufacturing and ending in the disposal of the used product back into earth. Generally LCAs assessment of the food products considered to take place till the product reaches the customer; so LCA become cradle to gate assessment or soil to kitchen LCA (Ruben M. 2012). Nevertheless if the preparation of the food also included into the analysis of LCA then it is soil to table or farm to fork LCA. Packaging and the products that do not reach the customers and pass their shelf time or reach perishability could be considered into the final LCA waste which represents cradle to grave assessment. Gate to gate LCA is an analysis that is limited to the specific part of the production chain for the evaluation the impact of the processing, distribution
  • 71. 63 and recycling. A cradle to cradle approach is related to the products that can be recycled into the same product or can be used for the different production but without downgrading the recycled material, or just be returned to the soil as compost. Vegetables, fruits they can be used as compost for the soil. A feasible cradle to cradle approach would also use renewable energy for manufacturing and distribution. Cradle to cradle approach mostly taken into consideration for the packaging phase. Food producers should pay robust support for the sustainable packaging of the foods for the future recycling of them. A cradle to cradle16 production system is truly sustainable and society needs to move towards this direction for managing to create sustainable economic system. 16 See Appendix J: Belz cradle to cradle model.
  • 72. 64 CHAPTER III: RESULTS 3.1 Ecolabling One of the major part of the supply chain is selling the product and gain profit in order to get the opportunity to expand the business and invest in more eco friendly technologies which will be involved in sustainability. For selling the food especially if they are branded companies involve into sustainability marketing. Sustainable marketing is: “Building and maintaining sustainable relationship with customers, the social environment and the natural environment; log-term orientation” (Frank-Martin B. 2006). Labeling plays crucial role in shopping of food and it is considered to be significant way of communicating with customers about sustainable purchasing. Green labels provide customers with credible signal of products. Specific labeling strategies can also support consumers behavior towards recycling, for instance by labeling packages by type of plastic or any other material to simplify sorting and recycling. Sustainability labeling is one of the effective communicators that are used by the marketers to encourage or influence consumers buying behavior. According to survey which is held by Information Resources, Inc. (IRI, 2007) consumers are increasingly willing to consider social and environmental aspects when buying food, about 50% of the United States consumers take into consideration at least one aspect of sustainability in choosing packaged goods items and selecting the shop for that perspective. Purchase of sustainable foods leads buy consumers awareness about their health. Main focus have been on foods free of pesticides, antibiotics, and genetically modified ingredients (Molyneaux, 2007). Ecolabeling is a drive that creates interest and changes perception of consumers towards the products, thus companies should be carefully investigate the gap of consumers experience and expectations in order not to get involved into overpromising or misrepresenting benefits which is called greenwashing (which conflates ‘greening’ and ‘whitewash’). The term greenwashing was first used by the environmentalist Jay
  • 73. 65 Westerveld, when he noticed strategy of hoteliers of placing notices in hotel rooms about asking guest to reuse towels in order to ‘save the environment’, but actually the hoteliers were less interested in reducing their environmental impact, their major interest was by washing fewer towels to save the costs. There are also some people who are interested to purchase foods which are produced in environmentally friendly way, but they pay attention to the values such as, quality, price and convenience. Companies which are communicating with using eco labels should be careful in environmental claim and they should practice responsibly to be trustworthy for gaining long-term success. According to Federal Trade Commission (FTC) in the United States, marketing is not deceptive or unfair, the important thing is to inform consumers about sustainable labeling, so they will not be confused in their meaning, because consumers may assume that all plastic packages are recyclable, but only limited number of them are considered for recycling. The category of certified products is growing. Certified product plays main role for giving information on the sustainability of a product or a company, which is sustainable production like, organic, no genetically modified organism, fair trade, locally produced and recyclable (BBMG, 2007). Certification shows verification on the label with a seal or mark which is communicated to the customers. “Organic” is considered as dominant ecolable for food with surpassing global sales of food and drink US$40 billion in 2007 (Organic Monitor, 2008a). Organic foods are grown without use of toxics and pesticides, and growth hormones. They are produced according to standards which do not allow using genetically modified organisms and radiation. Organic agriculture regulations have been set in the United States and many other countries including some EU countries (Huber et al., 2007). Customers demand for organic foods are more widespread in North America and Europe which include 97% of global revenues. Other regions like Latin America, Asia, and Australasia are main producers and exporters of organic foods, nevertheless their internal markets are just beginning to evolve (Cheryl Baldwin, 2009). The four largest consumer markets of organic products are; Germany, France, Italy and the United Kingdom, which is comprising over 75% of regional revenues. Nevertheless, because of small number of consumers, Denmark, Sweden, and Austria showing high growth. In countries such as Denmark, Sweden, and Switzerland organic food sales
  • 74. 66 shows about 5% of total food sales (Organic Monitor, 2008a). The Swiss spend the most on organic food, with number of over US$150 per person (Organic Monitor, 2008a). Two-thirds of customers agreed about price premium of organic foods and say it is right that organic foods are expensive, however 10% say the higher prices are not correct (Organic Monitor, 2008). Approximately half of British customers buy organic food and about half of them report that they would buy organic food if the price would be cheaper (Organic Monitor, 2008b). Research which is held by Sainsbury revealed that 31% of lower income customers are buying organic foods (Organic Monitor, 2008a). A survey which is conducted by Agence Bio in French found that 81% of men and women had a positive impression towards sustainable products (Organic Monitor, 2008a). When people are questioned about the reason of buying organic foods, 94% replied for staying healthy, while 93% stated to be certain of buying a healthy product, 90% of customers consider quality and taste as important factors (Organic Monitor, 2008a). A survey which is held in Italy found that the main reason why consumers buy organic foods is the absence of pesticides and chemical fertilizers, stated by 86—96% of respondents (Organic Monitor, 2008a). 75—91% respondents stated that the absence of genetically modified organisms is important for them, 69—83% says environmental protection is important reason, and 59—78% stated food safety as significant factor for them (Organic Monitor, 2008a). Studies in countries such as; Austria, Ireland, and Spain had similar findings (Organic Monitor, 2008a). According to Harris Interactive (2007) survey half of all American adults sometimes buy organic foods. The United States has the largest market for organic foods in the world. The imports are important for US because demand is exceeding supply, so Latin America region like Argentina, Mexico, and Brazil export some quantities of organic foods to the United States market. Australia and New Zealand are considered to be one of the major exporters of organic foods, focusing on organic lamb, beef, kiwi fruit, wine, apples, and pears. One of the major drivers for market growth of organic foods is increasing distribution in conventional grocery channels, like, Wal-Mart, Safeway, and Loblaws are expanding their organic product ranges buy introducing private label organic products.
