Circular economy
In the food industry, circular economy means reducing food waste and making use of by-products generated at different stages of production. Companies promote circular economy their own production and throughout the various stages of a food product’s life cycle.
The goal is to minimize waste and to utilize raw materials as efficiently as possible. By-products from production are used, for example, in new food products and animal feed. Energy production is also an important part of the circular economy. By-products are utilized in the production of biogas, allowing the nutrients they contain to be recovered.
Minimizing waste and loss reduces the consumption of natural resources while also supporting business profitability.
Material efficiency commitment
The Material Efficiency Commitment in the food sector aims to reduce the environmental impact of food production, distribution, and consumption. This is achieved by reducing food waste, minimizing losses in production processes, increasing recycling rates, and decreasing the use of packaging materials and plastics.
The commitment sets common goals for the participating companies, but each company can choose its own measures to achieve them.
The food industry joined the first Material Efficiency Commitment for the period 2019–2021. The results showed that material efficiency can lead to cost savings and reduces environmental impact, including food waste and loss. A new commitment period for 2022–2026 has since been agreed.
Examples of company actions under Material Efficiency Commitment include:
- Creating new business opportunities or added value from production side streams.
- Strengthening the capacity of staff or partners to improve and develop material efficiency.