SV Unboxed - Final Report published today!  

EXECUTIVE SUMMARY

Food packaging waste in Australia contributes significantly to waste generation and environmental pollution. Despite a high percentage of packaging being reusable, recyclable, or compostable, actual recycling and composting rates are low. The solution to this is not as simple as removing packaging from food supply chains, as it plays an important role in keeping food fresh and undamaged, thus reducing food waste, a significant contributor to greenhouse gas emissions. As such, a balance must be sought between food and packaging waste to improve environmental outcomes.

Under the National Waste Action Plan, the Australian government has set ambitious targets for 2025 to reduce packaging waste. These targets include:

The Victoria Unboxed project aligned with these targets, specifically focusing on reducing pre-consumer packaging waste in short fresh produce supply chains. It was inspired by the existing crate usage by small-scale farmers in Victoria and produce distributor Natoora’s commitment to using crates for their deliveries to hospitality venues. Victoria’s local produce is the hero of our greatest cafes and restaurants, and this project worked to document and enhance the unsung, behind the scenes sustainability work that the farmers, hospitality workers and distributors do to move towards a circular economy.

Research has found that packaging reuse programs, particularly those involving reusable plastic crates, can enhance the sustainability of fresh produce supply chains.4 There are reusable crate programs currently in use in Australia, with both Coles and Woolworths utilising reusable plastic crates in their supply chains.5 And of course, the use, reuse and adaptive use of the milk crate is ubiquitous and every day. Many small-scale farms in Victoria have independently adopted plastic crates for storage and transport of produce.6 However, despite the inherent waste savings related to reusable plastic crates, their use remains relatively low because of the startup costs and logistical complexity of such schemes.

The Victoria Unboxed Project worked to reduce these startup costs and document and streamline the logistics of crate use to boost growth in circular crate systems and reduce packaging waste in fresh produce supply chains. We achieved this by researching current industry practices and running a crate-use pilot program with Natoora, a Melbourne-based direct-to-hospitality produce distributor. The pilot program was designed based on desktop research, stakeholder consultation and field visits. The desktop research component of the project sought examples of existing reusable packaging programs and conducted a lifecycle assessment of packaging materials. Stakeholder feedback was gathered during all stages of the project. Our fieldwork also uncovered other circular packaging solutions currently used in small-scale farms - particularly egg cartons and sealed tubs for salad mix. We adapted our project to showcase these initiatives, as they have great potential to drive circular food packaging solutions.

Overall, this project demonstrated reusable crates' effectiveness in reducing waste and operational stress. The continued use of crates from this project saves an estimated 7.18 tonnes of packaging waste per annum, the equivalent of 6.2t of CO2e (production emissions). Many of Natoora’s stakeholders involved in the project were already fully engaged with creating circular packaging solutions, so the extra resources this pilot program afforded created a more sustainable system with sufficient ‘slack’ to ensure more consistent and efficient use of crates. We received overwhelmingly positive feedback from farms and hospitality venues alike.

The logistics involved in circular economy schemes requires thoughtful consideration. Our research found that using distinctive branded crates and a regular exchange of crates led to a highly efficient return of crates in the distributor to hospitality supply chains. On the other hand, using crates within a more porous system - that of the farm - proved more of a challenge. It was not that crates were lost or destroyed, but they became increasingly used for long-term storage.

Recommendations

Based on the findings, the report recommends expanding reusable packaging solutions across more segments of the hospitality supply chain. Crates are handy and adaptable, but product-specific solutions (such as egg cartons and sealed containers for salad mixes) are essential for circular packaging in the future. Our research has shown that such systems work best when attached to existing systems. Circular packaging systems do not necessarily need to be high-tech, as they mostly rely on the goodwill and commitment of the people within them. Government investment would be well targeted at subsiding the crate infrastructure available to farmers, distributors and businesses and supporting the education and engagement of the hospitality, farm and distributor sectors.

Government policies and regulations also play a pivotal role in shaping industry practices regarding packaging waste. Legislative measures, such as bans on single-use plastics, mandates for recyclable materials, and incentives for circular packaging use, are vital to shifting to sustainable food production and distribution models. It is important for government interventions to strike a balance, ensuring compliance with less willing actors while encouraging engaged industries to adopt proactive measures.

Download the full report here