Modern Australian
Men's Weekly

.

NZ’s food manufacturers are embracing the idea of a circular economy but are slow to implement it

  • Written by Sitong Michelle (Michelle) Chen, Senior Lecturer in International Business, Auckland University of Technology
NZ’s food manufacturers are embracing the idea of a circular economy but are slow to implement it

Around the world, the growth of industry and consumption has escalated environmental damage through increased emissions, waste and pollution from landfills.

The current linear economic model, characterised by a “take-make-dispose” approach to limited resources, is increasingly shown to be unsustainable.

New Zealand’s food manufacturing industry is a major contributor to these issues. However, an alternative, more sustainable, approach exists in the circular economic model.

We have explored six large food manufacturing companies in Aotearoa New Zealand committed to circular-economy practices. We wanted to understand if and how they prioritise the four circular elements of reducing, reusing, recycling and recovering.

We identified a variety of drivers and barriers to implementing circularity. This includes consumer knowledge, government regulation, supply-chain issues and financial commitment.

Overall, we found New Zealand food manufacturers are slow to take positive steps in all areas. They lack a working knowledge of circular processes and the old linear model still holds sway.

New Zealand context

We found New Zealand food manufacturers are beginning to embrace the circular economy but there is still a long way to go for them to close the loop. The current focus is mainly on three elements (reducing, reusing and recycling), but they pay less attention to recovering materials.

A graph to explain the differences between linear and circular use of resources.
Food manufacturers are moving towards a more circular model of resource use but face barriers and lack of awareness among customers. CC BY-SA

In practice, reduction involves minimising the use of resources and avoiding unnecessary waste. Here the focus is on reducing the quantity of raw materials without compromising on quality.

Reusing extends the life of products and materials by finding new purposes such as refurbishing or repairing items to prevent them from becoming waste. This is especially the case with packaging materials which can be reused, recycled or composted.

Recycling refers to the process of collecting, sorting and processing materials to manufacture new products. This reduces the demand for new raw materials. For example, fruits past their use-by dates can be turned into pickles and perfumes.

Recovery extracts energy or other useful resources from waste materials that cannot be recycled. For example, withered flowers and spoiled fruits are turned into biomethane for energy production. This is New Zealand’s weakest link in the adoption of the circular economy.

A stack of unrecyclable take away coffee cups
Thousands of single-use cups are still used and thrown out. Getty Images

Barriers to circularity

Food manufacturers told us they face multiple barriers imposed by local and offshore factors, including a lack of awareness of circular-economy principles among consumers and industry.

Research participants noted that local consumers are concerned more with price than circularity. People prefer cheaper products despite their negative environmental impact.

All companies we studied expressed this perspective. One participant said:

A major and continuing challenge for us, and our industry, is that of the single-use takeaway cup. Despite our best efforts to encourage and support our customers to sit in and enjoy their coffee, or bring their cups, we still distribute thousands of cups every year. Changing their mindset around it is still difficult.

Offshore, major trading partners in China and Japan prefer plastic packaging for their products. The food manufacturers we studied found these trading partners valued appearance and presentation first, before environmental impacts.

All companies reported being confronted with regulatory barriers. This includes lack of government support such as rebates and subsidies or robust circular-economy policies. There is no comprehensive framework on how businesses make decisions and investments.

This calls for policy revisions to help companies implement robust circular-economy practices.

Drivers for change

The COVID pandemic had a significant economic impact in slowing down the implementation of circular practices due to supply-chain disruptions. This comes on the back of transportation challenges, a lack of low-emission freight options and increases in living costs.

Based on our findings, we offer suggestions to support managers and policymakers to achieve sustainability in the food manufacturing sector.

First, policymakers can play an important role through laws, regulations, fiscal incentives, public funding and a flexible legislative framework that supports circular-economy strategies. Such measures are crucial for reducing uncertainty and encouraging investment in circular practices.

Second, we advise companies to concentrate on education and raising awareness among consumers about the long-term benefits of the circular economy. This is a much more urgent agenda than focusing on regulatory, technological or supply-chain issues. Policy and regulation change will happen in response to changing consumer preferences and patterns.