  • 75. 67 In 1980 the International Organic Federation of Agriculture Movements (IFOAM) published the first international organic standards. IFOAM comprises in itself more than 750 member organizations in 108 countries. IFOAM has an organic guarantee system which provides markets guarantee for claim of being organic through a common system of standards, verification, and marketing identity. European Community Regulation which is applied to organic food is Council Regulation. The aim of the European regulations is to ensure a harmonized framework for the labeling, inspection, and production of organic foods throughout the European Union. In European countries imported products should meet European Union organic regulations in order to be labeled and marketed as organic. Europe has about 160 certification agencies. The most significant is considered IFOAM. It has designed standards for organic farming and organic food production that are promoted to harmonize standards worldwide. Certification agencies must use standards equivalent to IFOAM, in order to get IFOAM accreditation. The United States allow four different organic labeling options related for organic standards, which are following:  100% organic – only products that have been produced in organic way are permitted to carry “100% organic” declaring label.  Organic – at least 95% of ingredients should be produced by using organic methods. The rest of the products can only be natural or synthetic contents recommended by National Organic Standards Board and authorized on the National List.  Made with organic – it should display 70—95% organic ingredients.  Products which are less than 70% used organic ingredients can list the organic components only in the ingredients panel. Fairtrade labeling is one of the worldwide used certificates, which contributes to sustainable development by proposing better trading conditions to, and provide the rights of, producer and workers. The first Fairtrade label was applied in Netherlands to coffee in 1988. Further, it has been set to various ranges of products like: tea, nuts, spices, sugar, cocoa, fresh fruits and vegetables, honey and nuts. Fair trade attaining popularity due to
  • 76. 68 its third world poverty. Consumers accept fairtrade system as a way of encouraging and backing farmers in lesser developed countries. In 2006 the global market for fairtrade products was worth approximately US$2.2 billion (Organic Monitor, 2008b). Switzerland has estimated retail sales of fairtrade product from US$185 million in 2006 (Fairtrade Labeling Organizations International, 2006). Fairtrade certification provides several guarantees which are about, providing farmers product with a fair and stable price, farmers and workers are given additional income in order to be able to improve their lives, production evokes a great respect for the environment, closer connection developed between consumers and producers (Cheryl J. Baldwin, 2009). For sustainable fisheries there is ecolabeling program which is Marine Stewardhip Council (MSC). The MSC logo is given to the fisheries that meet the requirements for the environmental standards for the sustainable and well managed fisheries. The MSC existed since 1999 as independent nonprofit organization. The MSC comprises three aspects: the condition and wellbeing of fish stocks of fisheries, the impact of fisheries to the marine ecosystem, and fishery management system. Over 500 companies have adopted the MSC chain-of-custody standard for seafood traceability. In 1987 the Rainforest Alliance has been developed for conserving biodiversity and ensures sustainable livelihoods by improving and changing land use practices, consumer behavior, and business practices. The Rainforest Alliance has three divisions, sustainable forestry division, sustainable agriculture division, the tourism division. Production of foods in sustainable way covered by sustainable agriculture division. Farmers, landowners who are certified by the Rainforest Alliance must meet the social and ecological standards which comprise agrochemical reduction, ecosystem protection, and worker health and safety. The Rainforest Alliance standard is mainly adopted by farms in Latin American region like, Brazil, Costa Rica, and Peru. The success of Rainforest Alliance is mostly due to engagement of large corporations like Chiquita, IKEA, Kraft Foods, and Unilever. In the United Kingdom McDonald’s switched its coffee supply to certified Rainforest Alliance in 2007. In 2008 McDonald’s proclaim that it would use Rainforest Alliance certified tea for its 1,200 fast food restaurants (The Daily Telegraph, 2008). Unilever converted its Lipton tea brand to Rainforest Alliance certified.
