Samrad Thesis

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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 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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Samrad Thesis

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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,

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