A Value Stream Mindset Could Reduce Food Waste Globally

An enormous amount of food goes to waste in the United States and other developed nations in the journey between our farms and our forks.

If participants in that value stream attacked even a small portion of that food waste—as noted in “How Businesses Can Fight Food Waste”  from the Huffington Post’s business blog—it would go a long way toward feeding the one out of every eight people in our world (over 870 million people) who go to bed hungry every night.

In the United States, 16% of the raw food and materials purchased for manufacturing is lost for a variety of reasons during production and processing, according to the USDA.  In our article, “Four Ways to Uncover Hidden Capacity”, which appeared in Food Manufacturing, we offered some advice to manufacturers on how they could improve yields and reduce food processing waste at the plant level.

Looking holistically from farm to fork, a major opportunity to feed more of the hungry lies in the utilization of the value stream management skills that we’ve developed in our business organizations for initiatives that cross functions for the greater good of the enterprise.   Successful application of the value stream management approach and skills will improve the use of valuable resources by optimizing the food value stream for the greater good of our society as a whole.

The value stream skills developed through presenting factual proposals and negotiating benefits for all stakeholders within an enterprise can be leveraged on a larger scale for the benefit of our society as a whole.  For example, all stakeholders would need to realize financial and social benefits from reducing food waste.  As the food value stream exists today, most of the upstream stakeholders (growers and manufacturers) benefit from downstream waste in the form of higher sales. Likewise, downstream stakeholders—distributors, supermarkets and other retailers—benefit from food waste in our homes and restaurants.

A growing consumer desire to purchase food from retailers that support more sustainable business practices is driving some retailers and manufacturers to reduce waste in their supply chains.  A third-party certification, like the Forest Stewardship Council (FSC) certification for responsible forest management, could also improve consumer awareness and help reduce waste in the food value chain through visible, trusted differentiation of a sustainable value stream at the point of purchase.

State, local and federal governments can also play a role in reducing food waste at the value stream level by offering tax benefits and limited liability for donated food to:

• Growers that provide non-saleable (but still good) products to outlets where it can be utilized
• Manufacturers that reduce process  waste through capital and training investments
• Supermarkets that develop lean processes that reduce waste of perishables and develop outlets for unsaleable but usable product
• Manufacturers that standardize expiration code formats for ease of use
• Food service establishments that offer portion size options to reduce waste and develop effective outlets for unsaleable product.

Developing and encouraging a broader value stream mindset could allow consumers, manufacturers, growers and government officials to reduce food waste and impact the world in a positive way today and for future generations.