  • 77. 69 3.2 Use of waste Moving to the sustainable food supply chain companies should deal with wastes and losses properly, they should investigate and be knowledgably about how to reuse, and extract valuable resources from the waste and reduce amount of resources that will contaminate the environment. Losses almost occurring in every level of food supply chain. In order to reduce waste and loss companies should pay attention to good housekeeping, equipment maintenance, and design changes for improving efficiency (Niranjan and Shilton, 1994). Good housekeeping means that the managers and subordinates of the company are doing everything right according to environmental regulations. For improving the housekeeping workers of the company should imply rational usage of raw material and product loss, and provide employees with training (Cheryl Baldwin, 2009). For instance in the production of beer exact adjustment of bottle fillers or adjustment of metal tray under the fillers can reduce the losses of beer during filling stage (European Commission, 1997). Applying equipment maintenance and design changes assist in reducing the waste up to 20—30% of costs (Envirowise, 2008). With inefficient packaging companies lose 4% of product and overall process control in production line can reduce cost to 5% (Envirowise, 2008). Recycling, recovery, and reuse of materials are the ways of minimizing the waste. With this process companies should refine the waste in order to get the useful portion of waste. For example, in Vigneswaran et al. (1999) found that it is possible to use palm oil waste as animal feed, recovered fiber as fuel for production of steam in boiler. By-product of sugar; molasses can be used for livestock feed (Paturau, 1989). High proportion of molasses in the feeding process of milking dairy cows results in increases the milk yield, milk protein (Murphy, 1999). Chicken eggshells generated from confectionery production are considered to perfect calcium source for livestock feed. With the amount of calcium in chicken eggshell is equal to purified calcium carbonate (Karkkainen et al., 1997). Several researchers found that there is possibility to reuse coffee grounds as fuel (Sivetz and Desrosier, 1977; Adams and Dougan, 1985; Silva et al., 1998). Coffee grounds have been considered perfect fuel in comparison with other biomass, having
  • 78. 70 humidity of 50% they can be burned in the boiler; coffee grounds have high heat of combustion (Pfluger, 1975). If the companies are interested in the sustainability and decrease their environmental footprint, recovery and reuse of resources in waste can involve additional processing steps, costs, and energy requirements. Processing steps may contain; separation, concentration, and conversion (Nimi and Gimenez-Mitsotakis, 1994). Enterprises should consider and balance all the benefits and inputs for implementing this strategy. 3.3 Companies that are involved into sustainability program Unilever is an Anglo-Dutch company and a global manufacturer of consumer goods. Unilever strongly believes that sustainability compensate to the triple bottom line principle. Through this principle it can limit negative impacts. The vision of Unilever is: “Double the size of the business, whilst reducing our environmental footprint and increasing our positive social impact”. Unilever wants to add vitality to the life. Unilever has a sustainable agriculture program. With its sustainable agriculture program Unilever wants to support several principles, such as: produce crops with high yield and nutritional quality, keep resource input as low as possible, optimization of renewable resources and minimization on nonrenewable ones, encourage local communities to protect their environment. All these principles are included to Unilever’s Lead Agriculture Programmes. Lead Agriculture Programmes involve groups of farmers, together with advisors either from Unilever or NGOs in order to search and identify good, sustainable agriculture practices. Sustainable agriculture is knowledge based, so implementing the non chemical intensive practices farmers can have organic agriculture. Farmers should learn how to apply fertilizers, and the amount of it. Kraft Foods also focuses on developing sustainability food supply chain. Kraft has developed sustainability wheel, which is focused on design supply chain with the continuous improvements. Kraft is targeting to reduce 25% energy usage with the help of energy conservation, transportation optimization, exploitation of alternative energy
  • 79. 71 source. For the efficiency of transportation vehicles included principles like; use of nitrogen for tire inflation which makes tire to last longer, implement smart reefer technology, use truck stop electrification. Kraft also use waste to create energy, for instance; burning coffee chaff, a waste component that generated from roasting and grinding coffee beans. Further, Kraft partnering with key suppliers for eliminating the solid waste (Cheryl J. Baldwin, 2009). One of them is Sonoco, which is a key supplier for a wide range of packaging. Sonoco either reuses the packaging waste into manufacturing phase or burns it and generate energy, thus Sonoco helps Kraft to reduce solid waste in the Earth. This can be also example for the cradle to cradle model of LCA. The Stop & Shop Supermarkets also involved in sustainability with their energy efficiency scales which include deploying skylights and natural lighting in stores, refrigeration systems with variable, using non ozone depleting substances, low energy glass doors, insulation roofing (Stop and Shop, 2008). Wal-Mart Stores, Inc. is moving towards the zero waste programs. Company is relying on recycling remaining solid waste. Wal-Mart has already made its fleet 20% efficient, compared to 2005, by using aerodynamic trucks and using auxiliary power units which is turning off the engine, but not the heating, cooling and lights (Greenbiz.com, 2008). In the stores they are using natural light, light-emitting diode (LED) lighting, and reflective roofs. SUPERVALU is retail network in US. It has more than 3,400 stores like Club Foods, Albertsons, Shoppers, Jewel-Osco, Farm Fresh and so on. SUPERVALU involved in minimizing its environmental footprint through joining EPA GreenChill Advanced Refrigeration Partnership Program. Thus SUPERVALU now uses only non-ozone- depleting refrigerators. With this program it reduces emissions of ozone depleting and greenhouse gas refrigerants every year. Further SUPERVALU has waste reduction program which involved in recycling and composting. SUPERVALU converts gathered plastic bags into composite lumber for benches, and 429 million beverage containers were returned to the stores as part of facilitation-in-state rebate programs (Cheryl Baldwin, 2009). Albertsons stores turned store compactors into compost containers, which are filled and took from the stores weekly, and Acme stores in Pennsylvania fill compost containers which are collected and are converted into high grade soil. All new
