South African Food Waste Voluntary Agreement:

Business Plan Implementation Workshop

Friday, 26th July 2019Protea Fire & Ice, Cape Town

Ms. Matlou Setati, CGCSA

Welcome & Objectives of the day

CGCSA HISTORY

integrity. excellence. accountability

2002

CGCSA

EAN SA/GS1

Grocery Manufactures Assoc.

Efficient Consumer Response

2005AMAVUSO

Crime Prevention

2006Food

Safety Initiative

DIVISIONS

20152017 – DTI meeting (Sustainable Food

Systems)

February 2018 – SA-EU Dialogue Facility

Call for Proposals

March 2018 –Proposal Submission

May 2018 - Funding approval

October 2018 –Workshop (Voluntary

Agreement Proposed)

September 2018 –European Study Tour

(France, Belgium)

April 2019

Dialogues

July 2019

Dialogues

Steering Group

Pretoria

Cape Town

Dialogue objectives

• To inform the stakeholders on what work has been done to date and how this has informed the proposed business plan (with a link to the April dialogues)

• To present the proposed business plan, governance structure, costs and business case

• To garner feedback on the proposed business plan activities

• To present and discuss the working groups, and prioritise these for Year 1

• To explain what it means to be a signatory, the different functions, support provided, and commitment required

• To ascertain how different stakeholders would like to become involved

Ms. Linda Drummond, CGCSA

Introduction to the day

Agenda: Morning session9:00 – 9:10 Welcome & objectives of the day Ms. Matlou Setati, CGCSA

9:10 – 9:20 Introduction to the SA-EU Dialogue Facility EU / SA-EU Dialogue Facility

9:20 – 9:30 Introduction to the day Ms. Linda Drummond, CGCSA

9:30 – 9:50 Why tackle food waste in South Africa? Ms. Sibulela Ngeniswa, CGCSA

9:50 – 10:05 Government perspective on addressing food waste in South Africa

Mr. Surprise Zwane, DEFF

10:05 – 10:25 Potential Business response to addressing food waste in South Africa

Ms. Matlou Setati, CGCSA

10:25 - 10:45 Q & A Ms. Linda Drummond, CGCSA

10:45 – 11:15 TEA

11:15 – 12:00 Overview of the proposed business plan Dr. Julian Parfitt, Anthesis Group Ms. Nicola Jenkin, Pinpoint

12:00 - 12:30 Q & A Ms. Linda Drummond, CGCSA

12:30 – 13:30 LUNCH

Agenda: Afternoon session13:30 – 14:45 Call to action!

Role of signatories and contributions to the working groups

Group discussions to provide feedback on information presented and way forward

Ms. Matlou Setati, CGCSA

Dr. Richard Swannell, WRAP

Facilitated by Ms. Linda Drummond, CGCSA

14:45 – 15:00 Next steps and close Ms. Matlou Setati, CGCSA

Ground Rules

• General housekeeping

• Open discussions & feedback

• The Chatham House Rule

• Collate & agree actions from the day

• ‘Car park’

All

Introduction by attendees

Ms. Sibulela Ngeniswa, CGCSA

Why tackle food waste in South Africa?

FOR EVERY 2 TONNES OF

FOODWE EAT

ANOTHER TONNE IS

WASTED

9.6millionk

m²

An area the size of China is needed to grow the food that is wasted globally

• Financial – R13,000 billion

• Environmental - 3rd biggest GHG emitter

• Social – 1 in 9 go hungry

x 10

x 6

Impact

1,200 businesssites

200 companies

17 countries (inc. South Africa)

For each R1 invested R14 of financial benefit

realised

Return on investment per sector

The true cost of waste

Visible costs

Invisible costs

Disposal costs

• Lost materials• Energy costs• Lost labour• Lost water• Other costs

On average, the truecost of wasted materials is around ten times the cost of disposal.

Food waste in South Africa

• Estimated to be 12 million tonnes of food waste/year

• Equivalent to 40% of food production

• Full cost of food waste is around R100 billion/ year –

equivalent to about 2% of SA’s GDP

• By way of comparison the direct contribution of tourism to SA’s GDP is about R136 billion

18

Food Waste: Social & environmental case

• 43% of South African households vulnerable to poverty & 13 million routinely experience hunger

• Loss of valuable water (equivalent to 20% of total water used in SA’s food production)

• Responsible for 8% of SA’s green-house gas emissions

• Driver of biodiversity loss

SA Government has committed to Sustainable Development Goal 12.3

“By 2030 halve per capita global food waste at the retail and consumer level, and reduce food

losses along production and supply chains including post-harvest losses”

What can be done to tackle food waste?

