Sep 6, 2017Ontario case study shows ways to increase quality, lower waste
As part of the Ontario Produce Marketing Association’s (OPMA) food waste reduction initiative, Value Chain Management International (VCMI) worked with EarthFresh Foods and growers to identify ways to reduce waste by increasing the quality and value of table potatoes, from field to consumer.
The case study, the first of four being developed during the project, describes how tools and techniques presented at workshops hosted by OPMA help businesses reduce all types of waste. This is because food waste is a visible symptom of wider opportunities to improve business performance.
The case study describes causes found to influence the production, handling, storage and grading/packing of table potatoes, and how these causes can be managed to enable table potatoes to be marketed strategically. This results in producers and downstream businesses having the opportunity to increase revenues and reduce costs in ways that are not otherwise possible.
Examples of what is achievable from proactively managing the determinants of quality and value include the fact that a 29 percent increase in pack-out rate equates to a 74 percent increase in grower margin. On a 50,000 lb. load of potatoes, this amounts to a $6,000 increase in grower returns. Potatoes typically cost $4,000 an acre to grow.
The study involved 1) engaging in detailed discussions with potato growers and EarthFresh staff involved in procurement, operations and marketing; and 2) visiting farms and EarthFresh’s packing facilities in Grand Bend and Burlington.
The table potato value chain was then mapped to identify causes and effects, with production and pack-out data analyzed to measure performance over time. The resulting insights showed the extent to which the financial performance of growers, packers and other downstream businesses are effected by variations in quality that can be addressed through proactive management.
Involving key individuals from along the value chain enabled the development of solutions for improving table potatoes’ quality and value. Improved performance relies on the establishment of key performance indicators (KPIs). This, along with constructive communication between growers and their customers, enables wastes/costs to be extracted and revenue created in ways that would be impossible if not for having adopted a market-driven collaborative approach to business.
“EarthFresh is very pleased with the results of the OPMA potato study undertaken in cooperation with Value Chain Management International,” said Tom Hughes, president of EarthFresh. “We feel that everyone can improve their potato operations in some way. This study shows how important it is to try to do even the little things correctly; and that, if you succeed, the rewards can be very substantial. Thank you to both VCMI and the OPMA for producing such an inspiring report.”
EarthFresh is working with its supply base, retail and foodservice customers, as well as Ontario’s wider potato industry, to implement the study’s findings through applying new processes and practices from farm to consumer.
For more information or to view the case study, visit www.theopma.ca.