  • 80. 72 stores of SUPERVALU are designed with low energy white thermoplastic polyolefins roofing systems. Between 2000 and 2007, it invested about US$95.2 million in capital on energy projects that saved over 340 million kilowatts energy per year. It uses energy efficient lighting systems like natural lights, skylights, LED signs, roof-mounted solar power collection systems for green roofs. In 2005 SUPERVALU opened its first Leadership in Energy and Environmental Design (LEED) store in Worcester, Massachusetts, which was the second LEED certified grocery store in the country. Marks and Spencer is a leading company which involved in sustainability and considered to be making the most genuine green efforts of all companies in the United Kingdom (Chatsworth Communications, 2007). In 2003 Marks and Spencer covers aspects of production from “field to fork”. The standards comprise traceability, minimize usage of pesticides, support non-genetically modified foods, ethical trading, and food safety. With “farm to fork” strategy, the company focused on organic production. However, organic foods are considered more expensive, Marks and Spencer try to create the margin for these foods and keep the level of the price more affordable. Further, Marks and Spencer has been involved in the protection of fish stocks by eliminating the purchase of fish where the origin of fish stock is unknown. They are also working with Marine Stewardship Council. Marks and Spencer also uses non-ozone depleting refrigerators. They use refrigerators with less harmful HFCs, and refrigerators which are consume 4% less electricity. For transportation they try to use more rail transport system. They donate unsold foods to the local charities (Cheryl J. Baldwin, 2009. Frito lay products are owned by PepsiCo and they are strongly committed on sustainability as they say: “In order to keep our environmental promise, we're continually innovating, finding new and better ways to reduce emissions from our manufacturing plants and our delivery vehicles”. Frito Lay is working on reduction of its impact on the environment. Frito Lay is using solar energy for making Sun Chips. They are using renewable energy in order to minimize the ecological impact even more. They are also concerned about developing sustainable packaging for their chips, one of them was Sun Chips sustainable packaging which was unsuccessful. They used new compostable package, corn-based bag, which had excess noise. Lots of customers started to complain about this packaging as they said it is hard to eat the chips and watch TV.
  • 81. 73 There are several ideas from different people which are presented their ideas about sustainable food and how to develop the concept in the program called TEDx. In 2012 TEDx which is held in Manhattan, presented by Marianne Cufone about Recirculating farms-seafood. As the consumers become savvier about their health, their request for safe, local, and clean food is increased. The government idea was to start growing more of the fish in US that the people eat instead of importing it, so they suggested to create giant floating cages in the ocean. The global experience with ocean fish farming was problematic. It occurs with several drawbacks, such as, habitat damage of fish, water pollution, marine wild life behavior alterations, increasing infections and diseases which cause health problem in humans and negative changes to the environment. The US almost farms everything that people eat, this leads to think about “can we sustainably raise fish”. This led to many discussions, and research which made them to come up with the idea of recirculating aquaculture, further they found that it is just one type of recirculating farm. Recirculating farms can contribute to healthy food in the United States. Recirculating Farms use clean, recycled water in place of soil to grow food. There can grow plants through recirculating Hydroponics, fish through recirculating Aquaculture, and fish and plants together through Aquaponics17 . Generally speaking recirculating farms have one common thing, recycled water. For instance, in Aquaponic farm, fish in tanks create Nutrients and nutrient filled water is recycled to the plant beds, where plants absorb those nutrients that they need to grow and the water cleaned, further cleaned water cycles back to the fish tanks ready for reuse. One of the places that aquaponics have been used is Cabbage Hill Farms (Mt. Kisco, NY). Cabbage Hill Farm and Foundation is a non-profit organization, which is using sustainable agriculture, it has traditional soil base farm, they also raise animals, they grow various types of greens, vegetable and fruits. Recirculating Farms are closed loop system, this means things in the farms do not get out and things outside the farm have difficulty to get in, so they can operate without chemicals and antibiotics, growing more natural food. Recirculating farms also can be used as reusing waste, like plants absorb nutrients from fish water, or when taking salads from the system and use them traditionally soil grown plants, it is fertilizer. One of the most interesting things about the recirculating farms is that they do 17 See Appendix K: How Aquaponics work.