• Regulation changes

• Fiscal incentives

• Voluntary Agreements - VAs on food waste growing around the world

Voluntary Agreements help tackle Food Waste

• Helped reduce waste by >3.5 M tonnes in the UK, Saving > R78 billion.

• Increased food redistribution by 50% to 43,000 t/y. Equates to 35 extra Million meals/y.

• Signatories to the agreement are nearly zero waste to landfill

• Overall helped deliver 19% reduction in UK food waste

• Worked in Norway – 15% reduction, also Netherlands

Oct-Nov-DecApr-May-Jun 2019 Jul-Aug-SepJan-Feb-Mar 2019

1) Establish a VA Secretariat2) 1st VA Steering Group meeting (to inform workshops)

3) April 2019: Wider VA stakeholder workshop4) Secretariat develops VA Business Plan/ Roadmap

5) Dialogue on governance and funding (July 2019) 6) Business plan implementation workshop (July 2019) 7) Sign-off of the business plan & roadmap 8) Acquire 1st

tranche of signatories

Phase 1: Initiation and

Set-up

Phase 2: ‘Pre-Launch’,

dialogues/ working groups

Phase 3: Preparation and

Launch of VA

2020

9) Steering Group agrees priority working groups [dialogues] & people identified 10) Secretariat organises 1st

wave of working groups

2020 Q2/Q3

VA Reporting cycle to 2030

Phase 4: Post-launch delivery towards SDG 12.3

SOUTH AFRICA ACHIEVES:UN SDG 12.3Supported by efforts of VA

11) VA Steering Group meets quarterly12) Working groups agree as & when to meet (minimum quarterly)13) VA signatory data collected and analysed Q2/Q314) 2020 VA baseline established15) Annual VA Summit = Oct 2020

2023 2026 2030

Launch of voluntary

agreement

Who and how have we engaged with stakeholders?

Government Primary agriculture

Food manufacturers / processors

Formal retail Hospitality, food service & tourism

Food redistribution / charity

Waste management / solution providers

Trade Associations/ Membership Organisations

Civil society / NGOs

Private service providers / specialists

Academia / Research Institutions

Other

DALRRDDBEDEADEADEADEFFDoHDPMEDPMEDSDDSTDTIGCISStatsSAW CapeCity of Cape TownEthekwiniiOther EU

Tru CapeCore Fruit

CloverCore FruitDANONE Distell Famous BrandsFood Masters SAI & JKellogsMarsNestleParmalatPepsicoPioneer FoodsRCL FoodsTiger Brands SAUnilever

MassmartPick n PayShoprite CheckersSparWoolwoths

BidfoodFair Trade TourismKFCNandosRestaurant Association of SASpur

Food for UsFood Forward SANosh Food Rescue SA Harvest

Agri-protein Bokashin BranInterwaste

CGCSANBIOrganics Recycling Association of South AfricaSALGASouth African Chamber of Baking

African Circular economy networkSA-EU Green Cape Smaack MakersWomen and Youth in AgricultureWRAP GlobalWWF

Carbon Calculated Circular VisionIQ LogisticaMérieuxNutriSciencesPinpoint Traceability SolutionsWerksmans

CSIRRhodes UniverityThe Sustainability InstituteTshwane University of TechnologyUniversity of KwaZulu NatalUniversity of PretoriaUniversity of Western Cape

AbbottAFRAP AspirataCOECPG Global EntecomFANRPANFOOD FOCUSGreenedgeGreenhomeKerryMediwareNCCNWPGREADSACBSNKE -Agriculture DevelopmentWillowtongroup

Current database of over 400 individuals, which has grown exponentially since our initial dialogues and continues to do so

• Strong Business case

• Compelling social and environmental case – the ‘right thing to do’

• Discussed options to tackle food waste over last 6 months

• Consensus amongst business is that collaboration through a Voluntary Agreement to halve food waste by 2030 seems most appropriate

Conclusions- Why tackle food waste?

