The dairy sector in Australia has produced a comprehensive action plan to eliminate food waste. The Dairy Sector Food Waste Action Plan aims to cut food waste in half by 2030.
Dairy is the first agricultural industry in Australia to take this critical step. It is in response to the Australian government’s objective of cutting food waste in half by 2030. Food waste from the dairy supply chain had previously been recognized as one of the six top Australian food waste sources, according to Dairy Australia managing director Dr David Nation.
The Action Plan’s goal is to evaluate and identify commercial and practical food waste reduction solutions across the dairy supply chain. “This plan will galvanize the sector to pursue opportunities to address our food waste challenges,” says Nation.
Dairy is Australia’s third-largest rural sector, with 4,420 dairy farms and 455 processing plants located around the nation. The overall annual milk output in season 2021-2022 was 8.55 billion litres, with 86% produced in south-east Australia.
The industry has obtained insights into where, what, and how much food waste is happening as a result of the formulation of the Action Plan, and has identified ten important steps to decrease waste, minimize environmental consequences, and reduce costs.
Each year, 0.71 million tonnes of real dairy food waste are created in the dairy production chain. Significant amounts of dairy food waste are produced at the production, food service, and residential levels.
Production of cheese
The states with the largest percentage of dairy food loss are those that process the most milk (Victoria, Tasmania, and New South Wales). Cheese manufacturing generates the most dairy food waste, mostly as a consequence of whey (a byproduct of cheese making) being discharged to sewers and land.
Milk processing is also responsible for considerable amounts of dairy food waste, with the bulk of this waste stream originating from finished product that was not eaten, followed by losses owing to process wastes. In comparison to the rest of the supply chain, raw milk losses on the farm are minimal.
It presently costs dairy producers roughly AUS$700 million (US$471 million) per year to handle all possible food waste, with an extra AUS$120 million (US $81.1 million) in income lost due to discarded completed goods.
The necessity and continuous requirement to regularly monitor dairy food waste and loss throughout the supply chain was a critical conclusion from building the Action Plan. Given the diversity and breadth of dairy food items, establishing a consistent measure for measuring and monitoring dairy food waste is a major concern for the dairy sector.
The dairy sector and wider supply chain need a standardized monitoring tool to facilitate regular and continuous monitoring of dairy food waste and to track industry progress toward dairy food waste reduction objectives. According to UK experience, projects focusing on frequent food waste monitoring may result in a 15% decrease in food waste.
Priority actions include investing in R&D and technical solutions for dairy manufacturing sites, implementing efficient inventory management systems to monitor and report on waste, collaborating with food rescue organizations, promoting sustainable packaging solutions, and educating consumers through product labeling and storage advice-behavior changes throughout the supply chain.
On farms, it is critical to minimize milk losses and immediately evaluate if milk picked up early (at temperatures over 5°C) can fulfill Food Standards Code and/or EU criteria. Antibiotics used selectively on cows, milk vat temperature sensors, and generators to handle power outages may all assist to decrease losses.
Dairy Australia produced the Action Plan in partnership with the Australian Dairy Products Federation and Stop Food Waste Australia, as well as input from dairy companies around the nation.
Dairy farmers will save a lot of money.
The development of the Dairy Sector Food Waste Action Plan, according to Janine Waller, executive director of the Australian Dairy Products Federation, has offered the sector information about where, what, and how much food waste occurs throughout the dairy supply chain.
According to Mark Barthel, chief operating officer of Stop Food Waste Australia, studies show that a 1% reduction in food waste could result in savings of up to AUS$10 million per year (US$6.7 million) for dairy manufacturers, increasing their ability to compete in local and international markets.
“The benefits of reducing food waste go beyond financial gains,” he says. “Effectively preventing and managing dairy food waste can reduce associated greenhouse gas emissions by up to 20%, while also conserving water and energy and significantly reducing the ecological footprint.”