  • 82. 74 not need to be connected to natural water bodies, for filling or drainage, so this means they can be located anywhere, like indoors, outside, in the hot climate, in the cold climate, near the coast, and inland. These farms can be put in any community. Recirculating farms are water efficient, they can reuse up to 99% of the water in the system, only replacing what lost by evaporation, or waste removal. These farms are also energy efficient. They can rely on solar, wind, geothermal power. Some farms recycling other materials for energy, for instance; using oil from restaurants or taking fish waste from the system and turning it to methane gas to operate generator that helps power plants. As these farms can be established in any community, farmers can reduce cost on shipping, and refrigeration, these savings can also be passed to consumers, making good food more affordable. The next idea was in TEDx Tokyo event, presented by medical bio expert Dr Yuichi Mori. He demonstrated how crops can grow almost in any environment, even in space. With the help of this technology of safe, high quality agriculture crops can be grown under minimized water and soil consumption. This technology can be utilized for the lands that contaminated. The cling film like material is based on medical membrane technology, and called “hydromembrane18 ”. Seeds are planted in the hydromembrane which contains all necessary nutrients and water for the plant to grow. The system makes plants control sugar and amino acids in order to develop, and grow high quality crops, strawberries and tomatoes grown with this system are sweet and higher nutritional values. The film has nano size holes, which can absorb the water and nutrition, but it does not let through any harmful bacteria or germs, so plants do not get sick, thus people do not need to use agrochemicals, pesticides or fertilizers to grow fruits or vegetables. The sheet can be laid down almost on any surface, means that crops can be grown almost in any environment including concrete, non fertile lands, and ice. With this technology infertile lands can be changed to fertile lands. Further TEDx held in Zurich, by Roman Gaus—Urban Farming. According UN FAO in 2050 the population will reach 9bn and which 70% will live in cities. The idea of Roman 18 See Appendix L: Hydromembrane
  • 83. 75 is pretty similar to recirculating farms but the location is in specific areas of the city. He is encouraging farmers to be more close to cities which diminish the transportation level, which is certainly not efficient for the environment. The system that Roman suggest is Aquaponics in which fish play role of organic fertilizer for plants. The idea is to use recycled cargo containers and greenhouses, so on top there are vegetables and in container fish. The vision is to provide large quantity of food, urban farming. One of the projects of Urban Farming is to build worldwide first aquaponic rooftop19 farm, growing fish and plants directly in the city of Basel. With this pilot project of LokDepot in Basel about 5 tons of vegetables and 800 kg fish can be grown which is food for 100 people. Moving forward with this project it revealed that in the city of Basel alone there is 2mln square meter of idle rooftop space, by using just 5% of that through the system of Urban Farming it can be harvested for 40000 people, so it is a lot potential to grow food in the city. 3.4 Food Scandals There are also several food scandals that cause people death like in 1985 was about diethylene glycol wine scandal in Austria (Sonntagsblitz, 2005). Limited number of Austrian wineries had illegally adulterated the wines by using toxic substance diethylene glycol which in ingredient for antifreeze that is used for cars. Wineries added this substance in order wines to appear sweeter and more full-bodied in the style of late harvest wines. Many of these wines were transported to Germany. Further the substance that has been added to the wines revealed by the German wine laboratories performing quality controls. The affected wines are immediately taken off from the market. People who were involved into this scandal have been sentenced and fined. Although these wines are potential health damage, no recorded instances of injures from consumption are known. Adulterated wines could cause fatal kidney failure. 19 See Appendix M: Rooftop Urban farming.
  • 84. 76 In 1981 toxic oil syndrome happened in Spain which cause over 600 people death (New York Times, 1987). Its first symptoms appeared to be as lung disease, it resembled to lung infection and antibiotics were ineffective. The scandal appeared due to consumption of colza oil which had been intended for industrial used. This oil had been imported as cheap industrial oil by the company RAPSA in San Sebastian, it had been refined by company in Seville, and was sold as olive oil by street vendors at weekly street markets. This oil has been utilized on salads and for cooking. The toxic compounds derived during the refinement phase. In 2011 Escherichia coli (E. coli) bacteria caused serious outbreak of food borne illness in Germany. About 3,950 people were affected, 53 died, 51 of which were in Germany. Affected people had been come from the visit of Germany and France before becoming ill. German officials accused Spain about E.coli outbreak for importing cucumbers from Spain. German officials made incorrect statement about origin of E.coli coming from cucumbers imported from Spain. The cucumbers were exported from Andalusian greenhouses and they did not show E. coli contamination (European Commission, 2011) . Thus researchers started to take into consideration that it may be cross-contamination during transport in Germany or distribution in Hamburg, and they though most probable act is cross-contamination inside Germany. When Germany reported that Spanish cucumbers contain E. coli bacteria, Belgium, Austria and Russia ban on sales of cucumbers and tomatoes imported from Spain. In Italy food inspectors while testing cucumbers they have failed to find contamination. On July 2013 in India while schoolchildren were eating their free midday meal at a primary school got poisoned (BBC India, 2013). The children who are poisoned were between five and twelve years old. They fell sick within several minutes of eating a meal of rice and curried vegetables. Some died almost immediately, and other in the hospital where they went for treatment. Investigation tests showed that the meal was contaminated with monocrotophos, a lethal pesticide banned in many countries.
  • 85. 77 For having healthy foods there several organizations have been developed and one of them is Slow Food. Slow Food is a global, grassroots organization which contains 150 countries as supporters. It links the pleasure of good food with a commitment to their community and environment. It has been founded in 1989 by Carlo Petrini in Italy. It has been developed to counter the rise of fast food and fast life and disappearance of local food, and usage of GMOs. Slow Food has over 100,000 members worldwide. As the founder and president of Slow Food, Carlo Petrini said: “Slow Food unites the pleasure of food with responsibility, sustainability and harmony with nature”. Slow Food Foundation supports the local farming and encourages organizations to move to sustainable production of foods which are healthier for the people (http://www.slowfood.com/).