Mr. Surprise Zwane, DEFF

SA Government perspective on addressing food waste in South Africa

Chemicals & Waste Economy Phakisa

Growing the waste sector from currently 0.62% of GDP to 1-1.5% of GDP in the next 5

years

29

The Phakisa aims to develop initiatives that have a positive environmental

impact, encourage GDP growth and create jobs

GDP growth Job creation

Reduction of

environmental impact

In scope

30

The Chemicals and Waste Economy Phakisa aims to reduce negative

impact on the environment, while growing the GDP contribution

and creating jobs within 5 years

Foster inclusive growth through positioning of South Africa as a globally competitive producer of sustainable products

Increase commercialisationof the circular economy and create value from resources currently discarded as waste

Key objectivesThe following objectives were defined based on the 5 year

Phakisa period ending 2023:

▪ Grow the secondary resources economy

by increasing local utilization and beneficiation

of waste resources by 50%-75% through creation

of an enabling regulatory environment

▪ Generation of opportunities from chemical

and waste resources for the creation of jobs/

opportunities in new / existing markets specifically

through enabling SMMEs

▪ Reduce waste to landfill by 75% of industrial waste

and 50% of municipal waste through education

and awareness, compliant society, application

of cleaner production

▪ Invest in R&D innovation (including IP)

and infrastructure to enhance the utilization

of local waste resources for new products, substances

and services that will create jobs,

and enhance the production of environmentally friendly

chemicals

Lab Aspiration

Reduce the negative

environmental and health

impact of waste and risks posed

by chemicals

31

As at 2016, 114 million tonnes of waste is generated per annum, of which

~75% end up in landfills

~0.62% contribution

to GDP1

~114 Mt of waste

generated per annum

~75% of waste

disposed in landfill2

60,000 – 90,000 informal waste pickers

~110,000 formal jobs

in chemical sector

~10% annual job growth in

the private waste economy

~35,000 formal jobs in

the waste economy

SOURCE: 2012 National Waste Baseline, Stats SA, World Bank, DST South African Waste Sector 2012 RDI Roadmap, interviews

with CSIR

1 In 2012 DST estimated the GDP contribution to be 0.51%, increase since then is estimated based on annual job numbers from

Stats SA household surveys

2 Rounded. The remaining 25% are either recycled, beneficiated, or burned. The largest share is organic waste composted at source

or burned for process heat. See detailed breakdown in backup

32

Our initiatives aim to directly address the lab aspirations

1 Beneficiation of waste is the creation/transformation of waste into higher value products and includes recycling initiatives

ENVIRONMENT

SMMEs

15 initiatives requesting

regulatory improvements to

help sector growREGULATORY

WASTE

9 initiatives directly

address

beneficiation of waste1

PRODUCTION

10 initiatives directly create

~4,300 SMMEs, targeted at

youth (70%) and women

(30%)

10 initiatives redirect

waste

from landfillsLANDFILLS

2 initiatives directly

reduce the amount of

waste generatedGENERATED

9 initiatives result in local

production of goods

20 initiatives contribute ZAR 11.5 billion to the GDP and create ~127,000

jobs and ~4,300 SMMEs

INDUSTRY SUPPORT

33

20 initiatives across 4 work streams, including 2 cross-cutting initiatives

Cross-cutting

initiatives

19 Coordinate SMME development opportunities across initiatives

Roll out national awareness campaigns 20

Bulk industrial

wasteMunicipal Chemicals

1 Increase ash uptake for

alternate building materials1

Export ash and ash

products1

3

2 Accelerate innovation and

commercialize existing R&D1

Use ash as soil ameliorant

Use ash to treat acid mine

drainage and backfill

mines

5 Towards zero meat

production waste to landfill

by 2023

6 Introduction of an e-

waste levy to increase

collection rate

7 Unlocking government ICT

legacy volumes

8 Achieving a minimum of 50%

of households separating at

source by 2023

9 Introduction of materials

recovery facilities

and pelletisation plants

to increase plastic

recycling rates

10 Produce building aggregates

and construction inputs from

rubble and glass

17 Ban import of harmful

chemicals (e.g.

leaded paint/paint

pigments)

16 Establish a refrigerant

reclamation and

reusable cylinder

industry

1 The large volumes of ash produced enables both beneficiation and export

2 Fruit and vegetables with high nutritional value, but that are physically imperfect

3 Fluidised bed reactor

Establish refuse-derived

fuel plants across South

Africa

Compilation/update

of packaging design

guidelines

Formalising the

packaging industry

producer responsibility

plans

Consumer awareness

campaign to use and

consume ugly food2

Product design and

waste minimisation

14

13

12

Developing capacity

through a specialised

programme which upskills

agri-stakeholders to

minimize food loss

11

15

18 Collect and dispose

of stockpiles of

harmful substances:

