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Food Cowboy - Technology Against Food Waste
- 1. Technology Against! Hunger & Waste!
- 2. Food Cowboy uses mobile technology to connect food companies with charities and composters so wholesome surplus food doesn’t go to waste. In so doing, we help feed 50 million hungry Americans, protect the environment, and help donors collect nearly $1 billion in special tax deductions.! Section Slides Overview 3 – 10 Analysis 11 – 16 Solutions 17 – 22 Next Steps 23 – 27
- 3. Food waste is a human, environmental and 3 economic problem that affects every community! 60 million tons of food worth over $100 billion is wasted each year by retailers and consumers! 49 million people, including 8.3 million children, were food insecure in 2012! 28 percent of landfill volume is comprised of food waste, which generates methane, a potent greenhouse gas! Consumers spend twice as much to buy the food! they waste as the government spends on food stamps! Food insecure people eat less fresh produce and! experience higher rates of diabetes, hypertension and obesity!
- 4. About Us! Food Cowboy was founded by two brothers who have been rescuing fresh produce for over 20 years and an expert in nutrition, public policy and emergency food systems.! Roger Gordon—entrepreneur, former nonprofit executive director (Urban Solutions, San Francisco). MBA, Kellogg; JD Georgetown! Barbara Cohen, Ph.D., MPH—nutrition and emergency food systems expert; author of USDA’s Community Food Security Toolkit (Top Ten download on USDA.gov)! ! Richard Gordon—trucker, terminal manager, 25 years’ experience transporting fresh produce; FEMA responder to every major East Coast and Gulf Coast disaster since 1993! 4
- 5. Our Advisors! Robert Egger – founder, DC Central Kitchen and LA Kitchen ! General Mike Mulqueen, USMC (Ret.) – former executive director,! Greater Chicago Food Depository! Professors Peter Clarke and Susan Evans – USC; founders,! From the Wholesaler to the Hungry! Amy Dickie – senior associate, California Environmental Associates; previously with Investors’ Circle! Kai Robertson – led Business for Social Responsibility’s Beverage & Agriculture advisory practice! Arnaud Sahuguet, Ph.D. – Google.org! Michael Virga – former executive director, U.S. Composting Council ! 5
- 6. Coverage! (World Food Day partner) 6
- 7. USDA Technology Innovation Council! The USDA has invited Food Cowboy to form a publicprivate partnerships to search for other technological solutions to food waste in the supply chain! ü ü ü ü ü Growing! Processing! Manufacturing! Distributing! Retailing! Is your business doing something creative to reduce food waste?! ! Do you know an innovative technology for growing, processing, distributing or selling food that could reduce waste? ! ! Let us know so we can tell the world.! 7
- 8. Food Cowboy focuses on recovering! fresh food from the supply chain …! All Food Waste Production &! Processing! 46%! Distribu1on & Retail Waste Distrib. & Retail! 11%! Fruits & Vegetables 62%! Consumer! 43%! 4 Billion Pounds/Year! • Higher value! • More perishable! • Larger lot sizes! • Healthier! • Professionally handled ! • Already in transit! 8
- 9. so it doesn’t end up in dumpsters and landfills …! 9
- 10. Food waste is a difficult problem to solve! because “waste” means different things to different people! To a business, waste is …! spending money on unsellable inventory ! To a charity, waste is …! throwing away wholesome food! To an environmentalist, waste is …! throwing anything organic into a landfill! To an accountant, waste is …! leaving tax benefits on the table! To an economist, waste is …! needlessly consuming natural resources! But logistically, all food waste is caused by three factors …! 1 0
- 11. Food is expensive to move. If transportation! costs exceed market price, it can’t get to market.! ? ? Transport or Not? ? ? ?
- 12. Food is risky. As food moves! closer to market, the seller’s risk increases. ! High • • • • • Damage! Delays! Price Changes! Food Safety! Theft! • Consumer! Preferences! • Channel Integrity! • Legal Liability! • Brand Exposure! Low Producers Consumers 12
- 13. Food is about national relationships! Major Food Distribution Routes (USDA)! The supply chain is national so relationships are national!
- 14. Food companies use technology to manage! costs, risks and relationships. Charities don’t.! • Electronic Data Interchange (EDI)! • Freight Management Systems (FMS)! • Computerized Data Acquisition! • Global Positioning Systems (GPS)! • Radio Frequency ID (RFID)! • Satellite Tracking ! • Trip Recorders! • Remote Sensing! Food Cowboy manages technology on behalf of chariEes so they can focus on their clients Technology! Technology! Supply Chain Companies Food Chari1es • Little brand exposure! • Insured or judgment proof! • Established supply lines! • No competition! • Little money for technology!