  • 86. 78 CHAPTER IV: CONCLUSION Food security should be considered. The research showed that the number of customers is growing towards the interest in the companies that are involved in sustainability, but being interested is not enough, there should be actions that show that consumers are buying these products. Nevertheless, since the poverty rate is high, the majority of people just cannot afford sustainable products. While doing research about sustainability for the food industry, there were several limitations such as not so many concrete data has been depicted whether the companies are involved in the sustainability or not, due to confidentiality. Further companies which are using labels such as Fairtrade or Rainforest Alliance are considered sustainable labeling, but sustainability comprises three pillars economical, ecological, and social. Seems like fairtrade label is more about social phase of sustainability despite it they should comprise all three aspect. Generally companies should get involved in sustainability, because that will take us to a more health and flourishing environment, for that reason companies first should establish a vision. The vision should outline the companies’ interest in supporting the sustainability practice and their connection to that system. While thinking about sustainability enterprises should also take into consideration about conventional stores, which will make costumers go less to the far located shops and provide them with sustainable products. Furthermore conventional stores can also use sustainable lightning and energy consumption, with renewable energy use. Putting every finding together sustainability food supply chain should include the following concepts:  Ensure safety of food supply, not pesticides  Provide nutritionally dense food  Provide traceability of product and be credible with customers about the content of the product
  • 87. 79  Minimize animal products and ingredients, because processing meat generates a lot greenhouse gasses  Avoid air transportation of food  Process food with minimal inputs; water, raw materials and energy  Move to the processing food with zero waste  Minimize total packaging, and use renewable sources for developing new packaging, like PLA  Efficiently deliver food to consumer  Create more convenient stores While making research about food and ecolabling, which made me think that food supply chain may be an economical issue as for example Spain having an issue about killer cucumbers which has created bad reputation for Spain cucumber export and stopped in several countries. Further ecolabling maybe just greenwashing, people cannot be sure to trust them or not. Food is very important as it carries with it the country of origin as well. Generally sustainability of food is not depending only on enterprises it also depends on consumers, the whole system is depend on each other, as for instance; if we recycle every rubbish to its related litter bin or if we consume the amount that we need and do not need to through away the outdated product that we bought and kept so long. So we, people have to control our purchasing routine and recycle everything in a proper way. Starting from the beginning of the dissertation it was mentioned that world population are increasing and will reach 9 billion in 2050, therefore people should rethink the way of their consumption behavior and improve it. As it has been said: “Many a little makes a mickle”. Which means that even small amount of contribution to betterment of our world may reach to bigger amounts. If we do not change how the world produces and distributes its food, then everything will get even worse. People have the solutions; all they need is the will to act on them. To conclude, we should think about future not only about today so that’s why companies now are moving to sustainability and we should also move with them, and we should take into consideration that we should consume the right amount of everything and let the nature regenerate.
  • 88. 80 Appendix Appendix A An Energy Intensive Supply Chain
  • 89. 81 Appendix B Deforestation of the Island of Borneo from 1950 to 2010 and projections into 2020. Cartographer Hugo Ahlenius, UNEP/GRID-Arendal, 2007.
  • 90. 82 Appendix C Picture is the satellite view of Aral Sea in 1973 and 2004, which is obviously seen that water in Aral Sea is shrinking. The image shows the reduction of water area that was caused by diversion of feeding rivers to land irrigation projects.
  • 91. 83 Appendix D Ecological footprint and biocapacity of selected countries in the world. Data from the Global Footprint Network, 2010.
  • 92. 84 Appendix E Global Footprint Network, indicates that with current usage of resources, people over use the planet.
  • 93. 85 Appendix F Retreat of Muir Glacier Bay National Park in Alaska as seen in 1941 and 2004.
  • 94. 86 Appendix G Country 2002 2000 1990 1980 1970 1961 • Source: Food and Agriculture Organization of the United Nations (FAO), FAOSTAT on-line statistical service (FAO, Rome, 2004). Available online at: http://apps.fao.org • Meat consumption per capita refers to the total meat retained for use in country per person per year. Total meat includes meat from animals slaughtered in countries, irrespective of their origin, and comprises horsemeat, poultry, and meat from all other domestic or wild animals such as camels, rabbits, reindeer, and game animals • Per capita calculations were conducted by WRI using FAO data on meat production and trade, and using U.N. data on population. Meat consumption was calculated using a trade balance approach - total production plus imports, minus exports Albania 38.2 29.5 17.8 15.6 14.6 15.3 Algeria 18.3 18.9 17.8 11.1 8.3 11.7 American Samoa 24.9 54.1 125.9 142.4 79.3 100.8 Angola 19 17.4 15.1 15.4 11.2 6.8 Antigua and Barbuda 56 72.2 94.9 51.6 33.4 19.2 Argentina 97.6 104.3 100.6 114.4 110.4 103.6 Armenia 27.7 27.4 .. .. .. .. Austria 94.1 113.9 103.7 94.7 76.1 65.6 Azerbaijan 15.9 16.1 .. .. .. .. Bahamas, The 123.6 151.7 100.2 110.7 97 68.4 Bahrain 70.7 63.6 74.8 58.9 18 15.4 Bangladesh 3.1 3.1 2.8 2.4 3.7 3.2 Barbados 88.7 92.6 104.8 82.6 63.6 34.7 Belarus 58.6 59.7 .. .. .. .. Belgium 86.1 88.2 .. .. .. .. Belize 74.7 55.3 58.4 38.9 33.3 20.6 Benin 16.2 16.4 11.2 12.1 10.1 8.6 Bhutan 3 3.4 4.2 4.1 3.8 3.3 Bolivia 50 48.5 39.8 41.4 29.3 25.9 Bosnia and Herzegovina 21.4 15.5 .. .. .. .. Botswana 27.3 23.6 31.2 15.6 39.1 28.9 Brazil 82.4 81 50.2 41.7 30.8 27.8 Brunei 56.4 57.3 48.4 38.9 22.9 16.9 Bulgaria 69.4 61.8 81.4 60.3 40.3 32.3 Burkina Faso 11.2 11.4 11.1 7.7 10.4 8.3
  • 95. 87 Country 2002 2000 1990 1980 1970 1961 Burma (Myanmar) 10.7 9.3 6.1 7.4 7.2 4.9 Burundi 3.5 3.6 5.4 5.4 4.5 3 Cambodia 13.9 15 11.9 3.7 10.8 4.9 Cameroon 14.4 14.8 15.3 13.6 13.4 11.6 Canada 108.1 107.1 95.9 100.9 96.5 81.7 Cape Verde 26.3 24.3 15.8 6.8 4.7 3.4 Cote d'Ivoire (Ivory Coast) 11.3 10.9 14 15.7 15.7 13.5 Central African Rep 28 27.6 21.7 15.5 12.4 10.9 Chad 14.3 14.5 17 13.2 10.3 12 Chile 66.4 67.2 38.7 32 34.1 30.2 China 52.4 49.9 25.8 14.6 9 3.8 Colombia 33.9 33.6 34 28.2 23.9 25.4 Comoros 7.6 6.2 6 8.5 6.7 5 Congo (Brazzavile) 13.3 13.1 12 12.3 12.8 12 Congo, Dem Rep 4.8 4.9 6.5 6.4 9.1 11.2 Costa Rica 40.4 42.4 40.8 30.2 20.6 23.2 Croatia 49.9 45.7 .. .. .. .. Cuba 32.2 29.9 38.8 33.2 35.1 30 Cyprus 131.3 133.7 106.6 66.8 62.1 28.5 Czech Rep 77.3 76.9 .. .. .. .. Denmark 145.9 130 113.9 84.9 51.6 56.7 Djibouti 17.1 18.2 14.1 23.4 25.4 30.9 Dominica 67.1 73.3 60.7 27.7 28.4 18.4 Dominican Rep 37.8 41.5 29.5 24.7 15.6 15.7 Ecuador 45 39.2 24.7 20.8 18.8 17.9 Egypt 22.5 23.5 15.4 13 10.7 10.8 El Salvador 21.4 21.8 13.9 12.7 9.7 12.9 Estonia 67.4 61.3 .. .. .. .. Ethiopia 7.9 7.9 12.3 14.7 18.5 19.8 Faeroe Islands 86.4 87 74.3 67.9 49.9 18 Fiji 39.1 45.7 44 28.7 18.7 13.3 Finland 67.4 65.1 62.3 58.5 45 34.7 Former Serbia and 77.6 89.7 .. .. .. ..