Mercury

Asbestos

2a

2b

4 Zero sewage sludge

to landfill

Anaerobic Digestor

Biogas to Energy

FBR3 Thermal Treatment

4a

4b

18a

18b

34

Business Government

Associations and social

sector1

The Phakisa hosted participants from business, government and

social sector, academia

NOT EXHAUSTIVE

Waste

minimisation

and product

design

Chemicals

1 Includes academia

Phakisa had on average 95 participants each day

Bulk Industrial

Waste

Municipal

Waste

35

These initiatives will add ~ZAR 11.5bn to South Africa’s Waste and

Chemicals sector and create ~50,000 direct jobs and ~82,000 indirect jobs

by 2023…

2016 2023

35.8

+11.524.3

1 Only direct potential (i.e. multiplier effect ignored)

2 Includes direct and indirect jobs

3686

82

243

2016

+127

2023

~75~80

116

ZAR bn 000 jobs

GDP contribution1 Job creation2

▪ ~4,300 SMMEs create ~41k of the total jobs created

▪ SMME development has a target of 30% women and 70% youth

SOURCE: National Waste Baseline 2012, STATS SA household survey 2016

Adjacent sectors (indirect jobs)

Informal sector

Formal waste sector (direct jobs)

36

Product design and waste minimisation

Product

design and

waste

minimisation

37

The waste minimisation workstream focused on waste production

stage of the value chain

In scope

Not in scope1

Disposal

Recycle

Re-use

Waste

Collection

and

sorting

Waste

recycling,

re-using

and

disposal

How can we

improve product

design to save costs

and minimize non-

recyclable waste?

How can we

minimize production

and processing

inefficiencies to

reduce costs and

minimize non-

recyclable waste?

How can we

minimize waste

generated through

distribution of

products?

How can we reduce

demand for

unnecessary

products and extend

the lifetime of

products?

Input and

DesignProduction Distribution Use

Waste production

WASTE MINIMISATION - INTRODUCTION

1 Out of scope for this workstream, but addressed in other workstreams in the lab

38

The waste minimisation workstream identified food and packaging waste as

largest potential sources to reduce volumes of waste produced

InitiativeTheme

Packaging

waste

Food

waste

Overall Impact

▪ Compile/update packaging

design guidelines and establishing

a national grading scheme for

packaging

▪ Formalising Extended Producer

Responsibility (EPR) plans in the

packaging industry

14

13

▪ Conducting focused research and

developing capacity amongst agro-

stakeholders

▪ Launching a consumer awareness

campaign to use and consume

‘imperfect’ (‘ugly’) food

11

▪ Establish up to 5 Refuse Derived

Fuel (RDF) plants across South

Africa

Refuse Derived

Fuel (RDF)

15

12

Volume of food losses

prevented (000

Tonnes)

245

Value of food losses

avoided (ZAR millions)1,200

Jobs Created 287

Volume of waste

diverted (000 Tonnes)146

Contribution to GDP

(ZAR millions)36

Jobs Created 2,464

Volume of waste

Diverted (000 Tonnes)120

Contribution to GDP

(ZAR millions)80

Jobs created 305

WASTE MINIMISATION - INTRODUCTION

39

Food loss in South Africa is estimated to be ~33%

of total production, of which most occurs pre-distribution

SOURCE: Estimating the magnitude of food waste generated in South Africa - Oelofse (2011), FAOSTAT (2014)

% of total waste

1 Does not include imports

Food losses across the value chain

% of total production

16

17

19

20

25

39

40

Fish and seafood

Fruits and vegetables

Milk

Roots and tubers

Meat

Oil seeds and pulses

Cereals

Percentage of production lost by food category

% of total production

Total food

losses

across

value chain

Food

Losses by

food

category

9% 8% 9% 6% 1% 33%

Production

waste

Post-

harvest

waste

Processing

and

packaging

Distributio

n

and

marketing

Consumptio

n

26%

▪ The majority of food

loss occurs prior to

distribution and

marketing

▪ Although high-level

information is available,

there is a lack of

research and data

which identifies

exactly where and

why these losses are

occurring

▪ Largest losses occur for

– Roots & tubers

– Fruit and

vegetables

▪ For these foods,

consumer preferences

for perfectly shaped

produce drives

significant part of losses

across the whole value

chain

Total

losses

WASTE MINIMISATION – INITIATIVES 11 & 12

11&12

40

Food insecurity will be reduced by upskilling and educating

stakeholders across the value chain

Initiative

12

▪ This initiative seeks to increase the

consumption of imperfect (ugly) food

▪ Design, develop and launch

a national food waste awareness

campaign

– The campaign will include TV, Social

Media and other marketing aimed at

influencing consumer behaviour

Launching a national

consumer awareness

drive on food waste

Conducting focused

research and capacity

development amongst

agro-stakeholders

11

▪ Create a specialized program which will

upskill agro-stakeholders which will:

– Conduct targeted research (e.g.

secondary/alternative market

development for ugly food and

consumer incentives to increase

consumption of ‘imperfect’ food)