- 15. This logistics gap makes it difficult! to donate fresh and prepared foods efficiently*! DONORS! CHARITIES! The gap is all about technology – donors use it but charities don’t! * "More fresh produce is wasted in the supply chain! "in 19 days than is donated to charities in one year!
- 16. Requirements of a large-scale food recovery system! • Must employ modern logistics technology! – Charities must look and feel like real supply chain partners! • Must involve smaller charities and logistics partners! – Maximizes efficiency and gets food closer to where it’s needed! • Must offer solutions for disposing of organic waste! – “Cherry-picking” too inefficient for high-speed supply chain! • Must work nationally and at scale! – Efficiency requires 100% availability and significant throughput! – Culture change requires enough participants to get past tipping point! 16
- 17. Food Cowboy’s basic system: A tool for! truckers who get stuck with “kicked” shipments! ❸ Food Cowboy searches database and notifies the best/closest food charities through the app! ❷ The trucker posts shipment and next destination on Food Cowboy! !! ❶ A delivery is refused! ❹ A food bank can accept, decline or route to agency! ❺ Food Cowboy sends routing info to the trucker! ❻ The charity confirms delivery! ❼ Food Cowboy sends receipt and tax paperwork to the shipper! Food Cowboy charges food banks ten cents per pound for supply chain donations – less than half what they currently pay in shipping fees for produce donations#
- 18. Real time donation and disposal solutions delivered in the cloud! ‘Like Match.com for food waste’ – Modern Farmer! DONORS! CHARITIES!
- 19. Food Cowboy can also help supermarkets and restaurants ! donate fresh and prepared foods to local charities! Donors’ Concerns! ü Food Safety! ü Scheduling! ü Paperwork! ü Reliability! ü Capacity! ü Brand Risk! Solutions! ü Food Safety Tools! ü Online Scheduling! ü Menu Uploading! ü Volunteer Tracking! ü Performance Ratings! ü Social Media Recognition!
- 20. Food Cowboy supports sustainable food! economies by routing organic “assets” to their best users! Growers Warehouses Processors Farmers Schools Composters Truckers Retailers Food ChariEes Processors Farmers Packers Ports Anaerobic Digesters 20
- 21. Food Cowboy also helps donors access tax! benefits that today often cost more than they are worth! Food companies may deduct their costs plus ½ their “lost” profits when they donate inventory* Regular DonaEons Food DonaEons Profit Enhanced Deduction Total DeducEon Ordinary Deduction Ordinary Deduction (costs only) (costs only) Situation Today! q Nearly $1 billion in special tax deductions go unused! q Efficiency losses prohibit making small donations! q High administrative costs ! (paperwork! Situation Tomorrow! ü Logistics tools reduce efficiency losses! ü Online receipting and reporting reduce administrative costs! *IRS Code §170(e)(3)(A)
- 22. Food Cowboy makes it more profitable to ! donate than to dump unmarketable inventory! 22
- 23. Next Step: The Great Food Roundup – A two-part! “surge” to jump start a new solution to food waste! Companies! don’t donate! large amounts! of food! Supply Chain Rescue Regional Pilots So charities! never develop significant! capacity! Local Food Rescue Crowdmapping Food Waste Charities don’t! have significant! capacity, so …! 23
- 24. Regional Supply Chain Recovery Pilots! Supply chain recovery only works if enough companies participate. Sign up your food bank for a recovery pilot in your state or region and we’ll support you with logistics tools and a national corporate enrollment campaign.! Ø Ø Ø Ø Ø Growers# Manufacturers# Distributors# Wholesalers# Transporters# Ø Ø Ø Ø Ø Food Banks# Food Pantries# Composters# Ranchers# Biogas Generators# 24
- 25. Local Food Rescue! A national campaign to crowdsource a food waste map of America!
- 26. “Send us a tip about food waste and we’ll put it on! the map so local charities can offer their services”! Who else uses crowdmapping ?# What can you do with a! FOOD WASTE MAP?! • Set up a food rescue route*! • Send alerts about last-minute! deals on expiring foods*! • Invite in-store shoppers to carry donations to charities near their homes*! • Develop a composting business*! • Support businesses working to! reduce local hunger! " " "* Working model already exists! 26
- 27. Saddle Up!! You can’t change the status quo working alone. So, if you care about hunger and waste, partner up with us so together we can help our neighbors. ! ! If you do your part, we’ll do ours.! ! That’s the cowboy way. info@foodcowboy.com! 800.673.6916!