  • 96. 88 Country 2002 2000 1990 1980 1970 1961 Montenegro France 101.1 100.4 99.8 101.6 86.4 77.7 French Guiana 13.2 14 84.7 70.5 53.9 34 French Polynesia 112.2 107.3 99.2 66.6 73.3 33.4 Gabon 46 45.1 43 51.8 48.7 39.6 Gambia 5.2 6.4 7.9 9.4 12.1 10.5 Georgia 26 29.1 .. .. .. .. Germany 82.1 83.5 96.1 95.9 78.1 63.8 Ghana 9.9 9.5 10.3 10.4 10.3 10.6 Greece 78.7 88.5 75.4 67.8 50 21.9 Greenland 113.8 70.1 71.8 83.4 45 20.4 Grenada 97 95.7 59.2 34.1 24.2 10.9 Guadeloupe 12.7 12.9 75 66.4 31.2 17.9 Guam 52.6 54.2 79.8 105.2 61.2 37.7 Guatemala 23.8 22.1 14.9 13.4 12.3 14 Guinea 6.5 6.3 4.7 4.7 4.7 5.1 Guinea-Bissau 13 13.9 14.2 14.3 14.6 14 Guyana 31.8 35.9 9.7 19.2 18.9 13.1 Haiti 15.3 14 8.3 11.8 12.2 10.4 Honduras 24.7 24.1 14.9 13.1 11.7 13 Hungary 100.7 94.5 108.6 104.1 84.4 73 Iceland 84.8 81 64.2 68.4 64.2 85.8 India 5.2 5 4.6 3.7 3.6 3.7 Indonesia 8.3 8.3 8 4.5 3.6 3.5 Iran 23.1 23.7 19.7 20.8 14.4 14.4 Ireland 106.3 98.4 117.5 74.7 71.7 55.5 Israel 97.1 93.6 56.4 51.6 49.3 30 Italy 90.4 89.6 86.1 75 53.9 30.5 Jamaica 56.8 54.8 44.3 37.7 28.8 17.1 Japan 43.9 44.7 38.8 30.6 17.8 7.6 Jordan 29.8 32.6 31 23.3 14.3 12.4 Kazakhstan 44.8 41.8 .. .. .. .. Kenya 14.3 14.5 15 17.4 16.4 18.6
  • 97. 89 Country 2002 2000 1990 1980 1970 1961 Korea, North 10.8 9 15.8 13.5 9 7.4 Korea, South 48 45.9 25.2 12.9 5.3 4.1 Kuwait 60.2 64.9 32.3 64 38.1 48.7 Kyrgyzstan 39 40.4 .. .. .. .. Lao People's Dem Rep 15 13.8 10.9 9.6 11.9 8.8 Latvia 45.7 37.3 .. .. .. .. Lebanon 63.1 60.7 36.3 38.8 23.8 22.4 Lesotho 15.4 15.4 18.6 18.4 17.9 18.8 Liberia 7.9 8.4 9.2 10.3 9.7 10.8 Libya 28.6 28.1 30.8 52.9 26.3 10.7 Lithuania 49.5 50.6 .. .. .. .. Luxembourg 141.7 146.8 .. .. .. .. Macedonia, FYR 35.4 30 .. .. .. .. Madagascar 17.6 18 20.9 22.3 23.4 25.1 Malawi 5.1 5.2 4.5 5.1 5.1 3.5 Malaysia 50.9 48.3 38.8 23.2 15.7 13 Maldives 16.6 12.5 5.9 3.8 4 4 Mali 19 16.5 18.2 17.4 19.9 15.8 Malta 86.9 78.6 71.1 68.3 52.7 34.7 Martinique 13.9 14 74.3 60.5 37.6 29.4 Mauritania 29.9 29.1 30.9 31.6 31.3 31.3 Mexico 58.6 55.2 35.8 37.5 24.4 25.4 Moldova, Rep 22.7 19 .. .. .. .. Mongolia 108.8 117.3 101.3 112.6 120.7 153 Morocco 20.6 19.8 18.4 12.4 13.1 13.8 Mozambique 5.6 5.4 6.3 5.8 6.2 4.9 Namibia 34 43 27.8 42.7 41.4 36.5 Nepal 10 10.1 10 8.6 6.7 6.1 Netherlands 89.3 86 85.3 72.6 59.7 45 Netherlands Antilles 73.3 84.7 71.5 109.1 84.1 64.1 New Caledonia 76.6 71 70.2 68.8 86.1 58 New Zealand 142.1 122.3 130 141.6 114.7 113.5 Nicaragua 14.9 15.9 12.2 18.4 23.1 17.9