– Testing, replicating and scaling new

and existing tools which will lead to

improved production and decreased

food losses

– Developing a national multi-purpose

platform which aggregates,

consolidates and publishes agricultural

and food loss data

Impact from food waste initiatives

Jobs Created

Environmental & Economic

▪ Volume of food losses

avoided (000’s

Tonnes)

245

▪ Value of food losses

avoided (ZAR billion)1.2

▪ Indirect jobs 257

▪ Direct jobs 30

WASTE MINIMISATION – INITIATIVES 11 & 12

11&12

41

Impact: JobsContext: the problem Proposal

Impact: Economic

and environmental impact

Funding requirement (ZAR million)

Conducting focused research and capacity development amongst agro-

stakeholders

▪ Direct jobs

Total 5-year cost 95.7

Public funding 4143%

Potential Funding Agencies: DAFF, DRDLR, GIZ, USAID, UNEP

and potential for GBS grants by 2020

Donor funding 4042%

30▪ Create a specialized program

which will upskill agro-stakeholders

which will:

– Conduct targeted research

(e.g. secondary/alternative

market development for ugly

food and consumer incentives

to increase consumption of

‘imperfect’ food)

– Testing, replicating and

scaling new and existing

tools which will lead to

improved production and

decreased food losses

– Developing a national multi-

purpose platform which

aggregates, consolidates and

publishes agricultural and food

loss data

▪ South Africa loses ~33% of food

production

▪ In 2012, this was valued

at R61bn

▪ This waste is caused by

– Inefficiencies in post-harvest

handling, storage and

distribution practices

– Consumer preferences

for ‘perfect produce’

▪ Although some data on food losses

is available, it is often proprietary

and not available to smallholder

and emerging farmers

Existing

Resources14.716%

▪ Volume of food

losses avoided

(Tonnes million)

270

▪ Value of food

losses avoided

(ZAR billion)

1.2

1 One data and information team (1X Manager and 2X Officers) per province

11

WASTE MINIMISATION– INITIATIVE 11

42

Funding need for Specialised Food Waste Programme

Funding need (capex and non-recoverable opex)

11.3

15.0

16.8

2019/20

15.9

2018/19

26.3

2022/23

16.815.9

18.9

18.917.8

2021/22

17.8

2020/21

ZAR M

R95.1

m

Example funding sources1 (ZAR M)

▪ Public Sector

▪ Donors

▪ Existing Resources

OpexCapex

Equipment

App development

Platform Development

59.0Salaries

Upskilling services & Research

Unit Expenses

8.7

0.1

2.5

8.9

16.5

Total Required

38

38

19

40%

40%

20%

11

WASTE MINIMISATION– INITIATIVE 11

Funding breakdown by category (ZAR M)

1 Based on Investor Day indicative interest

43

Implementation plan overview for Specialised Food Waste Programme

Key

implement-

ation activities

Cross-initiative topicsGovernance and stakeholders

Implementing agency: DAFF

Key stakeholders:

▪ DST

▪ DEA

▪ ARC

▪ CSIR

Plan to secure funding

▪ Setup funding (initial salaries and equipment)

must be budgeted for by in September/October

to ensure that the unit can be established in

2018.