Third, because educating the public at home and abroad is not an easy fix, companies need to collaborate with each other across all parts of the food manufacturing industry, including retailers and manufacturers.

Mindsets and practices among New Zealand businesses need to shift from a linear model towards receiving training in circular-economy practices and education in sustainability and to be able to make changes for future generations.

Authors: Sitong Michelle (Michelle) Chen, Senior Lecturer in International Business, Auckland University of Technology

Read more https://theconversation.com/nzs-food-manufacturers-are-embracing-the-idea-of-a-circular-economy-but-are-slow-to-implement-it-241355

How Ignoring Regular Car Servicing Can Lead to Costly Repairs

Owning a car gives you a sweet sense of freedom and comfort. You can go wherever you want, whenever you want. But with that freedom comes responsibili...

Someone Trips at Your Fundraiser. Now What? Understanding Public Liability for NFPs

Three months of planning. Volunteers giving up their weekends. Sponsorships chased, catering sorted, tables decorated. And then, about an hour into ...

Stainless Steel Tube: A Complete Specification Guide for Engineers, Project Managers, and Industrial Buyers

Few materials in the industrial and manufacturing world are as universally relied upon — or as frequently misspecified — as stainless steel tube...

How to Choose the Right Barber Shears Scissors for Professional Results

Since a barber is only as good as their tool, choosing the right barber shear scissor must not be taken lightly. Most barbers end up buying the first ...

Why Commercial Construction Companies Play A Critical Role In Modern Urban Development

Urban development requires highly organised planning, engineering expertise, and professional construction teams capable of delivering complex build...

Essential Features for Comfortable Family Caravan Trips

Choosing the right van for family travel requires careful consideration of how the space will be used on a daily basis. Families have specific needs...

Chatswood Tutor: Helping Students Achieve Academic Success With Personalised Learning

Education plays a crucial role in shaping a student’s future, and many students benefit from additional academic support outside the classroom. A pr...

How External Consulting Can Guide Enterprise IT Strategy and Procurement

Internal IT teams carry deep operational knowledge, but that familiarity can create blind spots in strategic decisions. An external IT consultant br...

Why Sports Nutrition Australia Is Important for Performance and Recovery

Athletes and fitness enthusiasts place significant demands on their bodies during training and competition. Maintaining energy levels, supporting mu...

How Body Contouring Bundoora Helps Improve Shape And Confidence

Modern aesthetic treatments have made it possible to refine body shape without the need for invasive surgery. One of the most popular non-surgical o...

Why Plantation Shutters Are a Stylish and Practical Choice for Modern Homes

Window coverings play a major role in the comfort, privacy, and overall design of a home. Homeowners often look for solutions that provide both visu...

Why a Retractable Hose Reel Is Essential for Efficient Water Management

Managing hoses efficiently is important for both residential and commercial environments. Whether watering gardens, cleaning outdoor areas, or maint...

Best Ways to Trade In Your Old Tech for Cash in Australia

Upgrading your mobile is exciting, but many Australians are left wondering what to do with the device they no longer use. Instead of leaving it in a...

Why Doctors in Bundoora Play an Important Role in Community Health

Access to quality healthcare is essential for maintaining a healthy lifestyle and managing medical conditions effectively. Visiting experienced doctor...

Backyard Aesthetics Decoded: Mediterranean, Coastal, Retro, Rustic, and Beyond

Backyard design has come a long way from a patch of lawn, a barbecue in the corner, and a few chairs chosen purely for practicality. Today, outdoor ...

What Stops a Home From Feeling Flat-Pack Generic

There is nothing wrong with convenience. Flat-pack furniture, fast styling decisions, and online checkouts have made it easier than ever to furnish ...

5 Best Dental Clinics in Beecroft, NSW

The best dental clinics in Beecroft, NSW are Beecroft Smiles Dental Surgery, Beecroft Elegant Dental Clinic, McConnell Dental, Dentistry for Life, a...

Executive Recruitment: Finding Leadership Talent That Drives Organisational Success

Hiring the right leadership team can significantly influence the direction and performance of any organisation. Strong executives bring strategic thin...