  • 98. 90 Country 2002 2000 1990 1980 1970 1961 Niger 11.2 12.4 13 17.5 17.9 16 Nigeria 8.6 8.3 8.7 11.7 8.6 7.9 Norway 61.7 60.6 49.7 52.8 39.8 37.8 Oman 49.8 30.8 33.7 29 6.9 6.6 Pakistan 12.3 12.1 11.9 8.8 7.5 7.3 Panama 54.5 57.7 43 39.4 31.8 26.6 Papua New Guinea 73 71.8 78.7 75.7 73.9 69.2 Paraguay 70.3 73.1 55.1 67.2 66.6 72.5 Peru 34.5 32.2 23.6 20.4 21.4 22 Philippines 31.1 26.8 18.1 16.6 15.3 12.3 Poland 78.1 70.9 75.4 78 57 51 Portugal 91.1 92.8 64.6 46.3 32.3 20.6 Qatar 90.5 75.5 67.3 91.3 38.4 48.9 Reunion 46.8 48.9 72.9 52.9 32 23.6 Romania 54.5 47.1 77.5 67.9 42 30.3 Russia 51 39 .. .. .. .. Rwanda 4.4 4.3 4.6 5.1 3.9 4 Saint Kitts and Nevis 99.3 146.1 87.1 46.1 28.9 17.6 Samoa 82.6 79.5 73.9 42.7 31.6 28.4 Saudi Arabia 44.6 46.9 41.9 41.2 10.5 9.3 Senegal 17.7 17.8 15.2 11.6 15.3 13 Seychelles 51.1 53.9 40 28.9 11 5.6 Sierra Leone 6.1 5 5.1 5.1 4.7 4.3 Singapore 71.1 73.2 76.8 71.9 49 32.3 Slovakia 67.4 66.9 .. .. .. .. Slovenia 88 98.6 .. .. .. .. South Africa 39 42.4 40.8 35.6 33.2 32.9 Spain 118.6 112.4 92.1 71.5 47.2 21.8 Sri Lanka 6.6 5.6 3.3 3.6 4.5 4 St. Lucia 124.1 103.6 70.1 46.5 35.5 16.2 St. Vincent/Grenadines 79.1 59.4 60.3 32.8 16 8.7 Sudan 21 20.9 16.5 23.1 21 19.6 Swaziland 34.2 21.8 24.8 32.8 31.1 33.8
  • 99. 91 Country 2002 2000 1990 1980 1970 1961 Sweden 76.1 70.1 58.7 63.5 52.9 50.4 Switzerland 72.9 70.6 80.7 84.5 70.3 55.4 Syria 21.2 21.2 17.4 19.2 11.1 10.4 Tajikistan 8.7 9.2 .. .. .. .. Tanzania 10 9.6 10.3 9.5 10.8 10.1 Thailand 27.9 24.4 21.7 18.9 18.4 15.3 Togo 8.5 8.5 8.7 7.4 7.9 8.6 Trinidad and Tobago 57.8 43.4 30.3 39.8 28.1 24.7 Tunisia 25.5 26.2 19.4 15.6 10.6 12.3 Turkey 19.3 20.4 20.2 14.7 15.7 16.5 Uganda 11.7 11.3 12 11.7 11.9 13.1 Ukraine 32.3 30.7 .. .. .. .. United Arab Emirates 74.4 75.7 72.9 96.2 56.2 77.3 United Kingdom 79.6 77.5 71.8 71 73 69.8 United States 124.8 122 112.8 108.1 105.9 89.2 Uruguay 98.6 105.8 81.3 101.5 123.6 115 Uzbekistan 20.7 20.9 .. .. .. .. Vanuatu 32.6 33 31.3 40.4 43.4 40.3 Venezuela 56.6 50.9 37.7 47 32.6 27.9 Vietnam 28.6 24.4 16.1 9.4 10.1 10.9 Virgin Islands 6.6 6.6 6.5 101.2 163.5 96.4 Yemen 14.7 12.9 11.5 13.6 6.5 9 Zambia 11.9 12 11.6 13.8 15.6 15.4 Zimbabwe 15.2 13.2 12.7 13.2 13.1 16.4
  • 100. 92 Appendix H Municipal solid waste generated in the United States by material in 2006. From Environmental Protection Agency (EPA), 2007.
  • 101. 93 Appendix I SkySail using wind power which is lucrative for the business. SkySails Technology Information. SkySails, a wind propulsion system that reduces energy consumption of maritime vessels in high seas. Courtesy of SkySails. Appendix J Cradle-to-cradle approach according to Belz, Peattie- Sustainability Marketing- A Global Perspective (Belz et al., 2009).
  • 102. 94 Appendix K One of the forms of Recirculating farming. Appendix L Hydromembrane which is demonstrated during the presentation of Dr Yuichi Mori in Tokio TEDx.
  • 103. 95 Appendix M The LekDepot rooftop farm, Dreispitz, Basel. www.UrbanFarmers.com
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