▪ Additional funding for Opex, research and

development of the platform should be sourced

from donors and other stakeholders in 2018

▪ National Waste Awareness

Campaign

KPIs

KPIs

# of visitors to platform

Baseline

0

0

17/2018

0

0

18/2019

5

20,000

19/2020

10

40,000

20/2021

10

60,000

21/2022

10

80,000

22/2023

# of Research Projects completed 10

# of contributors to platform 0 0 5,000 7,500 10,000 12,500 15,000

100,000

Activities Deadline Responsible

1.1 Secure Funding for 'Special delivery unit' (SDU) 29/09/17 Mr. J Kgobokoe, DAFF

1.2 Establish 'Special delivery unit' (SDU) 26/10/18 Mr. J Kgobokoe, DAFF

2.1 Identify opportunities to minimize food loss 14/12/18 TBD, Special Delivery Unit

2.2 Identifying knowledge gaps in the food value chain 19/04/19 TBD, Special Delivery Unit

2.3 Identify global best practices that have been implemented to minimize food loss

22/02/19 Dr. Moephuli, ARC

2.4 Identify challenges which currently prevent the uptake of available tools and technologies

19/04/19 TBD, Special Delivery Unit

2.5 Engage potential financial partners so support implementation 30/08/19 TBD, Special Delivery Unit

3.1 Coordination of solutions for implementation 13/12/19 TBD, Special Delivery Unit

4.1 Prioritize the best practices for the platform development 22/02/19 Dr. Henry Roman, DST

4.2 Platform and app development, testing and training of staff 30/08/19 Dr. Henry Roman, DST

4.3 Launch of the platform & app 30/08/19 Dr. Henry Roman, DST

4.4 Management of the platform & app 02/07/22 Dr. Henry Roman, DST

5.1 Conduct a Market survey 06/09/19 TBD, Special Delivery Unit

5.2 Development of the Market Intelligence Report 02/07/22 TBD, Special Delivery Unit

6.1 Establishment of alternate market for ugly food 03/08/19 TBD, Special Delivery Unit

11

WASTE MINIMISATION– INITIATIVE 11

▪ GIZ

▪ GBS

44

Impact: Jobs and Economic ValueContext: the problem Proposal

Impact: Environmental impact

Funding requirement (ZAR million)

SOURCE : NRDC (2012) How America is Losing up to 40% of its food, Green Jobs Report, Intermache

Develop and launch a consumer food waste awareness campaign

1 Post initiative assessment of an awareness campaign in Western Cape indicated a 20% self-reported behaviour change – actual

behaviour change is assumed to be 10%. Only 24% of fruit and vegetable waste is addressable by behaviour change

2 Fruit and vegetables that appear physically imperfect, but that are nutritionally valuable

▪ Currently South Africa

is wasting 10.2m tonnes

of all food produced

▪ Although the majority of waste

occurs ‘upstream’ during

production, post-harvest

and processing, ~24% of this

waste globally is generated

as a result of consumer

preferences for ‘perfect food’

GDP contribution from

recovered food (ZAR

billion)

▪ This initiative seeks to increase the

consumption of “ugly” food2

▪ Design, develop and launch

a national food waste awareness

campaign

– The campaign will include TV,

Social Media and other marketing

aimed at influencing consumer

behavior

1.2

Waste diverted from

landfill (‘000 tonnes

annually)

270

5 year Campaign

Cost88.8

Private funding 47

Public funding 21.1

56%

22%

Donor funding 20.622%

NOTE: This initiative forms part of the cross-cutting awareness initiative (19) and will be detailed further there

12

WASTE MINIMISATION– INITIATIVE 12

45

A nationwide awareness campaign is required to support growth

of the chemicals and waste economy

▪ Consumer drive to “eat ugly fruit”1

▪ Consumer awareness on e-waste

▪ Consumer drive to separate waste

at source

▪ Overall awareness about safe

disposal of waste

Topics for awareness campaign Support provided

▪ Joint platform to enhance reach

and deliver individual messages,

e.g.

– Common “look and feel” of

campaigns

– Single information platform with

more news

– Integrated plan for

communication with media

– Measuring of reach of

individual campaigns by used

channel to improve overall

targeting for next campaign

– Shared procurement of

services

▪ Use of harmful chemicals in paint

▪ Update of packaging design

guidelines to increase recyclability

of packaging

▪ Building aggregates and

construction inputs from rubble

and glass

Consumer

behaviour

Industry

Practices

1 Fruit or vegetable that is shaped different from the norm but as good for consumption as “regular” fruits or vegetable

20

CROSS-CUTTING – INITIATIVE 20

Operation Phakisa: Initiative 11/12 Food WastePrioritised activities Lead Estimated budget Timeline

1. KNOWLEDGE PLATFORM, RESEARCH AND DATA (Align with / as part of voluntary agreement)

1A: Research to inform and guide policy, activities, investment1B: Reporting, Monitoring & Evaluation1C: Development of a national food waste knowledge platform

Led by CSIR/Stats SALed by CSIR/Stats SA/DPMELed by DEFF / CGCSA

R8m over 3 yearsR10m (front-end loaded)R8m (front-end loaded)

Urgent, ASAPQ1 2020Q1 2020

2. SPECIAL PURPOSE VEHICLE (DELIVERY BODY)

2A: Establishment and implementation of a food waste SPV Currently CGCSA/DTIDEFF MoA with Depts

R5m / year (op. costs) Q3 / Q4 2020

3. ESTABLISHMENT OF SURPLUS FOOD PROCESSING AGRI-HUBS and AGRI CAPACITATION

3A. Food hubs / Agri-Parks to act as venues for processing surplus food 3B. Agri community capacitation to reduce food loss and waste

DEFF initial leadDALR & ARC / AgriSETA

R25m for 1 food hubR30k / student / year

Q3 2020 workshopDetermined by 1A

4. REGULATIONS, STANDARDS & GUIDELINES

3A. Refined / updated compost standard (Act 36 of 1847)3B. Standardised date labelling (R146)3C. Legislation to enable surplus food redistribution3D. Government food procurement guidelines3E. Household and food service sector guidelines

