Waste: A Game of Snakes and Ladders? : Food and Retailing
The food and retailing industry has an unenviable position on the front line of the environmental packaging debate. As the sector that is closest to the hearts and minds of the public, it has been subject to close scrutiny and a disproportionate amount of attention from both Brussels and Whitehall: quite simply, environmental solutions must be seen to work in this area to meet political considerations. But, how does it measure up in comparison with the rest of UK industry?
Surprisingly, the sector does not come out well in the adoption of formal standards for either quality or environmental systems Only two in five have BS5750 and the sector is surprising in that medium-sized companies are more likely to have the quality standard than large companies, a reversal of the usual trend we find throughout the survey. This might be explained by the fact that large retailers are rather cynical about BS5750, believing that their own quality assurance systems are at least as good if not better. Quality standards are extremely important particularly for the food retailing industry, which is heavily reliant on ' just in time' delivery.
Our survey shows that only 25 per cent currently have a formal environmental management programme - fewer than any other sector questioned. To some extent the cynicism about BS5750 extends to environmental management systems such as BS7750, though it is worth noting that a further two-thirds (67 per cent) are aiming for such a standard.
Fewer than half (48 per cent) of companies currently operate a waste minimisation programme, though of the remainder, a further 63 per cent (mainly small and medium-sized organisations) are planning to implement a programme. Their waste minimisation schemes are most likely to address package change(79 per cent), energy saving (76 per cent), process change (70 per cent) and product redesign (64 per cent).
This sector is more likely to address packaging change than any other industry, which is to be expected in light of the EC's Directive on Packaging.
The White Paper 'This Common Inheritance' has set a target to divert 50 per cent of recyclable household waste away from landfill by the year 2000; at the moment just 14 per cent is recycled.
A total of 65 per cent of companies have made some changes to minimise the use of packaging, and of those who produce paper and card, 90 per cent recycle it. However, if the food and retailing industry is to meet government targets for recycling, it needs to find markets for this material. These potential markets are supplied by France and Germany which have flooded world markets with packaging made from Continental waste. As a result, UK prices have become depressed with processing capacity flooded by the influx. The food and retail industry needs to work closely with the waste management industry to source the needs of UK reprocessors in a stable pattern.
With 'producer responsibility' today's buzzword, it is perhaps surprising that fewer than half (48 per cent) believe that it has implications for their business; only five retailers interviewed in our survey have Take Back facilities for consumer packaging. But in view of the fact that the industry is already liable to take back distributors' packaging and the German experience of consumer packaging, Take Back is an area of some concern certainly at its most basic level.
However, despite the fact that waste has been established as a critical industry issue, only a third (34 per cent) measure their annual waste spend, well below the cross industry average of 56 per cent. Of these 92 per cent measure by cost of disposal, but only a half (50 per cent) measure the actual purchase cost of wasted material. But calculating the price of buying in manufactured goods, the cost of wasted goods becomes substantial.
The industry produces a non-hazardous waste stream and its real problem is one of logistics rather than disposal. The cost of collecting, transporting and sorting waste from across the country can be a substantial overhead in a business and is likely to rise with increased recycling. At the moment only about four in ten (42 per cent) believe that waste costs will rise, but the food and retailing industry needs to act now to ensure that it can keep escalating waste costs under control in the future.
The survey covered food manufacturing companies, and food and retail outlets. Almost a third of the food and retailing companies interviewed (32 per cent) were based in the North, reflecting the geographical spread of the industry.
MAIN FINDINGS
- Only 25 per cent have a formal environmental management system
- Less than half (48 per cent) think that Take Back Liability has implications for them
- Only a third (34 per cent) measure waste spend
- Eight in ten (79 per cent) address packaging change in waste minimisation programmes
INDUSTRY FACTS
The food and retailing sector. . .
- Total retail turnover (sales) was 3148.3 billion in 1993
- Retailers contribute 27% of the GDP
- Retailing employed 1 in 10 of the UK population in 1993
- The sector spent 3210 million on waste disposal in 1992
Legislation
- EC Proposed Directive on Packaging
- Government recycling targets for household waste
- Producer Responsibility
- Group Proposals and Take Back funding
- Ecolabelling regulation
Process Change
- Packaging redesign/outer pack removal
- Bulking up
- Product redesign - more powerful product in smaller sizes
- Review of hazardous household substances
- Refrigeration systems
Environmental Effects
- Landfill diversion
- Sustainable agriculture
- Reuse of packaging inputs
- Changes in consumer attitudes & education