DALRDoH / SABS / DAFF / CGCSADoH / WerksmansNational TreasuryDEFF / CSIR

R5m for workshops In progressTo happenIn progressTo happenIn progress

5. NATIONAL CAMPAIGNS / TRANSFORMATIVE LEARNING PROGRAMMES

5A. Themes to be determined based on outcomes of 1A GCIS / Tbc R235m? Determined by 1A

6. IDENTIFICATION AND IMPLEMENTATION OF SOLUTIONS

6A. Identify solutions and good practice

6B. Run innovation challenges to implement solutions

Tbc R10m per challenge Determined by 1A

47

THANK YOU

Ms. Matlou Setati, CGCSA

Potential business response to addressing food waste in South Africa

Making the link between Operation Phakisa & the VA

• Proposed setting up of a Public Benefit Organisation (PBO) in response to Operation Phakisa’s need for a Special Purpose Vehicle (SPV) to implement the Operation Phakisa Food Waste Initiative via the Food Waste voluntary agreement

• PBO’s act as a mechanism for responsibly spending public funds derived from donations and grants on a tax free basis

• Operation Phakisa requires business-led commitment

• Section 18 route or Section 28 route

Questions?

Tea Break

Dr. Julian Parfitt, Anthesis Group &Ms. Nicola Jenkin, Pinpoint

Overview of the proposed business plan

Evolution of the business plan

• Gap analysis – current situation in South Africa (November 2018)

• Recommendations for a roadmap and voluntary agreement (December 2018)

• Recognition that a VA needs a formal business plan:• Attract funding

• Provide focus

• Command respect within sector

• Provide a credible response to reduce SA food waste and UN SDG 12.3 + other benefits

Blueprint for a voluntary agreement

1. A need for firm VA food waste reduction targets

2. Dedicated staff within an independent delivery body

3. Although not run by government, a VA needs accountability and a main sponsor within government

4. Secure and long-term funding

5. Local knowledge and expertise is required to make a VA successful - designed by South Africans for South Africa

6. Whole chain approaches

56

INITIATION

&

SET-UP

AMBITION

GOVER-NANCE

&

FUNDING

ESTABLISH-ING

ACTIONS

MEASURE-MENT &

EVALUA-TION

Source: EU Refresh project, 2019

Business Plan proposed timeline: 2019-2022• Target: Collecting achieve a 50% reduction in food waste reduction by 2030

• Adopt the ‘Target, Measure, Act, Report’

• Agree to work collectively and collaboratively: share best practice, provide expertise, learn from each other

Year 1 : 2019/2020 Years 2-3 : 2021-2022

− Signatories to measure their food waste / surplus and identify ‘hot spots’ to develop a baseline

− Establish priority working groups for year 1

− Support delivery of Operation Phakisa

− Identify and connect with other key stakeholders e.g. farmers

− Signatories to work towards achieving agreed upon percentage reduction in food waste / surplus

− Signatories to report annually on a confidential basis

− Continue with year 1 working group activity and establish new working groups

Aligns with Operation Phakisa &

other inititiatives

58

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Mill

ion

s o

f to

nn

es

Consumer food waste Distribution/ retail Processing/ packing

Handling / storage Agriculture

• Accurate estimates of food waste are notcurrently available for South Africa

• This trajectory is used to indicate the scale ofreductions needed to meet SDG 12.3 by 2030

• To meet the 2030 target would require areduction of nearly 6 million tonnes/ yearagainst a 2020 baseline

• Part of this reduction will be critically linked tothe VA and its working groups

• Sustained funding at an appropriate level and afully functioning governance structure must bein place to enable the VA to follow such achallenging trajectory

Baseline 2020

18% reduction

36% reduction

SDG 12.350%

reduction

SA VA indicative trajectory to 2030

Establishment of a VA baseline and SDG progress reports

KEY ACTIVITIES:

1. Develop draft monitoring and reporting methodology with StatsSA and CSIR, taking account of UN SDG

12.3 indicators and relevant metadata, and multi-metric social, environmental and economic indicators

2. Run a workshop on collection methodologies, assumptions and analysis of current situation; present

baseline options and reach agreement

3. Produce agreed baseline for 2020, following World Resources Institute FL&W Accounting and Reporting

Standard and taking account of the FUSIONS Food Waste Quantification Manual

4. Agree frequency of rolling programme of measurement and progress reports

Apr-May-Jun 2020 Q2 Jul-Aug-Sep 2020 Q3 Oct-Nov-Dec 2020 Q4Jan-Feb-Mar 2020 Q1

International definition of food waste to support SDG 12.3 reporting

e.g. World Resources Institute’s (WRI) Food Loss & Waste reporting standard

Yet aligned and taking into account South African waste legislation, regulations, standards and definitions.

12 months

Food

Inedible parts

Animal Feed

Biomaterial/

processing

Co/anaerobic

digestion

Compost/aerobic

Controlled

combustion

Land application

Landfill

Not harvested

Refuse/discards

Sewer

2020-2022 annual data collection, analysis & reporting

KEY ACTIVITIES:

1. Establish a reporting template based on WRI FL&W accounting and reporting standard.

Design a secure web portal for hosting signatory data

2. In conjunction with the monitoring and evaluation working group, design a quality assurance

system for signatory returns and deal with technical queries on food waste reporting

3. Compile anonymized results for signatories to contribute to the 2020 food business baseline

4. Develop and implement a training programme aligned to signatory reporting timetable

Apr-May-Jun 2020 Q2 Jul-Aug-Sep 2020 Q3 Oct-Nov-Dec 2020 Q4Jan-Feb-Mar 2020 Q1

A focus the M&E working group, to be led StatsSA/ CSIR in consultation with the DPME

Questions?

Department of the Presidency (TBC)

Special Purpose Vehicle / PBO / Secretariat (CGCSA)[Responsible for co-ordination & delivery]

Steering Group

Core & Associate signatories[Commitment to delivery or support the voluntary agreement]

Theme focused working groups[Task oriented]

Proposed governance structure

DEFF Operation Phakisa Chemicals

& Waste

Operation Phakisas (x7)

Research priorities – initial ideas

1. Food loss and waste along the supply chain [hotspots] (could also include a food flow map for the country / waste compositional analysis), including on-farm food loss and waste (small- and commercial agriculture)

2. A more holistic understanding of food surplus and redistribution potential / feasibility

3. Comprehensive household food waste study

4. Hospitality and food service food waste

5. Informal food sector and associated food waste

Proposed future innovation challenges

1. Cool chain storage and distribution

2. Food surplus and secondary markets (job creation)

3. Gleaning and co-harvesting

4. Whole-chain solutions

5. Farm-level technology support and capacitation

To be informed / prioritised once the hotspots analysis has been undertaken

Oct-Nov-Dec 2019 Q4Apr-May-Jun 2019 Q2

Actions to voluntary agreement launch

KEY ACTIVITIES PRIOR TO LAUNCH:

1. Need to build on the feedback from today and the workshops and revise the plans for the VA

2. Consult on the revised plans

3. Signatory recruitment • To identify, target, engage and sign up signatories • To get signatory approval to mention in press, use

logos etc.

4. Voluntary agreement launch at CGCSA Annual Summit (Proposed 6th or 7th November 2019)

Jul-Aug-Sep 2019 Q3Jan-Feb-Mar 2019 Q167

Launch purpose

• The launch will present the food waste voluntary agreement as the main mechanism for implementing South Africa’s SDG 12.3 commitment.

• It will introduce the food waste voluntary agreement’s ambitions and targets, and share the business plan.

• The launch will introduce the first set of main signatories and sponsors.

• Will act as a call to action for South African food-related business, NGO’s, local authorities, government departments, food redistribution charities to sign up and support the voluntary agreement.

Alignment with other initiatives

• Operation Phakisa Chemicals & Waste (Food waste initiative)

• WWF-South Africa research and advocacy / sustainable food systems

• Western Cape Government’s ‘Nourish to Flourish’

• Institute of Directors’(IoD) King V – Principle 3 (waste)

• Other food discussions e.g. National Business Initiative (NBI)

Indicative voluntary agreement budget & considerations – first 3 yearsBudget item 2020 2021 2022

1. Secretariat salaries R2m R2.6m R2.6m

2. Annual summit R182,500 R182,500 R182,500

3. Working groups – secretariat + technical work on hotspots

R5m R4.5m R4.5m

4. Technical Support for measurement & reporting

R5.5m R5.5m R3m

5. Publicly funded research underpinning VA (e.g. behavioural change research –consumer food waste)

R3m R3m R2m

6. Campaigns R50mR45m R45m

7. Innovation challenges 0 R6m R6m

Estimated Return on Investment over period = R18 for each Rand invested

Conclusions

• Clear business and social/ environmental case for action

• Links closely with Government thinking on food waste reduction

• Excellent return on investment

• Indicative work programme and scale of funding developed,

following April workshops (Johannesburg) and stakeholder

conversations

Questions?

Lunch